Allowed

Canara Bank v. Malutayi Suresh Vantagodi and Another

DRT30 Jan 2026OA/2283/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for a recovery certificate against the legal heirs of a deceased farmer borrower. The court directed recovery of the declared amount including interest at a reduced simple rate of 6% from the scheduled property, holding heirs liable only to the extent of the inherited estate.

What did the court decide?

Recovery of Rs. 42,17,781.00 with 6% simple interest from filing date against the schedule property; defendants liable only to the extent of inherited estate.

Canara Bank versus Malutayi Suresh Vantagodi and Another — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 30^th Day of January, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.2283/2024

¶5

BETWEEN:

¶6

Canara Bank, Branch office at Kulgod, Kulgod Branch, Mudalagi Taluk, Belgavi District- 591 310 And represented by its branch/ Senior Manager and Authorized Signatory, Mr. Harish Y Gadinaik.

¶7

…APPLICANT

¶8

AND:

¶9

Smt. Malutayi Suresh Vantagodi, Aged about 70 years, W/o Sri. Suresh Vantagodi, R/o Kulgod Village and Post, Gokak Taluk, Belgavi District- 591 250. (Mother and legal hier of borrower Late Sudheer Suresh Vantagodi)

¶10

Smt. Renuka Sudheer Vantagodi, Aged about 40 years, W/o Sri. Sudheer Suresh Vantagodi, R/o Kulgod Village and Post, Gokak Taluk, Belagavi District- 591 136. (Wife and Legal hier of borrower Late Sudheer Suresh Vantagodi) ...DEFENDANTS

¶11

Counsel on record/appeared for:

¶12

Applicant : Veena R Rai Defendants : Exparte

OA 2283/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 42,17,781.00 (Rupees Forty Two lakh Seventeen Thousand Seven Hundred Eighty One Only) with further interest thereon from the date of filing the Application till realization.

¶17

It is the case of the applicant that the defendants No.1 & 2 are the legal heirs of the deceased borrower- Late Sudheer Suresh Vantagodi who availed Rs. 9,25,000/- (Rupees Nine Lakh Twenty Five Thousand Only) under Kisan Suvidha Sublimit-I and Rs. 6,50,000/- (Rupees Six lakh Fifty Thousand Only).

¶18

It is also the case of the applicant that, in view of the above availed loans, the deceased borrower executed necessary loan documents along with agreement and deed of hypothecation, revival letter and simple mortgage deed.

¶19

It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the deceased borrower failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶20

In the above circumstances, the applicant approached this Tribunal

¶21

by filing this OA seeking issuance of Recovery Certificate for the amount

OA 2283/2024

due in the account.

Despite, summons on the defendants, they failed to appear resulting the defendants being set exparte on 29.04.2025.

¶26

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-37 and got the same marked in evidence.

¶27

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

¶28

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the OA claim

¶30

as against the defendants?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in

¶34

OA 2283/2024

¶35

¶36

the accounts. The claim of the amount due is also proved by the above

¶37

documents. The claim of the applicant is well within the limitation.

¶38

Hence in view of the finding arrived herein above, the Tribunal find

¶39

both these issues in favour of applicant and hence, this Tribunal is of the view that OA is liable to be allowed.

¶40

Taking into consideration the facts that the credit facilities are

¶41

availed for Agriculture purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00% (simple).

¶42

In the result, OA.No.2283/2024, stands allowed,

¶43

i) The applicant is allowed to recovery an aggregate sum of Rs.

¶44

42,17,781.00 (Rupees Forty Two lakh Seventeen Thousand Seven Hundred Eighty One Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the against the schedule property. Properties Schedule to the OA be the schedule to the recovery certificate.

¶45

ii) The defendants Nos. 1 & 2 being the LRs of the deceased

¶46

borrower are liable only to the extent of the estate inherited by them from

OA 2283/2024

the deceased.

iii) The applicant bank is allowed cost of the proceedings which

¶51

applicant to file cost memo within 7 days from the date of receipt of the order.

¶52

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶53

v) Interim application pending, if any, are disposed of with this Final Order.

¶54

Communicate a copy of the order to the parties concerned in terms

¶55

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

¶56

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of January, 2026].

¶57

Sd/-

¶58

(T. RAJESH)

¶59

PRESIDING OFFICER

¶60

ANNEXURES

¶61

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶62

AW-1: Mahesh Hosatti, Officer, of Applicant Bank.

¶63

OA 2283/2024

¶64

¶65

Exhibits on the part of the Applicant:

¶66

Exhibit Number	Date of document	Description of Documents
Exhibit No. A1	03.08.2011	Application for Loan submitted by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A2	18.08.2011	Sanction Letter
Exhibit No. A3	18.08.2011	Agreement and deed of hypothecation executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A4	18.08.2011	Nomination cum authority letter executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A5	18.08.2011	Letter evidencing execution of documents
Exhibit No. A6	16.08.2011	Simple mortgage deed executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A7	26.06.2014	Letter of revival executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A8	30.06.2014	Application for enhancement submitted by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A9	30.06.2014	Sanction Letter
Exhibit No. A10	30.06.2014	Letter of Revival executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A11	30.06.2014	Letter of Renewal executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A12	30.06.2014	Supplemental Agreement executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A13	27.06.2014	Simple mortgage deed executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A14	03.08.2011	Application for loan submitted by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A15	18.08.2011	Sanction Memorandum

¶67

OA 2283/2024

¶68

¶69

Exhibit No. A16	18.08.2011	Request for overdraft facilities executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A17	18.08.2011	Agreement and deed for Kisan OD executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A18	18.08.2011	Certificate of loan papers obtained
Exhibit No. A19	18.08.2011	Letter evidencing execution of documents
Exhibit No. A20	16.08.2011	Simple Mortgage Deed executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A21	26.06.2014	Letter of revival executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A22	30.06.2014	Application for renewal of loan submitted by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A23	01.07.2014	Sanction Memorandum
Exhibit No. A24	01.07.2014	Letter of Renewal executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A25	01.07.2014	Certificate of loan paper obtained
Exhibit No. A26	01.07.2014	Letter evidencing execution of documents
Exhibit No. A27	11.01.2017	Letter of Revival executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A28	03.01.2020	Letter of Revival executed by the Defendant Nos.1 & 2
Exhibit No. A29	02.01.2023	Letter of Revival executed by the Defendant Nos.1 & 2
Exhibit No. A30	11.01.2017	Letter of Revival executed by the borrower late Sudheer Suresh Vantagodi
Exhibit No. A31	12.05.2017	Letter of Revival executed by the borrower late Sudheer Suresh Vantagodi

¶70

OA 2283/2024

¶71

¶72

Exhibit No. A32	19.02.2020	Letter of Revival executed by the Defendant Nos.1 & 2
Exhibit No. A33	21.01.2023	Letter of Revival executed by the Defendant Nos.1 & 2
Exhibit No. A34	09.06.2023	Notice issued to the Defendants
Exhibit No. A35	04.12.2023	Notice issued to the Defendants
Exhibit No. A36		Statement of Account in respect of Kisan Suvidha Loan, Interest calculation sheet and Certificate.
Exhibit No. A37		Statement of Account in respect of Kisan OD, Interest calculation sheet and Certificate

¶73

Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Canara Bank v. Malutayi Suresh Vantagodi and Another

Case brief

What is this about?

What did the court decide?

Canara Bank v. Malutayi Suresh Vantagodi and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

S Rajeswari versus Union Bank of India

Bank of Baroda versus Kishan Mitrapal Chawla Dairy

Bank of India versus Ms Narmada Pipes

Ms Khajuria Constructions and Another versus State Bank of India

Raj Kumar Baniya versus State Bank of India

Smt Firoja Begum versus Indian Bank