Allowed

Canara Bank v. Savariga Since Deceased Rep by Legal Heir Buddanna

DRT22 May 2026OA/244/2024

Case brief

AI extract

What is this about?

In an exparte original application, the Tribunal allowed the bank's claim for recovery. Finding the credit facilities availed, defaults committed, and claim within limitation proven by uncontroverted documentary evidence, the court issued a recovery certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs.59,11,238/- plus interest at 6% p.a. against deceased borrower's estate and schedule properties.

Canara Bank versus Savariga Since Deceased Rep by Legal Heir… — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 22^nd Day of May, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.244/2024

¶4

BETWEEN:

¶5

Canara Bank Branch officea at: Raichur-584101, Raichur District, Karnataka

¶6

…APPLICANT

¶7

AND:

¶8

Sri. Savariga Since deceased represented by his Legal Heir Sri. Buddanna @ Buddappa R/at: D Rampura Village, Athkur Post-584102 Raichur Taluk & District

¶9

...DEFENDANTS

¶10

Counsel on record/appeared for:

¶11

Applicant : M & R Consult. Defendants : Exparte

¶12

FINAL ORDER

¶13

The present Original Application in short (OA) has been

¶14

filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.59,11,238/- (Rupees fifty nine lakh eleven thousand two

¶15

OA 244/2024

¶16

¶17

hundred thirty eight only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶18

It is the case of the applicant that Late Sri. Savariga was the deceased borrower who had availed the following credit facilities from the applicant bank:-

¶19

I. Minor Irrigation Loan of a sum of Rs.6,00,000/- (Rupees Six Lakh Only),

¶20

II. KCC loan limit of Rs.50,000/- (Rupees Fifty Thousand Only).

¶21

It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with memorandum of agreement, simple mortgage deed and letters of revival in favor of the applicant bank.

¶22

It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶23

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate

¶24

OA 244/2024

¶25

¶26

for the amount due in the account.

¶27

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 12.11.2024.

¶28

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-21 and got the same marked in evidence.

¶29

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

¶30

The following issues arise for consideration in this matter:

¶31

i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

¶32

ii) What order are to be passed?

¶33

Both these issues are gone into and decided together.

¶34

The case put forth by the applicant in the Application

¶35

remains unrebutted as defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and

¶36

OA 244/2024

¶37

¶38

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 hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶39

Hence in view of the finding arrived herein above, this

¶40

Tribunal find both these issues in favour of applicant and hence

¶41

this Tribunal is of the view that OA is to be allowed.

¶42

Taking into consideration the facts that the credit facilities

¶43

are availed by deceased borrower Late Savariga for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the OA can

¶44

be allowed with a reduced interest @6% p.a. (Simple).

¶45

In the result, OA.No.244/2024, stands allowed,

¶46

i) The applicant is allowed to recovery an aggregate

¶47

OA 244/2024

¶48

¶49

sum of Rs.59,11,238/- (Rupees fifty nine lakh eleven thousand

¶50

two hundred thirty eight only) with further interest @6% p.a.

¶51

(Simple),

¶52

from the date of filing OA till the realization, from the defendant to the extent of estate inherited by the deceased borrower after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule

¶53

to the OA be the schedule to the recovery certificate.

¶54

(ii) If the sale proceeds are not sufficient, the defendant

¶55

is liabile to the extent of estate inherited by the deceased borrower Late Savariga for the balance amount.

¶56

iii) The applicant bank is allowed cost of the proceedings

¶57

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

¶58

iv) The Recovery Certificate to be drawn in terms of this

¶59

order and transferred to Recovery for execution.

¶60

v) Interim application pending, if any, stands disposed of

¶61

in terms of this final order.

¶62

Communicate a copy of the order to the parties concerned

¶63

OA 244/2024

¶64

¶65

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

¶66

[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 22^nd day of May, 2026].

¶67

Sd/ (T. RAJESH)

¶68

PRESIDING OFFICER

¶69

ANNEXURES

¶70

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶71

AW-1: K Shiva Prasad, Manager, of Applicant Bank.

¶72

Exhibits on the part of the Applicant:

¶73

Exhibit Nos.	Date	Particulars of Documents
A1	19.08.2003	Comprehensive application cum appraisal report
A2	23.08.2003	Memorandum of agreement for agricultural loans
A3	25.11.2003	Memorandum of agreement for agricultural loans
A4	21.04.2003	Simple mortgage deed
A5	27.07.2006	Letter of Revival
A6	30.06.2009	Letter of Revival
A7	21.06.2012	Letter of Revival
A8	04.05.2015	Letter of Revival
A9	02.07.2017	Letter of Revival
A10	20.03.2020	Letter of Revival
A11	09.11.2004	Application cum appraisal form for KCCS
A12	09.11.2004	Agreement and deed of hypothecation for KCCS loan
A13	09.09.2007	Letter of Revival

¶74

OA 244/2024

¶75

¶76

A14	08.05.2010	Letter of Revival
A15	26.04.2013	Letter of Revival
A16	26.03.2016	Letter of Revival
A17	11.01.2019	Letter of Revival
A18	22.12.2021	Letter of Revival
A19	02.11.2022	Legal notice
A20		Copy of the statement of account certified under Bankers Book of Evidence Act. Showing the outstanding liability under Loan A/c No.0519881003466
A21		Copy of the statement of account certified under Bankers Book of Evidence Act. Showing the outstanding liability under Loan A/c No.0519840005125

¶77

Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

¶78

Sd/
(T. RAJESH)

¶79

PRESIDING OFFICER

Canara Bank v. Savariga Since Deceased Rep by Legal Heir Buddanna

Case brief

What is this about?

What did the court decide?

Canara Bank v. Savariga Since Deceased Rep by Legal Heir Buddanna

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

Gurdeep Singh versus Hdfc Bank

Punjab National Bank versus Gomati Devi

Mr Victor Serrao versus Karnataka Bank Limited

M/S Amar Singh and Sons Tree Nuts LLP versus Jammu and Kashmir Bank Limited

Poonam Devi versus India Shelter Finance Corporation Limited

Idfc First Bank Ltd. versus Ms Yo Yatra Tours and Travels Private Limited