Allowed

Canara Bank v. Mamatha

DRT11 Sept 2026OA/2446/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Karnataka allowed an Original Application filed by Canara Bank seeking issuance of a Recovery Certificate against legal heirs and mortgagors. The defendants appeared ex parte. The Tribunal found the loan documents admissible and the defaults proved, but awarded interest at a reduced rate of 6.00% p.a. instead of the claimed rate. A Recovery Certificate was directed to be drawn in favor of the bank.

What did the court decide?

Issuance of Recovery Certificate for Rs.36,12,655.52 with interest at 6.00% p.a. simple from the date of filing OA till realization, recoverable from Defendants jointly, severally, and personally and against schedule property.

Canara Bank versus Mamatha — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 11^th Day of September, 2026

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

OA. No.2446/2025

BETWEEN:

CANARA BANK,

Soraba Branch, Main Road, Shimoga District-577429 Rep. by its Senior Manager Sri. Manjunath M P

¶9

… APPLICANT

¶10

AND:

¶11

Smt. Mamatha W/o. Kenjundi Wadeyar Aged about 55 years

¶12

Sri. Madan Kumar S/o. Kenjundi Wadeyar Aged about 30 years

¶13

Sri. Sachin Kumar S/o. Kenjundi Wadeyar Aged about 27 years

¶14

Miss. Akhila D/o. Kenjundi Wadeyar Aged about 28 years

¶15

All are residing at, Andige Village, Mavali post, Sorab Taluk, Shimoga District

...DEFENDANTS

OA. No. 2446/2025

Counsel on record/appeared for:

¶20

Applicant : Smt. Ayesha Siddiqa Defendants : Exparte

¶21

:FINAL ORDER:

¶22

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.36,12,655.52 (Rupees Thirty Six Lakh Twelve Thousand Six Hundred Fifty Five and Fifty Two Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶23

It is the case of the applicant that, deceased borrower Sri. Kenjundi Wadeyar as a borrower and defendant Nos. 2 to 4 as a mortgager have availed the KCC loan amount of Rs.5,12,000/- for the purpose of crop raising and Kisan OD loan of Rs.7,50,000/- for the purpose of allied activities. The defendant No.1 is the legal heir of the deceased borrower.

¶24

The deceased borrower along with the defendant No.2 to 4 have executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The deceased borrower along with defendant Nos. 2

¶25

OA. No. 2446/2025

¶26

¶27

to 4 had also Simple Mortgage Deed.

¶28

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

¶29

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account as against the defendant.

¶30

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 11.02.2025.

¶31

The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A25 and got the same marked in evidence.

¶32

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.

¶33

The following issues arise for consideration in this matter:

¶34

i) Whether the applicant had succeeded in proving the OA

¶35

OA. No. 2446/2025

¶36

¶37

claim as against the defendants?

¶38

ii) What orders are to be passed?

¶39

Both these issues are gone into and decided together.

¶40

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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶41

Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

¶42

Since the OA claim is arrived at by calculating agreed rate

¶43

of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is

¶44

OA. No. 2446/2025

¶45

¶46

awarded at reduced rate @ 6.00% p.a.

¶47

In the result, OA.No.2446/2025 stands allowed,

¶48

i) The applicant is allowed to recover an aggregate sum

¶49

of Rs.36,12,655.52 (Rupees Thirty Six Lakh Twelve Thousand Six Hundred Fifty Five and Fifty Two Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant Nos.2 to 4 and the defendants No.1 to the to the extent of inheritance of any estate from the deceased borrower, 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 defendant No.2 to 4 jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶50

ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, defendant No.2 to 4 jointly, severally and personally and their other assets and the defendant No.1 to the to the extent of inheritance of any estate from the deceased borrower are liable for all such amounts due under the loan accounts.

¶51

OA. No. 2446/2025

¶52

¶53

ii) The applicant bank is allowed cost of the proceeding

¶54

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

¶55

receipt of the order.

¶56

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

¶57

order and transferred to Recovery for execution.

¶58

iv) Interim Application pending, if any, stands disposed of

¶59

with this Final Order.

¶60

Communicate a copy of the order to the parties concerned in

¶61

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

¶62

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 11^th Day of September 2026].

¶63

(T. RAJESH) PRESIDING OFFICER

¶64

ANNEXURES

¶65

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶66

AW-1: Mr. Avinash V, Chief Manager of the applicant bank.

¶67

Exhibits on the part of the Applicant:

¶68

Annexure	Date	Particulars
A1	22.09.2015	Common Application Cum Appraisal
		Form For Credit Facilities
A2	22.09.2015	Sanction Memorandum

¶69

OA. No. 2446/2025

¶70

¶71

A3	22.09.2015	Agreement And Deed of Hypothecation for Kisan Credit Card
A4	20.03.2018	Letter of revival
A5	13.08.2018	Letter of revival
A6	02.05.2021	Letter of revival
A7	06.05.2019	Common application cum appraisal for credit facilities
A8	06.05.2019	Sanction memorandum
A9	06.05.2019	Agreement and deed for kisan OD
A10	08.05.2019	NF-373 particulars of hypothecation
A11	06.05.2019	On Demand Pronote
A12	15.01.2021	Loan application
A13	15.01.2021	Sanction memorandum
A14	15.01.2021	Housing loan agreement
A15	19.09.2015	The simple registered mortgage deed
A16	04.05.2019	The simple registered mortgage deed
A17	06.05.2020	The simple registered mortgage deed
A18	14.01.2021	Letter evidencing deposit of title deeds
A19	10.11.2023	The copy of possession notice
A20	06.08.2024	The copy of sale notice
A21	05.05.2023	The copy of demand notice
A22 A23	14.07.2021	The copy of death certificate Statement of account in KCC loan

¶72

OA. No. 2446/2025

¶73

¶74

A24	Statement of account kisan OD loan
A25	Statement of account in housing loan

¶75

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mamatha

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mamatha

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

Punjab National Bank versus Sunil Rajbanshi and Ors.

Nachattar Singh versus Punjab and Sind Bank

Sri Ajay Raj versus Sir M Visvesvaraya Co. Operative Bank Ltd.

Hadimba Agro Industry and Another versus Punjab and Sind Bank

Bank of India versus Ram Patidar

Smt Bhagya T C versus Canara Bank