Allowed

Canara Bank v. Sri H L Krishna Kumar

DRT24 Jun 2026OA/247/2023

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal allowed the bank's application for a recovery certificate of Rs. 29,46,093.21 plus interest against defaulting borrowers of agricultural loans. The court reduced the interest rate to 6% simple due to the agricultural purpose of the loans.

What did the court decide?

Recovery Certificate issued for Rs. 29,46,093.21 with 6% p.a. simple interest from filing date to realization, executable against schedule properties.

Canara Bank versus Sri H L Krishna Kumar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.247/2023

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BETWEEN:

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Canara Bank Hassan Main Branch, PO no. 45, Near Narasimharaja Circle, Malnad House, Hassan Taluk & Dist. Karnataka – 573 201

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Through Its Senior Manager

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Mr. Hanumanthappa H …APPLICANT

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AND:

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Sri. H L Krishna Kumar S/o. Late lakke gowda Aged about 52 years R/at: Harnahalli Village, Dudda Hobli, Hassan Taluk & Dist., Karnataka – 573 225

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Smt. Yashaswini D/o. H L Krishna Kumar Aged about 20 years R/at: Harnahalli Village, Dudda Hobli, Hassan Taluk & Dist. Karnataka – 573 225

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Sri. Dhushanth H K S/o. H L Krishna Kumar Aged about 14 years R/at: Harnahalli Village, Dudda Hobli, Hassan Taluk & Dist. Karnataka – 573 225 ...DEFENDANTS

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OA-247/2023

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Counsel on record/appeared for:

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Applicant : VS Associates Defendants : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 29,46,093.21/- (Rupees Twenty-Nine Lakhs Forty-Six Thousand Ninety-Three and Paisa Twenty-One Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the credit facilities:

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Agricultural loan of Rs. 7,00,000/- (Rupees Seven Lakhs Only).

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Agricultural loan of Rs. 5,00,000/- (Rupees Five Lakhs Only).

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Agricultural loan of Rs. 7,50,000/- (Rupees Seven Lakhs Fifty Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in

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OA-247/2023

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repayment and consequentially turning the loan accounts as NPA.

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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.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 29.07.2024.

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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-10 and got the same marked in evidence.

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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.

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The following issues arise for consideration in this matter:

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

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. 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,

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OA-247/2023

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities is availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.247/2023 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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29,46,093.21/- (Rupees Twenty-Nine Lakhs Forty-Six Thousand Ninety-Three and Paisa Twenty-One Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization,

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from the defendants jointly, severally and personally, after giving

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credit to all the amounts recovered and received during the pendency

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of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-247/2023

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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

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

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-247/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Murelidhar, S/o. Balakrishna Setty, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibits	Description and type of documents
A1	Applicationdated 07.01.2015 and sanction letterdated 08.01.2015
A2	Applicationand sanction letterdated17.02.2016
A3	Demand promissorynote dated 08.01.2015
A4	Agreement and deed of hypothecation for kisan credit card dated 08.01.2015
A5	Agreement and deed of hypothecation for kisan credit card dated 17.02.2016
A6	Simplemortgage deed dated 05.01.2015, 05.01.2015 & 03.02.2016
A7	Letter of revival 31.01.2019,16.08.2017&01.01.2022
A8	Legal notice dated12.10.2022
A9	True extract of statement of accounts pertaining to the defendant’s loan accounts-0531897000253
A10	True extract of statements of accounts pertaining to the defendant’s loan accounts 0531847013808
Witness	Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

Canara Bank v. Sri H L Krishna Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri H L Krishna Kumar

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

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Case details

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