Allowed

Canara Bank v. Mr Yallangouda Fakirgouda Patil

DRT20 Aug 2026OA/2766/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by a bank seeking a Recovery Certificate against a defendant for an agricultural crop loan default. The Tribunal held that the evidence was sufficient despite the defendant's absence, allowed the principal claim, but reduced the interest rate to 6% simple.

What did the court decide?

Allowance of Recovery Certificate for Rs 21,27,176.30 with further interest at 6.00% p.a. (simple) from filing date until realization, recoverable from personal assets and schedule properties.

Canara Bank versus Mr Yallangouda Fakirgouda Patil — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 20^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.2766/2025

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BETWEEN:

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Canara Bank Bellatti Branch, No. CTC 181/1, Nehrunagar, Bellatti (VIII), Shirahatti Talku, Gadag District – 582 112

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Represented By Its Branch Manager

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Sri. Narasimha Raj …APPLICANT

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AND:

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Mr. Yallangouda Fakirgouda Patil S/o. Fakirgouda Aged about 45 years R/at: Narayanpura Village, Shirahatti Taluk, Gadag District – 582 112 ...DEFENDANT

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Counsel on record/appeared for: Applicant : M Mohan Rao Defendant : 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 defendant for Rs 21,27,176.30/- (Rupees Twenty-One Lakhs Twenty-Seven Thousand One Hundred and Seventy-Six and Paisa Thirty Only) with

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OA-2766/2025

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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 defendant is availed a crop cultivation loan of Rs. 9,95,000/- (Rupees Nine Lakhs NinetyFive Thousand Only).

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It is also the case of the applicant that, in view of the above availed loan, the defendant executed the necessary loan documents along with Simple mortgage deed.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in 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 defendant, he failed to appear, resulting the defendant being set ex parte on 26.03.2026.

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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-7 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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OA-2766/2025

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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

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claim as against the defendant?

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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 defendant 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 facility as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendant and the claim of the amount 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

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find both these issues are in favour of applicant and hence, this

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

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Taking into consideration the facts that the credit facility is

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

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OA-2766/2025

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In the result, OA.No.2766/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 21,27,176.30/- (Rupees Twenty-One Lakhs Twenty-Seven Thousand One Hundred and Seventy-Six and Paisa Thirty Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, 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 schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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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 defendant personally and his assets are liable for all such 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 and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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OA-2766/2025

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14. 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

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the Open Court, this the 20^th Day of August, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Sri. Hukumchand, S/o. Sri. Ambadas, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhi	Date	Particulars
bits
A1	19.12.2016	Loan application
A2	19.12.2016	Loan Sanction memorandum
A3	19.12.2016	Agreement and deed of hypothecation for Kissan credit card
A4	16.09.2016	Simple mortgage deed executed by defendant
A5	12.12.2019	Letter of revival
A6	07.07.2022	Letter of revival
A7	--------	Statement of loan account

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Mr Yallangouda Fakirgouda Patil

Case brief

What is this about?

What did the court decide?

Canara Bank v. Mr Yallangouda Fakirgouda Patil

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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