Allowed

Canara Bank v. Sri a R Adaveeshaiah

DRT20 Aug 2026OA/2878/2025

Case brief

AI extract

What is this about?

The Tribunal allowed a Recovery Certificate application filed by Canara Bank against legal heirs of a deceased farmer. The claim was accepted as the default in an agricultural loan became NPA.

What did the court decide?

Recovery certificate to be issued for Rs. 57,95,901.23 with interest at 6.00% p.a. (simple) from filing date until realization, to be recovered from schedule property and defendants jointly and severa

Canara Bank versus Sri a R Adaveeshaiah — Contract and Commercial Disputes | 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

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OA.No.2878/2025

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BETWEEN:

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Canara Bank Ashoka Road Cross, Tumakuru – 572 102

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Represented by its Manager

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Sri. K Suresh Kumar …APPLICANT

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AND:

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Sri. A R Adaveeshaiah S/o. late Rangaswamaiah Aged about 60 years

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Sri. Chikkarangaiah S/o. late Rangaswamaiah Aged about 53 years

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Sri. Lokesh S/o. late Rangaswamaiah Aged about 43 years

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Smt. Lakshmidevamma (Since deceased, rep by her LRs is defendants no. 1 to 3 & 5)

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Sri. Siddalingaiah S/o. late Chandraiah Aged about 70 years

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All are R/at; Ajjagondanahalli, Kora Post, Tumkur Taluk, Tumkur – 572 101 ...DEFENDANTS

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OA-2878/2025

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Counsel on record/appeared for:

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Applicant : Smt. Shibaz Khausar Defendants no. 1 to 3 & 5 : Ex parte Defendant no. 4 : Deceased

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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 57,95,901.23/- (Rupees Fifty-Seven Lakhs Ninety-Five Thousand Nine Hundred and One and Paisa Twenty-Three 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 no. 1 to 3 & 5 are the legal heirs of the deceased borrower. The Late borrower Smt. Lakshmidevamma is availed a farm converted loan of Rs. 5,00,000/- (Rupees Five lakhs Only) for the purpose of cultivation of arecanut, coconut and tamarind crops, etc.,

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

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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 repayment and consequentially turning the loan accounts as NPA.

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OA-2878/2025

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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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After filling of the OA, summons sent to defendants by registered post. The applicant bank has filed a memo dated 03.03.2026 stating that, the defendant no. 4 expired. Despite, services completed, the defendant nos. 1 to 3 & 5 placed ex parte on 09.04.2026.

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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-14 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

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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

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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

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OA-2878/2025

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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 defendants 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 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 facility 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 that the OA can be allowed with a reduced interest of 6.00% (simple). In the result, OA.No.2878/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 57,95,901.23/- (Rupees Fifty-Seven Lakhs Ninety-Five Thousand Nine Hundred and One and Paisa Twenty-Three Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants no. 1 to 3 & 5, to the extent of their inheritance of any estate form the deceased borrower, Smt. Lakshmidevamma after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be

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OA-2878/2025

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recovered by proceeding against the schedule property. The schedule

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property to the OA be the schedule property 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 defendants no. 1 to 3 & 5 jointly, severally and personally and their assets are liable

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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

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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 20^th Day of August, 2026].

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Sd/- (T. RAJESH) PRESIDING OFFICER

OA-2878/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 K Suresh Kumar, S/o. K Sathaiah, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhi bits	Date	Particulars
A1	29.05.2007	The interview cum appraisal form executed by the 1^st, 2^nd& 3^rdand 4^thdefendants to the applicant bank
A2	29.01.2011	Inspection report
A3	29.05.2007	Agreement for agricultural advances executed by the 1^st, 2^nd, 3^rd& 4^thdefendants
A4	29.05.2007	Deed of guarantee for agricultural advances executed by the 5^thdefendant
A5	29.05.2007	The copy of OG 28 A & B receipt executed by the 1^st, 2^nd3^rd & 4^thdefendants
A6	29.05.2007	Registered simple mortgage deed executed by the 1^st, 2^nd3^rd & 4^thdefendants
A7	28.07.2011	Letter for time barred debts executed by the 1^stdefendants
A8	28.07.2011	On demand promissory note executed by the 1^stdefendants
A9	30.11.2017	Acknowledgement of debt executed by the 1^stdefendants
A10	28.02.2020	Acknowledgement of debt executed by the 1^stdefendants
A11	28.02.2020	On demand promissory note executed by the 1^stdefendants
A12	28.02.2020	Letter for time barred debts executed by the 1^stdefendants
A13	19.01.2023	Letter of revival executed by the 1^stdefendant
A14	03.05.2007	Statement of account in farm converted loan in a/c. no. 20008540000347
Witne	ss Examined	for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Sri a R Adaveeshaiah

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri a R Adaveeshaiah

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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