Allowed

Canara Bank v. Smt Dyavamma

DRT31 Jul 2026OA/306/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for issuance of a Recovery Certificate under Section 19 of the RDDB Act 1993. The Tribunal reduced the claimed interest to 6% p.a. (simple) pending recovery from the mortgaged agricultural properties.

What did the court decide?

Recovery Certificate issued for Rs.34,17,534.00 plus interest at 6% p.a. (simple) recoverable from schedule properties.

Canara Bank versus Smt Dyavamma — 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 31^st Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.306/2024

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BETWEEN:

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Canara Bank Arkalgud Branch, Singa Pataldamma complex, Near KSRTC Bus Stand, Arkalgud, Hassan District, Karnataka-573102

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…APPLICANT

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AND:

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Smt. Dyavamma

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W/o. Late. Chandre Gowda R/o. Putanna Hosally village,

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Kasaba Hobli, Arkalgud Dist,

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Hassan Dist, Karnataka-573102

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Sri.Manjunath

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W/o. Late. Chandre Gowda R/o. Putanna Hosally village, Kasaba Hobli, Arkalgud Dist,

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Hassan Dist, Karnataka-573102

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Sri.Rajegowda

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S/o.Puttegowda R/o. Putanna Hosally village, Kasaba Hobli, Arkalgud Dist, Hassan Dist, Karnataka-573102.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates Defendant : Exparte

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2 OA No.306/2024

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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 for seeking issuance of Recovery Certificate against the defendants for Rs.34,17,534.00/- (Rupees Thirty-Four Lakhs Seventeen Thousand Five Hundred and Thirty-Four Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant Nos.1 and 2 availed a sum of Rs.4,45,000/- (Rupees Four Lakhs Forty-Five Thousand Only) for the purchase of Tractor for Agricultural purpose. Defendants No.1 to 3 executed Simple Mortgage Deed in favour of the applicant bank.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents, being owner of the schedule properties. Apart from the creation of security interest by way of mortgage, over the Schedule properties

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It is further contended that, despite availing the credit facility, 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 account 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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3 OA No.306/2024

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 20.04.2026.

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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 A1 to A7 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 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

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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

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4 OA No.306/2024

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

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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.

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Taking into consideration the facts that the credit facility was availed 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 be allowed with a reduced interest of 6.00% p.a.(simple).

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In the result, OA.No.306/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.34,17,534.00/-(Rupees Thirty-Four Lakhs Seventeen Thousand Five Hundred and Thirty-Four Only) from the Defendant Nos. 1 to 3 jointly or severally with further interest @ 6% (simple) p.a as on 16.01.2023 after giving credit to all the amounts recovered and received during the pendency of the OA if any, in the loan account and allowed the same to be recovered by proceeding the schedule properties. The schedule 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 amount due and payable to the applicant bank, the defendants and his other assets are liable for all such amounts due in loan account.

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5 OA No.306/2024

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iii) The applicant bank is allowed cost of the proceeding which

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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

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transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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6 OA No.306/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: R.Venkata Lakshmi, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1.	Loan Application from dated 20.09.2004	A1
2.	Sanction letter dated 24.09.2004	A2
3.	Simple mortgage deed dated 21.09.2004	A3
4.	Memorandum of Agreement for Agricultural advances dated 24.09.2004	A4
5.	Letter of revival dated 09.10.2006, 09.03.2007, 01.09.2012, 23.06.2015, 01.01.2018, 11.05.2018, 16.12.2019 and 04.01.2022	A5
6.	Legal notice dated 16.01.2023	A6
7.	True extracts of Statement of A/C No.0782856001043	A7

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Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Smt Dyavamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt Dyavamma

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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