Allowed

Canara Bank v. Nanda

DRT23 Mar 2026OA/35/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of dues. While confirming the primary borrower's joint liability, the court held the guarantor liable only for the agricultural term loan, ruling him not liable for Kisan facilities due to lack of proof of guarantee. Future interest was capped at 9%.

What did the court decide?

Recovery of approx. Rs.18.12 Lakhs (Agri loan) and Rs.8.48 Lakhs (Kisan facilities) from the respective borrowers with restitution of Default Interest. Mortgage of the property recognized as security

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

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Presented on .. 04.02.2023 Registered on .. 09.01.2024 Decided on .. 23.03.2026 Duration .. Y—M—D 03--01--19

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 35/2024.

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Canara Bank,

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A Banking Company incorporated under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1970 having its head office at M.G. Road, Bangalore and branch office at – Ranjangaon, Pune-Nagar Highway, Taluka Shirur, District Pune 412 210.

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… Applicant

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Versus

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1 Mrs. Nanda Ravindra Kolape, Age Adult, Occ. Agri./Business, R/at – At & Post Alegaon Paga, Taluka Shirur, District Pune 412 211.

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2 Mr. Ravindra Aaju Kolape, Age Adult, Occ. Agri./Business, R/at – At & Post Alegaon Paga, Taluka Shirur, District Pune 412 211.

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… Defendants

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Appearances :-

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For Applicant Advocate Srinivas Y. For Defendants Ex parte.

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Sanap ( OA No. 35/2024 ) 1 of 7

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Total Claim Amount – Rs.26,60,015/-

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JUDGMENT (Delivered on 23^rd March, 2026)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.26,60,045/- together with future interest @11.50% per annum for agricultural loan facility and @9.85% per annum for Kisan Credit Card facility and Kisan Overdraft facility from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :-

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As per the loan application of defendant No.1, the applicant Bank sanctioned the Agricultural loan facility of Rs.12,00,000/- to defendant No.1 for the purpose of lift irrigation vide Sanction Letter dated 04.12.2018. Defendant No.2 stood guarantor for the repayment of loan availed by defendant No.1.

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In order to secure the aforesaid loan facility, the defendants have executed necessary loan and security documents in favour of the applicant Bank. Defendant No.1 has also executed deed of simple mortgage dated 14.12.2018 in favour of the applicant Bank in respect of all that piece and parcel of agricultural land Gat No. 52/3

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Sanap ( OA No. 35/2024 ) 2 of 7

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admeasuring 96R and Gat No. 52/4 admeasuring 94R situated at village Alegaon Paga, Tal. Shirur, Dist. Pune.

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Thereafter, again defendant No.1 approached to the applicant Bank for Kisan Credit Card Facility of Rs.2,50,000/and Kisan Overdraft facility of Rs.4,00,000/-. Accordingly, after considering the request of defendant No.1, the applicant Bank sanctioned the same to defendant Nos.1 on 29.08.2019 for the purpose of agriculture and allied activities. Defendant No.1 executed registered supplementary simple deed of mortgage dated 29.08.2019 in respect of above mentioned properties in favour of the applicant Bank.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, on 14.07.2022, the applicant Bank has classified the account of the defendants as Non-Performing Asset in accordance with guidelines of Reserve Bank of India. Thereafter, on 01.09.2022, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank.

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Hence, this application is filed.

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Sanap ( OA No. 35/2024 ) 3 of 7

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants as per Order dated 11.08.2025 passed below Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mr. Shon Sharad Wadmare, Chief Manager and Power of Attorney holder on behalf of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1 to AW-7- along with list (Exhibit 9), which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank.

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However, the applicant Bank has prayed for issuance of recovery certificate against defendant Nos.1 and 2 in respect of all three loan accounts. On going through the record and documents, it is apparent clear that the defendant No. 2 stood guarantor for the repayment of agricultural term loan facility granted to defendant No.1 by the applicant Bank. However, the applicant Bank has

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Sanap ( OA No. 35/2024 ) 4 of 7

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not produced any document to show the nexus of defendant No. 2 with Kisan Credit Card facility and Kisan Over Draft facility granted by the applicant Bank to defendant No.1. Therefore, the applicant Bank failed to prove that defendant No.2 is liable to repay outstanding amount of Kisan Credit Card facility and Kisan Over Draft facility granted to defendant No.1.

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The applicant Bank has claimed future interest @11.50% per annum for agricultural loan facility and @9.85% per annum for Kisan Credit Card facility and Kisan Overdraft facility. However, considering the facts of the case, I am of the opinion that if future interest is granted @9% per annum (simple) for all three loan facilities, it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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O R D E R

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A} Original Application No. 35/2024 is allowed with costs. B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.18,11,944/(Rupees Eighteen Lakh Eleven Thousand Nine Hundred Forty Four only) towards agricultural loan facility along with future interest @9% per annum from the date of filing of the Original Application i.e.

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Sanap ( OA No. 35/2024 ) 5 of 7

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04.02.2023 till full payment/realization of the amount mentioned in this operative order.

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C} Defendant No.1 shall pay to the applicant Bank the sum of Rs.3,15,272/- (Rupees Three Lakh Fifteen Thousand Two Hundred Seventy Two only) towards Kisan Credit Card facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 04.02.2023 till full payment/realization of the amount mentioned in this operative order.

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D} Defendant No.1 shall pay to the applicant Bank the sum of Rs.5,32,799/- (Rupees Five Lakh Thirty Two Thousand Seven Hundred Ninety Nine only) towards Kisan Overdraft facility along with future interest @9% per annum from the date of filing of the Original Application i.e. 04.02.2023 till full payment/realization of the amount mentioned in this operative order.

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E} The aforesaid adjudicated amount is secured by the valid and subsisting mortgage in respect of all that piece and parcel of agricultural land Gat No. 52/3 admeasuring 96R and Gat No. 52/4 admeasuring 94R situated at village Alegaon Paga, Tal. Shirur, Dist. Pune, more particularly described in the Para No. 5.3.4 of the Original Application.

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Sanap ( OA No. 35/2024 ) 6 of 7

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F} The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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G} Issue Recovery Certificate.

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H} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 23.03.2026 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 35/2024 ) 7 of 7

Canara Bank v. Nanda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Nanda

Case brief

What is this about?

What did the court decide?

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