The Debt Recovery Tribunal allowed the applicant bank's Original Application for a recovery certificate against the legal heirs of a deceased borrower. The court reduced the claimed interest rate to 6% simple interest per annum.
Issuance of Recovery Certificate for Rs. 36,24,201.77 with further interest at 6% p.a. (simple) against defendants 2 to 4.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 31st Day of July, 2026
Present: Sri. T. RAJESH
Presiding Officer OA. No.372/2022
BETWEEN:
Canara Bank
Shirahatti Branch, Kappatnavar Building, Shirahatti Post, Gadag District – 582 120
Represented by its Assistant Manager
Sri. Ravi Garg …APPLICANT
AND:
OA. No. 372/2022
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All are R/at: Adaralli Village, Adarahalli post – 582 120, Shirahatti Taluk, Gadag District ...DEFENDANTS
Counsel on record/appeared for:
Applicant : M Mohan Rao
Defendant nos. 2 to 4 : Ex parte Defendant no.1 & 5 : Deceased
FINAL ORDER
OA. No. 372/2022
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availed loans, the defendants executed the necessary loan documents.
OA. No. 372/2022
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ii) What orders are to be passed?
Both these issues are gone into and decided together.
availed for Agricultural purpose and also that the OA claim is
OA. No. 372/2022
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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).
i) The applicant is allowed to recover an aggregate sum
of Rs. 36,24,201.77/- (Rupees Thirty-Six Lakhs Twenty-Four Thousand Two Hundred and One and Paisa Seventy-Seven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants no. 2 to 4, to the extent of their inheritance of any estate form the deceased borrower, Sri. Shivappa Lamani after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants no.
2 to 4 jointly, severally and personally and their assets are liable for all such amounts due under the loan accounts.
iii) The applicant bank is allowed cost of the proceeding
OA. No. 372/2022
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which applicant to file cost memo within 7 days from the date of
receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of
with this Final Order.
terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of
DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31st Day of July, 2026]
Sd/-
(T. RAJESH) PRESIDING OFFICER
ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1 Mr. Ravi, S/o. Mr. Thammaiah, Senior Manager, of the applicant bank.
Exhibits on the part of the Applicant:
| Annexure | Date | Particulars |
|---|---|---|
| A1 | 11.03.2003 | Loan Application |
| A2 | 03.03.2003 | Quotation issued by bellad & company in favour of the defendant |
| A3 | 11.03.2003 | Sanction Letter |
| A4 | 11.03.2003 | Memorandum of agreement for agricultural loans executed bydefendants |
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| A5 | 06.03.2006 | Letter of revival executed by defendants in favour of the applicant bank |
|---|---|---|
| A6 | 19.12.2008 | Letter of revival executed by defendants in favour of the applicant bank |
| A7 | 15.11.2011 | Letter of revival executed by defendants in favour of the applicant bank |
| A8 | 09.10.2014 | Letter of revival executed by defendants in favour of the applicant bank |
| A9 | 07.07.2017 | Letter of revival executed by defendants in favour of the applicant bank |
| A10 | 15.06.2019 | Letter of revival executed by defendants in favour of the applicant bank |
| A11 | 01.09.2013 | Notice issued byapplicant bank to the defendants |
| A12 | ----- | Statement of account |
Witness Examined for the Defendants: -Nil -
List of Documents Exhibited for the Defendants:
-Nil -
Sd/-
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the OA claim as against the defendants?
What orders are to be passed?
1 provisions across 1 enactments
Canara Bank
Sri. Shivappa Lamani
Sri. Dhakappa Lamani
Sri. Pandappa Lamani
Sri. Baddeppa Lamani
Sri. Manjappa Talwar
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
