Allowed

Canara Bank v. Basavaraj Angadi

DRT29 May 2026OA/382/2023

Case brief

AI extract

What is this about?

In an under-section 19 RD & B Act original application for recovery certificate arising from defaulted KCCS and Kisan OD loan accounts, the Debt Recovery Tribunal allowed the application ex parte due to the respondent's non-appearance, directing recovery of principal and reduced interest.

What did the court decide?

Recovery Certificate for Rs. 24,05,862 plus interest at 6.00% p.a. simple, executable against the respondent personally and the schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.382/2023

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BETWEEN:

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Canara Bank Branch office at Saundatti, Belgaum District-591126 Rep. by its Branch Manager Sajeev Mathew … APPLICANT

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AND:

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Sri. Basavaraj Angadi S/o. Nilakantappa Aged about 59 years R/at. Hanchinal Village, Saundatti Taluk, Belagavi District

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. M R Shashidhar Defendants : Exparte

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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 defendant for Rs.24,05,862/- (Rupees Twenty Four Lakh Five Thousand Eight Hundred and Sixty Two only) with further interest thereon from the

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OA. No.382/2023

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date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed KCCS loan limit of Rs.2,60,000/- for the purpose of crop cultivation activities on 30.10.2006 and Kisan OD limit of Rs.6,00,000/- on 27.06.2009.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendant executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facilities, 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 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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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 08.08.2024.

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OA. No.382/2023

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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 A20 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 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

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remains unrebutted as defendant remained exparte. The evidence

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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 facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well

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OA. No.382/2023

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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 facilities

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were 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.382/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.24,05,862/- (Rupees Twenty Four Lakh Five Thousand Eight

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Hundred and Sixty Two only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the

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defendant, 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 defendant personally and also

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by proceeding against the schedule property. The schedule

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OA. No.382/2023

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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

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the amount due and payable to the applicant bank, the defendant personally and his other 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 proceeding

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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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of May 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA. No.382/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Suresh Kumar Mandi, Branch 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	Simple mortgage deed dated 30.10.2006	A1
2	Loan application for credit card dated 30.10.2006	A2
3	Sanction memorandum letter dated 30.10.2006	A3
4	Agreement and deed of hypothecation for kissan credit card dated 30.10.2006	A4
	Letter of revival dated 08.07.2011,	A5 to A9
5	03.07.2013, 02.06.2016, 01.05.2017 and 01.01.2020
6	Registered simple mortgage deed dated 27.06.2009	A10
7	Loan application dated 27.06.2009	A11
8	Sanction memorandum dated 27.06.2009	A12
9	Agreement and deed for kissan OD dated 27.06.2009	A13
10	Letter of revival dated 20.06.2012, 15.04.2015,07.01.2018 and 01.01.2020	A14 to A17
11	The notice dated 02.08.2022	A18
12	Certified statement of account extracts	A19 & A20

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Basavaraj Angadi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Basavaraj Angadi

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

Coram

Case details

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