Allowed

Canara Bank v. Smt Honajakshi

DRT31 Jul 2026OA/44/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application for issuance of a Recovery Certificate against legal heirs for an agricultural farm machinery loan default. Despite default in repayment and accounts turning NPA, the Tribunal reduced the interest rate to 6% simple due to agricultural purpose before granting recovery.

What did the court decide?

Issuance of Recovery Certificate for Rs. 50,05,807/ with 6% simple interest from filing date. Recovery from inherited estate and schedule property if insufficient.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.44/2024

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BETWEEN:

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Canara Bank Mallipatna Branch, Mallipatna – 573 102 Arkalgud Taluk, Hassan District

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Represented by its Manager & PA holder

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Sri. Shravan Kamble …APPLICANT

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AND:

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Smt. Honajakshi

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W/o. late Sri. M L Shankaralingappa Aged about 57 years

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Smt. Rohini D/o. late Sri. M L Shankaralingappa Aged about 34 years

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Smt. Toyajakshi D/o. late Sri. M L Shankaralingappa Aged about 33 years

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All are residing at: Musavatur Village, Aladahalli post, Mallipattana Hobli, Arakalgur Taluk, Hassan District

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Sri. Paramesha S/o. Subbaiah Aged about 43 years R/at: Allapatna Village, Doddamagge Hobli, Arakalgur Taluk, Hassan District – 573 102 ...DEFENDANTS

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2 OA-44/2024

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Counsel on record/appeared for:

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Applicant : HSR & Associate Defendants : Ex parte

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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 issuance of Recovery Certificate against the defendants for Rs. 50,05,807/- (Rupees Fifty Lakhs Five Thousand Eight Hundred and Seven 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 are the legal heirs of the deceased borrower. The Late borrower Sri. Shankarlingappa availed a farm machinery loan of Rs. 5,00,000/(Rupees Five Lakhs Only) for the purpose of purchasing tractor & trailer.

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The deceased borrower executed necessary loan document in favour of the applicant bank as security for the due repayment of the loan, interest, cost and charges. The defendant nos. 2 & 3 had also executed Simple Mortgage Deed dated 11.11.2005.

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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

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3 OA-44/2024

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repayment and consequentially turning the loan accounts 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 defendants, they failed to appear, resulting the defendants being set ex parte on 25.02.2026.

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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-13 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 ex parte. 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,

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4 OA-44/2024

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due 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 findings arrived herein above, the Tribunal find both these issues 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 of the view that OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.44/2024, stands allowed, i) The applicant is allowed to recover an aggregate sum of Rs. 50,05,807/- (Rupees Fifty Lakhs Five Thousand Eight Hundred and Seven 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, the defendant no.5 to the extent of their inheritance of any estate form the deceased borrower, Sri. Shankarlingappa, 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.

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5 OA-44/2024

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ii) If the sale proceeds are not found sufficient to cover the

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liability, the defendants to the extent of their inherited form the

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deceased Sri. Shankarlingappa is liable to the proceeds against for the balance amount.

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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

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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 31^th Day of July, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

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6 OA-44/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sujit Gowda, S/o. Sanjay, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Annexure s	Date	Description of loan documents
A1	12.11.2005	^{Loan application submitted by Sri. M L} Shankarlingappa
A2	12.11.2005	^{Particulars of the co-obligant submitted by Sri. M L} Shankarlingappa
A3	12.11.2005	Memorandum of agreement for agricultural loans by Sri. M L Shankarlingappa and the defendant no.4 in favour of applicant bank
A4	11.11.2005	^{Simple mortgage deed executed by Sri. M L} Shankarlingappa in favour of applicant bank
A5	26.11.2005	Particulars of vehicles/machinery/equipment’s/livestock etc. hypothecation executed by Sri. M L Shankarlingappa in favour of applicant bank
A6 to A10	12.08.2008 06.04.2011 31.12.2013 20.11.2015	Letters of revival executed by Sri. M L Shankarlingappa and defendant no.4 in favour of applicant bank
A11 & A12	05.01.2018 03.01.2021	Letter of revival executed by defendant no.1 in favour of applicant bank
A13	-------	Certified account extract
Witness Exa	mined for th	e Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil –

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Smt Honajakshi

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt Honajakshi

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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