Allowed

Canara Bank v. K T Ramesh

DRT16 Sept 2026OA/442/2025

Case brief

AI extract

What is this about?

This order allows an Original Application under Section 19 of the RDB Act for the issuance of a Recovery Certificate. The bank claimed dues of approx. Rs. 22.97 lakhs arising from agricultural loans under the Kisan Credit Card scheme. The defendant did not appear, making the trial ex-parte. The Tribunal accepted the bank's evidence and allowed the application, reducing the claimed interest rate to 6% p.a. and granting recovery from personal assets and mortgaged property.

What did the court decide?

Issuance of Recovery Certificate for Rs. 22,97,469.16 with interest at 6.00% p.a. (simple) from the date of filing OA until realization, recoverable from defendant's personal assets and the schedule property.

Canara Bank versus K T Ramesh — 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 16^th Day of September, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.442/2025

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BETWEEN:

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Canara Bank Gorur Branch Gorur Village, Opp. KEB Office College Road, Kattaya Hobli Post, Hassan Taluk and District-573120 Rep.by Manager

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… APPLICANT

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AND:

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Sri. K T Ramesh S/o. Thimmegowda Aged about 62 years R/o. Karle Village, Kattaya Hobli, Hassan Taluk & District-573120

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant : 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.22,97,469.16 (Rupees Twenty Two Lakh Ninety Seven Thousand Four Hundred Sixty Nine and Sixteen Paisa only) with further

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OA. No.442/2025

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interest thereon from the 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 loan of Rs.80,000/- under Kisan Credit Card Scheme and OD facility of Rs.3,50,000/- under Canara Kisan OD.

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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 04.08.2025. 7. 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 A22 and got the same marked in evidence.

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OA. No.442/2025

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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 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 remains unrebutted as defendant 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 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 within the limitation.

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OA. No.442/2025

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Hence in view of the above findings which cover both the

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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 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%

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p.a.(simple).

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In the result, OA.No.442/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.22,97,469.16 (Rupees Twenty Two Lakh Ninety Seven Thousand Four Hundred Sixty Nine and Sixteen Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the 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 by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA. No.442/2025

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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

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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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14. 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

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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 16^th Day of September 2026].

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(T. RAJESH) PRESIDING OFFICER

OA. No.442/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Karthikeyan M, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit Number
1	08.06.2011	Common application from cum appraisal report for agricultural loan	A1
2	08.06.2011	Agreement for hypothecation for agricultural loans	A2
3	08.06.2011	Sanction memorandum	A3
4	08.06.2011	Specimen signature	A4
5	04.01.2014	Letter of renewal	A5
6	18.12.2017	Letter of renewal	A6
7	15.04.2020	Letter of undertaking from the borrower for conversion of crop loan into term loan	A7
8	15.04.2020	Letter of renewal	A8
9	15.03.2023	Letter of renewal	A9
10	13.03.2012	Simple mortgage deed	A10
11	22.03.2012	Application form cum appraisal report	A11
12	22.03.2012	Sanction memorandum	A12
13	22.03.2012	Agreement and deed for kisan OD	A13
14	22.03.2012	Specimen signature	A14
15	12.02.2015	Letter of renewal	A15
16	02.01.2017	Letter of renewal	A16
17	10.12.2020	Letter of renewal	A17
18	21.11.2023	Letter of renewal	A18

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OA. No.442/2025

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19	17.10.2024	Legal notices along with receipts	postal	A19
20	--	Postal covers returned unserved	and	A20
21	--	Bank statement		A21
22	--	Bank statement		A22

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. K T Ramesh

Case brief

What is this about?

What did the court decide?

Canara Bank v. K T Ramesh

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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