Allowed

Canara Bank v. Ms Pavitra Pipe Fittings

DRT30 Jun 2026OA/471/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act 1993 for a Recovery Certificate. The Tribunal dismissed the ex parte defendants' case due to their absence. The applicant's claim of default on bank loans was confirmed, though interest was reduced to 10% simple per annum.

What did the court decide?

Recovery Certificate issued for Rs. 1,95,10,036.21 with simple interest at 10% p.a. Recoverable from schedule property and assets of defendants jointly, severally, and personally.

Canara Bank versus Ms Pavitra Pipe Fittings — 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 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.471/2022

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BETWEEN:

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Canara Bank Head Office at, No. 112, J.C. Road, Bangalore-560 002. Its Branch Office called Konanakunte Branch, Bangalore -560 062. Represented by its Branch Manager, Mrs. Richa Maurya.

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…APPLICANT

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AND:

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M/s Pavitra pipe Fittings Having place of Business At: Site No. 11, 7^th Main Road, 2^nd Phase Vallabanagara Vasanthapura Main Road, Konanakunte Cross, Bengaluru-560062. Represented by its partners Defendants Nos. 2 to 5.

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Mr. Dhanraj Prajapathi, S/o Mr. Ramlal Prajapathi Aged: 56 years,

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Smt. Indira Devi, W/o Mr. Dhanraj Prajapathi Aged 51 years

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Sri. Hemanth Prajapathi, S/o Mr. Ramlal Prajapathi Aged: 34 years,

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Sri. Ashok Prajapathi, S/o Mr. Ramlal Prajapathi

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Aged: 30 years,

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All are residing-site No. 11, 7^th Main Road, 2^nd Phase Vallabanagara Vasanthapura Main Road, Konanakunte Cross, Bengalore-560062. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sushree Priya Mohanty 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 seeking issuance of Recovery Certificate against the defendants for Rs. 1,95,10,036.21/-

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(Rupees One Crore Ninety Five Lakh Ten Thousand Thirty Six and Paise Twenty One 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 availed the following credit facilities from the applicant bank:-

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I. Cash Credit Loan of a sum of Rs. 55,00,000/- (Rupees Fifty Five Lakh Only) on 16.08.2010 which got enhanced later on time to time.

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II. Working Capital loan of sum of Rs. 14,00,000/- (Rupees Fourteen Lakh Only) on 29.05.2020.

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III. Working capital loan of sum of Rs. 69,25,000/- (Rupees Sixty Nine Lakh Twenty Five Thousand Only) on 20.03.2021.

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IV. FITL loan of sum of Rs. 15,89,000/- (Rupees Fifteen Lakh Eighty Nine

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Thousand Only) on 22.03.201.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Cash Credit Agreement, Common Hypothecation Agreement, Guarantee agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in 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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 08.04.2025.

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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-98 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 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 Mortgage and Hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants 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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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 facilities are

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availed for Business purpose and also that the 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 10.00% (simple).

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5 471/2022

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In the result, OA.No.471/2022, stands allowed,

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i. The applicant is allowed to recovery an aggregate sum of Rs.1,95,10,036.21/- (Rupees One Crore Ninety Five Lakh Ten Thousand

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Thirty Six and Paise Twenty One only) consisting of:

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a. Rs.86,81,455 /- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization Under Cash Credit Account No. 2476285000001;

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b. Rs.14,59,637.21/- with further interest of 10.00% p.a.(simple) from

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the date of filing OA till the realization Working Capital Loan account No.

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247675300007;

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c. Rs.76,18,359/- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization Under Working Capital Account No. 2476746000002;

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d. Rs.17,50,585/- with further interest of 10.00% p.a.(simple) from the

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date of filing OA till the realization Under the GECL Loan Account No. 2476747000006, from the defendants jointly, severally and personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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

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amount due and payable to the applicant bank, the defendants jointly,

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severally and personally and their assets are liable for the amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of June, 2026].

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Sd/- (T. RAJESH)

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7 471/2022

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Nitin Barodia, Officer of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	16.08.2010	Request for Over Draft Facility
A2	16.08.2010	Cash Credit Agreement
A3	16.08.2010	Pronote
A4	16.08.2010	Guarantee Covering Letter executed by the defendant No.3
A5	16.08.2010	Guarantee Agreement Letter executed by the defendant No.3
A6	16.08.2010	Guarantee Covering Letter executed by the defendant No.5
A7	16.08.2010	Guarantee Agreement Letter executed by the defendant No.5
A8	16.08.2010	Guarantee Covering Letter executed by the defendant No.4
A9	16.08.2010	Guarantee Agreement Letter executed by the defendant No.4
A10	16.08.2010	Letter Evidencing Deposit of Title Deeds Defendant No. 4
A11	11.06.2011	Letter of Renewal
A12	14.09.2013	Letter of Renewal
A13	14.09.2013	Supplemental Agreement
A14	14.09.2013	Pronote for Rs. 25,00,000/-
A15	14.09.2013	Link Letter
A16	14.09.2013	Guarantee Covering Letter executed by the defendant No.2

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A17	14.09.2013	Guarantee Agreement Letter executed by the defendant No.2
A18	14.09.2013	Guarantee Covering Letter executed by the defendant No.3
A19	14.09.2013	Guarantee Agreement Letter executed by the defendant No.3
A20	14.09.2013	Guarantee Covering Letter executed by the defendant No.5
A21	14.09.2013	Guarantee Agreement Letter executed by the defendant No.5
A22	14.09.2013	Guarantee Covering Letter executed by the defendant No.4
A23	14.09.2013	Guarantee Agreement Letter executed by the defendant No.4
A24	20.10.2015	Letter of Renewal
A25	21.10.2015	Common Hypothecation Agree
A26	21.10.2015	Pronote for Rs. 20,00,000/-
A27	21.10.2015	Link Letter
A28	21.10.2015	Guarantee Covering Letter executed by the defendant No.2
A29	21.10.2015	Guarantee Agreement Letter executed by the defendant No.2
A30	21.10.2015	Guarantee Covering Letter executed by the defendant No.3
A31	21.10.2015	Guarantee Agreement Letter executed by the defendant No.3
A32	21.10.2015	Guarantee Covering Letter executed by the defendant No.5
A33	21.10.2015	Guarantee Agreement Letter executed by the defendant No.5

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A34	21.10.2015	Guarantee Covering Letter executed by the defendant No.3
A35	21.10.2015	Guarantee Agreement Letter executed by the defendant No.3
A36	21.12.2016	Loan Application
A37	22.12.2016	Letter of renewal
A38	22.12.2016	Pronote for Rs. 20,00,000/-
A39	22.12.2016	Link Letter
A40	20.10.2015	Guarantee Covering Letter executed by the defendant No.2
A41	20.10.2015	Guarantee Agreement Letter executed by the defendant No.2
A42	20.10.2015	Guarantee Covering Letter executed by the defendant No.3
A43	20.10.2015	Guarantee Agreement Letter executed by the defendant No.3
A44	20.10.2015	Guarantee Covering Letter executed by the defendant No.5
A45	20.10.2015	Guarantee Agreement Letter executed by the defendant No.5
A46	20.10.2015	Guarantee Covering Letter executed by the defendant No.4
A47	20.10.2015	Guarantee Agreement Letter executed by the defendant No.4
A48	27.03.2018	Letter of renewal
A49	27.03.2018	Supplemental Common Hypothecation Agreement
A50	27.03.2018	Pronote for Rs. 20,00,000/-
A51	27.03.2018	Link Letter
A52	27.03.2018	Guarantee Covering Letter executed by the defendant No.2

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A53	27.03.2018	Guarantee Agreement Letter executed by the defendant No.2
A54	27.03.2018	Guarantee Covering Letter executed by the defendant No.3
A55	27.03.2018	Guarantee Agreement Letter executed by the defendant No.3
A56	27.03.2018	Guarantee Covering Letter executed by the defendant No.5
A57	27.03.2018	Guarantee Agreement Letter executed by the defendant No.5
A58	27.03.2018	Guarantee Covering Letter executed by the defendant No.4
A59	27.03.2018	Guarantee Agreement Letter executed by the defendant No.4
A60	21.08.2019	Letter of renewal
A61	21.08.2019	Guarantee Covering Letter executed by the defendant No.2
A62	21.08.2019	Guarantee Agreement Letter executed by the defendant No.2
A63	21.08.2019	Guarantee Covering Letter executed by the defendant No.3
A64	21.08.2019	Guarantee Agreement Letter executed by the defendant No.3
A65	21.08.2019	Guarantee Covering Letter executed by the defendant No.5
A66	21.08.2019	Guarantee Agreement Letter executed by the defendant No.5
A67	21.08.2019	Guarantee Covering Letter executed by the defendant No.4
A68	21.08.2019	Guarantee Agreement Letter executed by the defendant No.4

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A69	14.08.2013	Letter of Revival
A70	30.12.2015	Letter of Revival
A71	27.03.2018	Letter of Revival
A72	21.08.2019	Letter of Revival
A73	26.05.2020	Sanction Memorandum
A74	29.05.2020	Supplemental Common Hypothecation Agreement
A75	29.05.2020	Guarantee Covering Letter executed by the defendant No.2
A76	29.05.2020	Guarantee Agreement Letter executed by the defendant No.2
A77	29.05.2020	Guarantee Covering Letter executed by the defendant No.3
A78	29.05.2020	Guarantee Agreement Letter executed by the defendant No.3
A79	29.05.2020	Guarantee Covering Letter executed by the defendant No.5
A80	29.05.2020	Guarantee Agreement Letter executed by the defendant No.5
A81	29.05.2020	Guarantee Covering Letter executed by the defendant No.4
A82	29.05.2020	Guarantee Agreement Letter executed by the defendant No.4
--	17.02.2021	Sanction Memorandum
A83	20.03.2021	Letter of Renewal
A84	20.03.2021	Common hypothecation Agreement
A85	20.03.2021	Guarantee Covering Letter executed by the defendant No.2
A86	20.03.2021	Guarantee Agreement Letter executed by the defendant No.2
A87	20.03.2021	Guarantee Covering Letter executed by the defendant No.3

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A88	20.03.2021	Guarantee Agreement Letter executed by the defendant No.3
A89	20.03.2021	Guarantee Covering Letter executed by the defendant No.5
A90	20.03.2021	Guarantee Agreement Letter executed by the defendant No.5
A91	20.03.2021	Guarantee Covering Letter executed by the defendant No.4
A92	20.03.2021	Guarantee Agreement Letter executed by the defendant No.4
A93	20.03.2021	Supplemental Hypothecation Agreement
--	19.03.2021	Supplemental Memorandum of deposit of title Deeds
A94	31.01.2022	Legal Notice got issued by the applicant Bank
A95	--	Statement of Account of in respect of Cash Credit Account No. 2476285000001
A96	--	Statement of Account of in respect of Working capital Account No. 247675300007
A97	--	Statement of Account of in respect of Working Capital Account No. 2476746000002
A98	--	Statement of Account of in respect of GECL Loan Account No. 2476747000006

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

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13 471/2022

Canara Bank v. Ms Pavitra Pipe Fittings

Case brief

What is this about?

What did the court decide?

Canara Bank v. Ms Pavitra Pipe Fittings

Case brief

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What did the court decide?

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