Allowed

Canara Bank v. P Suman Praveen Kumar

DRT11 Sept 2026OA/477/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application for issuance of a Recovery Certificate. The defendant, in default of a housing loan repayments, failed to appear despite summons service, leading to an ex-parte hearing. Upon reviewing uncontroverted documentary evidence, the Tribunal found the claim valid and within limitation. However, considering the loan was for housing, the Tribunal awarded reduced interest at 8% p.a. instead of the claimed rate. A Recovery Certificate was authorized for execution against the mortgaged property.

What did the court decide?

OA allowed with reduced interest at 8% p.a.; Recovery Certificate to be drawn for Rs.45,33,710/-(principal) plus interest from filing date till realization; recoverable against schedule property and other defendant assets.

Canara Bank versus P Suman Praveen Kumar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 11^th Day of September 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.477/2025

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BETWEEN:

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Canara Bank Gopala Branch, Ashok Arcade, KHB Colony, Gopala Main Road, Shivamogga District-577205.

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…APPLICANT

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AND:

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Smt. P.Suman Praveen Kumar W/o.R.Praveen Kumar, No:43/1, 3^rd Main Road, Near Nataraja Theatre, Sheshdripuram, Bengaluru-560020. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri.Babu Vishnu 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.45,33,710/(Rupees Forty-Five Lakhs Thirty-Three Thousand Seven Hundred and Ten Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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2 OA No.477/2025

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The Defendant availed a sum of Rs.62,00,000/- (Rupees Sixty-Two Lakhs Only) for House Construction.

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It is also the case of the applicant that, in view of the above financed credit facility, 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 facility, 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 summon on the defendant, they failed to appear, resulting the defendant being set exparte on 05.05.2026.

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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 A1 to A6 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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3 OA No.477/2025

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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 facility 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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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 facility was availed for Housing Loan 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 8% p.a.(simple).

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4 OA No.477/2025

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In the result, OA.No.477/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.45,33,710/- (Rupees Forty-Five Lakhs Thirty-Three Thousand Seven Hundred and Ten Only) along with current and future interest @ 8% from the date of the OA till the date of realization, from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and 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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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 defendant and his other assets are liable for all such amounts due in loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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 with this Final Order.

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5 OA No.477/2025

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14. 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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 11^th Day of September 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Veeraraghavan R, Chief 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	Exhibits Number
1.	Loan Application dated 07.02.2022	A1
2.	Housing Loan Proposal (Composite Loan) of Smt.P.Suman Praveen Kumar of Rs.62 Lakhs under General Scheme dated 18.03.2022	A2
3.	NF 981-Housing Loan Agreement dated 18.03.2022	A3
4.	Memorandum of Deposit of Title Deeds dated 19.03.2022	A4
5.	Legal Notice dated 17.10.2024	A5

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6 OA No.477/2025

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Copy of the Statement of Acc	ount	Certified U	nder
Banker’s Book of Evidence	Act.	Showing	the
outstanding Liability under	Hous	ing Loan	A/c
No.160000656587

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Canara Bank v. P Suman Praveen Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. P Suman Praveen Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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Case details

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