Allowed

Canara Bank v. Sanjay Kumar Srivastava

DRT31 Jul 2026OA/500/2025

Case brief

AI extract

What is this about?

DT-II, Bengaluru allowed an Original Application filed under the RDB Act for issuance of a Recovery Certificate. The court found the bank's evidence of loan avowance, guarantee, and default uncontroverted in the defendants' absence. The OA is allowed with the principal sum and interest reduced to 8% p.a. pending execution proceedings.

What did the court decide?

Recovery Certificate issued for Rs.25,86,137 plus interest at 8% p.a.; execution against schedule property and other assets directed.

Canara Bank versus Sanjay Kumar Srivastava — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 31^st Day of July 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA. No.500/2025

¶5

BETWEEN:

¶6

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

¶7

… APPLICANT

¶8

AND:

¶9

Sri. Sanjay Kumar Srivastava

¶10

S/o.Deenathaprasad

¶11

No:13,Sikkh Colony,

¶12

Sulebail, Harige,

¶13

Malalakoppa, Nidige, Shimoga-577222.

¶14

Smt.Nirmala Devi W/o.Dinanath Prasad No:13,Sikkh Colony, Sulebail, Harige, Malalakoppa, Nidige, Shimoga-577222 ...DEFENDANTS

¶15

Counsel on record/appeared for:

¶16

Applicant : Mr.Sharanjith Shetty & Mr.Babu Vishnu Defendant : Exparte

¶17

2 OA No.500/2025

¶18

: FINAL ORDER:

¶19

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 defendants for Rs.25,86,137/(Rupees Twenty-Five Lakhs Eighty-Six Thousand One Hundred and ThirtySeven Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶20

The Defendants availed a sum of Rs.35,00,000/- (Rupees Thirty-Five Lakhs Only) for purpose of Housing Loan. The Defendant No.2 has stood as Guarantor for the loan and has executed Guarantee Agreement.

¶21

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

¶22

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 repayment and consequentially turning the loan account as NPA.

¶23

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.

¶24

3 OA No.500/2025

¶25

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 21.11.2025.

¶26

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 A8 and got the same marked in evidence.

¶27

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.

¶28

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the OA claim as

¶30

against the defendants?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains unrebutted as defendants 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 defendants and the claim of the amount due

¶34

4 OA No.500/2025

¶35

are also proved by the above documents. The claim of the applicant is well within the limitation.

¶36

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.

¶37

Taking into consideration the facts that the credit facility was 12.

¶38

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

¶39

with a reduced interest of 8.00% p.a.(simple).

¶40

In the result, OA.No.500/2025 stands allowed,

¶41

¶42

i) The applicant is allowed to recover an aggregate sum of for

¶43

Rs.25,86,137/- (Rupees Twenty-Five Lakhs Eighty-Six Thousand One Hundred and Thirty-Seven Only) along with current and future interest @ 8% from 01.11.2024 till the date of realization, from the defendants,

¶44

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

¶45

OA be the schedule property to the Recovery Certificate.

¶46

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

¶47

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

¶48

other assets are liable for all such amounts due in loan accounts.

¶49

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

¶50

applicant to file cost memo within 7 days from the date of receipt of the order.

¶51

iv) The Recovery Certificate to be drawn in terms of this order and

¶52

transferred to Recovery for execution.

¶53

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

¶54

this Final Order.

¶55

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

¶56

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

¶57

Rules, 1993.

¶58

[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July 2026].

¶59

6 OA No.500/2025

¶60

ANNEXURES

¶61

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶62

AW-1: Sri. Veeraraghaven.R, Chief Branch Head of the applicant bank.

¶63

Exhibits on the part of the Applicant:

¶64

Sl. No.	Description of Documents	Exhibit Number
1.	Loan Application dated 18.11.2021	A1
2.	Housing Loan Proposal (Composite Loan) of Sr.Sanjay Kumar Srivastava of Rs.35.00 Lakhs under General Scheme dated 23.11.2021	A2
3.	NF 981-Housing Loan Agreement dated 29.11.2021	A3
4.	Memorandum of Deposit of Title Deeds dated 29.11.2021	A4
5.	Guarantee Covering Letter dated 29.11.2021	A5
6.	Guarantee Agreement dated 29.11.2021	A6
7.	Legal Notice dated 17.10.2024 and 11.11.2024	A7
8.	Copy of the Statement of Account Certified under Banker’s Book of Evidence Act, showing the outstanding Liability under Housing Loan Account No.160000363001.	A8

¶65

Sd/(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Sanjay Kumar Srivastava

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sanjay Kumar Srivastava

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

Similar cases

Canara Bank versus Ms Kalka Packaging

Hdfc Bank versus M/S Fine Line Retails Pvt. Ltd.

Canara Bank versus Ramappa G Khanagoudar

Mrs Azaz Fatima versus Hero Housing Finance Limited

M/s Pannalal Associates versus Anand Rathi Global Finance Limited

Ranjana Sharma versus Icici Bank Limited