Allowed

Canara Bank v. Ms Chandrika Jewellary Works and Shilpakala

DRT24 Jun 2026OA/530/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Canara Bank for issuance of a Recovery Certificate against a defaulting borrower for a business loan, determining the recoverable amount including principal, interest, and costs.

What did the court decide?

Recovery Certificate allowed for Rs. 24,51,988.52 with 12% p.a. interest and costs, executable against respondent's assets.

Canara Bank versus Ms Chandrika Jewellary Works and Shilpakala — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.530/2024

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BETWEEN:

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Canara Bank Bidadi Branch, Ramanagara District, Karnataka – 562 109

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Represented by its Chief Manager

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Mr. Milee Sobin …APPLICANT

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AND:

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M/s. Chandrika Jewellery Works and Shilpakala Represented by Sunil Kumar N (Proprietor/Borrower) Branch office at: Kethiganahalli Main Road, Near Water Tank, Bidadi, Ramanagara Taluk, Ramanagara District, Karnataka – 562 109 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Pai & Anand Law Associates Defendant : 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 defendant for Rs. 20,89,786.93/- (Rupees Twenty Lakhs Eighty-Nine Thousand Seven Hundred and Eighty-Six and Paisa Ninety-Three Only) with further

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2 OA-530/2024

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interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant is availed the following credit facilities:

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Overdraft Facility of Rs. 20,00,000/- (Rupees Twenty Lakhs Only) for Micro & Small Enterprises.

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CGCL of Rs. 4,00,000/- (Rupees Four Lakhs Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan document along with hypothecation deed.

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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 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 defendant, failed to appear, resulting the defendant being set ex parte on 07.02.2025.

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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-26 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-530/2024

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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 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 facilities as stated in the OA,

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creation of the security interest and the defaults committed in the accounts. 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 findings arrived herein above, the Tribunal

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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 of the view that OA can be allowed with a reduced interest of 12.00% (simple).

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4 OA-530/2024

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In the result, OA.No.530/2024, stands allowed, i) The applicant is allowed to recover an aggregate sum of

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Rs. 20,89,786.93/- (Rupees Twenty Lakhs Eighty-Nine Thousand Seven Hundred and Eighty-Six and Paisa Ninety-Three Only) with further^{interest @12.00% p.a.(simple) from the date of filing OA till}

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the realization, from the defendant 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 proceeding against the schedule properties. 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 amount due and payable to the applicant bank, the defendant personally and assets are liable for balance amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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5 OA-530/2024

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14. 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 24^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Mondeep Builung, S/o. Pradip Bailung, Senior Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	date	Particulars
A1	23.09.2016	The trade license certificate
A2	01.02.2018	Loan application
A3	16.02.2018	Application for and overdraft facility
A4	16.02.2018	Sanctioned memorandum
A5	16.02.2018	Letter of undertaking
A6	16.02.2018	Letterofproprietorship
A7	16.02.2018	Cash credit agreement
A8	16.02.2018	Pronote
A9	16.02.2018	Specimen signature card
A10	10.02.2021	Letterof revival
A11	19.11.2022	Letter of renewal
A12	05.06.2021	Common application cum appraisal from for credit facility for micro and small enterprises (MSMEs)
A13	05.02.2021	The sanction memorandum
A14	------	Letter of renewal
A15	------	Common application cum appraisal from for credit facility for micro and small enterprises (MSMEs)
A16	-------	The sanction memorandum
A17	29.06.2021	Undertaking along with particulars of vehicles/machinery/equipment’s/livestocketc.
A18	------	Hypothecation agreement

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6 OA-530/2024

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A19	29.06.2021	Take delivery letter
A20	29.06.2021	Pronote
A21	19.11.2022	Letter of revival
A22	26.07.2023	Recall notice
A23	25.09.2023	Legal notice along with postal tracking report
A24	-------	Statement of loan no. 0452621005660
A25	-------	Statement of loan no.0426755000069
A26	-------	The certificate as per bankers’book of evidence act
Witnes	s Examined f	or the Defendant: -Nil -
List of	Documents E	xhibited for the Defendant: -Nil -

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Sd/-

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7 OA-530/2024

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 01^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.530/2024

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BETWEEN:

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Canara Bank Bidadi Branch, Ramanagara District, Karnataka – 562 109

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Represented by its Chief Manager

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Mr. Milee Sobin …APPLICANT

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AND:

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M/s. Chandrika Jewellery Works and Shilpakala Represented by Sunil Kumar N (Proprietor/Borrower)

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Branch office at: Kethiganahalli Main Road, Near Water Tank, Bidadi, Ramanagara Taluk, Ramanagara District, Karnataka – 562 109 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Pai & Anand Law Associates Defendant : Exparte

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CORRIGENDUM DATED 01.07.2026

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This Tribunal has passed the Final Order in OA 530/2024 on 24.06.2026. It has come to the notice that in Para’s 1 & 13(i), it is wrongly typed by inadvertence as: -

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The present Original Application in short (OA) has been filed

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8 OA-530/2024

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 20,89,786.93/- (Rupees Twenty Lakhs Eighty-Nine Thousand Seven Hundred and Eighty-Six and Paisa Ninety-Three Only) with further interest thereon from the date of filing the Application till realization.

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In the result, OA.No.530/2024, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 20,89,786.93/- (Rupees Twenty Lakhs Eighty-Nine Thousand Seven Hundred and Eighty-Six and Paisa Ninety-Three Only) with further^{interest @12.00% p.a.(simple) from the date of filing OA till} the realization, from the defendant personally, after giving credit to all

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the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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Instead, it must be read as:

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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 defendant for Rs. 24,51,988.52/- (Rupees Twenty-Four Lakhs Fifty-One Thousand Nine Hundred and Eighty-Eight and Paisa Fifty-Two Only) with further

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9 OA-530/2024

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interest thereon from the date of filing the Application till realization.

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In the result, OA.No.530/2024, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 24,51,988.52/- (Rupees Twenty-Four Lakhs Fifty-One Thousand Nine Hundred and Eighty-Eight and Paisa Fifty-Two Only) with further interest @12.00% p.a.(simple) from^{the date of filing OA till the} realization, from the defendant 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 proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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Rest of the Final order dated 24.06.2026 holds good and there is no change.

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Sd/-

¶89

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. Ms Chandrika Jewellary Works and Shilpakala

Case brief

What is this about?

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Canara Bank v. Ms Chandrika Jewellary Works and Shilpakala

Case brief

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