Canara Bank v. Nagalaxmi
Case brief
What is this about?
Debts Recovery Tribunal allowed the application for a Recovery Certificate against defendants who defaulted on agricultural credit facilities. The court held the bank's custody of keys was not full custodial liability and awarded simple interest at 8%.
What did the court decide?
A Recovery Certificate is to be issued for Rs. 40,53,732.21 with future interest at 8% simple; legal heirs liable to the extent of inherited estate.
What the court decided
IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE
Dated this 30th Day of June, 2026
PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer
O.A. No. 531 of 2022
Canara Bank, Branch at Maski, Basavan Gouda Building, New Bazar, Maski, Raichur District -584124, Rep. by its Manager and Constituted Attorney,
. . . Applicant
Versus
- Smt. Nagalaxmi, W/o. G Satyanarayana, R/a Yaddaladinni Camp, Mavi Taluk,
Raichur District -584120.
- M/s. G. Satyanarayana Warehouse, Rep. by its Promoter, a) Sri. G Satyanarayana, S/o. Musalayya,
At Yaddaladinni, Manvi Taluk, Raichur District -584124.
- Sri. G Satyanarayana (Deceased), S/o. Musalayya,
Issues for consideration
3 issues framed by the court
Whether the application for issuance of Recovery Certificate is sustainable given the borrowers' default and the bank's secured interest.
What interest rate should be awarded for pendent lite and future interest on production loans.
To what extent are the legal heirs of a deceased borrower liable and does the bank have exclusive custody liability for pledge assets.
Parties & counsel
- applicant
Canara Bank, Branch at Maski
- respondent
Smt. Nagalaxmi
- respondent
M/s. G. Satyanarayana Warehouse
- respondent
Smt. Gudda Nagalaxmi
- respondent
Smt. Gudala Jogeshwar Rao
- respondent
Case details
As recorded by the court registry
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