Allowed

Canara Bank v. M/s. Elemech Power Technologies India Pvt. Ltd.

DRT19 Jun 2026OA/591/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Canara Bank for recovery certificate against M/s Elemech Power Technologies and individual directors. The tribunal adjudicated the claim at 12% simple interest after considering the defendants' default and lack of appearance in an ex-parte proceeding.

What did the court decide?

Recovery certificate issued for Rs. 46,88,502 with 12% simple interest recoverable from property and assets of respondents jointly and severally.

Canara Bank versus M/s. Elemech Power Technologies India Pvt… — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.591/2023

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BETWEEN:

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Canara Bank Jayalakshmipuram Branch, No.6, ‘Ganga’ Temple Road, Jayalakshmipuram, Mysore-570 012. Represented by its Chief Manager, Smt. Usha. K.K.

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…APPLICANT

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AND:

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M/s Elemech Power Technologies India Pvt Ltd. The Private limited company represented by its Directors, Regd. Office at No. 42, Site No. 12, Industrial Suburb, Mysore-570 008.

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Sri. Naveen S Biradar, S/o Sri. Setappagouda, Aged about 48 years, Director of M/s M/s Elemech Power Technologies India Pvt Ltd. No. 307, DS Max Smaran Apartments, 3^rd Stage, Industrial Subrub, Mysore South, Mysore-570 008.

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Sri. Natesha S, S/o Sri. Swamy, Aged about 40 years,

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Director of M/s M/s Elemech Power Technologies India Pvt Ltd. R/at : Vinayaka Badavane, Karasavadi, Santhekasalagere, Mandya-571403. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Ragavendra G. K 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. 46,88,502/- (Rupees Forty Six Lakh Eighty Eight Thousand Five hundred Two 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. OD/ OCC Loan of a sum of Rs. 10,00,000/- for the purpose of business on 24.01.2020.

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II. Guaranteed Emergency Credit Line (GECL) Loan of sum of Rs. 1,85,000/- on 12.06.2020.

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III. Term Loan of sum of Rs. 12,40,000/- on 13.11.2020.

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IV. CFITL Loan of sum of Rs. 46,919/- Crores on 03.09.2020.

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V. Term Loan of sum of Rs. 12,00,000/- on 26.11.2020.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Demand Promissory Note, Guarantee Agreement, Deed of Hypothecation, Agreement cum Deed of Hypothecation.

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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 21.10.2025.

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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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The following issues arise for consideration in this matter:

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

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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

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the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove

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availment of credit facilities as stated in the OA, creation of Hypothecation

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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

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

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In the result, OA.No.591/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 46,88,502/- (Rupees Forty Six Lakh Eighty Eight Thousand Five Hundred Two Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, 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 proceeding against schedule property. Schedule Properties to the OA be

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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

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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

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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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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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19^th Day of June, 2026].

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Sd/-

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(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: Sushant Parashar, Senior Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	Description of the Document
A1	20.10.2020	Loan Application submitted by the 1^st Defendant in favour of the Applicant for grant of OCC/ODBD loan of Rs.21 Crores and Term Loan of Rs.3.83 Crores for taking over loan/Credit Limits from Volkswagen Finance Private Limited.
A2	28.10.2020	Sanction Memorandum issued by the Applicant in favour of the 1^stDefendant
A3	28.10.2020	Request for Over Draft Facilities submitted by the First Defendant in favour of the Applicant in respect of OCC/ODBD loan of Rs.21 Crores.
A4	28.10.2020	On Demand Promissory Note executed by the First Defendant in favour of the Applicant in respect of OCC limit of Rs.21 Crores.
A5	28.10.2020	Term Loan Agreement executed by the First Defendant in favour of the Applicant in respect of Term loan of Rs.3.83 Crores.
A6	28.10.2020	Common Hypothecation Agreement executed by the First Defendant in favour of the Applicant in respect of Term loan of Rs.3.83 Crores plus OD/OCC of Rs.21 Crores, in all amounting to Rs.24.83 Crores.
A7	28.10.2020	Guarantee Covering Letter executed by Second Defendant
A8	28.10.2020	Guarantee Agreement executed by the 2^nd Defendant Sri. Raghu Chaitanya Y. Nayak in favour of the Applicant for OCC/OD & Term loan Limits in all Rs.24.83 Crores.

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A9	28.10.2020	Guarantee Covering Letter executed by the Third Defendant
A10	28.10.2020	Guarantee Agreement executed by the 3^rd Defendant Sri. Yashodhar G. Nayak in favour of the Applicant for OCC/OD & Term loan Limits in all Rs.24.83 Crores.
A11	28.10.2020	Guarantee Covering Letter executed by Fourth Defendant
A12	28.10.2020	Guarantee Agreement executed by the 4th Defendant Smt. Shubha Nayak in favour of the Applicant for OCC/OD & Term loan Limits in all Rs.24.83 Crores.
A13	28.10.2020	Guarantee Covering Letter executed by Fifth Defendant
A14	28.10.2020	Guarantee Agreement executed by the 5^th Defendant-Smt. N. Bharathi Urs in favour of the Applicant for OCC/OD & Term loan Limits in all Rs.24.83 Crores.
A15	28.10.2020	Guarantee Covering Letter executed by 6^th Defendant
A16	28.10.2020	Guarantee Agreement executed by the 6^th Defendant Smt. Yashasvinni Nayak in favour of the Applicant for OCC/OD & Term loan Limits in all Rs.24.83 Crores.
A17	28.10.2020	Offer Letter submitted by the 1^stDefendant in favour of the Applicant for grant of WCTL loan Limits of Rs.4.28 Crores under GECL scheme.
A18	11.11.2020	Sanction Memorandum issued by the Applicant in favour of the 1^stdefendant granting Working Capital Term Loan Limits of Rs.4.28 Crores under GECL scheme.
A19	17.11.2020	Supplemental Common Hypothecation Agreement executed by the 1^stDefendant in favour of the Applicant for the total loan limits of Rs.29.11 Crores.
A20	11.11.2020	Memorandum of Deposit of Title Deeds executed byDefendant No.2 Sri Raghu

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		Chaitanya Y. Nayak, Defendant No.5- Smt. N. Bharathi Urs and Defendant No.6 - Smt. Yashasvinni Nayak in favour of the Applicant for the total loan limits of Rs.29.11 Crores.
A21	01.03.2021	Sanction Memorandum issued by the Applicant granting Fresh Term Loan of Rs.6.25 Crores
A22	04.03.2021	Request Letter submitted by the Defendant No.1.
A23	06.03.2021	Supplemental Common Hypothecation Agreement executed by the 1^stDefendant in favour of the Applicant in respect of total loan limits of Rs.35.36 Crores
A24	06.03.2021	Guarantee Covering Letter executed by the Second Defendant
A25	06.03.2021	Guarantee Agreement executed by the 2^nd Defendant Sri. Raghu Chaitanya Y. Nayak in favour of the Applicant for OCC/OD, Term loan-1, GECL & Term loan-2 in all Rs.37.08 Crores.
A26	06.03.2021	Guarantee Covering Letter executed by the Third Defendant
A27	06.03.2021	Guarantee Agreement executed by the 3^rd Defendant Sri. Yashodhar G. Nayak in favour of the Applicant for OCC/OD, Term loan-1, GECL & Term loan-2 in all Rs.37.08 Crores.
A28	06.03.2021	Guarantee Covering Letter executed by the Fourth Defendant
A29	06.03.2021	Guarantee Agreement executed by the 4th Defendant Smt. Shubha Nayak in favour of the Applicant for OCC/OD, Term loan-1, GECL & Term loan-2 in all Rs.37.08 Crores.
A30	06.03.2021	Guarantee Covering Letter executed by the Fifth Defendant
A31	06.03.2021	Guarantee Agreement executed by the 5^th Defendant Smt. N.Bharathi Urs in favour of the

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		Applicant for OCC/OD, Term loan-1, GECL & Term loan-2 in all Rs.37.08 Crores.
A32	06.03.2021	Guarantee Covering Letter executed by the Sixth Defendant
A33	06.03.2021	Guarantee Agreement executed by the 6^th Defendant Smt. Yashasvinni Nayak in favour of the Applicant for OCC/OD, Term loan-1, GECL & Term loan-2 in all Rs.37.08 Crores.
A34	06.03.2021	Supplemental Memorandum of Deposit of Title Deeds executed by Defendant No.2 Sri Raghu Chaitanya Y. Nayak, Defendant No.5 - Smt. N.BharathiUrs Defendant No.6 - Smt. Yashasvinni Nayak in favour of the Applicant for the Term loan-2 for Rs.6.25 Crores.
A35	03.11.2021	Loan Application submitted by the 1^st Defendant for grant of WCTL loan of Rs.4.40 Crores under GECL 1.0 Extension Scheme.
A36	06.11.2021	Sanction Memorandum issued by the Applicant in favour of 1^stDefendant granting WCTL loan Limits of Rs.4.40 Crores under GECL 1.0 Extension Scheme.
A37	23.12.2021	On Demand Promissory Note (Pronote) executed by the first Defendant in favour of the Applicant for WCTL loan Limits of Rs.4.40 Crores
A38	23.12.2021	Supplemental Agreement executed by the Defendant No.1 Sri Raghu Chaitanya Y. in favour of the Applicant for the total Loan limits of Rs.39.76 Crores.
A39 A40	20.12.2021 07.10.2022	Supplemental Memorandum of Deposit of Title Deeds executed by the Defendant No.2 Sri Raghu Chaitanya Y. Nayak, Defendant No.5- Smt. N.BharathiUrs Defendant No.6- Smt. Yashasvinni Nayak favour of the Applicant for the Additional Loan limits of Rs.4.40 Crores. Legal Notice issued to the Defendants

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A41 To	08.10.2022	Postal Registration Receipts - 7 in Nos.
A47
A48 &	10.10.2022	Acknowledgement Cards of Defendants 3 & 4
A49
A50 To		RPAD returned Envelops of Defendants No.1, 2, 5 & 6
A54
A55	24.11.2022	Reply of the Defendants
A56	22.09.2022/ 14.12.2022	Certified Statement of Account in respect of OD/OCC Account No.4966261000019 of the defendant No.1 with interest calculation sheet and certificate.
A57	22.09.2022/ 14.12.2022/ 05.01.2023	Certified Statement of Account in respect of Loans to MSME Services (Term Loan-1) bearing Account No.4966768000017 of the defendant No.1 with interest calculation sheet and certificate.
A58	22.09.2022/ 02.12.2022/<br>05.01.2023	Certified Statement of Account in respect of Loans to GECL bearing Account No.4966755000023 of the defendant No.1 with interest calculation sheet and certificate.
A59	22.09.2022/ 14.12.2022/ 05.01.2023	Certified Statement of Account in respect of Loans to MSME Services (Term Loan-2) bearing Account No.4966768000019 of the defendant No.1 with interest calculation sheet and certificate.
A60	22.09.2022/ 14.12.2022/ 05.01.2023	Certified Statement of Account in respect of Loans to GECL -1.0 (Extension) bearing Account No.170002923752 of the defendant No.1 with interest calculation sheet and certificate.

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A61 Consolidated statement

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU OA No.591/2023

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BETWEEN:

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Canara Bank

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Jayalakshmipuram Branch, No.6, ‘Ganga’ Temple Road, Jayalakshmipuram, Mysore-570 012. Represented by its Chief Manager, Smt. Usha. K.K. ….APPLICANT

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AND:

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M/s Elemech Power Technologies India Pvt Ltd. The Private limited company represented by its Directors, Regd. Office at No. 42, Site No. 12, Industrial Suburb, Mysore-570 008.

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Sri. Naveen S Biradar, S/o Sri. Setappagouda, Aged about 48 years, Director of M/s M/s Elemech Power Technologies India Pvt Ltd. No. 307, DS Max Smaran Apartments, 3^rd Stage, Industrial Subrub, Mysore South, Mysore-570 008.

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Sri. Natesha S, S/o Sri. Swamy, Aged about 40 years, Director of M/s M/s Elemech Power Technologies India Pvt Ltd. R/at : Vinayaka Badavane, Karasavadi, Santhekasalagere, Mandya-571403.

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.... DEFENDANT

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CORRIGENDUM DATED 24.06.2026.

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This Tribunal has passed the Final Order in OA No.591/2023 on 19^th June, 2026. It has come to the notice that there are some typographical errors in list of Documents of the said order. Hence the para of list of Documents must be read as para as follows;

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Annexure	Date	List of Documents
A1	24.01.2020	Cash Credit Agreement
A2	24.01.2015	On demand promissory note
A3	24.01.2015	Guarantee Covering Letter
A4	24.01.2015	Guarantee Agreement
A5	24.01.2015	Guarantee Covering Letter
A6	24.01.2015	Guarantee Agreement
A7	12.06.2020	Agreement cum deed of Hypothecation
A8	12.06.2020	Guarantee Covering Letter
A9	12.06.2020	Guarantee Agreement
A10	12.06.2020	Guarantee Covering Letter
A11	12.06.2020	Guarantee Agreement
A12	13.11.2020	Deed of Hypothecation re: machinery
A13	28.08.2020	Intimation Letter
A14	26.11.2020	Can mobile Agreement

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A15	26.11.2020	Particulars of Vehicle/ Machinery/ Equipment/ Livestock etc., Hypothecated
A16	--	‘B’ Register Extract
A17	26.11.2020	Guarantee Covering Letter
A18	26.11.2020	Guarantee Agreement
A19	26.11.2020	Guarantee Covering Letter
A20	26.11.2020	Guarantee Agreement
A21	10.02.2023	Office copy of the Legal Notice
A22		Statement of Account Extract A/c No. 0566261010925
A23		Statement of Account Extract A/c No. 0566755000050
A24		Statement of Account Extract A/c No. 0566766000019
A25		Statement of Account Extract A/c No. 0566710000056
A26		Statement of Account Extract A/c No. 0538603000230

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The rest of the Final Order dated 19.06.2026 holds good and there is no change.

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Sd/-

¶89

(T. RAJESH) PRESIDING OFFICER

Canara Bank v. M/s. Elemech Power Technologies India Pvt. Ltd.

Case brief

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Canara Bank v. M/s. Elemech Power Technologies India Pvt. Ltd.

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