Allowed

Canara Bank v. Smt Sharadamma

DRT27 Aug 2026OA/602/2026

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application filed under Section 19 of the RDB Act 1993. Upon defendants appearing ex parte, the claim for approximately Rs. 30.34 Lakhs was proved, and a Recovery Certificate was issued with interest reduced to 6% p.a. for agricultural loans.

What did the court decide?

Recovery Certificate issued for Rs. 30,34,895.81 plus interest at 6% p.a. (simple) to be recovered jointly, severally and personally from defendants.

Canara Bank versus Smt Sharadamma — Specific Performance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.602/2026

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BETWEEN:

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Canara Bank Vinoba Nagar Branch, Next to SUDA Office, 100 Feet Road, Near Police Chowk, Vinoba Nagar, Shivamogga -577 204, Through its Chief Manager, Mr. Mallayya Hemnoor.

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…APPLICANT

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AND:

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Smt. Sharadamma W/o Late M.B. Somashekarappa Aged about 72 Having address at: Muduvala Village, Haranahalli Hobli, Shivamogga-577 416.

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Mr. Mahesh B.S. S/o Late m.B. Somashekarappa Aged about 40 Having address at: Muduvala Village, Haranahalli Hobli, Shivamogga-577 416.

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Mr. B.S. Parameshwappa Aged about 44 Having address at: Muduvala Village, Haranahalli Hobli, Shivamogga-577 416.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prasannakumari M.G. Defendants : Exparte

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2 602/2026

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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. 30,34,895.81/(Rupees Thirty Lakh Thirty Four Thousand Eight hundred Ninety Five and Paise Eighty One 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. Kisan Credit Card Scheme Loan of a sum of Rs. 10,00,000/- (Rupees Ten Lakh Only) on 29.9.2021.

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II. Agricultural Loan of sum of Rs. 10,00,000/- (Rupees Ten Lakh Only) on 12.11.2021.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Sanction memorandum, agreement and Deed of Hypothecation, Simple Mortgage, Memorandum of agreement for agricultural loans.

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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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3 602/2026

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 11.06.2026.

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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 A-1 to A-13 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 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 defendants 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 availment of credit facilities as stated in the OA, creation of Mortgage 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

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4 602/2026

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the limitation.

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Hence in view of the findings arrived herein above, the Tribunal 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 was availed for agricultural 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 6.00% (simple).

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In the result, OA.No.602/2026, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 30,34,895.81/- (Rupees Thirty Lakh Thirty Four Thousand Eight Hundred Ninety Five and Paise Eighty One Only) with further interest @6.00 % 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 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 defendants jointly, severally and personally and their assets are liable for the amounts due

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5 602/2026

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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 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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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) 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 27^th Day of August, 2026].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mallayya hemnoor, Chief Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	29.09.2021	Loan application in respect of facility pf Rs. 10 Lakhs
A2	29.09.2021	Sanction Memorandum
A3	29.09.2021	Agreement and deed of Hypothecation for Kisan Credit card

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6 602/2026

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A4	23.09.2021	Simple Mortgage was registered
A5	27.09.2024	Letter of Revival
A6	12.11.2021	Loan application in respect of facility of Rs. 10 Lakh
A7	12.11.2021	Sanction Memorandum
A8	12.11.2021	Memorandum of agreement for agricultural loans
A9	27.09.2024	Letter of revival
A10	20.01.2026	Legal Notice
A11	--	True Extract of Statement of Accounts pertaining to the Defendants aforesaid loan accounts No. 181002422073
A12	--	True Extract of Statement of Accounts pertaining to the Defendants aforesaid loan accounts No. 182000302725
A13	--	Combined statement showing total outstanding liabilities
A14	--	Certificate under section 2a of banker’s book evidence act, 1891

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Smt Sharadamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt Sharadamma

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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