Allowed

Canara Bank v. Puttamma

DRT31 Jul 2026OA/645/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Canara Bank against legal heirs of a deceased borrower. With default being unopposed, the Tribunal allowed recovery of Rs. 22,34,420 plus reduced interest at 6% p.a. via a Recovery Certificate against defendants' inherited estate and personal assets.

What did the court decide?

Recovery Certificate allowed for Rs. 22,34,420 plus interest at 6% p.a. (simple). Defendants liable to repay from inherited estate and personal assets.

Canara Bank versus Puttamma — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.645/2022

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BETWEEN:

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Canara Bank Channapatna Branch, 6^th Cross, Kuvempunagar, Channapatna Town, Ramanagara Dist. Karnataka – 562 159

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Through its Senior Manager

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Sri. Vibhash Kumar …APPLICANT

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AND:

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Smt. Puttamma

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(Sence Deceased Rep by her Lrs Are defendant nos. 2 to 6)

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Sri. G B Siddaiah S/o. late Boraiah R/at: Garakahalli Village & Post, Channapatna Tq, Ramanagara Dist. Karnataka – 562 138

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Sri. Puttaswamy S/o. late Boraiah R/at: Garakahalli Village & Post Channapatna Tq, Ramanagaram Dist. Karnataka – 562 138

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OA. No. 645/2022

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Sri. Mahesh S/o. late Boraiah R/at: Garakahalli Village & Post Channapatna Tq, Ramanagaram Dist. Karnataka – 562 138

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Sri. Ramesh S/o. late Boraiah R/at: Garakahalli Village & Post Channapatna Tq, Ramanagaram Dist. Karnataka – 562 138

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Sri. Kempaiah S/o. late Boraiah R/at: Garakahalli Village & Post Channapatna Tq, Ramanagaram Dist. Karnataka – 562 138 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates Defendant nos. 2 to 6 : Ex parte Defendant no.1 : Deceased

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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 for seeking issuance of Recovery Certificate against the defendants for Rs. 22,34,420/- (Rupees Twenty-Two Lakhs Thirty-Four Thousand Four Hundred and Twenty Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA. No. 645/2022

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It is the case of the applicant that, the defendant no.2 to 6 are the legal heirs of the deceased borrower. The Late borrower Smt. Puttamma availed a term loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) for the agricultural purpose.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents along with mortgage deed.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, borrower failed in complying the same, resulting in defaults 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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After filling of the OA, summons sent to defendant by registered post. The applicant bank has filed a memo dated 13.03.2025 stating that, the defendant no.1 expired and requesting to treat the defendant no.1 as abated in suit. Despite, services completed, the defendant nos. 2 to 6 placed ex parte on 11.06.2025.

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OA. No. 645/2022

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A7 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the 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 orders 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

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remains unrebutted as defendants 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 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 are also proved by the above documents. The claim of the applicant is well

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OA. No. 645/2022

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within the limitation.

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of

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6.00% (simple).

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In the result, OA.No.645/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 22,34,420/- (Rupees Twenty-Two Lakhs Thirty-Four Thousand Four Hundred and Twenty Only) with further interest @6.00 % p.a.(simple), from the date of filing OA till the realization, from the defendant no. 2 to 6, to the extent of their inheritance of any estate form the deceased borrower, Smt. Puttamma after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be

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recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the

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OA. No. 645/2022

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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 defendant nos. 2 to 4 jointly, severally and personally and other assets are liable

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for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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

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with this Final Order.

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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

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DRT (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 31^st Day of July, 2026]

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(T. RAJESH) PRESIDING OFFICER

Sd/-

OA. No. 645/2022

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Asha J, W/o. L G Parashiva Murthy, Divisional Manager, of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Application Dated 27.12.2005
A2	Sanction letter dated 28.12.2005
A3	Memorandum Of Agreement for Agricultural Loans Executed by Defendant No.1, 2, 3, 4, 5 & 6 In Favour of Applicant Bank Dated 28.12.2005
A4	Letter of revival executed by defendant no.1, 2, 3, 4, 5 & 6 in favour of applicant dated 01.02.2010, 01.06.2013, 13.05.2016 & 11.05.2019
A5	Simple mortgage deed executed by defendant no.1,2,3,4,5 & 6 in favour of applicant bank
A6	Legal notice dated 06.04.2021
A7	True extract of statement of accounts pertaining to the defendant’s loan accounts 05928560008589
Witness Ex	amined for the Defendants: -Nil -
List of Docu	ments Exhibited for the Defendants: -Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Canara Bank v. Puttamma

Case brief

What is this about?

What did the court decide?

Canara Bank v. Puttamma

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

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