Allowed

Canara Bank v. Shakuntala Mallanagouda

DRT28 Jan 2026OA/69/2025

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of RDB Act 1993 for issuance of a Recovery Certificate. Decided ex parte due to non-appearance of respondents. Granted reduced interest of 6.00% simple. Authorised recovery from joint and several liability and schedule property.

What did the court decide?

Recovery Certificate issued allowing recovery of Rs. 24,55,977.57 plus interest at 6.00% p.a. simple from defendants jointly, severally and personally, including schedule property.

Canara Bank versus Shakuntala Mallanagouda — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.69/2025

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BETWEEN:

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Canara Bank, Yergatti Branch, Mahabaleshwar Complex, Gokak Road, Yergatti, Saudatti Taluk, Dist. Belagavi, Through its Senior manager, Mr. Rahul Shukla.

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…APPLICANT

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AND:

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Smt. Shakuntala M Patil, W/o Mallanagouda Patil, Age: 50 years, At & Post: Akkisagar Village, Savadatti Taluk, Belgaum- 591 129.

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Mr. Bangareppa M Patil, S/o Mallanagouda Patil, Age: 36 years, At & Post: Akkisagar Village, Savadatti Taluk, Belgaum- 591 129.

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Smt. Hema B Patil, W/o. Bheemanagouda Patil, Age: 34 years, At & Post: Akkisagar Village, Savadatti Taluk,

OA 69/2025

Belgaum- 591 129.

Smt. Kumari M Patil, D/o Mallanagouda Patil, Age: 33 years, At & Post: Akkisagar Village, Savadatti Taluk, Belgaum- 591 129. 5. Mr. Santhosh M Patil, S/o Mallanagouda Patil, Age: 31 years, At & Post: Akkisagar Village, Savadatti Taluk, Belgaum- 591 129.

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Mr. Lakkappa S Marakumbi, S/o. Siddappa Marakumbi, Age: 41 years, At & Post: Akkisagar Village, Savadatti Taluk, Belgaum- 591 129.

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...DEFENDANTS

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Counsel on record/appeared for: Applicant : Venu K V 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. 24,55,977.57 (Rupees Twenty Four Lakh Fifty Five Thousand Nine Hundred Seventy

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OA 69/2025

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Seven and Paise Fifty Seven 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 a sum of Rs. 3,50,000/- (Rupees Three Lakh Fifty Thousand Only) for agricultural purpose towards crop production and a sum of Rs. 10,50,000/- (Rupees Ten Lakh Fifty Thousand Only) for construction of farm house.

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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 deed of guarantee and simple mortgage.

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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, summons the defendants, they failed to appear, resulting the defendants being set exparte on 09.07.2025.

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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-13 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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OA 69/2025

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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 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 the security interest 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 Agriculture purpose and also that the OA claim is arrived at by

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OA 69/2025

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calculating interest at the agreed rate, this Tribunal in view of the OA can

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be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.69/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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24,55,977.57 (Rupees Twenty Four Lakh Fifty Five Thousand Nine Hundred Seventy Seven and Paise Fifty Seven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and

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allowed the same to be recovered by proceeding against schedule property. 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

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amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for amounts due 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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OA 69/2025

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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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of January, 2026].

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Sd/- (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: Naga Chetan, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Loan application dated 20.12.2017
A2	Sanction memorandum dated 20.12.2017
A3	Agreement for agricultural advances dated 26.12.2017
A4	Deed of guarantee for agricultural advanced dated 26.12.2017 executed by defendant No. 6
A5	Loan application dated 20.12.2017 for Rs. 10,50,000/-
A6	Memorandum of sanction of Rs. 10,50,000/- dated 26.12.2017
A7	Agreement for agricultural advances dated 26.12.2017
A8	Deed of guarantee for agricultural advanced dated 26.12.2017 executed by defendant No.6
A9	Simple mortgage dated 20.12.2017
A10	Notice dated 30.04.2024

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OA 69/2025

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A11 True extract of statement of accounts pertaining to the defendants loan accounts 05178440002571 A12 True extract of statement of accounts pertaining to the defendants loan accounts 05178280001433 A13 Combined statement showing total outstanding balance

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

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Canara Bank v. Shakuntala Mallanagouda

Case brief

What is this about?

What did the court decide?

Canara Bank v. Shakuntala Mallanagouda

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

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