Allowed

Canara Bank v. Smt. Sonabai Maruti Naganure

DRT28 Jan 2026OA/697/2023

Case brief

AI extract

What is this about?

In an exparte Original Application under the RDB Act, the Debt Recovery Tribunal allowed Canara Bank's claim for recovery of an agricultural loan amount of Rs. 21.30 lakh from two defendants who failed to appear. The judgment reduced the interest rate to 6% simple interest.

What did the court decide?

Recovery Certificate issued for Rs. 21,30,681 plus future simple interest at 6% p.a.; cost of proceedings allowed.

Canara Bank versus Smt. Sonabai Maruti Naganure — 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 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.697/2023

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BETWEEN:

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Canara Bank, Ankali Branch, MayurChitra Mandir, Ankali, Chikkodi Taluk, Belgaum Dist, Karnataka 591213, Through its Branch Manager, Mr. Deepak Magadum.

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…APPLICANT

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AND:

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Smt. Sonabai Maruti Naganure, W/o. Maruti Naganure, Aged about 69 years, Having address at: Yadrav Village, Raibag Taluk, Belgaum Dist, Karnataka – 591213.

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Mr. Appasaheb Kallappa Bakale, S/o Kallappa Bakalr, Aged about 67 years, Yadrav Village, Raibag Taluk, Belgaum Dist, Karnataka- 591213. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Venu K V Defendants : Exparte

OA 697/2023

FINAL ORDER

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. 21,30,681.00 (Rupees Twenty One Lakh Thirty Thousand Six Hundred 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 a sum of Rs. 4,60,000/- (Rupees Four Lakh Sixty Thousand Only) towards agricultural purposes for purchase of tractor.

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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 memorandum of agreement for agricultural loan and letter of revival.

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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

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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 03.01.2025.

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OA 697/2023

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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-10 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 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 hypothecation

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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

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OA 697/2023

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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 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.697/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 21,30,681.00 (Rupees Twenty One Lakh Thirty Thousand Six Hundred 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 & 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 the defendants jointly, severally & personally and also proceeding against their assets including the schedule assets. Schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of in terms

OA 697/2023

of this final order.

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 ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Raju Khot, 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 13.08.2004
A2	Memorandum of agreement for agricultural loan dated 13.08.2004
A3	Letter of revival dated 20.06.2007
A4	Letter of revival dated 23.01.2010
A5	Letter of revival dated 21.01.2013
A6	Letter of revival dated 28.12.2015
A7	Letter of revival dated 05.03.2018
A8	Letter of revival dated 08.01.2021
A9	Recall notice dated 17.01.2022
A10	True extract of statement of accounts pertaining to the defendant’s loan account No. 0541895005955
Witness	Examined for the Defendants: -Nil -
List of D	ocuments Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH)

Canara Bank v. Smt. Sonabai Maruti Naganure

Case brief

What is this about?

What did the court decide?

Canara Bank v. Smt. Sonabai Maruti Naganure

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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