Allowed

Canara Bank v. Vijaya since deceased legal representatives SmtHemalathamma and others

DRT29 May 2026OA/734/2023

Case brief

AI extract

What is this about?

This Order allows an Original Application under Section 19 of the RDB Act where the borrower died and the bank sought recovery against legal heirs. The defendants were absent, and the Tribunal awarded a recovery certificate for the principal amount plus reduced interest at 6% p.a., allowing enforcement against mortgaged property and the heirs' estate.

What did the court decide?

Issued a Recovery Certificate for the outstanding principal plus interest at 6% p.a. (simple); permission granted to enforce against mortgaged property and heirs' estate.

Canara Bank versus Vijaya since deceased legal representatives… — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.734/2023

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BETWEEN:

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Canara Bank Branch office at: Raichur Main Branch Raichur District, Karnataka- 584101

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…APPLICANT

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AND:

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Sri. Vijaya Since Deceased Represented by his legal representatives

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Smt. Hemalathamma W/o. Late Vijaya

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Sri. Yoba Raj S/o. Late Vijaya

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Sri. Manoraj S/o. Late Vijaya

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All Defendants No.1 to 3 are R/at: Kurdi Village, Manvi Taluk, Raichur District ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M.R Shashidhar Defendants : Exparte

OA 734-2023

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 for Rs.66,65,317/- (Rupees sixty six lakh sixty five thousand three hundred and seventeen only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that Late Sri. Vijaya was the deceased borrower and the defendant Nos. 1 to 3 are his legal heirs. The deceased borrower had availed the Agricultural loan credit facilities of Rs.5,40,000/- (Rupees five lakh forty thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with simple mortgage deed and letters of revival in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting

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OA 734-2023

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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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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 24.07.2025.

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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-12 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 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

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OA claim as against the defendants?

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ii) What order are to be passed?

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OA 734-2023

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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 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 mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this 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

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are availed by defendant for agricultural purpose and also that 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 @6% p.a. (Simple).

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OA 734-2023

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In the result, OA.No.734/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.66,65,317/- (Rupees sixty six lakh sixty five thousand

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three hundred and seventeen only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the 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 sufficient, the defendants

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No.1 to 3 (being the legal heirs of the deceased borrower Late

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Sri. Vijaya), are only liable to the extent of estate inherited by the Deceased borrower for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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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OA 734-2023

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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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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 29^th day of May, 2026].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 734-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: K. Shiva Prasad, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	17.02.2005	Registered simple mortgage
A2	03.02.2005	Application for loan
A3	24.02.2005	Agreement for agricultural loans
A4	15.03.2005	Letters of particulars of vehicle
A5 to A10	23.01.2008 12.01.2011 09.01.2014 12.01.2016 05.01.2019 25.06.2021	The letters of revival
A11	19.12.2015	Legal Notice
A12		Certified statement of account

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. Vijaya since deceased legal representatives SmtHemalathamma and others

Case brief

What is this about?

What did the court decide?

Canara Bank v. Vijaya since deceased legal representatives SmtHemalathamma and others

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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Case details

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