Allowed

Canara Bank v. Sri. Bathike Lalappa

DRT5 May 2026OA/77/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal (IAT) Hyderabad allowed an application filed by Canara Bank for recovery of approximately Rs. 33.37 lakhs from two defaulting borrowers and guarantors, confirming the bank's entitlement to future interest and costs upon establishment of the loan documents.

What did the court decide?

Joint and several liability to pay Rs.33,37,058.93 with future interest; mortgage proceeds realization; entitlement to costs; issuance of Recovery Certificate.

Canara Bank versus Sri. Bathike Lalappa — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL - IAT HYDERABAD

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DATED THIS THE Osth DAY OF MAY, 2026

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

OA. No.77 OF 2026

Between :

Canara Bank,

Narayanpet Branch,

H.No. 1-5-32, Ground Floor,

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Sai Vijaya Colony, Civil Lane, Opp. SP Office, Narayanpet, Mahbubnagar District, Telangana - 509 210.

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Represented by its Chief Manager

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Applicant

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VERSUS

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Sri. Bathike Lalappa, S/o. Sri. B. Bhimappa, Aged Major, Occ. Business, H.No. 1-6-63/8,

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Ashok Nagar,

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Narayanapet - 509 2't 0, Mahaboobnagar District, Telangana State.

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Also at -

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tl{{rafflr'q8t - ';,t*. -o Sobrn*,oun*!

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lO^{A. No.77} /20261

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Mahaboobnagar District, Telangana State.

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Also at -

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H.No.2-59, Vattugundla Village, Damaragidda Mandal, Narayanapet - 509 349 Mahaboobnagar District, Telangana State.

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Sri. Matam Mallikarjun, S/o. Sri. M. Shivaiah Swamy, Age Major, Occ. Business H.No.4-'12, Pulmamdi, Utkoor Mandal, Mahboobnagar District - 509 353, Telangana State

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Defen dants

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Counsel for the parties :

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For The Applicant Smt. K. NandiniK. Nandini For the Defendant Exparte Reserved on 24.04.2026 Pronou 05.05.2026 06.05.2026

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Smt. K. NandiniK. Nandini

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(OA. No. 7712026)

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ORDER

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The Applicant Bank filed the present OA against Defendants for recovery of a total sum of Rs.33,37,058.93 Ps. (Rupees Thirty Three Lakhs Thirty Seven Thousand Fifty Eight and Paise Ninety Three Only) i.e a sum of -

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(i) Rs.30,89,718.93 Ps. being the Term loan (Home Loan) account with future interest @ 10.25o/o p.a with monthly rests from 02.11.2025 till the date of realization.

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(ii) Rs.2,47,340.00 Ps. being the Canara Home Loan secure with future interest @8.35% p.a with monthly rests from 29.10.2025 till the date of realization.

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and in default for sale of Mortgaged Property as mentioned in the Schedule of Property A to OA.

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As per the averments in the application, the Applicant Bank states that Defendants availed Home Loan under Term Loan facility of Rs.30,00,0001 repayable in 348 equated monthly installments of Rs.29,2631 each with interest and executed Housing Loan dated 01 .08.2023 in favor of the Applicant Bank. The No. 1 and 2 also stood as a Guarantor and executed & j l}5usamanrnJ endants created ent dated 01 .08.2023 in Equitable Mortgage favor of the Applicantmorefully \J!q .j 3 ?"40, -"fsi '%,* @.,w

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(oA.No.17120261

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mentioned in Schedule of Property A to OA and executed Memorandum of Deposit of Title Deeds dated 28.07.2023 in favor of the Applicant Bank and the defendants deposited Sale deed dated 1210.2017 in favor of the Applicant Bank. The defendants availed Term loan under Canara Home Loan Secure of Rs.2,61,469/- repayable 180 equated monthly installments of Rs.27061 each with interest and executed Undertaking Letter dated 28.11.2023 in favor of the Applicant Bank. After availing the loan facility, the defendants failed to comply the terms of sanction, hence the applicant bank classifled the account as NPA on 29.09.2025 and issued Legal notice da1ed22.10.2025 to the defendants. lnspite of several requests and demands, the defendants did not clear the outstanding. Hence this OA.

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Defendants called absent and set exparte on 24.04.2026.

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Sri. Himansu Sekhar Singh, Chief Manager of the Applicant Bank examined himself as AW.'l and exhibited relevant documents, which are marked as Ex.A.1 to A.14.

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Heard the Ld. Counsel for the Applicant Bank.

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that arise for consideration is whether the Applicant

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f eii 6 for the claim made in the OA against the ayed for?

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(oA.No.77/2026)

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Defendants remained exparte. To substantiate the case of the Applicant Bank, AW.1 , official of the Applicant Bank was examined and he exhibited relevant documents as Ex.A.1 to A. 14. ln view of the above, I hold that the Applicant Bank has established their claim made in the OA against the Defendants and hence the Applicant Bank is entitled to recover the claim made in the OA with future interest and costs.

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ln the result, the present OA is allowed with costs, as under :

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The Defendants No. 1 and 2 are jointly and severally liable to pay to the Applicant Bank a total sum of Rs.33,37,058.93 Ps. (Rupees Thirty Three Lakhs Thirty Seven Thousand Fifty Eight and Paise Ninety Three Only) i.e a sum of -

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(i) Rs.30,89,718.93 Ps. being the Term loan (Home Loan) account with future interest @ 10.25Yo p.a from 02.11.2025 fll the date of realization.

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(ii) Rs.2,47,340.00 Ps. being the Canara Home Loan secure with future interest @8.35% p.a from 29.10.2025 till the date of rea lizatio n.

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cant Bank is entitled to proceed against the Mortgaged {% mentioned in the Schedules of Property A to the j realization of the debt due. ll 5 uryomnort X= ,-d. , -^5).

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loA.^No.77 /20261

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The Applicant Bank is also entitled to proceed against the person and properties of Defendants No. 1 and 2 towards realization of the debt due.

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That Applicant Bank is entitled to the costs of the OA.

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The Applicant shall file a cost memo within two weeks from the date of receipt of order.

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lssue Recovery Certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 05rh day of l/ay, 2026)

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TRUE/DOPY n^ tu^?;'ffi

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DRI.',^TIYOERABAO

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sd/(G. GOPTCHAND) PRESIDING OFFICER

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Canara Bank v. Sri. Bathike Lalappa

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sri. Bathike Lalappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Parties & counsel

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Case details

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