The Tribunal allowed the original application filed by Canara Bank under Section 19 of RDB Act 1993. Defaulting defendants were present ex parte. The court issued a Recovery Certificate with reduced interest of 10% simple interest.
Recovery Certificate to be drawn and transferred to Recovery Officer for execution.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
1 TA -21/2023
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 24th Day of June, 2026
Present: Sri. T. RAJESH Presiding Officer
TA.No.21/2023
BETWEEN:
Canara Bank Raichur Main Branch No.5, 11—61 & 11-2-62, Lingasur Road, Main Road, Opp. Vishal Mart, Raichur -584102. Represented by its Chief Manager, Sri. K.N. Swetha.
…APPLICANT
AND:
S/o Venkanna, Also at : # 10-2-4 2/3, Makthalpet, Raichur.
Also at: #10-2-4 2/3, Makthalpet, Raichur.
2 TA -21/2023
Counsel on record/appeared for:
Applicant : C. Vinay Swamy Defendants : Exparte
FINAL ORDER
3 TA -21/2023
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.
Both these issues are gone into and decided together.
4 TA -21/2023
unrebutted as defendant 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 and Hypothecation as claimed by the applicant bank 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.
availed for business 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 10.00% (simple).
Rs.1,10,21,616/- (Rupees One Crore Ten Lakh Twenty One Thousand Six Hundred Sixteen only) consisting of:
a. Rs.1,06,87,737 /- with further interest of 10.00% p.a.(simple) from
5 TA -21/2023
the date of filing OA till the realization from the defendant No. 1 to 5 in
respect of OD A/c.
b. Rs.3,33,879/- with further interest of 10.00% p.a.(simple) from the
date of filing OA till the realization from the defendant No.1 & 2 in respect of GECL A/c from the defendants jointly, severally and 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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.
iii) 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.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in terms of this final order.
6 TA -21/2023
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24th Day of June, 2026].
Sd/- (T. RAJESH)
PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: K Shiva Prasad, Manager of the applicant Bank
Exhibits on the part of the Applicant:
| Annexure | Date | List of Documents |
|---|---|---|
| OD Limit sanctioned |
of Rs. 95 on 27.07.2 |
Lakhs in A/c No. 0519261000905 originally 020 |
| A1 | 25.05.2013 | Letter of Proprietorship |
| A2 | 25.05.2013 | Request for OD facilities |
| A3 | 25.05.2013 | Pronote |
| A4 | 25.05.2013 | Common hypothecation agreement |
| The follow renewal of |
ing docume the limit of |
nts were executed by 1stand 2nddefendants for Rs. 25 Lakhs in the years 2014 to 2019 |
| A5 | 13.05.2014 | Sanction of renewal |
| A6 | 13.05.2014 | Letter of renewal |
| A7 | 13.05.2015 | Sanction letter |
| A8 | 13.05.2015 | Letter of renewal |
| A9 | 15.07.2016 | Sanction letter |
| A10 | 15.07.2016 | Letter of renewal |
| A11 | 15.07.2016 | Sanction letter |
| A12 | 15.07.2017 | Letter of renewal |
| A13 | 15.07.2017 | Letter of renewal |
7 TA -21/2023
| A14 | 24.08.2018 | Sanction letter |
|---|---|---|
| A15 | 24.08.2018 | Letter of renewal |
| A16 | 29.08.2019 | Sanction letter |
| Document Lakhs to R |
s executed f s. 95 Lakhs |
or enhancement of the OD limit from Rs. 25 |
| A17 | 27.07.2020 | Application form |
| A18 | 27.07.2020 | Sanction Memorandum |
| A19 | 27.07.2020 | Request for OD facilities |
| A20 | 27.07.2020 | Supplemental to the common hypothecation agreement |
| A21 | 27.07.2020 | Pronote |
| A22 To A27 |
27.07.2020 | Guarantee covering letters and guarantee agreement |
| A28 | 27.07.2020 | Letter of Renewal |
| GECL Loan 05197550 |
of Rs. 5 Lka 00001 |
hs Sanction on 29.05.2020 in A/c No. |
| A29 | 29.05.2020 | Application for loan |
| A30 | 29.05.2020 | Sanction memorandum |
| A31 & A32 | 29.05.2020 | Pronote along with take delivery note |
| A33 | 29.05.2020 | Supplemental Common hypothecation agreement |
| A34 & A35 | 07.06.2023 | Legal Notice & Postal receipts |
| A36 & A37 | -- | Statement of accounts |
Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –
-Nil -
Sd/-
(T. RAJESH)
PRESIDING OFFICER
8 TA -21/2023
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
2 provisions across 2 enactments
Canara Bank
M/S Gayathri Industries
Sri V Lakshmi Narayan
Sri V. Shiva Kumar
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
