Canara Bank vs P.L. Victor on 27 February 2026

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants’ seeking issuance of a Recovery Certificate for recovery of a sum of

Rs.11,93,512/- together with interest at the rate of 18.35% per annum with monthly rests plus 2% penal interest from the date of the application till the date of realisation along with costs of the application.

2. The subject matter of the case is the Demand Loan availed by the defendants from the Applicant Bank.

3. It is the case of the applicant that the 1st defendant vide loan application dated 19.04.2006 approached the erstwhile Syndicate for grant of demand loan of Rs.1,50,000/- and considering the said request the erstwhile Syndicate Bank had sanctioned the same. It is also the case of the applicant that the 1st defendant executed necessary loan and security documents on 22.04.2006 and the 2nd defendant executed guarantee agreement on 22.04.2006.

4. It is also the case of the applicant that the defendants were highly irregular in repayment and failed to regularize the loan account despite repeated demands and hence the loan account was classified as NPA on 20.02.2007. It is further stated that the applicant thereafter issued a notice on 05.02.2015 requesting the defendants to clear the outstanding dues but in vain. It is submitted that the 1st executed acknowledgement of debts on 21.4.2009, 18.4.2012, 15.04.2015 and 10.04.2018. Hence the present OA is filed for recovery of its dues.

5. Summons was taken out to the defendants and were duly served. As the defendants were absent continuously and as there was no representation for the defendants on 24.05.2019, they were set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 13 documents, which were marked as Ex. A-1 to A-13 on 07.02.2024, however, Exhibits A-9 to A-12 were marked subject to proof. The Ld. Counsel for Applicant Bank made his submissions on 09.02.2026 and thereafter the matter stood till this date for passing final orders.

6. The following issues arise for consideration in the matter: - (a) Whether the applicant had succeeded in proving the liability of the defendants?

(b) What order as to cost of the proceedings need be passed?

These issues are considered together.

7. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

8. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-13 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendants. It is clear from the statement of accounts that penal interest is not capitalized.

9. In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

10. In view of the fact that the loan facility availed by the defendant is a demand loan and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates and the prayer for penal interest be rejected.

11. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: -

(a) TA No.583 of 2023 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.11,93,512/- with further interest @12% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants jointly and severally after deducting all the amounts received / realized by them during the pendency of OA.

(c) It is made clear that the defendants are personally liable for all such amounts due as ordered above.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

12. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

Sd/-

(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 27th day of February, 2026)

EXHIBITS MARKED BY APPLICANT BANK

S. No. Date Description of Documents Exhibit Nos.

1. 19.04.2006 Application by 1st defendant for sanction of Rs.1.50 lakhs. A-1

2. 22.04.2006 General Agreement by 1st defendant A-2

3. 22.04.2006 Guarantee agreement by 2nd defendant A-3

4. 22.04.2006 Receipt for Rs.1,50,000/- by 1st defendant A-4

5. 21.04.2009 Acknowledgement of debt by 1st defendant A-5

6. 18.04.2012 Acknowledgement of debt by 1st defendant A-6

7. 15.04.2015 Acknowledgement of debt by 1st defendant A-7

8. 10.04.2018 Acknowledgement of debt by 1st defendant A-8

9. 05.02.2015 Letter of applicant for settlement of dues A-9

10. 09.07.2018 Demand notice issued by the applicant with acknowledgement cards A-10

11. 18.04.2017 Legal notice sent to defendants with acknowledgement cards. A-11

12. 18.07.2018 Final notice sent to the borrowers by applicant A-12

13. Statement of Accounts with

Sd/-

DESCRIPTION OF PROPERTY

NIL