CANARA BANK vs KUMARASWAMY & ORS (HASSAN DIST) on 30 January 2026

:FINAL ORDER:

1. The present Transfer Application in short (TA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.13,05,364/- (Rupees Thirteen Lakh Five Thousand Three Hundred and Sixty Four only) with further interest thereon from the date of filing the Application till realization from the Defendants.

2. It is the case of the applicant that, the defendants No.1 along with Late Honnamma availed loan of Rs.4,90,000/- for the purpose of purchase of Tractor and Trailer. The defendant Nos.2 to 4 are the legal heirs of deceased co-borrower.

3. It is also the case of the applicant that, in view of the above financed credit facility, the defendant No.1 and deceased co- borrower executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

4. It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account as NPA.

5. In the above circumstances, the applicant approached this Tribunal by filing this TA seeking issuance of Recovery Certificate for the amount due in the account.

6. Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 12.07.2023.

7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the TA and also produced Exhibits A1 to A22 and got the same marked in evidence.

8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the TA in the light of documentary evidence and proof affidavit.

9. The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the TA claim as against the defendants? ii) What order are to be passed?

Both these issues are gone into and decided together.

10. 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 facility as stated in the TA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.

11. Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that TA is liable to be allowed.

12. Taking into consideration the facts that the credit facility was availed for agricultural purpose and also that TA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the TA can be allowed with a reduced interest of 6.00% p.a.(simple).

13. In the result, TA.No.2057/2017 stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs.13,05,364/- (Rupees Thirteen Lakh Five Thousand Three Hundred and Sixty Four only) with further interest of 6.00% p.a.(simple) from the date of filing TA till the realization from the defendant No.1 and Defendant No.2 to 4 to the extent of their inheritance of any estate from the deceased co-borrower, after giving credit to all the amounts recovered and received during the pendency of the TA and allowed the same to be recovered by proceeding against defendant No.1 personally and also by proceeding against the schedule property. The schedule property to the TA be the schedule property 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 defendant No.1 personally and his other assets and Defendant No.2 to 4 to the extent of their inheritance of any estate from the deceased co- borrower are liable for all such amounts due under the loan accounts.

iii) The applicant bank is allowed cost of the proceeding 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 with this Final Order.

14. 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. [Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30th Day of January 2026].

Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Smt. Shanthalakshmi L, Senior Manager of the applicant bank. Exhibits on the part of the Applicant: Annexure Particulars A1 Copy of the loan application dated 05.12.2006 A2 Copy of the loan sanction memorandum dated 05.12.2006

A3 Copy of the memorandum of agreement dated 05.12.2006 A4 Copy of the simple mortgage deed NUG-1-01720- 2006-07 dated 04.12.2006 A5-A8 Copies of the letter of Revival by Late Honnamma dated 09.09.2009, letter of Revival by D1 dated 09.09.2009, letter of Revival by D1 dated 02.09.2012, Letter of Revival by D1 dated 02.09.2012 A9 & A10 Copies of the Registration Certificate of Tractor dated 24.01.2007 A11 Copy of the statement of account dated 21.01.2015 A12 Copy of the loan application dated 02.03.2007 A13 Copy of loan sanction memorandum dated 02.03.2007 A14 Copy of the Memorandum of agreement dated 02.03.2007 A15 Copy of the letter waiving notice of variation in interest dated 02.03.2007 A16 Copy of the simple mortgage deed NUG-1- 2195/16-17 dated 04.12.2006 A17 to A20 Copies of the letter of Revival by Late Honnamma dated 01.03.2010, Letter of Revival by D1 dated 01.03.2010, Letter of Revival by D1 dated 29. 01.2013, Letter of Revival by D1 dated 29.01.20013 A21 Copy of the statement of accounts dated 21.01.2015 A22 Copy of the legal notice dated 12.12.2014

Sd/- (T. RAJESH) PRESIDING OFFICER