CANARA BANK vs NANJAMMA & ORS (HASSAN) on 13 February 2026

FINAL ORDER

1. The present application was filed before the Debts Recovery Tribunal-I, Bengaluru on 31.0.2015 under section 19 of Recovery of Debts and Bankruptcy Act 1993 to recover a sum of Rs. 13,66,412.00 (Rupees Thirteen Lakh Sixty Six Thousand Four Hundred Twelve Only) with further interest thereon from the date of filing the application till realization from the defendants. Subsequently, the application was transferred from Debts Recovery Tribunal- I to this Tribunal and renumbered as TA No. 03/2017.

2. It is the case of the applicant that, the original borrowers Chunchegowda and Dharnesh are both deceased and their legal heirs are brought on records as defendants in the present TA. The defendants Nos. 1, 3, 4 & 5 are LR’s of late Chunchegowda and defendant No.2 is the LR of Late Dharesh.

3. It is the case of the applicant that deceased borrowers availed agricultural loan of Rs. 5,00,000/- (Rupees Five Lakh Only) for purchasing of tractor and trailer.

4. It is also the case of the applicant that, in view of the above amount financed, the deceased borrowers and the now defendants executed necessary loan documents along with simple mortgage deed and letters of revivals.

5. It is further contended that, the deceased borrowers despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in compliance of the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

6. 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.

7. Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 14.08.2024.

8. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the TA and also produced Exhibits A-1 to A-18 and got the same marked in evidence.

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

10. 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.

11. 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 the availment of credit facilities as stated in the TA, creation of security interest 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.

12. 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 TA is liable to be allowed.

13. Taking into consideration the facts that the credit facilities are availed for Agriculture purpose and also that the 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% (simple).

14. In the result, TA.No.03/2017, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs. 13,66,412.00 (Rupees Thirteen Lakh Sixty Six Thousand Four Hundred Twelve Only) with further interest @6.00% p.a. (simple) from the date of filing TA till the realization, after giving credit to all the amount recovered and received during the pendency of the TA and allowed the same to be recovered by proceeding against the schedule property. Properties schedule to the TA be the schedule to the recovery certificate.

ii) The defendants Nos. 1 to 5 being the LR’s of the deceased borrowers are liable only to the extent of the estate inherited by them from the deceased borrowers respectively.

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, are disposed of with this

Final Order.

15. 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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 13th day of February, 2026]. Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

AW-1: T Satyanarayana, Senior Manager, of Applicant Bank. Exhibits on the part of the Applicant:

Exhibit Nos. Date Particulars of Documents A1 01.03.2007 Application for loan A2 01.03.2007 Sanction memorandum A3 01.03.2007 Memorandum o f agreement for Agl. Loans A4 28.02.2007 Simple mortgage deed CPN-1-03172-2006-07 A5 02.03.2007 Particulars of vehicles A6 19.05.2008 Death certificate of Chuncegowda A7 21.10.2008 Acknowledgement of debt & security A8 30.11.2009 Letter of revival D.1, D.3, D.4 & D.5 A9 30.11.2009 Letter of revival D.2 A10 18.11.2012 Letter of revival D.1, D.3, & D.4 A11 18.11.2012 Letter of revival D.2 A12 21.01.2015 Statement of account A13 10.12.2014 Legal notice A14 15.12.2014 Postal receipts A15 -- Postal acknowledgements of D.3, D.4 & D.5 A16 -- Postal envelope containing legal notice A17 15.03.2015 Postal track report A18 29.03.2007 Registration certificates of Tractor & Trailer Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

Sd/- (T. RAJESH) PRESIDING OFFICER