CANARA BANK vs NANJE GOWDA & ORS (HASSAN) on 27 March 2026

FINAL ORDER

1. The present Original Application in (short) OA 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.11,69,289/- (Rupees Eleven Lakh Sixty Nine Thousand Two Hundred and Eighty Nine Only) with further interest thereon from the date of filing the Application till realization.

2. It is the case of the applicant that, the deceased borrowers along with defendant No.2 availed Farm Machinery loan to an extent of Rs.4,90,000/- on 10.11.2006.

3. It is also the case of the applicant that, in view of the above financed credit, the deceased borrowers and defendant No. 2 have executed necessary loan documents, apart from the creation of 3 TA/1436/2017

security interest by way of mortgage over the Schedule property.

4. It is further contended that, despite availing the credit facility, agreed to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts 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. After filing of the TA, summons sent to Defendants by Registered Post. The summons to Defendant Nos.1 and 3 returned unserved with an endorsement ‘dead’ and the applicant bank has filed IA.1199/2018 and Memo dated 27.02.2026 in this regard. When the case came up for hearing on 02.01.2026, in spite of granting sufficient time, Defendant Nos.1(a), (b) and 2 neither appeared nor represented and hence, the defendants placed exparte on 02.01.2026 and reported that, the defendant No.3 deceased and there are no LRs.

7. In respect of Defendant Nos.1 and 3, who is reported ‘dead’, the applicant bank has filed IA.No.1199/2018 stating that, defendant No.1 deceased and to implead the legal heirs of 1st defendant and Memo dated 27.02.2026, stating that the defendant 4 TA/1436/2017

Nos.3 deceased and did not get any legal heir details.

8. The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the TA and also produced Exhibits A1 to A10 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 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 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 accounts. The liability of the defendants and the claim of the amount due is also 5 TA/1436/2017

proved by the above documents. The claim of the applicant is well within the limitation.

12. Taking into consideration the facts that the credit facility was availed for agriculture 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% (simple).

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

14. In the result, TA.No.1436/2017 stands allowed, i) The applicant is allowed to recover an aggregate sum of Rs.11,69,289/- (Rupees Eleven Lakh Sixty Nine Thousand Two Hundred and Eighty Nine Only) with further interest of 6% p.a.(simple) from the date of filing TA till the realization from the defendant No.2 and the defendant No.1(a), (b) to the extent of their inheritance of any estate from the deceased borrower Late Nanje Gowda, after giving credit to all the amount recovered and received during the pendency of the TA and allowed the same to be recovered by proceedings against schedule property. The claim 6 TA/1436/2017

as against the deceased defendant No.3 is dismissed/abated.

ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant No.2 jointly, severally and personally and other assets and the defendants Nos.1(a) & (b) are only liable to the extent they inherited from the deceased borrower Late Nanje Gowda are liable for all such amounts due under the loan account.

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.

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 (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27th Day of March 2026].

(T. RAJESH) PRESIDING OFFICER

DRT-II, BENGALURU

7 TA/1436/2017

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Smt. Shantha Lakshmi L, Senior Manager of the applicant bank. Exhibits on the part of the Applicant: Annexure Particulars A1 Loan application form dated 10.11.2006 A2 Sanction memorandum dated 10.11.2006 A3 Memorandum of agreement for agricultural loans dated 10.11.2006 A4 & A5 Copies of the RC book reflecting hypothecation in the name of applicant bank A6 Simple mortgage deed dated 08.11.2006 A7 & A8 Copies of the letter of revivals dated 02.11.2012 A9 Statement of accounts along with Bankers Book of Evidence A10 Demand legal notice dated 03.09.2010

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

(T. RAJESH) PRESIDING OFFICER

DRT-II, BENGALURU