CANARA BANK vs RANGAWAMY & ANR (HASSAN) on 24 June 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.11,93,743/- (Rupees Eleven Lakh Ninety Three Thousand Seven Hundred and Forty Three 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 deceased defendant No.1 along with defendant No.2 availed Farm machinery loan to an extent of Rs.4,10,249/- on 31.03.2005.

3. It is also the case of the applicant that, in view of the above financed credit facility, the defendants 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 OA 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 18.05.2026.

7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A10 and got the same marked in evidence.

8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA 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 OA 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 OA, 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 OA is liable to be allowed.

12. Taking into consideration the facts that the credit facility was availed for agricultural purpose and also that 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 6.00% p.a.(simple).

13. In the result, TA.No.1734/2017 stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs.11,93,743/- (Rupees Eleven Lakh Ninety Three Thousand Seven Hundred and Forty Three only) with further interest of

6.00% p.a.(simple) from the date of filing TA till the realization from the defendant No.2 and defendant No.1(a) to (c) to the extent of inheritance of any estate from the deceased defendant No.1, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants No.2 personally and also by proceeding against the schedule property. The schedule property to the OA 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 defendants No.2 personally and his other assets 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 24th Day of June 2026].

(T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Vaibhav G, Legal Manager of the applicant bank.

Exhibits on the part of the Applicant: Sl. No. Description of Documents Exhibit Number

Original loan application forms dated 03.01.2005 A1 & A2

Original sanction memorandum dated 01.07.2005 A3

Original memorandum of agreement for agricultural loans dated 04.01.2005 A4

Original registration certificates reflecting the hypothecation of the Tractor and Trailer A5

Original simple mortgage deed dated 28.12.2004 A6

The copy of the statement of account along with Banker’s Book of Evidence A7

The copy of the notice dated 12.11.2014 A8

The copies of the letter dated 05.11.2011 and 21.03.2014 wherein the defendants have acknowledged the debts A9 A10

(T. RAJESH) PRESIDING OFFICER