CANARA BANK vs M/S. ADITHYA INDUSTRIES & ORS (GULBARGA) on 31 July 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 seeking issuance of Recovery Certificate against the defendants for Rs. 2,08,24,759/- (Rupees Two Crore Eight Lakhs Twenty-Four

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Thousand Seven Hundred and Fifty-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 defendants no.4 (a to f) are the legal heirs of the deceased guarantor. The defendant no. 1 as borrower, defendant no 2 to 3 as well as deceased Smt. Gurubai S Patil as guarantors availed an Open Cash Credit limit of Rs. 30,00,000/- (Rupees Thirty Lakhs Only) for the purpose of its Business.

3. The deceased borrower executed necessary loan document in favour of the applicant bank as security for the due repayment of the loan, interest, cost and charges. The defendant no.2 had also executed deposit of title deed dated 29.07.2002.

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 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 filling of the TA, summons sent to defendants by registered post. The summons to defendant no.4 returned unserved with an endorsement “dead” and the applicant bank has filed an IA no. 1072/2017, to bring the LRs of deceased defendant no.4. When the

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case came up for hearing on 27.06.2017, in spite of granting sufficient time for applicant to take steps on the LRs of defendant no.4, the applicant has not taken steps. Despite, entering appearance/filing vakalat, no written statement filed by the defendants no. 4(a to c). Hence, the chance for filing written statement stands closed on 04.05.2026. The Defendants no. 1 to 4(d to f) & 5 placed ex parte on 04.05.2026.

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 A-1 to A-19 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 ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

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sufficient to prove availment of credit facility as stated in the TA, creation of the security interest and the defaults committed in the accounts. 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 findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

12. Taking into consideration the facts that the credit facility is availed for Business purpose and also that the TA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00% (simple).

13. In the result, TA.No.1050/2017, stands allowed,

i) 2,08,24,759/- (Rupees Two Crore Eight Lakhs Twenty- Four Thousand Seven Hundred and Fifty-Nine Only) with further interest @12.00 % p.a. (simple) from the date of filing TA till the realization, from the defendant nos. 1 to 3 & 5, the defendants no. 4(a to f) to the extent of their inheritance of any estate form the deceased guarantor, Sri. Gurubai S Patil, after giving credit to all the amounts recovered and received during the pendency of the TA allowed the same to be recovered by proceeding against the schedule

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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 liability, the defendant nos. 1 to 3 & 5 jointly, severally and personally and their other assets and the defendants no. 4(a to f) to the extent of their inheritance of any estate form the deceased guarantor, Sri. Gurubai S Patil are liable for balance amounts due under the loan accounts.

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, stands disposed of in terms of 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 (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31th Day of July, 2026].

Sd/- (T. RAJESH) PRESIDING OFFICE

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Bhoom Reddy G, S/o. Gopal Reddy, Manager, of Applicant Bank. Exhibits on the part of the Applicant: Sl. No. Particulars Dated Exhibits

1. Partnership Deed submitted by the Defendants 06.05.2002 A1

2. Loan Application submitted by the Defendants in respect of OCC. 29.07.2002 A2

3. Current Account Opening Form submitted by the Defendants 29.07.2002 A3

4. Letter of Partnership executed by the Defendants in favour of the Applicant Bank 29.07.2002 A4

5. Cash Credit Agreement executed by the DefendantNo.1 Reptd. by Defendant No.2 in favour of the Applicant Bank 29.07.2002 A5

6. Request Letter for OD Facility executed by the Defendants in favour of the Applicant Bank 29.07.2002 A6

7. Letter Evidencing Deposit of Title Deeds executed by the Defendants in favour of the Applicant Bank 29.07.2002 A7

8. Guarantee Covering Letters and Guarantee Agreements executed by Defendant No. 2 to 4. 29.07.2002 A8 to A13

9. Four Nos. of Letters of Revival executed by the Defendant No.2 in favour of the Applicant Bank in respect of OCC Limits 20.06.2005, 28.05.2008, 20.05.2011, 19.04.2014 A14 to A17

10. Recall notice issued by the Applicant Bank to the Defendants 02.08.2016 A18

11. Certified Account Extract of the Defendants relating to the above said Loan account - A19 Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

Sd/- (T. RAJESH) PRESIDING OFFICER