CANARA BANK vs SWAMY on 31 July 2025

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.17,58,720/- (Rupees Seventeen Lakh Fifty Eight Thousand Seven Hundred and Twenty only) with further interest thereon from the date of filing the Application till realization.

2. It is the case of the applicant that, the Late borrower Madegowda along with the defendant No.1 and 2 availed Farm Machinery loan of Rs.5,20,000/- for the purchase of Tractor and Trailor.

3. The deceased borrowers and the defendants have executed necessary loan documents in favour of the applicant bank as 3 TA/2111/2017

security for the due repayment of the loans, interest, cost and charges. The Late Madegowda borrower had also Simple Mortgage Deed dated 04.03.2005.

4. It is further contended that, despite availing the credit facility, agreeing to service the loan account 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 OA seeking issuance of Recovery Certificate for the amount due in the account as against the defendant Nos.1 and 2 and the legal heirs.

6. Despite, service of summons on the defendants, they failed to appear, resulting the defendants No.1 and 2 and defendant No.3 (a to c) being set exparte on 17.01.2024. The applicant has filed Memo dated 02.02.2018 stating that the defendant No.3 Smt. Siddamma was reported to have died during the pendency of the OA. The legal heirs of the defendant No.3 are already on record i.e. defendant No.1,2 and 4 and 3(a) to 3(C) were impleaded.

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7. The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A24 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 the 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 orders 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 5 TA/2111/2017

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. Since the OA claim is arrived at by calculating agreed rate of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is awarded at reduced rate @ 6.00% p.a.

13. In the result, TA.No.2111/2017 stands allowed, i) The applicant is allowed to recover an aggregate sum of Rs.17,58,720/- (Rupees Seventeen Lakh Fifty Eight Thousand Seven Hundred and Twenty only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization, from the defendant No.1,2 & 4 and defendants No.3(a) to (c) to the extent of their inheritance of any estate from the deceased borrower Late Madegowda and his legal heir Late Siddamma, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against 6 TA/2111/2017

defendants No.1 and 2 jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

ii) 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.

iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

iv) 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 31st Day of July 2025].

Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Ajya Murali, Officer of the applicant bank.

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Exhibits on the part of the Applicant: Annexure Particulars Date A1 Affidavit Evidence

A2 List of documents

A3 Application for agricultural credit NF 799 executed by late Made Gowda and defendant No.1 and 2 with enclosure 09.03.2005 A4 Loan sanction letter issued by the applicant bank 09.03.2005 A5 Memorandum of agreement for agricultural loan NF 459 executed by late made gowda and defendant No.1 and 2 09.03.2005 A6 Particular of machinery livestock etc NF373 20.03.2005 A7 Quotation issued by the Shiva Shakthi engineering works for Rs.95500 for purchase of Trailor 01.03.2005 A8 Quotation issued by the Shiva Shakthi Engineering works for Rs.95500 for purchase of Trailor 05.03.2005 A9 Receipt voucher issued by Vinay Tractor Enterprises for Rs.453995 18.03.2005 A10 Receipt voucher No.044 issued by the Shiva Shakthi engineering works for Rs.95000 09.03.2005 A11 Delivery Challan issued by the Vinay Tractor Enterprises 18.03.2005 A12 Delivery Challan issued DC-902 issued by the Vinay Tractor Enterprises 18.03.2005 A13 Policy schedule cum certificate of Insurance issued by New India Assurance Company 05.03.2005 A14 Statement of account for the account No.0594856006820 07.05.2016 A15 Simple Mortgage Deed document No.5111/04-05 executed by late 04.03.2005

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Made Gowda and defendant Nos. 1 & 2 A16 Revival letter executed by late Made

14.11.2007 A17 Revival letter executed by late Made Gowda and defendant 1 & 2 28.09.2010 A18 Revival letter executed by late Made Gowda and defendant 1 &2 21.03.2013 A19 Revival letter executed by 1st defendant as legal heir of late Made Gowda 16.01.2015 A20 Demand notice issued to Late Made Gowda 09.07.2010 A21 Demand notice issued to Late Made Gowda 05.09.2011 A22 Demand notice issued to Late Made Gowda 21.03.2013 A23 Demand notice issued to Late Made Gowda 10.04.2013 A24 Legal notice issued to late Made

24.08.2013

Sd/- (T. RAJESH) PRESIDING OFFICER