CANARA BANK vs Sri.Thimmegowda Mr.Govindegowda Mrs.Puttananjamma on 15 December 2025

:FINAL ORDER:

1. The present Transfer Application in short (TA) 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.16,95,440/- (Rupees Sixteen Lakh Ninety Five Thousand Four Hundred and Forty 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 defendants availed Farm Machinery loan of Rs.4,90,000/- on 24.11.2006.

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 properties.

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 TA 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 26.07.2024.

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 A1 to A12 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 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 facilities as stated in the TA, 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 TA is liable to be allowed.

12. Taking into consideration the facts that the credit facilities were availed for agricultural 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% p.a.(simple).

13. In the result, TA.No.750/2017 stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs.16,95,440/- (Rupees Sixteen Lakh Ninety Five Thousand Four Hundred and Forty only) with further interest of 6.00% p.a.(simple) from the date of filing TA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the TA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule properties. The schedule properties to the TA be the schedule properties 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 jointly, severally and personally and their 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 15th Day of December 2025].

Sd/-

(T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Suresh T, Manager of the applicant bank. Exhibits on the part of the Applicant: Annexure Particulars A3 Copy of the application for ALFM loan A4 Copy of the sanction memorandum A5 Copy of the Memorandum of Agreement A6 Copy of the Simple Mortgage Deed A7 Copy of the Acknowledgment of Debt and Security

A8 Copy of the Letter of Revival A9 Copy of the Letter of Revival A10 Copy of the Letter of Revival A11 Copy of the Letter of Revival A12 Copy of the Letter of Revival A13 Copy of the Letter of Revival A14 Copy of the Death Certificate A15 Copy of the Statement of Accounts A16, A17 & A18 Copy of the legal notice, postal receipts and returned postal covers

Sd/- (T. RAJESH) PRESIDING OFFICER