Allowed

Indian Bank v. Gajendra Kumar

DRT27 Oct 2025OA/1004/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Applicant's Original Application under Section 19 of the RDB Act. Being the case ex-parte, undisputed evidence proved the loan default and liability. The Tribunal ordered a Recovery Certificate with reduced interest at 8% simple per annum.

What did the court decide?

The applicant is allowed to recover an aggregate sum of Rs. 66,07,712.15 with further interest @ 8.00% p.a.(simple) from the defendants, allowing recovery against schedule property.

Indian Bank versus Gajendra Kumar — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1004/2023

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BETWEEN:

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Indian Bank, SAM Branch, No. 10, K.G. Road, Bangalore 560 009, Rep by its Chief Manager, Mr. Bheem Prasad, Aged: 51 years.

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…APPLICANT

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AND:

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Mr. D. Gajendra Kumar, S/o R. Devaraj, Aged: 43 years, No. 1832, 1^st Block, Sir M V Layout, Nagadevanahalli, Bengaluru- 560056. 2. Mr. R. Devaraju, Aged: 81 years, No. 1832, 1^st Block, Sir M V Layout, Nagadevanahalli, Bengaluru- 560056. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : K.R. Parashuram Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under

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section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance

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OA 1004/2023

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of Recovery Certificate against the defendants for Rs. 66,07,712.15 (Rupees Sixty Six Lakh Seven Thousand Seven Hundred Twelve and Paise Fifteen Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants availed Home loan facility of Rs. 48,80,000/- (Rupees Forty Eight Lakh Eighty Thousand Only) and Home improve loan of Rs. 10,00,000/- (Rupees Ten Lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with letter confirming creation of equitable mortgage and demand promissory note.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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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.

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Despite, summons on the defendants they failed to appear, hence placed exparte on 23.01.2025.

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The applicant had let in evidence through AW-1, who filed Proof

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OA 1004/2023

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-20 and got the same marked in evidence.

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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.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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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 the credit facilities as stated in the OA, 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 proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, the Tribunal find

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OA 1004/2023

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both these issues in favour of applicant and hence, this Tribunal is of the

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view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Housing purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1004/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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66,07,712.15 (Rupees Sixty Six Lakh Seven Thousand Seven Hundred

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Twelve and Paise Fifteen Only) with further interest @ 8.00 % p.a.(simple), from the date of filing OA till the realization, from the defendants jointly, severally & personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule property.

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Schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants jointly, severally & personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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applicant to file cost memo within 7 days from the date of receipt of the

OA 1004/2023

order.

iv) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of October, 2025].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Karthik Reddy C S/o Chandrasekar K V, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant’s Evidence
A2	--	List of documents
A3	07.01.2017	Sanction letter
A4	16.01.2017	Demand promissory note
A5	16.01.2017	Demand promissory note
A6	16.01.2017	Disposal of proceeds letter

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OA 1004/2023

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A7	24.02.2017	Letter confirming creation of equitable mortgage
A8	16.01.2017	Disclosure information
A9	16.01.2017	Declaration of borrower
A10	16.01.2017	Letter of undertaking cum declaration
A11	16.01.2017	Letter of authority
A12	16.02.2017	Letter of authority
A13	02.03.2017	Letter for releasing funds
A14	13.01.2020	Acknowledgement of debts cum security
A15	18.04.2020	Acknowledgement of debts cum security
A16	24.01.2017	Copy of the sale deed(mortgaged) demand notice
A17	04.08.2021	Demand notice
A18	19.01.2023	Statement of accounts Act
A19	19.01.2023	Statement of accounts
A20	--	Power of attorney

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Indian Bank v. Gajendra Kumar

Case brief

What is this about?

What did the court decide?

Indian Bank v. Gajendra Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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