Allowed

Union Bank of India v. Latha Mv

DRT14 Aug 2025OA/1013/2023

Case brief

AI extract

What is this about?

In an exparte hearing, the Tribunal examined the bank's evidence regarding a defaulted agricultural loan secured by mortgage and hypothecation. Finding the evidence uncontroverted and within limitation, the Tribunal allowed the Original Application and issued a Recovery Certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs. 31,04,637/- plus further interest at 6% p.a. (simple) from filing date, realizable from schedule property and other assets.

Union Bank of India versus Latha Mv — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 14^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1013/2023

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BETWEEN:

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Union Bank of India, (erstwhile Corporation Bank), Ripponpet Branch, Ripponpet 577 426 Hosanagara Taluk, Shivamogga Dist. Represented by its Principal Officer and Manager Sri Konatham Suresh Kumar.

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…APPLICANT

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AND:

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Latha M.V, W/o M.B. Veerendra Patil, Aged about 55 years. Masarur Village, Masarur- 577 426, Kenchanala Post, Hosanagara Taluk.

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Veerendra Patil, W/o M.B. Veerendra Patil, Aged about 35 years. Masarur Village, Masarur 577 426, Kenchanala Post, Hosanagara Taluk.

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3. Rajani,

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W/o T.S. Dayananda, Aged about 37 years, Thyavagodu Village, Thyavagodu 577 429, Hosanagara Taluk.

...DEFENDANTS

OA 1013/2023

Counsel on record/appeared for: Applicant : M R Rajani Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 31,04,637/- (Rupees Thirty One Lakh Four Thousand Six Hundred Thirty Seven 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 No. 1 & 2 availed a term loan of Rs. 5,50,000 (Rupees Five Lakh Fifty Thousand Only) for the purchase of tractor and MTL loan of Rs. 2,50,000/(Rupees Two Lakh Fifty Thousand Only) for the purpose of agricultural loans.

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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 hypothecation agreement and registered simple mortgage deed by defendants No 1 to 3.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the

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OA 1013/2023

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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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 03.09.2024.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-26 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

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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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OA 1013/2023

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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 are 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 both these issues in favour of applicant and hence, this Tribunal is of the 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 Agricultural 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 6.00% (simple).

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In the result, OA.No.1013/2023, stands allowed,

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

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Rs. 31,04,637/- (Rupees Thirty One Lakh Four Thousand Six Hundred

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OA 1013/2023

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Thirty Seven Only) with further interest @ 6.00 % p.a.(simple), from

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the date of filing OA till the realization, from the defendants jointly,

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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. Properties

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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

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

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

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and 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

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

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OA 1013/2023

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 14^th Day of August, 2025].

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Sd/- (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: Mittapelly Karthik S/o Sri Mittapelli Narayanareddy, 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	--	Applicants Evidence
A2	--	List of Documents
A3	06.05.2017	Loan application
A4	06.05.2017	Sanction letter
A5	06.05.2017	Demand promissory note
A6	06.05.2017	Take delivery letter to DPN
A7	06.05.2017	Hypothecation agreement
A8	02.12.2019	Acknowledgement of debt/ liability by borrowers	the
A9	05.04.2022	Simple debit balance confirmation
A10	28.11.2022	Simple debit balance confirmation
A11	08.05.2017	Loan application
A12	08.05.2017	Credit sanction intimation
A13	08.05.2017	Agreement for term loans
A14	08.05.2017	Common deed of hypothecation agricultural loans	for
A15	02.12.2019	Acknowledgement of debt/ liability by borrower	the
A16	05.04.2022	Simple debit balance confirmation

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OA 1013/2023

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A17	28.11.2022	Simple debit balance confirmation
A18	05.05.2017	Deed of simple mortgage
A19	29.12.2022	Legal notice
A20	--	Postal receipt
A21	--	Three postal acknowledgement
A22	--	RTC for the period 2020-21 in respect of Sy.No. 19
A23	--	RTC for the period 2020-21 in respect of Sy.No. 20
A24	--	RTC for the period 2020-21 in respect of Sy.No. 144/2
A25	31.03.2023	Statement showing the balance outstanding balance in the loan A/c No.
		560931000175585 of the defendants
A26	31.03.2023	Statement showing the balance outstanding balance in the loan A/c No. 560381000808923 of the defendants

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Union Bank of India v. Latha Mv

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Latha Mv

Case brief

What is this about?

What did the court decide?

What the court decided

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