Allowed

Indian Bank v. Manivilas Agro Foods

DRT25 Nov 2025OA/1123/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application for a recovery certificate. The defendant was heard ex-parte. The Tribunal found the claim for Rs. 23,68,550 and interest admissible but ordered interest to be calculated at a reduced rate of 10% simple per annum.

What did the court decide?

Recovery Certificate to be issued for Rs. 23,68,550 with interest at 10% p.a. (simple), allowing recovery from personally and against assets. Cost of proceedings awarded to applicant.

Indian Bank versus Manivilas Agro Foods — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1123/2023

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BETWEEN:

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Indian Bank, Chamrajpet Branch, No. 166, 5^th Main Road, KSCA, Chamrajpet, Bangalore- 560018, Rep By its Authorised Signatory, Asst Branch Manager, Ms. Nitu Kumari …APPLICANT

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AND:

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M/s. Manivilas Agro Foods, Rep by its Proprietor, Mr. Edwin Jaba Singh S, S/o N. Sundar Devaraj, No. 133, 4^th Cross, Nethaji Nagar, K P Agrahara, Bangalore- 560023.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : R Ashok Kumar Defendant : 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 defendant for Rs. 23,68,550/- (Rupees Twenty Three Lakh Sixty Eight Thousand Five Hundred Fifty Only) with further interest thereon from the date of filing the Application till realization.

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OA 1123/2023

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It is the case of the applicant that the defendant availed open cash credit of Rs. 4,75,000/- (Rupees Four Lakh Seventy Five Thousand Only) and MTL of Rs. 19,00,000/- (Rupees Nineteen lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with demand promissory note and agreement of hypothecation.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant failed in complying 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 balance amount due in the account.

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Despite, summons on the defendant, he failed to appear resulting the defendant being set exparte on 12.11.2024.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-17 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 proof affidavit.

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OA 1123/2023

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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 defendant?

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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 defendant 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 OA, the defaults committed in the accounts. The liability of the defendant and the claim of the amount

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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 findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 10.00% (simple).

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OA 1123/2023

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In the result, OA.No.1123/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 23,68,550/- (Rupees Twenty Three Lakh Sixty Eight Thousand Five Hundred Fifty Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendant personally and also proceeding against its assets.

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ii) 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 order.

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

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iv) Interim application pending, if any, stands disposed of in terms

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of this 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 25^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA 1123/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Kritica Ojha, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	List of documents
A3	14.12.2018	Sanction Ticket
A4	29.12.2018	Demand promissory note
A5	29.12.2018	Demand promissory note
A6	29.12.2018	Medium term loan agreement
A7	29.12.2018	Agreement of hypothecation of movables
A8	29.12.2018	Agreement for open cash credit
A9	29.12.2018	Declaration by the borrower
A10	29.12.2018	Declaration by the borrower
A11	30.12.2019	Acknowledgement of debt-cum-security
A12	21.01.2021	Acknowledgement of debt-cum-security
A13	07.06.2022	Acknowledgement of debt-cum-security
A14	22.04.2022	Demand notice
A15	22.06.2023	Statement of accounts
A16	22.06.2023	Statement of accounts
A17	--	Certificate under bankers book evidence act

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Indian Bank v. Manivilas Agro Foods

Case brief

What is this about?

What did the court decide?

Indian Bank v. Manivilas Agro Foods

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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