Allowed

Union Bank of India v. Ms Parexcell Softsource Pvt. Ltd.

DRT25 Sept 2025OA/1205/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act 1993. Deciding in favor of the applicant due to defendants' default, the court issued a Recovery Certificate for the outstanding dues after reducing the interest rate to 12% per annum.

What did the court decide?

Recovery Certificate issued for Rs. 45,87,429.86 with 12% simple interest from filing date, executable against defendants jointly, severally, and personally including hypothecated assets.

Union Bank of India versus Ms Parexcell Softsource Pvt. Ltd. — Execution and Attachment | 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 September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1205/2023

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BETWEEN:

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Union Bank of India, One of its Branch at, Union Bank of India, Asset recovery Branch, No. 2/3, Raja Building, NR Road, Bengaluru- 560001, Represented by its Chief Manager and Authorised officer.

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…APPLICANT

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AND:

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M/s Parexcell Softsource Pvt Ltd., Represented by its director, Sri. Gopalachar Nagaraj, Smt. Nagaraj Latha, Sri. Shampur Devaprakash Sandeep, Sri. Anil Kumar, #40, 11th Cross, 2nd main, Prashanth Nagar, Bengaluru- 560057.

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And also at

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#205, 3^rd Floor, 3^rd Stage, 3^rd Block, 5^th Main, Basaveshwaranagar- 560079. And also at

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#501, 5^th floor, Architha Daffodil, 17^th Cross, Rajareshwari Nagar, Bengaluru- 560098.

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And also at

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#2271, 37^th Cross, 2^nd Block, 11^th Main, Rajajinagar- 560010

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OA 1205/2023

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Sri. Gopalachar Nagaraj, S/o. Srinivasachar Gopalachar, Aged about 59 years. Director of M/s Parexcell Softsource Pvt Ltd., #40, 11^th Cross, 2^nd Main, Prashanth Nagar, Bengaluru- 560057.

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And also at,

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#205, 3^rd Floor, 3^rd Stage, 3^rd Block, 5^th Main, Basaveshwaranagar- 560079.

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And also at

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#501, 5^th Floor, Architha Daffodil, 17^th Cross, Rajarajeshwari Nagar, Bengaluru- 560098.

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And also at

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#2271, 37^th Cross, 2^nd Block, 11^th Main, Rajajinagar- 560010

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Smt. Nagaraj Latha, W/o Goplaachar Nagaraj Director of M/s Parexcell Softsource Pvt Ltd., #40, 11^th Cross, 2^nd Main, Prashanth Nagar, Bengaluru- 560057.

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And also at,

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#205, 3^rd Floor, 3^rd Stage, 3^rd Block, 5^th Main, Basaveshwaranagar- 560079.

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And also at

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#501, 5^th Floor, Architha Daffodil, 17^th Cross, Rajarajeshwari Nagar, Bengaluru- 560098.

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And also at

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#2271, 37^th Cross, 2^nd Block, 11^th Main, Rajajinagar- 560010

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OA 1205/2023

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Sri. Shampur Devaprakash Sandeep, Director of M/s Parexcell Softsource Pvt Ltd., #40, 11^th Cross, 2^nd Main, Prashanth Nagar, Bengaluru- 560057.

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And also at,

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#205, 3^rd Floor, 3^rd Stage, 3^rd Block, 5^th Main, Basaveshwaranagar- 560079.

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And also at

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#501, 5^th Floor, Architha Daffodil, 17^th Cross, Rajarajeshwari Nagar, Bengaluru- 560098.

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And also at

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#2271, 37^th Cross, 2^nd Block, 11^th Main, Rajajinagar- 560010.

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Sri. Anil Kumar, Director of M/s Parexcell Softsource Pvt Ltd., #40, 11^th Cross, 2^nd Main, Prashanth Nagar, Bengaluru- 560057.

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And also at,

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#205, 3^rd Floor, 3^rd Stage, 3^rd Block, 5^th Main, Basaveshwaranagar- 560079.

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And also at

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#501, 5^th Floor, Architha Daffodil, 17^th Cross, Rajarajeshwari Nagar, Bengaluru- 560098.

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And also at

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#2271, 37^th Cross, 2^nd Block, 11^th Main, Rajajinagar- 560010

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Sri. Vipul, #40, 11^th Cross, 2^nd Main, Prashanth Nagar, Bengaluru- 560057.

And also at,

OA 1205/2023

#205, 3^rd Floor, 3^rd Stage, 3^rd Block, 5^th Main, Basaveshwaranagar- 560079.

¶52

And also at

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#501, 5^th Floor, Architha Daffodil, 17^th Cross, Rajarajeshwari Nagar, Bengaluru- 560098.

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And also at

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#2271, 37^th Cross, 2^nd Block, 11^th Main, Rajajinagar- 560010.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prabhu Rao CB 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. 45,87,429.86 (Rupees Forty Five Lakh Eighty Seven Thousand Four Hundred Twenty Nine and Paise Eighty Six Only) with further interest thereon from the date of filing the Application till realization.

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The 1^st defendant is a company represented by its directors defendants Nos. 2 & 5. Defendant No. 6 is the guarantors.

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It is the case of the applicant that, the defendant No.1 availed the following loans from the applicant bank:-

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OA 1205/2023

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Term loan of Rs. 5,00,000/- (Rupees Five lakh Only),

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Cash credit of Rs. 30,00,000/- (Rupees Thirty 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 the necessary loan documents along with

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demand promissory note and hypothecation agreement.

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It is further contended that, despite availing the credit facilities, 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 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 30.01.2025.

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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-1 to A-32 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 1205/2023

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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 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 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, creation of hypothecation and the defaults committed in the accounts. The liability of the defendant 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 findings arrived herein above, the Tribunal 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

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OA 1205/2023

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be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.1205/2023, stands allowed,

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

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45,87,429.86 (Rupees Forty Five Lakh Eighty Seven Thousand Four Hundred Twenty Nien and Paise Eighty Six Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally & personally and their assets including the hypothecated assets. Schedule to the OA be the schedule to the recovery certificate.

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

OA 1205/2023

Rules, 1993.

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

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Open Court, this the 25^th day of September, 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: S. K. Vasanth Kumar S/o Karuppaiah, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	True copy of the loan application nil dated
A2	True copy of letter of continuity dated 19.05.2015
A3	True copy of letter of undertaking not to alienated hypothecated goods dated 19.05.2015
A4	Treu copy of letter of undertaking from borrowers (CIBIL) dated 19.05.2015
A5	True copy of demand promissory note dated 19.05.2015
A6	True copy of agreement on rate of interest dated 19.05.2015
A7	True copy of letter of guarantee dated 19.05.2015
A8	True copy of hypothecation of agreement of goods and books debts dated 19.05.2015
A9	True copy of letter of confirmation dated 19.05.2015
A10	True copy of renewal of sanction dated 21.02.2017
A11	True copy of letter of continuity dated 21.02.2017
A12	True copy of extract of the minutes dated 02.02.2017
A13	True copy of letter of undertaking from guarantors dated 21.02.2017
A14	True copy of demand promissory note dated 21.02.2017
A15	True copy of interest agreement dated 21.02.2017
A16	True copy of letter of guarantee dated 21.02.2017
A17	True copy of renewal of sanction dated 27.02.2018
A18	True copy of letter of continuity dated 25.10.2018
A19	True copy of letter of undertaking dated 25.10.2018

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OA 1205/2023

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A20	True copy of demand promissory note dated 25.10.2018
A21	True copy of interest agreement dated 25.10.2018
A22	True copy of letter obtained from directors dated 25.10.2018
A23	True copy of letter of undertaking not to alienate hypothecated goods dated 25.10.2018
A24	True copy of letter of guarantee dated 25.10.2018
A25	True copy of letter of confirmation dated 25.10.2018
A26	True copy of hypothecation agreement dated 25.10.2018
A27	True copy of simple debit balance confirmation dated 20.07.2018
A28	True copy debit balance confirmation dated 20.05.2020
A29	Legal notice dated 07.04.2023
A30	Postal receipts
A31	Unserved covers and served acknowledgement
A32	Account statement pertaining to the loan account as per running and dummy ledger A/w certificate as per banker’s banker’s book evidence Act

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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. Ms Parexcell Softsource Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ms Parexcell Softsource Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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