Allowed

Union Bank of India v. Sri.Venkataramanappa

DRT28 Apr 2025OA/1256/2022

Case brief

AI extract

What is this about?

The Tribun allowed an Original Application seeking issuance of a Recovery Certificate for outstanding agricultural loans. Despite defendant default, the claim was uncontroverted. The decree was granted with reduced interest at 8% per annum.

What did the court decide?

Recovery Certificate allowed for Rs.67,67,229 with 8% simple interest p.a. from filing date till realization, recoverable against scheduled property.

Union Bank of India versus Sri.Venkataramanappa — 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 28^th Day of April, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1256/2022

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BETWEEN:

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The Union Bank of India Yeshwanthapura Branch Chokkandahalli Gate, Hoskote-Malur Main Road, Malur Taluk, Kolar District, Karnataka Represented by its Branch Manager Sri. Chinnappa B.M. …

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APPLICANT

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AND:

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Sri. Venkataramanappa Aged about 60 years S/o. Sri. Katappa Residing at No. 100E, Kuvempu Road, Abbenahalli Village, Malur Taluk, Kolar District – 563101

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Sri. Sridhar Aged about 38 years S/o. Sri. Venkataramanappa Residing at No.100E, Kuvempu Road, Abbenahalli Village, Malur Taluk, Kolar District – 563101

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Sri. Venugopal Aged about 31 years S/o. Sri. Venkataramanappa Residing at No.100E, Kuvempu Road, Abbenahalli Village, Malur Taluk, Kolar District – 563101 ..DEFENDANTS

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2 OA/1256/2022

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Counsel on record/appeared for: Applicant : Sri. N.G. Ravi 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 for seeking issuance of Recovery Certificate against the defendant for Rs.67,67,229/- (Rupees Sixty Seven Lakh Sixty Seven Thousand Two Hundred and Twenty Nine 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 have availed Agricultural Term loan of Rs.10,00,000; KCC loan of Rs.3,85,000/-; Agricultural Term loan of Rs.46,00,000/-. It is also the case of the applicant that defendants have undertaken to repay the liabilities, subject to annual review or on Demand to pay with interest for the value received and further to pay the interest at such rate as revised by the bank from time to time.

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It is also the case of the applicant that, in view of the above financed the amount, the defendants have executed necessary loan documents.

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3 OA/1256/2022

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in defaults 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 accounts.

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Despite, service of summons on the defendants, the defendants entered appearance through Advocate. However, failed to file written statement within stipulated time, resulting the written statement of Defendants closed on 04.10.2023.

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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-3 to A37 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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4 OA/1256/2022

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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

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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 credit facilities as stated in the OA, 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.

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Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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5 OA/1256/2022

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Taking into consideration the facts that the credit facility

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was availed for agricultural 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 8.00%p.a. (simple).

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In the result, OA.No.1256/2022 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs.67,67,229/- (Rupees Sixty Seven Lakh Sixty Seven Thousand Two Hundred and Twenty Nine only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to

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be recovered by proceedings against schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant jointly, severally and personally and other their assets are liable for all such amounts due under the loan accounts.

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6 OA/1256/2022

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iii) The applicant bank is allowed cost of the proceeding

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

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receipt of the order.

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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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14. Communicate a copy of the order to the parties concerned

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of April 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Rahul Ramesh, Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars	Date
A1	Applicant Evidence	-
A2	List of Documents	-

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7 OA/1256/2022

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A3	Loan application	22.05.2015
A4	Loan sanction with translation	29.05.2015
A5	Agreement of Term loans	29.05.2015
A6	Common deed of Hypothecation of Movables/Assets/Debt	29.05.2015
A7	Registered Mortgage Deed	28.05.2015
A8	Letter of undertaking/Declaration from the borrower	29.05.2015
A9	On demandpromissorynote	01.05.2018
A10	Take deliveryletter to DPN	01.05.2018
	Statement of account from	20.07.2022
A11	01.01.2017 to 30.06.2022 with certificate
A12	Loan application	17.06.2015
A13	Loan sanction	17.06.2015
A14	Hypothecation agreement	17.06.2015
A15	Letter of undertaking/Declaration from the borrower	17.06.2015
A16	On demandpromissorynote	01.06.2018
A17	Take deliveryletter to DPN	01.06.2018
A18	Loan application for restructure of KCCC loan account	31.12.2020
A19	Hypothecation Agreement	31.12.2020
A20	On Demandpromissorynote	31.12.2020
A21	Take Deliveryletter to DPN	31.12.2020
A22	Simple Agreement	31.12.2020
A23	Letter of undertaking/Declaration form the borrower	31.12.2020
	Statement of accounts from	31.12.2020
A24	31.12.2020 to 20.06.2022 with certificate	21.06.2022
A25	Loan application	28.07.2015
A26	Loan sanction	28.08.2015
A27	Agreement of Term loans	28.08.2015
A28	Hypothecation Agreement	28.08.2015
A29	Common Deed of Hypothecation of Movables/Assets/Debts	28.08.2015
A30	Registered Deed of Simple	28.08.2015

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8 OA/1256/2022

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	Mortgage
A31	Guarantee Agreement	28.08.2015
A32	Guarantee Agreement	28.08.2015
A33	Letter of undertaking/Declaration from the borrower	28.05.2015
A34	Statement of accounts from 01.01.2017 to 20.06.2022	-
A35	Office copyof the legal notice	06.05.2022
A36	Copyof thepostal receipts	06.05.2022
A37	Copy of the postal acknowledgments	17.05.2022

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Sri.Venkataramanappa

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri.Venkataramanappa

Case brief

What is this about?

What did the court decide?

What the court decided

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