The Debts Recovery Tribunal allowed the Applicants' OA filed u/s 19 of RDB Act seeking recovery certificate for loan default. Defendants absent. Tribunal awarded reduced simple interest of 9.00% p.a.
Recovery certificate issued for Rs. 43,79,938/- with further interest @ 9.00% p.a. simple against defendants jointly and severally.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 30th Day of October, 2025
Present: Sri. T. RAJESH Presiding Officer
OA.No.126/2024
BETWEEN:
Union Bank of India, Shivamogga Branch, P B 22, M G Building, B H Road, Shivamogga- 577 201, Represented by its Chief Manager, Sri Y Shashidhara, Son of Sri. C.G. Yellappa, Aged about 56 years.
…APPLICANT
AND:
Defendants No. 2 to 4 are residing at: No. 001, T3, Sugandhi Apartments, Gopala Gowda Extension, Shivamogga- 577 201.
...DEFENDANTS
OA 126/2024
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Counsel on record/appeared for:
Applicant : M. S Vinayaka Defendants : Exparte
FINAL ORDER
OA 126/2024
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as against the defendants?
Both these issues are gone into and decided together.
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
OA 126/2024
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availment of the credit facilities as stated in the OA, creation of hypothecation 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.
both these issues in favour of applicant and hence, this Tribunal is of the
view that OA is liable to be allowed.
availed for Business purpose and purchase of vehicle 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 9.00% (simple).
43,79,938/- (Rupees Forty Three Lakh Seventy Nine Thousand Nine
Hundred Thirty Eight Only) with further interest @ 9.00 % p.a.(simple), as follows:-
a) Rs. 26,45,838/- (Rupees Twenty Six Lakh Forty Five Thousand Eight
Hundred Thirty Eight Only) in vehicle loan from the date of filing OA till
OA 126/2024
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realization, from the defendants No. 1 to 4 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 defendants No. 1 to 4 jointly, severally & personally and against their assets including the hypothecated vehicle.
b) Rs. 17,34,100/- (Rupees Seventeen lakh Thirty Four Thousand One Hundred only) in OD loan from the date of filing OA till realization, from the defendants No. 1, 2 & 3 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 defendants No. 1, 2 & 3 jointly, severally & personally and against their assets.
Schedule to the OA be the schedule to the recovery certificate.
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.
iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
iv) Interim application pending, if any, are disposed of with this Final Order.
OA 126/2024
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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30th Day of October, 2025].
Sd/- (T. RAJESH)
PRESIDING OFFICER ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1:Prashantha Kumara D S/o B M Devappa Hedge, Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Date | Particulars of Documents |
|---|---|---|
| A1 | -- | Loan application form submitted by 1stdefendant |
| A2 | 11.07.2016 | Loan sanction intimation |
| A3 | 15.07.2016 | Partnership letter executed by 1stdefendant in favour of applicant |
| A4 | 15.07.2016 | Request for overdraft facilities executed by 1stdefendant in favour of applicant |
| A5 | 15.07.2016 | Common deed of hypothecation movables executed by 1stdefendant in favour of applicant |
| A6 | 15.07.2016 | Letter of undertaking/ declaration from the borrowers executed by 1stdefendant in favour of applicant |
| A7 | 15.07.2016 | Memorandum of charge/ lien over deposits executed by 1stdefendant in favour of applicant |
| A8 | 15.07.2016 | Demand promissory note executed by 1stdefendant in favour of applicant |
| A9 | 15.07.2016 | Take delivery letter to DPN executed by 1stdefendant in favour of applicant |
| A10 | 15.07.2016 | Guarantee agreement executed by 2ndto 4thdefendants in favour of applicant |
| A11 | 03.08.2016 | Loan application form submitted by by 1stdefendant in favour of applicant |
| A12 | 03.08.2016 | Agreement for term loans executed by 1stdefendant in favour of applicant |
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| A13 | 03.08.2016 | Agreement for hypothecation of vehicle executed by 1st defendant in favour of applicant |
|---|---|---|
| A14 | 03.08.2016 | Demand promissory note executed by 1stdefendant in favour of applicant |
| A15 | 03.08.2016 | Take delivery letter to DPN executed by 1stdefendant in favour of applicant |
| A16 | 03.08.2016 | Guarantee agreement executed by 2ndto 4thdefendants in favour of applicant |
| A17 | 07.06.2019 | Demand promissory note executed by 1stdefendant in favour of applicant |
| A18 | 07.06.2019 | Take delivery letter to DPN executed by 1stdefendant in favour of applicant |
| A19 | 07.06.2019 | Demand promissory note executed by 1stdefendant in favour of applicant |
| A20 | 07.06.2019 | Take delivery letter to DPN executed by 1stdefendant in favour of applicant |
| A21 | 02.06.2022 | Letter of undertaking executed by 1stdefendant in favour of applicant |
| A22 | 02.06.2022 | Demand promissory note executed by 1stdefendant in favour of applicant |
| A23 | 02.06.2022 | Debit balance confirmation letter executed by 1st defendant in favour of applicant |
| A24 | 02.06.2022 | Letter of undertaking executed by 1stdefendant in favour of applicant |
| A25 | 02.06.2022 | Demand promissory note executed by 1stdefendant in favour of applicant |
| A26 | 02.06.2022 | Debit balance confirmation letter executed by 1st defendant in favour of applicant |
| A27 | 10.08.2023 | Legal notice issued to defendants |
| A28 | -- | Returned postal cover of 1stdefendant |
| A29 | -- | Returned postal cover of 2nddefendant |
| A30 | -- | Returned postal cover of 3rddefendant |
| A31 | -- | Returned postal cover of 4thdefendant |
| A32 | -- | Statement of OD Loan account No. 565101000045299 |
| A33 | -- | Statement of Vehicle loan account No. 5607610000630594 |
| Witness | Examined fo | r the Defendants: -Nil - |
List of Documents Exhibited for the Defendants:
-Nil -
PRESIDING OFFICER
Sd/- (T. RAJESH)
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
2 provisions across 1 enactments
Union Bank of India, Shivamogga Branch
M/s. Century Garments
Smt. Chayaa
Smt. Nithya Bharadwaj
Sri. B.N. Anjan
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
