Allowed

Union Bank of India v. Munivenkate Gowda

DRT23 Sept 2025OA/1274/2023

Case brief

AI extract

What is this about?

Applicant bank sought recovery certificate for agricultural loans alleged to be in default. Tribunal found evidence uncontroverted due to respondents' ex-parte absence, approved claim with 6% simple interest, and granted recovery from properties and assets.

What did the court decide?

Recovery certificate issued for Rs. 28,96,221 with 6% simple interest to be recovered from respondents jointly, severally and personally, and against schedule properties.

Union Bank of India versus Munivenkate Gowda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 23^rd Day of September, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1274/2023

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BETWEEN:

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The Union Bank of India, Robertsonpet Branch, BM Road, PB Bo. 22, Robertsonpet, KGF Town, Kolar District, Karnataka.

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…APPLICANT

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AND:

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Sri K.V. Munivenkate Gowda, Aged 72 years, S/o Sri. Venkate Gowda, Residing at Kallikuppa Village, T. Gollahalli post, KGF Taluk, Kolar Distrcit- 563116.

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Sri. K.M. Beere Gowda, Aged Major, S/o Sri. K.V. Munivenkate Gowda, Residing at Kallikuppa Village, T. Gollahalli Post, KGF Taluk, Kolar District- 563116.

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Sri. K.M. Venkate gowda, Aged Major, Sri. K.V. Munivenkate Gowda, Residing at Kallikuppa Village, T. Gollahalli Post, KGF Taluk, Kolar District- 563116.

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Sri. S Harish Kumar, Aged Major, S/o Sri. Srinivasappa, Residing at Uthanur Village, Mulbagal Taluk, Kolar District- 563127.

...DEFENDANTS

OA 1274/2023

Counsel on record/appeared for:

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Applicant : Sri. N.G. Ravikumar 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. 28,96,221.00 (Rupees Twenty Eight Lakh Ninety Six Thousand Two Hundred and Twenty One 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 defendant No.1 on the guarantee of defendant No.4 has availed the following loans from the applicant bank:

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CCCK loan of Rs. 9,30,000/- (Rupees Nine Lakh Thirty Thousand Only) for the purpose of growing crops.

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AGTL of Rs. 5,50,000/- (Rupees Five Lakh Fifty Thousand Only) for the purpose of development of the agriculture.

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The defendants Nos. 1 to 3 owners of the ‘A’ Schedule property has registered deed of simple mortgage in respect of the loans availed.

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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

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OA 1274/2023

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common deed of hypothecation, demand promissory note, registered simple mortgage deed, letter of undertaking and guarantee agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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 11.02.2025.

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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-20 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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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim

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as against the defendants?

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ii) What order are to be passed?

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OA 1274/2023

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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 the security interest 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 findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of

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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 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

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can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1274/2023, stands allowed,

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

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OA 1274/2023

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28,96,221.00 (Rupees Twenty Eight Lakh Ninety Six Thousand Two Hundred and Twenty One Only) with further interest @6.00 % 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 schedule property. Properties 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 amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for respective amounts due under the respective loan accounts.

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

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v) 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 1274/2023

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 23^rd Day of September, 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: G Ravi S/o V Gangaiah, 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
		For the CCCK loan transaction amount of Rs. 9,30,000/-
A1	04.06.2016	Loan application
A2	04.06.2016	Credit sanction intimation letter
A3	04.06.2016	Common deed of Hypothecation of Crops/ stocks
A4	04.06.2016	Demand promissory note
A5	04.06.2016	Take delivery letter to DPN
A6	02.06.2016	Registered simple mortgage deed for the aggregated limit of Rs. 15,00,000/-
A7	04.06.2016	Letter of undertaking/ declaration from the borrowers
A8	04.06.2016	Guarantee agreement
A9	10.01.2023	Statement of account from 31.03.2021 to 10.01.2023 with certificate
		For the AGTL loan transaction amount of Rs. 5,50,000/-
A10	29.06.2016	Loan application
A11	29.06.2016	Credit sanction intimation letter
A12	29.06.2016	Agreement for terms loans
A13	29.06.2016	Common deed of hypothecation of crops/ stocks
A14	29.06.2016	Letter of undertaking/ declaration from the borrowers
A15	29.06.2016	Guarantee agreement

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OA 1274/2023

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A16	03.12.2018	Acknowledgement of debt/ liability
A17	10.01.2023	Statement of account from 31.03.2021 to 10.01.2023 with certificate
A17A	30.05.2023	Consolidated statement
A18	10.03.2023	Office copy of the legal notice
A19	11.03.2023	Postal receipts
A20	16.03.2023	Three postal acknowledgements

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Munivenkate Gowda

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Munivenkate Gowda

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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