Allowed

Indusind Bank Limited v. Kunal Concepts India Pvt. Ltd.

DRT29 Aug 2025OA/1310/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application under Section 19 RDB Act for issuance of Recovery Certificate. In the absence of respondents, the Tribunal found the evidence sufficient and awarded interest reduced to 9% simple. The bank was granted permission to recover dues jointly and severally including property attachment.

What did the court decide?

Recovery Certificate to be drawn for Rs. 1,76,75,725.51 plus 9% simple interest from date of filing OA till realization; proceedings for execution against property and assets of respondents.

Indusind Bank Limited versus Kunal Concepts India 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 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1310/2023

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BETWEEN:

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Indusind Bank Limited, Embassy Heights, Block B, 2^nd Floor, 13 MC Grath Road, Bangalore- 560025.

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…APPLICANT

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AND:

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M/s. Kunal Concepts India private Ltd, Rep. by its Directors, No. 6/1, 16th Cross, Gajendra Nagar, Anepalya, Bangalore- 560030.

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Mr. Sarkar Prabal, S/o Mr. Sarkar Kumars, No. 49, 2nd Floor, 3^rd Cross, Church Road, Koramangala, 6th Block, Annex, Bangalore- 560095.

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Mrs. Lipi Sarkar, W/o Mr. Sarkar Prabal, No. 49, 2^nd Floor, 3^rd Cross, Church Road, Koramangala, 6th Block,

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Annex, Bangalore- 560095.

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2 & 3 also at:

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Flat No. 306, 3rd Floor, Block-A, “Ozone Urbana Aqua”

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OA 1310/2023

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Kannamangala Village, Kasaba Hobli, Devanahalli Tq. Bangalore- 560099.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. Skanda Legal 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. 1,76,75,725.51/- (Rupees One Crore Seventy Six lakh Seventy Five Thousand Seven Hundred Twenty Five and Paise Fifty One Only) with further interest thereon from the date of filing the Application till realization. The 1^st defendant is a private limited company represented by its directors- defendant Nos. 2 & 3.

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It is the case of the applicant that, the defendants availed cash credit and working capital facility of Rs. 125.00 lakhs and Guaranteed emergency credit line of Rs. 25 lakhs.

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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 memorandum of entry for depositing title deeds, supplemental agreement, hypothecation agreement, letter for

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OA 1310/2023

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continuing guarantee, undertaking cum authority and supplemental deed of hypothecation.

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

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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 28.10.2024.

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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-1 to A-21 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

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claim as against the defendants?

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OA 1310/2023

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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 the security interest and hypothecation 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 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

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OA can be allowed with a reduced interest of 9.00% (simple).

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In the result, OA.No.1310/2023, stands allowed,

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OA 1310/2023

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

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Rs. 1,76,75,725.51/- (Rupees One Crore Seventy Six lakh Seventy

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Five Thousand Seven Hundred Twenty Five and Paise Fifty One Only) with further interest @9.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally,

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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

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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

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which 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

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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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OA 1310/2023

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

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

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(Procedure) 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 29^th Day of August, 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: Tadimarri Chandrasekar Reddy S/o. Tadimarri Narayana

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Reddy, Chief 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
A1	29.01.2018	Master general terms agreement
A2	21.02.2018	Memorandum of entry for depositing title deeds
A3	30.04.2019	Sanction letter
A4	04.05.2019	Board resolution
A5	08.05.2019	Supplemental agreement
A6	08.05.2019	Hypothecation agreement for multifacility purpose
A7	08.05.2019	Declaration for extension of mortgage by way of constructive delivery
A8	08.05.2019	Supplemental memorandum of entry
A9	08.05.2019	Letter for continuing guarantee
A10	19.10.2019	Undertaking cum authority letter
A11	19.10.2019	Power of attorney for creation of securities
A12	19.10.2019	Board resolution of the 1^stdefendant
A13	22.06.2020	Sanction memorandum of GECL facility

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OA 1310/2023

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A14	14.07.2020	Term loan agreement
A15	14.07.2020	Supplemental deed of hypothecation
A16	14.07.2020	Supplemental memorandum of entry under NCGTC scheme
A17	14.07.2020	Letter for continuing guarantee
A18	22.07.2021	Demand notice issued under section 13(2) SARFEASI Act
A19	31.01.2023	Statement of account No. 650014094234 (Cash Credit facility)
A20	31.01.2023	Statement of account No. 570000014678 (GECL facility)
A21	13.02.2023	Certificate under banker’s books of evidence Act

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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

Indusind Bank Limited v. Kunal Concepts India Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Indusind Bank Limited v. Kunal Concepts India Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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