Allowed

Bank of Maharashtra v. K K Enterprises

DRT18 Dec 2025OA/1396/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's Original Application for a Recovery Certificate against defaulting borrowers. The Tribunal found the bank's claim proven despite the respondents' ex parte absence, awarding recovery of the principal amount with reduced interest at 9% p.a. simple.

What did the court decide?

Issuance of Recovery Certificate for Rs.1,04,85,966/- plus interest at 9% p.a. simple until realization, against defendants jointly, severally and personally.

Bank of Maharashtra versus K K Enterprises — 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 18^th Day of December, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1396/2024

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BETWEEN:

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Bank of Maharashtra Gulbarga (Kalburgi) Branch Arun Kumar Patil’s Complex, CCG No.3-294, Behine Bhavikatti Book Depot, Chakkarkatta, Gajipur, Gulbarga (Kalaburagi)-585101 Rep. by its Branch Manager Mr. Baptist Mascarenhas …

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… APPLICANT

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AND:

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M/s. K.K. Enterprises Rep. by its Proprietor Mr. Bharat Shinde S/o. Dhashrath Shinde Aged about 60 years R/at. Balajee Complex, Shop No.10, Sultanpur Ring Road, Kalaburgi – 585101 Also at, Plot No.63, Bramha Chaitanya Raghavendra Nagar, Hotgi Road, Near Airport, Majarewadi, Solapur, Maharashtra – 413224

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Mrs. Kanchana Bharat Shinde W/o. Bharat Shinde, R/at. Plot No.63, Bramha Chaitanya Raghavendra Nagar, Hotgi Road, Near Airport, Majarewadi, Solapur, Maharashtra-413224

...DEFENDANTS

OA. No.1396/2024

Counsel on record/appeared for:

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Applicant : Sri. Prakasha Hegde K 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 for seeking issuance of Recovery Certificate against the defendants for Rs.1,04,85,966/- (Rupees One Crore Four Lakh Eighty Five Thousand Nine Hundred and Sixty Six only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the new cash credit loan facility of Rs.70,00,000/- on 18.09.2019 for the purpose of working capital of business and ECLGS loan facility of Rs.14,00,000/- on 27.07.2020 and Term loan (covid loan) of Rs.6,35,000/- on 29.06.2021.

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

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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

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OA. No.1396/2024

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default in repayment and consequentially turning the loan account 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 07.01.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A17 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: 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

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OA. No.1396/2024

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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, as to the execution of loan documents as claimed by the applicant bank 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 above finding which cover both the issues raised in this manner, 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 were availed for business purpose and also that 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 9.00% (simple).

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In the result, OA.No.1396/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.1,04,85,966/- (Rupees One Crore Four Lakh Eighty Five Thousand Nine Hundred and Sixty Six only) consisting of:

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OA. No.1396/2024

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a. Rs.88,90,829/- and Rs.11,56,909/- with further interest of 9.00% p.a.(simple) from the date of filing OA till the realization from defendant No.1 and 2;

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b. Rs.4,38,228/- with further interest of 9.00% p.a.(simple) from the date of filing OA till the realization from defendant No.1; 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 and personally and their other assets of the defendants, including the schedule properties are liable for all such amounts due under the loan account. The schedule properties to the OA be the schedule properties 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 and personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding 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 and transferred to Recovery for execution.

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OA. No.1396/2024

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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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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 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 18^th Day of December 2025].

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Sd/(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: Nishit Chandra, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	LOAN APPLICATION DATED 16.09.2019
A2	Sanction letter dated 18.09.2019
A3	Application/Request Letter for Making Credit FacilityAvailable Dated 18.09.2019
A4	Demand PromissoryNote dated 18.09.2019
A5	Deed of Hypothecation for all facilities dated 18.09.2019
A6	Letter of Proprietorshipdated 18.09.2019
A7	Guarantee for all facilities except agricultural facilities dated 18.09.2019
A8	ECLGS sanction letter dated 27.07.2020
A9	Deed of Hypothecation dated 07.08.2020
A10	Guarantee for all facilities except agricultural facilities dated 07.08.2020

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OA. No.1396/2024

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A11	Composite Deed of Simple Mortga to secure all credit facilities dated	ge by guarantor 03.08.2020
A12	Composite Deed of Simple Mortga to secure all credit facilities dated	ge by Guarantor 03.08.2020
A13	Statement of account in loa 60341474487	n account No.
A14	Statement of account in No.60363224806	loan account
A15	Statement of account in No.60387537718	loan account
A16	Legal notice dated 08.04.2024
A17	Postal receipts

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Sd/- (T. RAJESH) PRESIDING OFFICER

Bank of Maharashtra v. K K Enterprises

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. K K Enterprises

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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