Allowed

Union Bank of India v. Dhanunjaya B

DRT31 Dec 2025OA/1521/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's OA for a recovery certificate. The court found the debt claim proved based on uncontroverted evidence, permitting recovery of principal, reduced simple interest, and costs against the mortgaged property and personal assets.

What did the court decide?

Recovery Certificate issued for Rs.69,09,431.84 plus 8% simple interest and costs from the defendants jointly, severally and personally, including against secured property.

Union Bank of India versus Dhanunjaya B — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 31^st Day of December, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1521 of 2022

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Union Bank of India, (Erstwhile Corporation Bank) Jal Bhavan Branch, No.61, 1^st Stage, 1^st Phase, BTM Layout, Bannerghatta Road, Bangalore – 560 076. Represented by its Senior Manager.

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… Applicant.

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Vs.

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Mr.Dhanunjaya.B., S/o.Ramappa.B., No.305, 2^nd Floor, Sri Mallikarjuna Residency,

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80 ft. Road, Kanakapura Main Road, Gubbalala Village, Bangalore – 560 061.

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Mrs.D.Lakshmi, W/o. Dhanunjaya.B., No.305, 2^nd Floor, Sri Mallikarjuna Residency, 80 ft. Road, Kanakapura Main Road, Gubbalala Village, Bangalore – 560 061.

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Bangalore – 560 061. … Defendants. Counsel for Applicant : Sri A.Shivashankara. Defendants : Exparte. ……

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ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of Rs.69,09,431.84 together with further interest @10.65% p.a. from 15.09.2020 till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

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The Applicant contends that the defendants approached the erstwhile Corporation Bank for Housing Loan of Rs.60,20,000/- for the purpose of purchase of flat and availed the same on 21.11.2017 by execution of necessary loan documents including Agreement for Term Loan. The defendants have also mortgaged the schedule mentioned property in favour of applicant by execution of Memorandum of Deposit of Title Deeds dt.12.12.2017.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan account of the defendants was classified as NPA. The applicant bank has issued notice u/s.13(2) of SARFAESI Act on

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01.04.2019 calling upon the defendants for repayment of dues.

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Despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 12.08.2025.

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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 A1 to A6, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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

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against the Defendants?

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed for Housing Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 8% p.a. (simple).

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In view of the above

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i) OA No.1521 of 2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.69,09,431.84 (Rupees Sixty Nine Lakhs Nine Thousands Four Hundred Thirty One and Eighty Four Paise only) together with interest @8% p.a. (simple) from the date of filing of OA till the date of realization from the defendants jointly, severally and personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule mentioned property. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the 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) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 31^st day of December, 2025)

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Sd./- (T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mrs.Aswathy.S., Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Loan Application dt.17.09.2017. Ext.A2 - Sanction Letter dt.17.11.2017. Ext.A3 - Agreement for Term Loan dt.21.11.2017. Ext.A4 - Letter of Undertaking dt.21.11.2017. Ext.A5 - Memorandum of Deposit of Title Deeds dt.21.12.2017. Ext.A6 - Statement of Account.

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Witness Examined for the Defendants:

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NIL

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List of Documents Exhibited for the Defendants :

NIL

Sd./-

(T. RAJESH)

PRESIDING OFFICER

Union Bank of India v. Dhanunjaya B

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Dhanunjaya B

Case brief

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What did the court decide?

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