Allowed

Union Bank of India v. ms dp total solutions

DRT19 Nov 2025OA/1560/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Union Bank of India seeking issuance of a Recovery Certificate against defaulting borrowers for a loan account, as the defendants remained in ex-parte.

What did the court decide?

Recovery Certificate issued for Rs. 34,96,072.48 plus 10% simple interest from filing date, recoverable from defendants jointly, severally and personally against schedule properties.

Union Bank of India versus ms dp total solutions — 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 19^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.1560/2024

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BETWEEN:

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Union Bank of India, SC Road Branch, #71/1, 1^st Floor, Brigade Plaza, Subedar Chetram Road, Near Anand Rao Circle, Bengaluru- 560001, Represented by is Chief Manager.

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…APPLICANT

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AND:

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M/s. DP Total Solutions, Represented by its Proprietor, Sri Ravi SB, No. 31A, 1^st Floor, Padmanabanagar, Puttalingaiah Road, BSK 2^nd Stage, Bengaluru- 560070.

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Sri. Ravi S B, S/o Satyananda, Aged about 38 years, DOB 08.02.1986, No. 31A, 1^st Floor, Padmanabanagar, Puttalingaiah Road, BSK 2^nd Stage, Bengaluru- 560070. Proprietor of M/s. DP total solutions. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prabhu Rao C B Defendants : EXPARTE

OA 1560/2024

FINAL ORDER

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. 34,96,072.48 (Rupees Thirty Four Lakh Ninety Six Thousand Seventy Two and Paise Forty Eight 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 defendants availed Overdraft General ODGEN with a credit limit of Rs. 35,00,000/- (Rupees Thirty Five Lakh Only).

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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 hypothecation agreement and memorandum of deposit of title deeds in favour of the applicant bank.

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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, summons on defendants, they failed to appear resulting the defendants being set exparte on 18.12.2024.

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OA 1560/2024

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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-10 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 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 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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OA 1560/2024

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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 Business purpose and also that the 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 10.00% (simple).

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In the result, OA.No.1560/2024, stands allowed,

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

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34,96,072.48 (Rupees Thirty Four Lakh Ninety Six Thousand Seventy Two and Paise Forty Eight Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly,

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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 the 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,

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severally & personally and their assets are liable for amounts due under the loan account.

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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

OA 1560/2024

order.

iv) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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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)

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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 19^th Day of November, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1:S Sujatha, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	True copy of loan application
A2	True copy of the sanction dated 21.04.2022
A3	True copy of demand promissory note dated 12.04.2022
A4	True copy of hypothecation agreement dated 12.04.2022
A5	True copy of simple agreement dated 12.04.2022
A6	True copy of letter of continuity dated 12.04.2022
A7	True copy of letter of undertaking not to alienate hypothecated goods dated 21.04.2022
A8	True copy of letter of undertaking from the borrower dated 21.04.2022
A9	True copy of MOTD dated 26.04.2022

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OA 1560/2024

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A10 Statement of account bearing loan account No. 127024010000002 along with certificate as per banker’s books evidence Act

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. ms dp total solutions

Case brief

What is this about?

What did the court decide?

Union Bank of India v. ms dp total solutions

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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