Allowed

Union Bank of India v. National Pulverisers

DRT28 Nov 2025OA/1596/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application for recovery certificate. The bank proved the loan, facility availed, and default. Defendants appeared ex parte. Court awarded reduced interest at simple rate and directed recovery from defendants jointly and severally.

What did the court decide?

Issuance of Recovery Certificate for Rs. 56,37,865.29/- with 12% simple interest from filing date, recovery from defendants jointly and severally.

Union Bank of India versus National Pulverisers — 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 28^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1596/2023

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BETWEEN:

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Union Bank of India Having its central office at: No.239, Vidhan Bhavan Marg, Nariman point, Mumbai – 400 021

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Branch at: Bannimantap Branch, near highway circle, Mysore – 570 015

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Represented by its Senior Manager,

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Mr. Chidananda V C …APPLICANT

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AND:

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M/s. National Pulverisers Gowdan no. 3, 4 & 5 premises no. 8 & 8/4, Bannimantap extension, Rice mill compound, Mysore – 570 015

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Rep. by its proprietor Mr. Mohammed Rehan S/o. late M G Abdul Rasheed

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Mr. Mohammed Rehan S/o. late M G Abdul Rasheed Aged about 30 years R/at: no. 951, 6^th cross, JSS nagara, Bannimantap B Layout, Mysore – 570 015

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Mr. Syed Imran Aged about major R/at: No.28, 5^th Main, Tank Road, Subhash Nagar, Mysore ...DEFENDANTS

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2 OA-1596/2023

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Counsel on record/appeared for:

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Applicant : Shivashankar A Defendants : Ex parte

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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. 56,37,865.29/- (Rupees Fifty Six Lakhs Thirty Seven Thousand Eight Hundred and Sixty Five and Paisa Twenty Nine 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.2 the proprietor of the defendant no.1 is availed an Working capital term loan (WCTL) of Rs. 60,45,000/- (Rupees Sixty Lakhs Forty Five Thousand Only) on 28.11.2019.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents along with deed of hypothecation and deposit of title deeds.

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It is further contended that, despite availing the credit facility, 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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3 OA-1596/2023

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In the above circumstances, the applicant approached this

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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 ex parte on 10.07.2025.

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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-11 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

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unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are

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sufficient to prove availment of credit facility as stated in the OA,

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creation of the security interest and the defaults committed in the

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4 OA-1596/2023

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above documents. The claim of the

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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

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is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility are

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availed for Business purpose and also that the OA claim is arrived at

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by calculating interest at the agreed rate, this Tribunal of the view

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that OA can be allowed with a reduced interest of 12.00%(simple).

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In the result, OA.No.1596/2023 stands allowed,

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

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Rs. 56,37,865.29/- (Rupees Fifty Six Lakhs Thirty Seven Thousand

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Eight Hundred and Sixty Five and Paisa Twenty Nine Only) with further interest @12.00% p.a.(simple) from the date of filing OA till

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the realization, from the defendants jointly, severally and personally,

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after giving credit to all the amount recovered and received during

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the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to

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the OA be the schedule to the recovery certificate.

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5 OA-1596/2023

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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

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jointly, severally and personally and their assets are liable for balance amounts due under the 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

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terms of this final order.

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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 (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 28^th Day of November, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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6 OA-1596/2023

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: S Apsar Ali, S/o. S Asif Ali, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application dated 23.06.2019 and demand promissory note dated 29.11.2019 executed by Mr. Mohammed Rehan
A2	Take delivery letter to DPN dated 29.11.2019 executed by the Mr. Mohammed Rehan
A3	Agreement for term loan dated 29.11.2019 executed by the Mr. Mohammed Rehan
A4	Letter of undertaking dated 29.11.2019 executed by Mr. Mohammed Rehan
A5	Common deed of hypothecation of movables/assets/debts dated 29.11.2019 executed by Mr. Mohammed Rehan, the proprietor of the first defendant
A6	Memorandum of deposit of title deeds dated 20.07.2011, registered on 21.07.2011 executed bythe second defendant
A7	Guarantee agreement dated 29.11.2019 executed by the second defendant
A8	Composite debit balance confirmation dated 02.09.2022 executed bythe defendant
A9	Demand notice dated 17.04.2023
A10	Statement of accounts extract

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Witness Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. National Pulverisers

Case brief

What is this about?

What did the court decide?

Union Bank of India v. National Pulverisers

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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