Allowed

Indian Bank v. Gowramma

DRT26 Sept 2025OA/1636/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an original application filed by Indian Bank for issuance of a Recovery Certificate against defendants for a housing loan default of Rs. 77.28 lakh. The defendants appeared ex-parte. The Tribunal permitted recovery with interest reduced to 7% simple p.a. and ordered enforcement against schedule properties.

What did the court decide?

Recovery Certificate issued for Rs. 77,28,897.34 plus interest at 7% p.a. (simple) from filing date till realization, recoverable from schedule properties and personal assets.

Indian Bank versus Gowramma — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 26^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1636/2022

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BETWEEN:

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Indian Bank, SAM Branch, No. 10, K.G. Road, Bangalore 560 009. (Erstwhile Allahabad BankAmalgamation vide Gazette Notification bearing No. CG-DL-E-04032020-21 6535 dated 04.03.2020) Rep by its Chief Manager Mr. Bheem Prasad Aged: 51 years (Vide POA dt. 09-09-2022)

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…APPLICANT

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AND:

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Smt. Gowramma, W/o Ramesh, aged 52 years, No. 7, 3rd Main, 6th C Cross, Srikanteshwara Nagara, Nandini Layout, Bangalore North- 560096.

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Guruprasad. R, S/o Ramesh, Aged 35 years, No. 7, 3rd Main, 6th C Cross, Srikanteshwara Nagara, Nandini Layout, Bangalore North- 5600961.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : K.R. Parashuram Defendants : Exparte

OA 1636/2022

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. 77,28,897.34 (Rupees Seventy Seven Lakh Twenty Eight Thousand Eight Hundred Ninety Seven and Paise Thirty Four 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 Home loan of Rs. 60,00,000/- (Rupees Sixty 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 the necessary loan documents along with demand promissory note, undertaking letter, letter confirming deposit of title deeds, revised letter confirming deposit of title deeds, rectification of letter confirming deposit of title deeds and copy of sale deed.

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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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OA 1636/2022

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 07.02.2025.

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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-16 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

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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 defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove

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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

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defendant and the claim of the amount due are also proved by the above

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OA 1636/2022

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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 Housing 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 7.00% (simple).

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In the result, OA.No.1636/2022, stands allowed,

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

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77,28,897.34 (Rupees Seventy Seven Lakh Twenty Eight Thousand Eight Hundred Ninety Seven and Paise Thirty Four Only) with further interest @7.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, 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 Item No. 1,2, Schedule ‘B’ & ‘C’ of 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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OA 1636/2022

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severally & personally and their assets are liable for respective amounts

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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 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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v) Interim application pending, if any, stands disposed of in terms 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 26^th Day of September, 2025].

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Sd/- (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: Karthik Reddy C S/o Chandrashekar, Chief Manager, of Applicant Bank.

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OA 1636/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	21.05.2018	Housing loan application
A2	02.06.2018	Sanction letter
A3	07.06.2018	Acknowledgement of sanction letter
A4	07.06.2018	Demand promissory note
A5	07.06.2018	Undertaking letter
A6	07.06.2018	Declaration to undertake equitable mortgage
A7	07.06.2018	Affidavit of borrower
A8	07.06.2018	Undertaking letter
A9	18.06.2018	Letter confirming deposit of title deeds
A10	19.06.2018	Revised letter confirming deposit of title deeds
A11	24.07.2018	Rectification of letter confirming deposit of title deeds
A12	18.07.2018	Copy of the sale deed (Mortgaged)
A13	31.03.2020	Acknowledgement of debt cum security
A14	21.01.2020	Demand notice under SARFEASI Act
A15	--	Statement of account
A16	--	Bankers Certificate
A17	--	Power of attorney

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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

Indian Bank v. Gowramma

Case brief

What is this about?

What did the court decide?

Indian Bank v. Gowramma

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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