Allowed

Canara Bank v. B K Bio Tech

DRT19 Sept 2025OA/1721/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act admitted ex parte, directing the issuance of a Recovery Certificate for principal and reduced simple interest against the proprietorship concern and its assets.

What did the court decide?

Recovery certificate issued for Rs. 1.60 Crore with 12% p.a. simple interest from filing date, executable against defendant and proprietor assets.

Canara Bank versus B K Bio Tech — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1721/2024

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BETWEEN:

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Canara Bank, One of its Branches at P.B. No. 25, 197 D/2, Khanapur Road, Tilakwadi, Belgavi- 590006, (Karnataka State) and is Represented by its Manager Sri. Thati Suresh S/o Thati Subbarayudu, Aged 31 years.

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…APPLICANT

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AND:

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M/s. B.K. Bio Tech, No. 336/B, Main Market Circle, Ramnagar, Belagavi- 581453, Karnataka, Represented by its Proprietor, Sri. Balakrishna Arjun Patil, S/o Arjun B Patil.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : U.C Vasanth Defendant : 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 seeking issuance of Recovery Certificate against the defendant for Rs. 1,60,44,223/-

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OA 1721/2024

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(Rupees One Crore Sixty Lakh Forty Four Thousand Two Hundred and Twenty Three Only) with further interest thereon from the date of filing the Application till realization. The defendant is a proprietorship concern.

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It is the case of the applicant that, the defendant availed term loan facility of Rs. 2,00,00,000/- (Rupees Two Crore Only) for the purpose of setting up of manufacturing of medical and industrial gases unit.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with common hypothecation agreement and letter of undertaking

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It is further contended that, despite availing the credit facilities,

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agreeing to service the loan amount promptly and regularly, the defendant 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, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 28.01.2025.

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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-8 and got the same marked in evidence.

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OA 1721/2024

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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 defendant?

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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 forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation 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 findings arrived herein above, the Tribunal

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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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OA 1721/2024

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

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calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.1721/2024, stands allowed,

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

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1,60,44,223/- (Rupees One Crore Sixty Lakh Forty Four Thousand Two

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Hundred and Twenty Three Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the proprietor 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 proceedings against the defendant and also proceeding against its assets, and also that of the proprietor.

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ii) 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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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, are disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms

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OA 1721/2024

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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

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Open Court, this the 19^th Day of September, 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: Poonam Belvalkar D/o Prakash, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	02.06.2021	Loan application made by defendant
A2	03.06.2021	Sanction memorandum
A3	03.06.2021	Common hypothecation agreement
A4	-do-	Take delivery letter to DPN along with PRONOTE
A5	-do-	Letter of undertaking re: loans
A6	16.05.2024	Legal notice
A7	24.05.2024	Track consignment certified by post master, evidencing service of notice on defendant
A8	30.05.2024	Statement of accounts in respect of term loan A/c No. 0558766000031

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Canara Bank v. B K Bio Tech

Case brief

What is this about?

What did the court decide?

Canara Bank v. B K Bio Tech

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

Coram

Case details

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