Allowed

Punjab National Bank v. G Krishnamurhty

DRT22 Sept 2025OA/1753/2024

Case brief

AI extract

What is this about?

Original Application under RDB Act 1993 seeking Recovery Certificate for defaulting loan accounts. Tribunal, hearing applicant ex parte, allowed OA permitting recovery of aggregate sum with reduced interest rates for housing and vehicle loans, permitting action against security and personal assets.

What did the court decide?

Recovery Certificate draw n allowing recovery of ~Rs 21.57 Lakhs with 8% interest on housing loan and 10% on vehicle loan from filing date.

Punjab National Bank versus G Krishnamurhty — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 22^nd Day of SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1753/2024

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BETWEEN:

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Punjab National Bank, (Earlier oriental bank of commerce Merged with Punjab National bank vide Gazette Notification dated 04.03.2020) Branch Office: No.3406/A/2667, 1^st floor, Paramanna layout, Opp.Jp Hospital, B H Road, Nelamangala, Bengaluru rural – 562 123

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Represented through its stressed assets targeted Resolution and action (SASTRA) Raheja Towers, No.26-27, M G Road, Bangalore – 560 001

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Authorized officer and GPA holder Sri. Chandrajeeth Kumar …APPLICANT

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AND:

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Mr. G Krishnamurhty S/o. Doddagnagaiah, Aged about 53 years, Residing at no.11, Subbaiana Palya, 7^th cross, Kalyan Nagar, Opp. Uttam Sagar, Banasawadi main road, Bangalore – 560 043 ...DEFENDANT

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OA-1753/2024

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Counsel on record/appeared for:

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Applicant : S R Narayanappa Defendants : 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. 21,57,269.29/-(Rupees Twenty One Lakhs Fifty Seven Thousand Two Hundred Sixty Nine and Paise 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 availed the following credit facilities :

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Term Loan (Housing loan) of Rs.18,18,000 /- (Rupees Eighteen lakhs eighteen thousand Only) for construction of house.

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Vehicle Loan of Rs. 9,70,000 /- (Rupees Nine Lakhs Seventy Thousand Only).

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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 agreement, undertaking for agreement of sale, deed of registered mortgage by deposit of title deeds and letter of hypothecation.

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

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OA-1753/2024

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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 22.01.2025.

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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-13 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

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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

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OA-1753/2024

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unrebutted as defendant remained exparte. The evidence tendered

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by the applicant remains uncontroverted and undisputed. The

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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

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

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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 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 facilities are

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availed for Housing purpose and Vehicle purchasing purpose and also that the OA claim is arrived at by calculating interest at the agreed

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rate, this Tribunal of the view that OA can be allowed with a reduced

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interest of 8.00%(simple) in respect of Housing loan and 10.00%(Simple) in respect of Vehicle loan.

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In the result, OA.No.1753/2024 stands allowed,

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

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Rs. 21,57,269.29/-(Rupees Twenty One Lakhs Fifty Seven Thousand

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OA-1753/2024

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Two Hundred Sixty Nine and Paise Twenty Nine Only) which consists

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of:-

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a) Rs. 19,40,386.79 (Rupees Nineteen Lakhs Forty Thousand Three Hundred Eighty Six and Paise Seventy Nine Only) with further interest @8.00 % p.a.(simple) in respect of housing loan from the date of filing OA till the realization, from the defendant 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 schedule property.

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b) Rs. 2,16,882.50 (Rupees Two Lakhs Sixteen Thousand Eight Hundred Eighty Two and Paise Fifty Only)with further interest @10.00 % p.a.(simple) in respect of vehicle loan from the date of filing OA till the realization, from the defendant personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same be recovered by proceedings against the defendant personally and also proceeding against his assets.

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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 in the housing loan, the defendant personally and his assets are liable for balance amounts due under the loan accounts.

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OA-1753/2024

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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

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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 the Open Court, this the 22^nd Day of September, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-1753/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Chandrajeet Kumar S/o. Late D N Mahto working as Chief

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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	Application-cum-sanction form for all retail schemes dated 29.12.2016 from the 1^stdefendant
A2	Letter of sanction for housing loan dated 22.02.2017 for a sum of Rs. 18.18 lakhs by the bank duly acknowledged by the 1^st defendant
A3	Agreement of individual housing loan dated 23.02.2017 for a sum of Rs.18,18,000/- executed by the 1^stdefendant
A4	Common agreement dated 23.02.2017 executed by the 1^st defendant in favour of the bank
A5	Undertaking to execute the agreement for sale/deed of conveyance and have the same registered in the office of the relevant registrar/sub-registrar of assurances and to deposit the same with the bank dated 23.02.2017 executed by the 1^st defendant in favour of the bank
A6	Deed of registered mortgage by deposit of title deeds dated 15.03.2017 executed by the defendant no.1 in favour of the bank for a sum of Rs.18,18,000/-
A7	Application –cum- appraisal/sanction form for car dated from the 1^stdefendant

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OA-1753/2024

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A8	Letter of sanction for car loan dated 27.08.2020 for a sum of Rs. 9.70 lakhs by the bank duly acknowledged by the 1^st defendant
A9	Master agreement dated 27.08.2020 for a sum of Rs. 9.70 lakhs
A10	Letter of Hypothecation for car loan dated 27.08.2020 for a sum of Rs.9,70,000/-
A11	Notice U/S 13 (2) of securitization act, by the bank to defendant dated 04.08.2022
A12	Account extract H/L ac no.18426016000027
A13	Account extract Vehicle loan ac no.18426511000237

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Punjab National Bank v. G Krishnamurhty

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. G Krishnamurhty

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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