Allowed

Union Bank of India v. Smt T S Girijamma

DRT27 Oct 2025OA/1807/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's original application filed under Section 19 of the RDB Act. Since defendants appeared ex parte, the court found the loan documents and defaults well-proved. The Recovery Certificate was issued for the principal amount with reduced interest at 6% p.a.

What did the court decide?

Recovery Certificate allowed for principal sum of Rs. 33,65,115.90/- plus further interest at 6% p.a. (simple) from date of filing till realization, recoverable jointly, severally and personally again

Union Bank of India versus Smt T S Girijamma — 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 27^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1807/2023

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BETWEEN:

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Union Bank of India BH road Branch, 1^st Floor, Omkar Omate Building, Near Bhima jewelers, Shivamogha, Karnataka – 577 201

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Through its Chief Manager

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Sri. Y Shashidhara …APPLICANT

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AND:

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Smt. T S Girijamma W/o. late K Gopalappa Aged about 56 Years R/o. Sirigere Village, Aynuru Hobli, Shivamogga Taluk, Karnataka – 577 211

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Sri. Santosh B G S/o. Late K Gopalappa Aged about 31 Years R/o. Sirigere Village, Aynuru Hobli, Shivamogga Taluk, Karnataka – 577 211 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates Defendants : Ex parte

OA-1807/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 33,65,115.90/- (Rupees Thirty Three Lakhs Sixty Five Thousand One Hundred and Fifteen and Paisa Ninety 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 the following credit facilities:

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Agriculture crop loan of Rs. 10,00,000/- (Rupees Ten Lakhs Only) on 05.01.2016

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Agriculture land development of Rs. 7,00,000/- (Rupees Seven Lakhs Only) on 27.01.2016.

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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 simple mortgage deed and deed hypothecation.

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

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OA-1807/2023

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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 23.01.2025.

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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-17 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 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 ex parte. 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

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OA-1807/2023

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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 find both these issues are 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 availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1807/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 33,65,115.90/- (Rupees Thirty Three Lakhs Sixty Five Thousand One Hundred and Fifteen and Paisa Ninety Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against 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

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OA-1807/2023

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jointly, severally and personally and their assets are liable for balance

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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 the Open Court, this the 27^th Day of October, 2025].

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Sd/-

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(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: Sri. Chukka Ramana Reddy, S/o. Chukka Satyanarayana Reddy, Chief Manager, of Applicant Bank.

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OA-1807/2023

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application dated 05.01.2016
A2	Sanction letter dated 05.01.2016
A3	Loan application dated 26.01.2016
A4	Sanction letter dated 27.01.2016
A5	Mortgage deed dated 31.12.2015
A6	Demand promissory note dated 05.01.2016
A7	Take delivery of demand promissory note dated 05.01.2016
A8	Common deed of hypothecation of crops/stocks 05.01.2016
A9	Acknowledgement of debts dated 03.01.2019
A10	Advice of rephrasing repayment schedule duly accepted by defendant dated 26.03.2019
A11	Agreement for term loan dated 27.01.2016
A12	Common deed of hypothecation of crops/stocks dated 27.01.2016
A13	Letter of undertaking/declaration from the borrowers dated 27.01.2016
A14	Acknowledgement of debts dated 25.01.2019
A15	Legal notice dated 14.08.2023
A16	True extract of statement of accounts pertaining to the defendants aforesaid loan account no. 560961000261259
A17	True extract of statement of accounts pertaining to the defendants aforesaid loan account no. 560941000216907

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Smt T S Girijamma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Smt T S Girijamma

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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Case details

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