Allowed

Union Bank of India v. Kamalamma

DRT18 Dec 2025OA/1884/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application for issuance of a Recovery Certificate against defendants for an agricultural term loan default. Defaulting respondents were set ex-parte. The court adjusted interest to 6% simple and ordered recovery against property and personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 46,25,355/- with interest at 6% simple p.a. recoverable from defendants jointly, severally & personally, including against schedule property.

Union Bank of India versus Kamalamma — 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 18^th Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1884/2023

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BETWEEN:

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Union Bank of India, (erstwhile Corporation Bank) Channapatna Branch, No. 2191/4-10, B.M. Road, Kuvempunagar, Channapatna 562 160, Ramanagara Dist. By its Principal Officer and Senior Manager, Sharon C Nelson.

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…APPLICANT

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AND:

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Kamalamma, S/o Late Machegowda, Aged about 63 years. Nagavara Village and Post, Channapatna Taluk, Ramanagara Dist, 562 160.

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N.M. Chidananda, S/o Late Manchegowda, Aged about 44 years. Nagavara Village and Post, Channapatna Taluk, Ramanagara Dist, 562 160.

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N.M. Yogananda, S/o Late Manchegowda,

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OA 1884/2023

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Aged about 41 years. Nagavara Village and Post, Channapatna Taluk, Ramanagara Dist, 562 160.

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N.M. Nagendra, S/o Late Manchegowda, Aged about 38 years. Nagavara Village and Post, Channapatna Taluk, Ramanagara Dist, 562 160.

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N.M. Siddappa, S/o Late Manchegowda, Aged about 35 years. Nagavara Village and Post, Channapatna Taluk, Ramanagara Dist, 562 160.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M R Rajini 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 defendants for Rs. 46,25,355/- (Rupees Forty Six Lakh Twenty Five Thousand Three Hundred Fifty Five Only) with further interest thereon from the date of filing the Application till realization.

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OA 1884/2023

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It is the case of the applicant that the defendants availed agricultural term loan of Rs. 20,00,000.00 (Rupees Twenty 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 necessary loan documents along with guarantee agreement and deed of simple mortgage.

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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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Despite, Summons on defendants they failed to appear resulting the defendants being set exparte on 18.02.2025.

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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-24 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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OA 1884/2023

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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 defendants 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 the security interest and the defaults committed in the accounts. The liability of the defendants 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 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 Agriculture 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 6.00% (simple).

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OA 1884/2023

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In the result, OA.No.1884/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 46,25,355/- (Rupees Forty Six Lakh Twenty Five Thousand Three Hundred Fifty Five Only) with further interest @6.00 % p.a.(simple) from

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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 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, severally & personally and their assets are liable for amounts due under the loan accounts.

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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

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

of this final order.

OA 1884/2023

14. 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 18^th Day of December, 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: Sharon C Nelson, Branch 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	23.01.2015	Loan application
A2	23.01.2015	Sanction letter
A3	23.01.2015	Demand promissory note
A4	23.01.2015	Take delivery letter to DPN
A5	23.01.2015	Agreement for term loan
A6	23.01.2015	Common deed of hypothecation of crops/ stock
A7	23.01.2015	Common deed of hypothecation of crops/ stock
A8	23.01.2015	Guarantee agreement
A9	31.12.2017	Demand promissory note
A10	31.12.2017	Take delivery letter to DPN
A11	18.07.2019	Demand promissory note
A12	18.07.2019	Take delivery letter to DPN
A13	02.02.2015	Deed of simple mortgage
A14	--	RTC for Sy. No. 74/1 for the period 2014-15
A15	--	RTC for Sy. NO. 74/2 for the period 2014-15
A16	--	RTC for Sy. No. 125/1 for the period 2014-15
A17	--	RTC for Sy. No. 151/2 for the period 2014-15
A18	--	RTC for Sy. No. 224/1 for the period 2014-15
A19	--	RTC for sy. No. 258 for the period 2014-15

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OA 1884/2023

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A20	--	RTC for Sy. No. 242/2 for the period of 2014-15
A21	--	RTC for Sy. No. 251/4A for the period 2014-15
A22	--	Legal notice
A23	--	5 postal receipt
A24	--	Statement showing the balance outstanding in the loan A/c No. of the defendant

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Kamalamma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Kamalamma

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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