Allowed

Union Bank of India v. Smt Pavarthamma

DRT12 Nov 2025OA/1959/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application for recovery of debts. The bank proved credit facilities availed by the defendants, creation of mortgage/hypothecation, and non-repayment. The defendants remained in absence. The Tribunal allowed the application with a reduced interest rate of 6% p.a. (Simple) and directed issuance of a Recovery Certificate for joint and several liability

What did the court decide?

Recovery Certificate drawn for Rs. 30,58,911.82 plus interest at 6% p.a. (simple) to be executed against defendants jointly and severally.

Union Bank of India versus Smt Pavarthamma — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 12^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1959/2023

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BETWEEN:

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Union Bank of India Shikaripura Branch D.No.1921 2, Opp Post Office, Veterinary Hospital Road, Shikaripur, Karnataka- 577427

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…APPLICANT

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AND:

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Smt. Pavarthamma W/o. Ramappa R/at: Sankalapura Village, Shikaripura Taluk, Shivamogga District, Karnataka- 577427

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Nagarajappa S/o. Ramappa R/at: Sankalapura Village, Shikaripura Taluk, Shivamogga District, Karnataka- 577427

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Kotreshappa S/o. Ramappa R/at: Sankalapura Village, Shikaripura Taluk, Shivamogga District, Karnataka- 577427

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Shivappa Masur S/o. Ramappa

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OA 1959/2023

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R/at: Sankalapura Village, Shikaripura Taluk, Shivamogga District, Karnataka- 577427

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Malathesha R S/o. Ramappa R/at: Sankalapura Village, Shikaripura Taluk, Shivamogga District, Karnataka- 577427

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Suresh R S/o. Ramappa R/at: Sankalapura Village, Shikaripura Taluk, Shivamogga District, Karnataka- 577427

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates 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

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1993 seeking issuance of Recovery Certificate for Rs.30,58,911.82 (Rupees thirty lakh fifty eight thousand nine hundred eleven and paisa eighty two only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1

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OA 1959/2023

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availed the following credit facilities from the applicant bank:-

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I. Crop Loan of a sum of Rs.19,92,000/- (Rupees nineteen lakh ninety two thousand Only) and

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II. Crop loan limit of Rs.5,00,000/- (Rupees Five lakh Only).

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It is also the case of the applicant that, in view of the above

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amount financed, the defendant executed necessary loan documents along with Sanction letter, deed of simple mortgage, demand promissory note and deed of hypothecation in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 defendants, they failed to appear, resulting the defendants being set exparte on 09.10.2024.

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The applicant had let in evidence through AW-1, who filed

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OA 1959/2023

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Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-11 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 the 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

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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

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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

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of mortgage as claimed by

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the applicant bank and the defaults committed in the accounts.

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The liability of the defendants and the claim as the amount due

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OA 1959/2023

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is also proved by the above documents. The claim of the applicant is well within the limitation.

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11. Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendant No.1 for agricultural purpose and also

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that OA claim is arrived at by calculating interest at the agreed

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

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reduced interest @6% p.a.(Simple).

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In the result, OA.No.1959/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.30,58,911.82 (Rupees thirty lakh fifty eight thousand

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nine hundred eleven and paisa eighty two only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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No.1 to 6 jointly severally and personally after giving credit to

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all the amount recovered and received during the pendency of

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the OA and allowed the same to be recovered by proceedings

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OA 1959/2023

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against the schedule property. Properties schedule to the OA be

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the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants No.1 to 6jointly severally and personally and his other assets are

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liable to be proceeded against for the balance amount.

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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

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 12^th day of November, 2025].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1959/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: B M Vinay, Senior 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	23.02.2016	Loan application
A2	23.02.2016	Sanction letter
A3	05.02.2016	Deed of simple mortgage
A4	23.02.2016	Letter of continuity
A5	23.02.2015	Common deed of hypothecation of crops/stocks
A6	23.02.2016	Demand Promissory note
A7	23.02.2016	Take delivery letter to DPN
A8	23.02.2016	Agreement for term loan
A9	08.11.2023	Legal notice
A10		True extract of statement of accounts pertaining to the defendants loan account No.560961000224889
A11		True extract of statement of accounts pertaining to the defendants loan account No.560941000053293

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Witness Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Smt Pavarthamma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Smt Pavarthamma

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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