Allowed

Union Bank of India v. Sri Eshwarappa

DRT27 Nov 2025OA/1968/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Union Bank of India for the issuance of a Recovery Certificate against the defendant for an agricultural loan default, granting relief including reduced interest at 6% per annum.

What did the court decide?

Recovery Certificate to be drawn and transferred to Recovery for execution; defendant personally and schedule property liable for amount due.

Union Bank of India versus Sri Eshwarappa — 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 November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1968/2023

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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, S hikaripur, Karnataka- 577427 Through its Branch Manager Sri. Deepak P S … APPLICANT

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AND:

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Sri. Eshwarappa S/o, Late Shivappa Aged about 66 Years R/o. Salur Village, Shikaripura taluk Shimoga Dist Karnataka-577214

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M/s. V S Associates 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 for seeking issuance of Recovery Certificate against the defendant for Rs.30,80,804.77 (Rupees Thirty Lakh Eighty Thousand Eight

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OA. No.1968/2023

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Hundred Four and Seventy Seven Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed financial facility for a sum of Rs.18,10,000/- for crop loan agricultural purposes.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendant executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facilities, 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 account 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 19.11.2024.

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OA. No.1968/2023

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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 A1 to A11 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: 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

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remains unrebutted as defendant remained exparte. The evidence

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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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendant and the claim of the amount due are also

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OA. No.1968/2023

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

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Hence in view of the above findings which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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were availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

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in view of the OA can be allowed with a reduced interest of 6.00%

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p.a.(simple).

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In the result, OA.No.1968/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.30,80,804.77 (Rupees Thirty Lakh Eighty Thousand Eight

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Hundred Four and Seventy Seven Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization

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from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed

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the same to be recovered by proceeding against defendant personally and also by proceeding against the schedule property.

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OA. No.1968/2023

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The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendant personally and his other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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

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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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with 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 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of November 2025].

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(T. RAJESH) PRESIDING OFFICER

OA. No.1968/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. B.M. Vinay, Senior Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan Application Dated 05.11.2015
A2	Sanction letter dated 07.11.2015
A3	Deed of simple mortgage dated 28.10.2015
A4	Common deed of hypothecation of crops/stocks dated 07.11.2015
A5	Demand promissory note along with take delivery to DPN dated 07.11.2015
A6	Letter of undertaking/declaration from the borrowers dated 07.11.2015
A7	Agreement for term loans dated 07.11.2015
A8	Acknowledgment of debt/liability dated 15.11.2018
A9	Legal notice dated 06.11.2023
	True extract of statement of accounts pertaining
A10	to the defendant’s loan account No.560961000227149

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Sri Eshwarappa

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri Eshwarappa

Case brief

What is this about?

What did the court decide?

What the court decided

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