Allowed

Indian Bank v. Sri Nanjundeshwara Garments

DRT31 Dec 2025OA/2056/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's Original Application for issuance of a Recovery Certificate against three respondents for an outstanding loan amount of Rs. 75,77,061.00, subject to reduced interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 75,77,061.00 with further interest @8.00% p.a. (simple) from date of filing.

Indian Bank versus Sri Nanjundeshwara Garments — 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 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2056/2023

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BETWEEN:

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Indian Bank, SAM Branch, No. 10, K.G. Road, Bangalore- 560 009, Rep by its Chief Manager, Mr. Karthick Reddy C, Aged 39 years.

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…APPLICANT

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AND:

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M/s. Sri Nanjundeshwara Garments, Rep by its proprietor, B.N. Kousalya Viswantah, 104/3, ground Floor, Puttenahallipalaya, Sri Guru Raghavendra Nagar, J.P. Nagar, Bangalore- 560078.

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Mrs. B.N. Kousalya Viswantah, W/o. N. Viswanath, Aged 49 years, 243, 11^th Main Road, Near Brigade Milleneum RBI Layout, J.P. Nagar, Bangalore- 560078.

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Mr. N. Viswanath, Aged 51 years, S/o H.V. Nagaraja Jetty Major, 243, 11^th Main Road, Near Brigade Milleneum RBI Layout, J.P. Nagar, Bangalore- 560078.

...DEFENDANTS

OA 2056/2023

Counsel on record/appeared for:

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Applicant : K.R. Parashuram 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. 75,77,061.00 (Rupees Seventy Five Lakh Seventy Seven Thousand Sixty One 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 OCC loan of Rs. 50 lakhs, FITL of Rs. 9 lakh 68 thousand, Covid Repo of Rs. 8 lakhs and Covid emergency of Rs. 5 lakhs.

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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 agreement of loan cum hypothecation.

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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 balance amount due in the account.

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OA 2056/2023

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Despite, summons on the defendants, they failed to appear resulting the defendants being set exparte on 20.03.2025.

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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-42 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 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 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 Hypothecation

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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

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documents. The claim of the applicant is well within the limitation.

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OA 2056/2023

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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 Business 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 8.00% (simple).

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In the result, OA.No.2056/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 75,77,061.00 (Rupees Seventy Five Lakh Seventy Seven Thousand Sixty One Only) with further interest @8.00 % p.a.(simple) from the date of

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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 the defendants jointly, severally & personally and also proceeding against his assets including the schedule asset. Schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA 2056/2023

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

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of this final order.

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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 31^st Day of November, 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: Shashi Kumar S, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	List of documents
		MSME-SML-OCC-GEN ACCOUNT NO. 6659215584
A1	14.09.2018	Sanction letter
A2	19.09.2018	Demand promissory note
A3	19.09.2018	Disposal of proceeds letter
A4	19.09.2018	Agreement of guarantee
A5	19.09.2018	Letter of continuity
A6	19.09.2018	Agreement of OCC
		MSME-MIC-FITL-NEW-MCLR ACCOUNT No. 7005859977
A7	16.12.2020	Letter of request for restructuring
A8	29.03.2021	Demand promissory note

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OA 2056/2023

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A9	29.03.2021	Disposal of proceeds letter
A10	29.03.2021	Term loan agreement (FITL)
A11	29.03.2021	Agreement of hypothecation
A12	29.03.2021	Declaration of borrower
A13	29.03.2021	Letter from the borrower for disclosure of information
A14	29.03.2021	Letter from the borrower on details of relatives
A15	29.03.2021	Details of family members
A16	29.03.2021	End use certificate
		MSME-IND GECLS COVID-REPO ACCOUNT NO. 6883932398
A17	04.06.2020	Sanction letter
A18	05.06.2020	Demand promissory note
A19	05.06.2020	Disposal of proceeds letter
A20	05.06.2020	Term loan agreement
A21	05.06.2020	Statement of book debts from borrowers
A22	05.06.2020	Declaration by borrower
A23	05.06.2021	Letter from the borrower for disclosure of information
A24	05.06.2021	Letter from the borrower for disclosure of information
A25	--	Letter from the borrower for disclosure of information
A26	--	Details of family members
		INDMSE-COVID-EMERGENCY LOAN ACCOUNT No. 6876300163
A27	06.05.2020	Sanction letter
A28	06.05.2020	Demand promissory note
A29	06.05.2020	Disposal of proceeds letter
A30	06.05.2020	Term loan agreement
A31	06.05.2020	Agreement of hypothecation
A32	06.05.2020	Agreement of guarantee
A33	06.05.2020	Statement of book debts from borrowers
A34	06.05.2020	Declaration by borrower
A35	06.05.2020	Letter from the borrower on details of relatives
A36	06.05.2020	Details of family members
A37	16.09.2021	Acknowledgement of debt-cum-security
A38	--	Statement of account No. 6659215584
A39	--	Statement of account No. 7005855997
A40	--	Statement of account No. 6883932398

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OA 2056/2023

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A41	--	Statement of account No. 6876300163
A42	--	Bankers certificate

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Indian Bank v. Sri Nanjundeshwara Garments

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sri Nanjundeshwara Garments

Case brief

What is this about?

What did the court decide?

What the court decided

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