Allowed

Indian Bank v. M/S Flow Line Instrumentation Private Limited

DRT31 Dec 2025OA/2058/2023

Case brief

AI extract

What is this about?

This tribunal allowed an Original Application for recovery of debt filed under the RDB Act, reducing interest to 11% p.a. simple due to business purpose of the credit.

What did the court decide?

Issued Recovery Certificate for Rs.1,69,65,738/ plus interest at 11% p.a. (simple) from filing date. Liberated to recover jointly, severally and personally.

Indian Bank versus M/S Flow Line Instrumentation Private Limited — Specific Performance | 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

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Presiding Officer

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OA. No.2058/2023

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BETWEEN:

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Indian Bank SAM Branch No.10, K.G. Road, Bangalore – 560009 Rep. by its Chief Manager Mr. Karthik Reddy C

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… APPLICANT

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AND:

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M/s. Flow Line Instrumentation Pvt. Ltd., Rep. by its Director Mr. Mohan P Rao No.A-291, 6^th Main Road, 2^nd Stage, Peenya Industrial Estate, Bengaluru-560058

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Mr. Mohan P Rao S/o. Babu Pamarty Rao Aged 49 years, R/o. No.1306, “C” Wing, Bacharj Landmark, Global City, Chakhal Dongari Road, Virar, Palgarh, Maharashtra-401303 Also at: Mr. Mohan P Rao S/o. Babu Pamarty Rao Aged 49 years R/o. A-1805, “A” Wing, Atlantis Building, Hiranandhani Gardens, Powai, Mumbai – 400076

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Mrs. Kanchan Bhalla Rao W/o. Mohan P Rao Aged 48 years R/o. No.1306, “C” Wing,

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OA. No.2058/2023

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Bacharj Landmark, Global City, Chakhal Dongari Road, Virar, Palgarh, Maharashtra-401303 Also at: Mrs. Kanchan Bhalla Rao W/o. Mohan P Rao Aged 48 years R/o. A-1805, “A” Wing, Atlantis Building, Hiranandhani Gardens, Powai, Mumbai – 400076

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. 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 for seeking issuance of Recovery Certificate against the defendants for Rs.1,69,65,738/- (Rupees One Crore Sixty Nine Lakh Sixty Five Thousand Seven Hundred and Thirty Eight 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 defendants availed the OCC facility of Rs.15.00 lakhs on 14.06.2007; Bank Guarantee limit of Rs.22.00 lakhs; OCC IND SME of Rs.50.00 lakhs on 24.12.2014, which was enhanced later.

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

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OA. No.2058/2023

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financed credit facilities, the defendants executed necessary loan documents.

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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 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 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 their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A45 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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OA. No.2058/2023

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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 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, as to the execution of loan documents as claimed by the applicant bank 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 above finding which cover both the issues raised in this manner, 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 were availed for business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view

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OA. No.2058/2023

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of the OA can be allowed with a reduced interest of 11.00% (simple).

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In the result, OA.No.2058/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.1,69,65,738/- (Rupees One Crore Sixty Nine Lakh Sixty Five Thousand Seven Hundred and Thirty Eight only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from defendants, after giving credit to all the amount recovered and received during the pendency of the OA.

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ii) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to proceed against the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding 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 and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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OA. No.2058/2023

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14. 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 31^st Day of December 2025].

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Sd/(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: Karthik Reddy Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	14.06.2007	Sanction Letter of Working Capital Facility
A2	Nil	Letter ofpegging
A3	15.06.2007	Demand PromissoryNote
A4	15.06.2007	Declaration bythe borrower
A5	15.06.2007	Declaration of legal heirs
A6	15.06.2007	Declaration of legal heirs
A7	09.08.2008	Sanction ticket renewal
A8	12.08.2008	Agreement for extension of hypothecation/pledged movables
A9	12.08.2008	Consent letter from the Guarantor/s for disclosure of information
A10	Nil	Agreement-cum-pledge letter for securing term deposits as margin for Guarantees/letter of credit/bills purchased facilities
A11	09.06.2009	Renewal of OCC/WL
A12	16.06.2009	Demandpromissorynote

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OA. No.2058/2023

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A13 A14	22.10.2012 26.10.2012	Agreement of OCC/(stock/book debts) Sanction of SOD limit
A15	26.10.2012	Sanction of workingcapital limits
A16	30.10.2012	Counterguarantee
A17	30.10.2012	Letter from the borrower/s for disclosure of information
A18	Nil	Agreement cum Pledge letter for securingterm deposits
A19	Nil	Letter of Acknowledgment
A20	Nil	Letter ofpegging
A21	29.10.2012	Board Resolution
A22	30.10.2012	Demandpromissorynote
A23	30.10.2012	Disposal ofproceeds letter
A24	30.10.2012	Letter from the borrower/s for disclosure of information
A25	30.10.2012	Letter of undertaking-cum-declaration
A26	30.10.2012	Declaration by the borrower on details of relatives
A27	30.10.2012	Consent letter from the guarantor/s for disclosure of information
A28	30.10.2012	Agreement of Guarantee
A29	24.12.2014	Renewal with enhancement in credit limits for 1year
A30	30.12.2014	Demand PromissoryNote
A31	30.12.2014	Letter on Extension of Equitable Mortgage
A32	03.03.2016	Sanction of credit facilities (Term loan/OCC)
A33	30.03.2016	Sanction renewal cum sanction of fresh B.G. limit
A34	05.10.2020	Financial Bank Guarantee
A35	07.10.2020	Letter requestingissue of Guarantee
A36	07.10.2020	Counterguarantee
A37	25.09.2020	Request letter of extension of guarantee
A38	23.10.2020	Restructuring letter as per resolution plan submitted to NCLT
A39	23.10.2020	Agreement of hypothecation of movables
A40	23.10.2020	Agreement of Guarantee

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OA. No.2058/2023

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A41	23.10.2020	Agreement of bifu limits W/c into WCT	rcation L	of existing
A42	23.10.2020	Demandpromissor	ynote
A43	16.09.2021	Acknowledgment security	of	debt-cum-
A44	01.06.2012	Acknowledgment security	of	debt-cum-
A45	16.03.2019	Acknowledgment security	of	debt-cum-
A46	23.10.2020	Acknowledgment security	of	debt-cum-
A47	15.10.2020	Letter for permi resolutionplan	ssion	to assent
A48	07.10.2023	Statement of accou	nts
A49	-	Certification unde evidence Act	r ban	ker’s book
A50	-	Power of Attorney

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Sd/- (T. RAJESH) PRESIDING OFFICER

Indian Bank v. M/S Flow Line Instrumentation Private Limited

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S Flow Line Instrumentation Private Limited

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

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Case details

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