The DRT allowed the bank's OA for a Recovery Certificate against defaulting borrowers. The Tribunal noted the claim was unchallenged and reduced the applicable interest rate from the contract rate to 11% p.a. (simple).
Recovery Certificate issued for Rs.30,40,368.30 plus 11% p.a. simple interest; execution permitted against borrowers and schedule properties.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 31st Day of October, 2025
Present: Sri. T. RAJESH
Presiding Officer
OA. No.2127/2024
BETWEEN:
The Federal Bank Limited Branch office at Hebri, ‘Spatika Plaza’, Kuchur Road, Hebri Taluk, Udupi District – 576112 and rep. by its Assistant Vice President and constituted attorney, Mr. Shrikrishna Sharma K …
… APPLICANT
AND:
And also at No.42, Kudi Bailu, Near Govt. L P School, Sallekatte Village, Kuchur Post, Hebri Taluk, Udupi District-576112
OA. No.2127/2024
2
And also at No.42, Kudi Bailu, Near Govt. L P School, Sallekatte village, Kuchur Post, Hebri Taluk, Udupi District – 576112
...DEFENDANTS
Counsel on record/appeared for:
Applicant : Mrs. Veena R Rai, Defendants : Exparte
:FINAL ORDER:
OA. No.2127/2024
3
financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of hypothecation and mortgage over the Schedule properties.
contentions as taken in the OA in the light of documentary evidence and proof affidavit.
OA. No.2127/2024
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Both these issues are gone into and decided together.
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 security interest 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.
11. Hence in view of the above findings which cover both the
issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.
OA. No.2127/2024
5
was availed for business purpose and also that 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 11.00%
p.a.(simple).
of Rs.30,40,368.30 (Rupees Thirty Lakh Forty Thousand Three Hundred Sixty Eight and Thirty Paise only) consisting of:
a. Rs.27,82,060/- with further interest of 11.00% p.a.(simple)
from the date of filing OA till the realization from the defendants No.1,2 & 3;
b. Rs.2,58,308.30 with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the defendants No.1;
after giving credit to all the amounts recovered and received
during the pendency of the OA allowed the same to be recovered by proceeding against defendants jointly, severally and personally
and also by proceeding against the schedule properties. The
OA. No.2127/2024
6
schedule properties to the OA be the schedule properties to the
Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover
the amount due and payable to the applicant bank, defendants jointly, severally and personally and their other assets are liable
for all such amounts due under the loan accounts.
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.
iv) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of
with this Final Order.
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31st Day of October 2025].
(T. RAJESH) PRESIDING OFFICER
OA. No.2127/2024
7
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mr. Shrikrishna Sharma K, Assistant Vice President of the applicant bank.
Exhibits on the part of the Applicant:
| Annexure | Date | Particulars |
|---|---|---|
| A1 | 25.10.2020 | Loan application |
| A2 | 04.11.2020 | Sanction letter |
| A3 | 11.11.2020 | On demand promissory note |
| A4 | 11.11.2020 | Take delivery letter to DPN |
| A5 | 11.11.2020 | Agreement for agricultural loans |
| A6 | 11.11.2020 | Letter of undertaking |
| A7 | 11.11.2020 | Agreement in lieu of interim collateral security |
| A8 | 11.11.2020 | Agreement of Guarantee |
| A9 | 17.11.2020 | Memorandum of deposit of title deeds |
| A10 | 17.11.2020 | Sale deed |
| A11 | - | BYOM online personal loan document/customers input |
| A12 | 25.11.2020 | Customers details |
| A13 | - | Statement of account |
| A14 | 19.01.2023 | Acknowledgement of debt/securities |
| A15 | 31.08.2023 | Recall notice |
| A16 | 31.08.2023 | Recall notice |
| A17 | 31.08.2023 | Recall notice |
| A18 | 31.08.2023 | Recall notice, Postal acknowledgment |
| 002.10.2023 | - | Recall notice |
| A20 | 02.10.2023 | Recall notice |
| A21 | 02.10.2023 | Recall notice |
| A22 | 02.10.2023 | Recall notice, postal acknowledgments |
| A23 | 03.11.2023 | Recall notice |
OA. No.2127/2024
| A24 | 03.11.2023 | Recall notice, acknowledgments |
postal |
|---|---|---|---|
| A25 | 19.08.2024 | Recall notice, acknowledgments |
postal |
| A26 | -- | Statement of account | |
| A27 | -- | Statement of account |
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant successfully proved the OA claim against the defendants?
What order is to be passed?
1 provisions across 1 enactments
The Federal Bank Limited
Mrs. Sheela Kuruvila
Mr. Kuruvila Augusty
Mr. Sagi Kuruvila
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
