Allowed

Federal Bank v. Pavankumar T G

DRT12 Nov 2025OA/2235/2024

Case brief

AI extract

What is this about?

DRT allowed an Original Application for issuance of a Recovery Certificate against defaulting borrowers for an aggregate loan amount of Rs 61.15 lakh plus interest at a reduced rate of 8% p.a., as the defendants appeared ex parte.

What did the court decide?

Issuance of Recovery Certificate for Rs.61,15,700.33 with 8% p.a. simple interest from filing date, recoverable jointly, severally, and personally against defendants and schedule property.

Federal Bank versus Pavankumar T G — 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 12^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.2235/2024

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BETWEEN:

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The Federal Bank Ltd., Hirandahalli Branch, Sy.No.84/1, Hirandahalli Main Road, Opp. Aswathakatte, Virgonagar P O, Bangalore, Karnataka – 560049, Rep. by its Asst. Vice President Sri. Shrikrishna Sharma K … APPLICANT

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AND:

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Sri. Pavan Kumar T G S/o. Govinda Gowda Aged about 33 years R/at: 161, Pavan Nilaya Maruthi Extension, Malur Kolar, Kolar-563130

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Smt. Pramila R K W/o. Govinda Gowda Aged about 50 years R/at: 161, Pavan Nilaya, Maruthi Extension, Malur Kolar, Kolar – 563130 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. C Vinay Swamy Defendants : Exparte

OA. No.2235/2024

:FINAL ORDER:

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.61,15,700.33 (Rupees Sixty One Lakh Fifteen Thousand Seven Hundred and Thirty Three Paisa 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 housing loan of Rs.30,00,000/- on 31.12.2019; term loan of Rs.1,02,000/- on 30.03.2020 and term loan of Rs.13,00,000/- on 04.04.2020.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants 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 defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account as NPA.

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OA. No.2235/2024

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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 01.04.2025.

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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 A15 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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OA. No.2235/2024

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The case put forth by the applicant in the Application

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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 housing and 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 8.00% (simple).

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OA. No.2235/2024

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In the result, OA.No.2235/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.61,15,700.33 (Rupees Sixty One Lakh Fifteen Thousand Seven Hundred and Thirty Three Paisa only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from the defendants, 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 and personally and the assets of the defendants, including the schedule property are liable for all such amounts due under the loan account. 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 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}

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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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OA. No.2235/2024

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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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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

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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 12^th Day of November 2025].

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(T. RAJESH) PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Krishna Sharma K, Asst. Vice President of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	26.02.2020	Housing loan agreement
A2	26.02.2020	Demand promissory note
A3	26.02.2020	Security delivery letter
A4	12.05.2020	Registered mortgage deed
A5	31.03.2020	Personal loan agreement
A6	31.03.2020	Demand promissory note
A7	31.03.2020	Security delivery letter
A8	15.05.2020	Agreement for loan
A9	15.05.2020	Demand promissory note

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OA. No.2235/2024

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A10	15.05.2020	Security delivery letter
A11	30.07.2024	Legal notice
A12	-	Postal receipts and unclaimed postal returned covers
A13 to A15	-	Statement of account

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(T. RAJESH) PRESIDING OFFICER

Federal Bank v. Pavankumar T G

Case brief

What is this about?

What did the court decide?

Federal Bank v. Pavankumar T G

Case brief

What is this about?

What did the court decide?

What the court decided

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