Allowed

Union Bank of India v. Sri Liyakhathulla Khan

DRT28 Nov 2025OA/30/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application under the RDB Act for issuance of a Recovery Certificate against a defaulting borrower. The claim was proved via ex parte proceedings. The recovery was allowed at a reduced interest rate of 6% p.a. simple.

What did the court decide?

Recovery Certificate issued for Rs. 31,17,392.39 with 6% p.a. simple interest from filing date until realization, executable against the defendant's personal assets and schedule properties.

Union Bank of India versus Sri Liyakhathulla Khan — 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 28^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.30/2024

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BETWEEN:

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Union Bank of India BH road Shivamogha Branch, 1^st floor, Omkar Omate building, Near Bhīma jewelers, Shivamogha, Karnataka – 577 201

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Represented by its Chief Manager Sri. Y Shashidhara …APPLICANT

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AND:

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Sri. Liyakhahulla Khan S/o. Amanulla khan Aged about 55 years R/o. new Mandli, 100 feet road, Shivamogha, Karnataka

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Also at: Sri. Liyakhathulla khan R/o. #74-1, N T road, Behind Gangadhara rice mill Shivamogha Taluk and dist. Karnataka – 577 202 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : VS Associates Defendant : Ex parte

OA-30/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendant for Rs. 31,17,392.39/- (Rupees Thirty One Lakhs Seventeen Thousand Three Hundred and Ninety Two and Paisa Thirty Nine Only) with further interest thereon from the date of filing the Application till realization. 2. It is the case of the applicant that, the defendant is availed the following credit facilities:

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Agricultural loans (CKFML) of Rs. 85,000/- (Rupees Eighty

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Five Thousand Only) on 29.01.2014.

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Agricultural crop loan of Rs. 4,00,000/- (Rupees Four

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Lakhs Only) on 09.03.2015.

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Agricultural development loan of Rs. 10,00,000/- (Rupees

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Ten Lakhs Only) on 30.05.2016.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with simple mortgage deed and deed of hypothecation.

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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 accounts as NPA.

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OA-30/2024

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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 defendant, he failed to appear, resulting the defendant being set ex parte on 19.08.2024.

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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-36 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

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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 remains

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unrebutted as defendant remained ex parte. 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 the security interest and the defaults committed in the

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OA-30/2024

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accounts. The liability of the defendant and the claim of the amount due are also proved by the above document. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are 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 Agricultural purpose and also that the OA claim is arrived

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at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.30/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs 31,17,392.39/- (Rupees Thirty One Lakhs Seventeen Thousand

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Three Hundred and Ninety Two and Paisa Thirty Nine Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, after giving credit to all the amounts recovered and received during the pendency of the

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OA and allowed the same to be recovered by proceeding against the

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schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-30/2024

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

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amount due and payable to the applicant bank, the defendant

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personally and his 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 proceedings

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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 order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of November, 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA-30/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Deepthi P Rao, W/o. Dilip S, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan application dated 29.01.2024
A2	Loan sanction letter dated 29.01.2014
A3	Loan application dated 09.03.2015
A4	Loan sanction letter dated 09.03.2015
A5	Loan application dated 29.05.2016
A6	Loan sanction letter dated 30.05.2016
A7	Deed of simple mortgage dated 03.09.2013
A8	Letter of continuity dated 29.01.2014
A9	Deed of simple mortgage dated 03.02.2015
A10	Common deed of hypothecation of movable/assets/debts dated 29.01.2014
A11	Common deed of hypothecation of crops/stocks dated 29.01.2014
A12	Letter of undertaking/declaration dated 29.01.2014
A13	Acknowledgement of debt/liability dated 28.12.2016
A14	Acknowledgement of debt/liability dated 20.03.2019
A15	Composite debit balance confirmation with security dated 27.09.2021
A16	Letter of undertaking/fresh promise in cased od time-barred debits dated 12.10.2022
A17	Common deed of hypothecation of crops and stocks dated 10.03.2015
A18	Demand promissory note dated 10.03.2015
A19	Take delivery letter to DPN dated 10.03.2015
A20	Letter of undertaking dated 10.03.2015
A21	Renewal application cum appraisal form for agricultural credit dated 17.03.2016

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OA-30/2024

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A22	Supplemental common deed of hypothecation of crops/stocks dated 17.03.2016
A23	Acknowledgment of debt dated 05.03.2018
A24	Composite debit balance confirmation with security dated 10.11.2021
A25	Letter of undertaking/fresh promise in cased of time-barred debits dated 21.10.2022
A26	Common deed of hypothecation of crops/stocks dated 30.05.2016
A27	Agreement for term loans dated 30.05.2016
A28	Letter of undertaking/declaration dated 30.05.2016
A29	Acknowledgement of debt/liability dated 05.10.2018
A30	Advice of rephrasing repayment schedule accepted by the defendant no. 1 issued bythe applicant bank dated 04.09.2019
A31	Composite debit balance confirmation with security dated 10.11.2021
A32	Letter of undertaking/fresh promise in cased of time-barred debits dated 12.10.2022
A33	Legal notice dated 15.04.2023
A34	True extract of statement of account pertaining to the defendants aforesaid loan accounts no.560881000147817
A35	True extract of statement of account pertaining to the defendants aforesaid loan accounts no.560961000248717
A36	True extract of statement of account pertaining to the defendants aforesaid loan accounts no.560941000217156

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Sri Liyakhathulla Khan

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri Liyakhathulla Khan

Case brief

What is this about?

What did the court decide?

What the court decided

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