Allowed

Federal Bank v. Lakshmamma

DRT29 Aug 2025OA/415/2022

Case brief

AI extract

What is this about?

In a recovery proceeding under Section 19 of the RDB Act 1993, the Tribunal allowed the Applicant bank's original application for a recovery certificate against a defaulting agricultural loan account, awarding a reduced interest rate of 6% p.a. due to the agricultural nature of the loan.

What did the court decide?

Recovery certificate issued for Rs. 21,34,365.30 plus interest at 6% p.a. (simple) to be recovered from the defendant and schedule property.

Federal Bank versus Lakshmamma — Banking and Recovery | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 29^th Day of August, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.415/2022

¶4

BETWEEN:

¶5

The Federal Bank of India LTD, Branch office at: Mysore The Variety Mansion Bangalore- Nilgiri Road, Lashkar Mohalla, Mysore-570001 …APPLICANT

¶6

AND:

¶7

Smt. Lakshmamma W/o Late Chandregowda R/at: #33, Haliyuru Village, Hanchipura Post, H D Kote Taluk, Mysore-571114

¶8

...DEFENDANT

¶9

Counsel on record/appeared for:

¶10

Applicant : Vijayakumar.V Defendant : Exparte

¶11

FINAL ORDER

¶12

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 for Rs.21,34,365.30(Rupees twenty one lakh thirty four thousand

¶13

three hundred sixty five and paisa thirty only) with further

¶14

OA 415/2022

¶15

¶16

interest thereon from the date of filing the Application till realization from the Defendant.

¶17

It is the case of the applicant that the defendant availed the Agricultural Loan credit facilities of Rs.8,00,000/- (Rupees eight lakh only) from the applicant bank.

¶18

It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with registered deed of mortgage, on demand promissory note and security delivery letter in favor of the applicant bank.

¶19

It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶20

In the above circumstances, the applicant approached this

¶21

Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶22

Despite, service of summons on the defendant, he failed

¶23

to appear, resulting the defendant being set exparte on 10.11.2022.

¶24

OA 415/2022

¶25

¶26

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-8 and got the same marked in evidence.

¶27

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶28

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the

¶30

OA claim as against the defendant?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains unrebutted as defendant 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 and mortgage as claimed by the applicant bank and the defaults

¶34

OA 415/2022

¶35

¶36

committed in the accounts. The liability of the defendant and

¶37

the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶38

11. Hence in view of the finding arrived herein above, this

¶39

Tribunal find both these issues in favor of applicant and hence

¶40

this Tribunal is of the view that OA is to be allowed.

¶41

1. Taking into consideration the facts that the credit facilities

¶42

are availed by defendant No.1 for agricultural 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 @6% p.a. (Simple).

¶43

In the result, OA.No.415/2022, stands allowed,

¶44

i) The applicant is allowed to recovery an aggregate

¶45

sum of Rs.21,34,365.30 (Rupees twenty one lakh thirty four thousand three hundred sixty five and paisa thirty only) with further interest @6% p.a. (Simple),

¶46

from the date of filing OA till the realization, from the defendant personally after giving credit to all the amount recovered and

¶47

OA 415/2022

¶48

¶49

received during the pendency of the OA and allowed the same

¶50

to be recovered by proceedings against the schedule property.

¶51

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

¶52

(ii) If the sale proceeds are not sufficient, the defendant

¶53

personally and his other assets are liable to be proceeded against

¶54

for the balance amount.

¶55

iii) The applicant bank is allowed cost of the proceedings

¶56

which applicant to file cost memo within 7 days from the date of

¶57

receipt of the order.

¶58

iv) The Recovery Certificate to be drawn in terms of this

¶59

order and transferred to Recovery for execution.

¶60

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

¶61

in terms of this final order.

¶62

Communicate a copy of the order to the parties concerned

¶63

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

¶64

of DRT (Procedure) Rules, 1993.

¶65

[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of August, 2025].

¶66

Sd/- (T. RAJESH) PRESIDING OFFICER

OA 415/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶71

AW-1: ShriKrishna Sharma, Assistant Vice President, of the

¶72

Applicant Bank.

¶73

Exhibits on the part of the Applicant:

¶74

Exhibit Nos.	Date	Particulars of Documents
A1	05.08.2014	Application for Agricultural short term loans
A2	06.08.2014	Sanction order in respect of Agricultural Cash Credit FKCC
A3	06.08.2014	Agreement for Agricultural loan in favor of the Applicant bank
A4	06.08.2014	On Demand Promissory Note in favor of the Applicant bank
A5	06.08.2014	Security delivery letter in favor of the Applicant bank
A6	05.08.2014	Deed of Mortgage in favor of the Applicant bank regd. As Doc No.HDK-1-01557-2014-15 stored in CD No.HDKD74, in the office of the Sub Registrar Heggededevanakote
A7	21.02.2022	Recall notice to defendant in respect federal kissan cash credit A/c No.12815500002453 along postal receipts, acknowledgement/unnerved covers
A8		Statement of Account in respect of CC (FKCC) A.c No.12815500002453

¶75

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

¶76

Sd/- (T. RAJESH) PRESIDING OFFICER

Federal Bank v. Lakshmamma

Case brief

What is this about?

What did the court decide?

Federal Bank v. Lakshmamma

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

Coram

Case details

Similar cases

Punjab National Bank versus Kavita

Punjab and Sind Bank versus Amit Kumar

Central Bank of India versus M/S Fortress Packaging Pvt. Ltd.

Ms Lanvin Exports versus Canara Bank

Mrs Gayathri S and Another versus Tumkur Grain Merchants Cooperative Bank Limited

K R Nagesh versus Katta Radhakrishnaiah Nagesh