Allowed

Union Bank of India v. Mahadevappa

DRT23 Sept 2025OA/445/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for issuance of a Recovery Certificate against the defendant for an agricultural loan default. The court reduced the interest rate to 6% simple and permitted recovery from both the defendant and schedule properties.

What did the court decide?

Issuance of Recovery Certificate for Rs. 47,48,478 with interest at 6% simple p.a. from date of filing till realization, executable against defendant and schedule properties.

Union Bank of India versus Mahadevappa — 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 23^rd Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.445/2024

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BETWEEN:

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Union Bank of India, Interalia branch at Kalaburagi Branch, Plot No. 104-105, 1^st Floor, Inderdas Towers, Super Market, Kalaburagi- 585101, Represented by its Branch manager, Mr. Pran Mohan Mishra, S/o Pramod Kumar Mishra, Aged about 34 years.

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…APPLICANT

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AND:

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Mr. Mahadevappa, S/o Yeshwantraya Avaralli, Aged about 44 years, R/at: kadganchi Village, Aland Taluk, Kalaburagi District- 585311.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Shivashankara A Defendant : 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 seeking issuance of Recovery Certificate against the defendant for Rs. 47,48,478/- (Rupees Forty Seven Lakh Forty Eight Thousand Four Hundred and Seventy Eight Only) with further interest thereon from the date of filing the Application

OA 445/2024

till realization.

It is the case of the applicant that, the defendant availed Crop kisan loan scheme of Rs. 15,00,000/- (Rupees Fifteen lakh Only) and Crop kisan credit card of Rs. 15,70,000/- (Rupees Fifteen Lakh Seventy Thousand Only) for agricultural purposes.

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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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In the above circumstances, the applicant approached this Tribunal

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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 exparte on 29.01.2025.

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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-22 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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OA 445/2024

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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 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 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

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availment of credit facilities as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendant 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 findings arrived herein above, the Tribunal

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find both these issues 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 at

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OA 445/2024

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by calculating interest at the agreed rate, this Tribunal in view of the OA

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can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.445/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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47,48,478/- (Rupees Forty Seven Lakh Forty Eight Thousand Four Hundred and Seventy Eight 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 amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendant personally

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and his assets are liable for respective amounts due under the respective

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loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 in terms

OA 445/2024

of this final order.

14. Communicate a copy of the order to the parties concerned in terms

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 23^rd Day of September, 2025].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Pran Mohan Mishra S/o Pramod Kumar Mishra, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Gazette notification ( Amalgamation of Andhra Bank and Corporation bank into union bank of India) dated 04.03.2020
A2 to A4	Loan application dated 20.04.2015, sanction letter dated 20.04.2015 executed by the defendant in favour of the applicant bank
A5	Letter of undertaking dated 20.04.2015 executed by defendant in favour of applicant/ plaintiff bank
A6	Common deed of hypothecation for agricultural loans dated 20.04.2015 executed by defendant in favour of applicant/ plaintiff bank
A7 to A9	Acknowledgement of debt/ liability dated 05.12.2016 and composite debt balance confirmation dated 25.11.2018, 20.11.2021 executed by the defendants in favour of applicant/ plaintiff bank
A10	Statement of account extract

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OA 445/2024

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A11 to A13	Loan application dated 27.04.2015, sanction letter dated 27.04.2015 and demand promissory note dated 27.04.2015 executed by the defendant in favour of applicant/ plaintiff bank
A14	Take delivery letter to DPN dated 27.04.2015 executed by the defendant in favour of applicant/ plaintiff bank
A15	Letter of undertaking dated 27.04.2015 executed by the defendant in favour of applicant/plaintiff bank
A16	Common deed of hypothecation for agricultural loans dated 27.04.2015 executed by defendant in favour of applicant/ plaintiff bank
A17	Simple mortgage dated 13.04.2015, registered dated 16.04.215 executed by the defendant in favour of applicant/ plaintiff bank
A18 to A20 A21	Acknowledgement of debt/ liability dated 05.12.2016, dated 25.11.2018 and composite debt balance confirmation dated 20.11.2021 executed by the defendants in favour of applicant/ plaintiff bank Statement of account extract
A22	Legal notice dated 27.07.2023 and along with postal receipt

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Mahadevappa

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mahadevappa

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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