Allowed

Union Bank of India v. Sakamma

DRT29 Aug 2025OA/45/2023

Case brief

AI extract

What is this about?

DRT Bengaluru allowed the recovery application filed by Union Bank of India against legal heirs of a deceased borrower. The court upheld the claim of Rs. 77,58,800/- but reduced the interest rate to 6% per annum due to the agricultural purpose of the loan, directing recovery from personal assets and schedule properties.

What did the court decide?

Recovery certificate issued for Rs. 77,58,800/- with interest at 6% p.a. recoverable from defendants' personal assets, estate, and schedule properties.

Union Bank of India versus Sakamma — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.45/2023

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BETWEEN:

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Union Bank of India (Erstwhile Corporation Bank) Aruna Complex, No.66/1 & 66/2, 1^st Floor, JC Road, Bengaluru-560002

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…APPLICANT

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AND:

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Smt. Sakamma

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W/o Late Venkataramappa R/at: #63, Kalikere village, Duggasandra Hobli, Mulibagalu, Kolar District-563131

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And Also at: Sy.No.60, Kalikere village, Duggasandra Hobli, Mulibagalu, Kolar District-563131

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Sri. Ramesh S/o Venkataramanappa R/at: #63, Kalikere village, Duggasandra Hobli, Mulibagalu, Kolar District-563131

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And Also at: Sy.No.60, Kalikere village, Duggasandra Hobli, Mulibagalu, Kolar District-563131

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OA 45-2023

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Sri. Amarappa S/o. Late Venkataramappa R/at: #63, Kalikere village, Duggasandra Hobli, Mulibagalu, Kolar District-563131

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And Also at: Sy.No.60, Kalikere village, Duggasandra Hobli, Mulibagalu, Kolar District-563131

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Sri. M.N Srinath S/o. K.M Narayanappa R/at #2777, A.K. Palya, Mulibagalu, Kolar District-563131

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And Also at: Sy.No.587/1 (Old No.587) Mulubagal Taluk, Kolar District-563131

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And Also at: Ward No.4 New AD colony, Near Ganesh Temple, Mulbagal Town. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Prabhu Rao CB Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.77,58,800/- (Rupees seventy seven lakh fifty eight thousand eight hundred only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA 45-2023

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It is the case of the applicant that the Late Sri. Venkataramappa was a deceased borrower with his legal heirs Defendant Nos.1 to 3 had availed the Agricultural credit facilities of Rs.50,00,000/- (Rupees fifty lakh only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with deed of hypothecation, guarantee agreement, letter of undertaking and agreement for term loan in favor of the applicant bank.

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It is further contended that, the defendants 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.

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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

OA 45-2023

09.02.2024.

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-3 to A-27 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 the 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

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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

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of hypothecation and

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OA 45-2023

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mortgage as claimed by the applicant bank and the defaults

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committed in the accounts. The liability of the defendants and

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the claim as the amount due is also proved by the above

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documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendants for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced

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interest @6% p.a.

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In the result, OA.No.45/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.77,58,800/-(Rupees seventy seven lakh fifty eight

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thousand eight hundred only) with further interest @6% p.a.

(Simple),

OA 45-2023

from the date of filing OA till the realization, from the defendants personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the 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 sufficient, the defendants

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personally and their other assets are liable to be proceeded against for the balance amount to the extent of estate they had inherited from the deceased borrower.

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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

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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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

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of DRT (Procedure) Rules, 1993.

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OA 45-2023

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 29^th day of August, 2025].

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Sd/ (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: Avhigyan Mukherjee, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant Evidence
A2	--	List of Documents.
A3	20.03.2014	Loan Application
A4	05.05.2014	Sanction letter
A5	05.05.2014	Agreement for Term loan
A6	05.05.2014	Common deed of hypothecation of movable /assets
A7	05.05.2014	Common deed of hypothecation of movable /assets
A8	05.05.2014	Letter of undertaking
A9	05.05.2014	Guarantee Agreement
A10	19.08.2016	Demand Promissory Note
A11	19.08.2016	Take delivery letter to DPN
A12	22.09.2016	Demand Promissory Note
A13	22.09.2016	Take delivery letter to DPN
A14	22.09.2016	Copy of AOD
A15	26.03.2018	Lette of request
A16	26.03.2018	Amended agreement
A17	11.03.2019	Copy of AOD
A18	05.05.2014	Copy of Memorandum of Deposit of title deeds
A19	15.04.2014	Deed of Simple mortgage
A20		Copy of CERSAI application

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OA 45-2023

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A21		Copy of CERSAI Application
A22	05.01.2022	Debit balance confirmation
A23	29.01.2022	Legal Notice
A24		Copy of Postal Receipts
A25		Served acknowledgement
A26		Copy of unserved covers
A27		Statement of Account A/w Certificate as per Banker’s Book of Evidence Act.

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

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

Union Bank of India v. Sakamma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sakamma

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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