Allowed

Bank of India v. Ms S L v Apparels

DRT27 Nov 2025OA/47/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an Original Application filed by Bank of India seeking a recovery certificate against a proprietorship firm and its proprietor for loan defaults totaling over 20 lakh rupees. The Tribunal granted the application exparte due to the defendants' absence and reduced the interest rate to 10% simple per annum.

What did the court decide?

Recovery Certificate to be drawn for Rs. 20,45,330.33 plus 10% simple interest from filing date, to be recovered from defendants jointly, severally, and personally.

Bank of India versus Ms S L v Apparels — 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 27^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.47/2023

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BETWEEN:

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Bank of India, At Bengaluru, Electronic City Branch, No. 110-02, BMA Building, Electronic City Phase-I, Bengaluru- 560100.

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…APPLICANT

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AND:

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M/s. S.L.V Apparels, A Proprietorship Firm, No. 8/1, Kachanayakanahalli, Police Layout, Bommasandra Industrial Area, Anekal Taluk, Bengaluru- 560099, Represented by its Proprietrix, Mrs. Ramaa S.

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Mrs. Ramaa S., Aged about 30 years, D/o Mr. V. Someshwarappa, Pro. Of M/s. S.L.V. Apparels, No. 173, Sarjapur Road, Near Lakshmi Venkateshwara Temple, Agara, Bengaluru- 560102. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Anuradha D Defendants : EXPARTE

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FINAL ORDER

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The present Original Application in short (OA) has been filed under

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section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance

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OA 47/2023

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of Recovery Certificate against the defendants for Rs. 20,45,330.33 (Rupees Twenty Lakh Forty Five Thousand Three Hundred Thirty and paise Thirty Three Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that the defendants availed cash credit facility of Rs. 2,00,000/- (Rupees Two Lakh Only) and Term loan of Rs. 19,00,000/- (Rupees Nineteen lakh Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with business loan agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants 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 by filing this OA seeking issuance of Recovery Certificate for the balance amount due in the account.

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Despite, summons on the defendants, they failed to appear resulting the defendants being set exparte on 11.09.2023.

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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

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OA 47/2023

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Exhibits A-3 to A-26 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

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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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The case put forth by the applicant in the Application 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, 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 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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OA 47/2023

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Taking into consideration the facts that the credit facilities are

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availed for Business purpose and also that the 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 10.00% (simple).

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In the result, OA.No.47/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 20,45,330.33 (Rupees Twenty Lakh Forty Five Thousand Three Hundred Thirty and paise Thirty Three Only) with further interest @10.00 %

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p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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 the defendants jointly, severally & personally and also proceeding against their assets.

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ii) 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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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of in terms of this final order.

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OA 47/2023

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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 27^th Day of November, 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: Preeti Vijaydas Pai, Senior Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	List of documents
A3	Loan application dated 29.12.2017
A4	GST certificate dated 29.12.2017
A5	Borrower’s profiled dated 29.12.2017
A6	Sanction letter dated 11.01.2018
A7	On demand promissory note dated 11.01.2018
A8	Bearer letter in L-435 dated 11.01.2018
A9	Loan agreement in form L-516 dated 11.01.2018
A10	Form of declaration in L-515 dated 11.01.2018
A11	Hypothecation cum loan agreement dated 11.01.2018
A12	Undertaking letter dated 11.01.2018
A13	On demand promissory note dated 11.01.2018
A14	Bearer letter in L-435 dated 11.01.2018
A15	Installment letter in L-440 dated 11.01.2018
A16	Loan agreement in form L-516 dated 11.01.2018
A17	Form of declaration in L-515 dated 11.01.2018
A18	Hypothecation cum loan agreement dated 11.01.2018
A19, A20 & A21	Undertaking letters dated 11.01.2018

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OA 47/2023

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A22	Acknowledgement of debt and securities dated 08.01.2021
A23	Legal notice dated 09.08.2022 issued to the defendants
A24	RPAD receipts (2)
A25	Statement of account in respect of cash credit loan A/c number 895230110000029
A26	Statement of account in respect of term loan A/c Number 895270410000019

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Bank of India v. Ms S L v Apparels

Case brief

What is this about?

What did the court decide?

Bank of India v. Ms S L v Apparels

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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Case details

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