Allowed

Karnataka Bank Limited v. Fathima Coconut Industries

DRT24 Oct 2025OA/480/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Original Application for recovery certificate. Defendants appeared ex parte. Claims were treated unrebutted with reduced interest at 8% simple. Recovery was granted for outstanding balance plus post-filing interest, adjusted for auction proceeds.

What did the court decide?

Recovery certificate issued for outstanding amount with 8% simple interest; recovery allowed against defendants jointly and severally and personally, including hypothecated assets.

Karnataka Bank Limited versus Fathima Coconut Industries — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.480/2022

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BETWEEN:

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Karnataka Bank Ltd, Branch Office at: Saligrama Branch, Canal Street, Saligrama- 571604, Mysuru District, Karnataka, Represented by Branch head, Raghavendra V R

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…APPLICANT

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AND:

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M/s. Fathima Coconut Industries, A proprietorship concern, represented by its Proprietor Kousar Pasha, S/o Anwar pasha, Aged 53 years.

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No. 733/1a, Ramnathapura Road, Saligrama Village, Saligrama, Saligrama Mysuru Dt.- 571604. Also at: Honnenahalli Village, Saligrama Hobli, K R Nagar Taluk, Mysuru Dist- 571604.

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Sri. Harshavardhan R V, S/o Varadaraj, Aged 37 years, Rampura Village, Saligrama Hobli, K R Nagar Taluk, Mysuru District- 571604.

...DEFENDANTS

OA 480/2022

Counsel on record/appeared for:

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Applicant : Divya Purandar Defendants : 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 defendants for Rs. 88,96,056.15 (Rupees Eighty Eight Lakh Ninety Six Thousand Fifty Six and Paise Fifteen Only) with further interest thereon from the date of filing the Application till realization.

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The defendant No.1 is a proprietorship concern represented by its proprietor Kousar Pasha. Defendant No.2 is the guarantor.

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It is the case of the applicant that, the defendants availed overdraft facility of Rs. 45,00,000/- (Rupees Forty Five Lakh), term loan of Rs. 10,40,000/- (Rupees Ten Lakh Forty Thousand Only) and DPN loan facility of Rs. 17,00,000/- (Rupees Seventeen 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 demand promissory note and memorandum of deposit of title deeds, copy of hypothecation.

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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

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OA 480/2022

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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 28.08.2024.

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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-28 and got the same marked in evidence.

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The applicant bank has filed a memo dated 21.10.2025 stating that the applicant bank has sold the immovable properties in the schedule under auction sale for a sum of Rs. 10,50,000/- (Rupees Ten Lakh Fifty Thousand) and Rs. 41,50,000/- (Rupees Forty One Lakh Fifty Thousand) and the auction sale consideration has been adjusted to the liability due and the current outstanding balance is Rs. 46,38,954.63 (Rupees Forty Six Lakh Thirty Eight Thousand Nine Hundred Fifty Four and Paise Sixty Three Only).

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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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OA 480/2022

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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 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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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 8.00% (simple).

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OA 480/2022

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In the result, OA.No.480/2022, stands allowed,

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

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88,96,056.15 (Rupees Eighty Eight Lakh Ninety Six Thousand Fifty Six and Paise Fifteen Only) with further interest @8.00 % p.a.(simple) which

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consists of:-

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a) Rs. 57,20,614.53 (Rupees Fifty Seven Lakh Twenty Thousand Six Hundred Fourteen and Paise Fifty Three Only) from the date of filing OA till realization, from the defendants Nos. 1 & 2 jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA including the sum of Rs. 10,50,000/(Rupees Ten Lakh Fifty Thousand) and Rs. 41,50,000/- (Rupees Forty One Lakh Fifty Thousand) recovered through auction sale and allowed the same to be recovered by proceeding against the defendants Nos. 1 & 2 jointly, severally & personally and their assets including the hypothecated assets.

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b) Rs. 11,90,853.82/- (Rupees Eleven Lakh Ninety Thousand Eight Hundred Fifty Three and Paise Eight Two Only) from the date of filing OA till realization, from the defendant No.1 personally, after giving credit to all the amount recovered and received during the pendency of the OA including the sum of Rs. 10,50,000/- (Rupees Ten Lakh Fifty Thousand) and Rs. 41,50,000/- (Rupees Forty One Lakh Fifty Thousand) recovered

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OA 480/2022

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through auction sale and allowed the same to be recovered by proceeding

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against the defendant No. 1 (proprietor) personally and his assets including the hypothecated assets.

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

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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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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 24^th Day of October, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Graham Manoj D’souza S/o Gregory D’Souza, Branch Head, of Applicant Bank.

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OA 480/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Copy of request for credit facilities by the defendant
A2	Copy of renewal of credit facilities by defendant
A3	Copy of credit sanction intimation dated 26.03.2019
A4	Copy of demand promissory note dated 28.03.2019
A5	Copy of take delivery letter dated 28.03.2019
A6	Copy of hypothecation agreement dated 28.03.2019
A7	Copy of general power of attorney executed by defendant No.1
A8	Copy of declaration executed by defendant No.1
A9	Copy of declaration executed by defendant No.1
A10	Copy of declaration executed by defendant No.1
A11	Copy of declaration executed by defendant No.2
A12	Copy of mortgage deed dated 15.04.2016, and the same has been registered as document No. 393/2016-17, in the office of sub-registrar Hunsur
A13	Copy of mortgage deed dated 29.04.2019 in favour of the applicant bank, registered as Document No. 1507/2019-20, SRO Hunsur
A14	Copy of memorandum of deposit of title deed dated 27.03.2019, registered as document No. HUM-1-12914- 2018-19, stored in CD No. HUND289, in the SRO Hunsur
A15	Copy of credit sanction intimation dated 24.12.2019
A16	Copy of term loan agreement dated 24.12.2019
A17	Copy of letter of undertaking to hypothecate
A18	Copy of hypothecation agreement dated 24.12.2019 along with declaration of defendant No.1
A19	Copy of demand promissory note dated 24.12.2019
A20	Copy of take delivery letter dated 24.12.2019
A21	Copy of hypothecation agreement dated 24.12.2019
A22	Copy of general power of attorney dated 24.12.2019
A23	Copy of mortgage deed dated 24.12.2019, has been registered as document NO. HUN-1-10191-2019-20, stored in CD No. HUND482, in the SRO Hunsur
A24	Copy of memorandum of deposit of title deeds dated 24.12.2019 registered as document No. HUN-1-10188- 2019-20, stored in CD No. HUND482
A25 & A25a	Copy of legal notice dated 16.12.2020 and postal acknowledgement

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OA 480/2022

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A26	Certified true extract account bearing No. 7	of statement of accounts in respect of 017000600013101
A27	Certified true extract the defendant’s 7017001800174101	statement of accounts in respect of loan account bearing No.
A28	Certified true extract the defendant’s 7071001400059101	of statement of accounts in respect of loan account bearing No.

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Karnataka Bank Limited v. Fathima Coconut Industries

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Fathima Coconut Industries

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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Case details

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