Allowed

Indian Bank v. Servmobi Technologies Pvt. Ltd.

DRT27 Oct 2025OA/550/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Indian Bank seeking issuance of a Recovery Certificate against four defendants for a loan default amounting to Rs. 74,54,234.24 plus interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 74,54,234.24 with 10% p.a. simple interest from date of filing, recoverable jointly and severally.

Indian Bank versus Servmobi Technologies Pvt. Ltd. — 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 October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.550/2023

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BETWEEN:

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Indian Bank (Lending Branch – Koramangala) ARM Branch, No.10, K.G. Road, Bangalore – 560009 Rep. by its Chief Manager Mr. Bheem Prasad

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… APPLICANT

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AND:

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M/s. Servmobi Technologies Rep. by its Director No.21, 463 E, 12^th Main, RMV Extn, Sadashivnagar, Bangalore-560080

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Mr. Nagarajan Viswanathan Flat No.102, 1^st Floor, Rashmi Rise Apartments, 80 ft Double Road, BEML 4^th Stage, Rajarajeswari Nagar, Bangalore-560098

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Mr. Sandeep Banerjee C-104, Mantri Spendor Apartments, Gedahalli, Hennur Main Road, Bangalore – 560077

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Mr. Govidasamy Siva Kumar 6-215, Bharathi Nagar, Vellakkaipatti, I Omalur (TK), Salem-636012, Tamilnadu

...DEFENDANTS

OA. No.550/2023

Counsel on record/appeared for:

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Applicant : Mr. K.R. Parashuram, 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 for seeking issuance of Recovery Certificate against the defendants for Rs.74,54,234.24 (Rupees Seventy Four Lakhs Fifty Four Thousand Two Hundred Thirty Four and Twenty Four Paise only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the Overdraft facility of Rs.25,00,000/-, the same was enhanced to Rs.50,00,000/- on 14.02.2017.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in

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OA. No.550/2023

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default in repayment and consequentially turning the loan account 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 accounts.

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Despite, entering appearance, service of summons on the defendants No.1 and 2, they failed to appear, resulting the defendants being set exparte on 22.10.2025. The defendants no.3 and 4 entered appearance and filed Vakalath. However, no written statement filed. Hence, placed exparte.

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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 A1 to A32 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 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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OA. No.550/2023

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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, creation of security interest as claimed by the applicant bank and 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 above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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was availed for business 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 of 12.00% p.a.(simple).

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OA. No.550/2023

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In the result, OA.No.550/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.74,54,234.24 (Rupees Seventy Four Lakhs Fifty Four

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Thousand Two Hundred Thirty Four and Twenty Four Paise only) with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all

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the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against defendants jointly, severally and defendant No.2 to 4 personally and also by proceeding against the schedule. The 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

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the amount due and payable to the applicant bank, the defendants jointly, severally and defendant No.2 to 4 personally and their

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other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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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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OA. No.550/2023

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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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with 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 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of October 2025].

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Karthik Reddy C, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	--	Applicant evidence
A2	--	List of documents
A3	27.09.2016	Current Account Opening Form
A4	28.09.2016	Loan application for MSEs
A5	28.09.2016	Board Resolution
A6	29.09.2016	Sanction Ticket for Overdraft facility of Rs.25,00,000/-
A7	29.09.2016	Demand Promissory Note

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OA. No.550/2023

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A8	29.09.2016	Agreement of hypothecation
A9	29.09.2016	Letter from the borrower
A10	29.09.2016	Consent letter from the guarantors
A11	29.09.2016	Consent letter from the guarantors
A12	29.09.2016	Consent letter from the guarantors
A13	29.09.2016	Declaration by the borrowers
A14	29.09.2016	Agreement of Guarantee
A15	29.09.2016	Agreement of Guarantee
A16	29.09.2016	Agreement of Guarantee
A17	14.02.2017	Sanction ticket
A18	14.02.2017	Demand promissory note
A19	14.02.2017	Agreement of hypothecation
A20	14.02.2017	Agreement of Guarantee
A21	14.02.2017	Agreement of Guarantee
A22	14.02.2017	Agreement of Guarantee
A23	14.02.2017	Letter from the borrower
A24	14.02.2017	Consent letter from the Guarantor
A25	14.02.2017	Consent letter from the Guarantor
A26	14.02.2017	Consent letter from the Guarantor
A27	14.02.2017	Declaration by the borrowers
A28	23.09.2019	Acknowledgement of Debt
A29	23.08.2021	Acknowledgment of Debt
A30	13.03.2023	Statement of account No.6471289569
A31	--	Certificate under Banker’s Book Evidence Act
A32	--	Power of Attorney

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(T. RAJESH) PRESIDING OFFICER

Indian Bank v. Servmobi Technologies Pvt. Ltd.

Case brief

What is this about?

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Indian Bank v. Servmobi Technologies Pvt. Ltd.

Case brief

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