Allowed

Union Bank of India v. Mr Ramagouda Gurupad Chougala

DRT24 Oct 2025OA/707/2023

Case brief

AI extract

What is this about?

The Tribunal allowed theOA filed under Section 19 of the RDB Act to issue a recovery certificate for Rs.38.32 lakhs. As defendants defaulted and remained ex parte, the claim was admitted with reduced interest of 6% p.a. due to agricultural lending purpose.

What did the court decide?

Issuance of Recovery Certificate for Rs.38,32,513.09 plus 6% p.a. simple interest from filing date to realization against respondents jointly and severally.

Union Bank of India versus Mr Ramagouda Gurupad… — 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 24^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.707/2023

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BETWEEN:

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Union Bank of India (Erstwhile Corporation Bank) Branch office at Darur, Gram Panchayat Office Building, 1^st Floor, Darur, Athani Taluk, Belgaum District, Karnataka, Rep. by its Branch Manager, Mr. Voleti Phani Surya Krishna

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… APPLICANT

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AND:

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Mr. Ramagouda Gurupad Chougala S/o. Gurupad Chougala Aged: about 77 years Residing at Sankaratti, Athani, Belgaum – 591220

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Mr. Giridhara Ramappa Chougala S/o. Ramagouda Gurupadappa Chougala Age: about 42 years Residing at Sankaratti, Athani, Belgaum-591220

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Mr. Vidyadhar Ramagoud Chougala S/o. Ramagouda Chougala Age: about 39 years Residing at Sankaratti, Athani, Belgaum-591220

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OA. No.707/2023

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Mr. Basalingappa Gurupad Chougala S/o. Gurupad Chougala Aged about 68 years, Residing at Sankaratti, Athani, Belgaum-591220

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. M.V. Kini & Co., 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.38,32,513.09 (Rupees Thirty Eight Lakh Thirty Two Thousand Five Hundred Thirteen and Nine 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

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Following credit facilities:

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Rs.1.95 lakhs on 08.08.2017 towards development of property

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Rs.1.80 lakhs on 08.08.2017 towards crop production.

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Rs.20.00 lakhs on 16.08.2017 towards construction of godown.

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OA. No.707/2023

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in 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, they failed to appear, resulting the defendants being set exparte on 29.07.2024.

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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 A1 to A35 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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OA. No.707/2023

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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? 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 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

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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

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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OA. No.707/2023

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12. Taking into consideration the facts that the credit facilities

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was availed for agriculture purpose and also that OA claim is

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arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00%

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p.a.(simple).

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In the result, OA.No.707/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.38,32,513.09 (Rupees Thirty Eight Lakh Thirty Two Thousand Five Hundred Thirteen and Nine Paise only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule properties. 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

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jointly, severally and personally and their other assets are liable

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OA. No.707/2023

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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

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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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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 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 24^th Day of October 2025].

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Sd/-

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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. Parameshwar Amosidda Kolageri, Branch 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

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OA. No.707/2023

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A2	-	List of documents
A3	18.11.2022	Letter of Authority
A4	04.03.2020	Merger notification
A5	19.03.2016	Deed of simple mortgage
A6	05.04.2016	Application for agriculture credit short term/term loan
A7	05.04.2016	Credit sanction intimation
A8	05.04.2016	Hypothecation Agreement
A9	05.04.2016	Letter of Undertaking
A10	05.04.2016	Deed of Guarantee
A11	23.03.2017	Consent letter
A12	23.03.2017	Acknowledgment of Debt/Liability by the borrowers
A13	23.03.2017	Renewal application cum appraisal form for Agriculture credit (Short Term)
A14	14.03.2018	Renewal application cum appraisal form for agriculture credit (Short Term)
A15	14.03.2018	Consent letter
A16	14.03.2018	Acknowledgment of Debt/Liability by borrowers
A17	02.03.2019	Renewal application cum appraisal form for Agriculture Credit (Short Term)
A18	02.03.2019	Consent letter
A19	18.05.2016	Application for agriculture short term/term loan
A20	18.05.2016	Credit sanction intimation
A21	21.07.2016	Deed of Simple Mortgage
A22	19.08.2016	Agreement for Term loans
A23	19.08.2016	Common deed of hypothecation for agricultural loans
A24	19.08.2016	Common Deed of Hypothecation of Crops/Stocks

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OA. No.707/2023

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A25	19.08.2016	Common Deed of Hypothecation of Movables/Assets/Debits
A26	19.08.2016	Letter of Undertaking/Declaration from the borrowers
A27	19.08.2016	Guarantee Agreement
A28	19.08.2016	Letter of Authority
A29	24.07.2019	Acknowledgment of Debt/Liability by the borrowers
A30	19.08.2020	Acknowledgment of Debt/Liability by the borrowers
A31	24.10.2020	Acknowledgment of Debt/Liability by the borrowers
A32	22.08.2022	Notice
A33	25.10.2022	Legal notice through Advocate
A34	-	Statement of Account for loan No.1
A35	-	Statement of Account for loan No.2

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Mr Ramagouda Gurupad Chougala

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mr Ramagouda Gurupad Chougala

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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