Allowed

Bank of Maharashtra v. Megharaja

DRT31 Dec 2025OA/774/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for a Recovery Certificate totaling Rs.27,36,594/- plus 8% simple interest against two defendants who failed to repay a housing loan and mortgaged property. Evidence was un-rebutted.

What did the court decide?

Recovery Certificate issued for Rs.27,36,594/- plus interest @8% p.a. (simple) from filing date till realization, recoverable jointly/severally from defendants against mortgaged property and subsequen

Bank of Maharashtra versus Megharaja — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 31^st Day of December, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.774 of 2024

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Bank of Maharashtra, Shivamogga Branch, No.303/528, Shantala Towers, Nehru Road, 3^rd Cross, Garden Area, Shivamogga – 577 201. Represented by its Manager.

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… Applicant.

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Vs.

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Mr.Megharaja.N., S/o.Narayanappa.M.

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Mrs.Shruthi.S., W/o.Megharaja.N.

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Both are R/at Renuka Krupa, Jayalakshmi Narayan, Indiragandhi badavane, Shivamogga – 577 201.

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Also R/at No.69, Durgigudi Main Road, Opp : Shaneshwara Temple, Durgigudi, Shivamogga – 577 201.

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… Defendants.

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Counsel for Applicant : Mr.Prakasha Hegde.K. Defendants : Exparte. ……

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ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of Rs.27,36,594/- together with further interest @9.40% from the date of application till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

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The Applicant contends that the defendants approached the applicant bank for Housing loan and though the applicant bank sanctioned a sum of Rs.40,00,000/- on 08.06.2021, the defendants availed only a sum of Rs.25,00,000/- by execution of necessary loan documents on 10.06.2021 including Agreement for Housing Loan. The defendants have also mortgaged the schedule mentioned property in favour of applicant by execution of Memorandum of Deposit of Title Deeds dt.11.06.2021 registered as Doc.No.SMG-101935-2021-22 at the Office of the Sub Registrar, Shivamogga.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence

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the loan account of the defendants was classified as NPA on 29.06.2024. The applicant bank had issued Legal Notice dt.03.02.2024 to the defendants calling upon them for repayment of dues. Despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 23.10.2024.

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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 A7, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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i) Whether the applicant succeeded in proving the OA claim as against the Defendants?

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is

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found to be entitled for the OA claim. The OA claim is made within

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limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Housing Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 8% p.a. (simple).

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In view of the above

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i) OA No.774 of 2024 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.27,36,594/(Rupees Twenty Seven Lakhs Thirty Six Thousands Five Hundred and Ninety Four only) together with interest @8% p.a. (simple) from the date of filing of OA till the date of realization from the defendants jointly, severally and personally 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 the schedule mentioned property. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the 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) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 31^st day of December, 2025)

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Sd./- (T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mr.Nishit Chandra, Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Home Loan Application Form dt.01.06.2021.

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Ext.A1 Home Loan Application Form dt.01.06.2021. Ext.A2 - Sanction Letter dt.08.06.2021. Ext.A3 - Agreement for Housing Loan dt.10.06.2021. Ext.A4 - Mortgage to Record of Equitable Mortgage by Deposition of Title Deeds dt. 11.06.2021. Ext.A5 - Statement of Account No.60386540937

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Ext.A5 Ext.A6 Ext.A7

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Legal Notice dt.10.02.2024.

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Postal Receipts.

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Witness Examined for the Defendant:

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NIL

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List of Documents Exhibited for the Defendant :

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NIL

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Sd./-

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(T. RAJESH)

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PRESIDING OFFICER

Bank of Maharashtra v. Megharaja

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Megharaja

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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Case details

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