Allowed

Union Bank of India (Corporation Bank) v. Sri Mahesh Gowda

DRT27 Oct 2025OA/931/2024

Case brief

AI extract

What is this about?

This order allowed an Original Application under Section 19 of the RDB Act to issue a recovery certificate. The Tribunal found the claim supported by uncontroverted documentary evidence as the defendants appeared ex-parte. A Recovery Certificate was issued for the principal amount plus reduced interest of 6% p.a. for agricultural loans.

What did the court decide?

Recovery Certificate issued for Rs. 64,41,938/- plus 6% p.a. interest from date of filing; temporary injunction made absolute; costs awarded.

Union Bank of India (Corporation Bank) versus Sri… — 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.931/2024

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BETWEEN:

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Union Bank of India, Interalia a branch at among other places at Udri, Udri Main Road, Udri, Soraba Taluk, Shivamogga District- 577 433, Represented by its Branch Manager, Sudheendra B Nadig, S/o N.S. Bhavanishankar, Aged about 36 years.

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…APPLICANT

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AND:

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Sri. Mahesh Gowda,

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Son of Sri late Veerappa Gowda G P, Aged about 43 years,

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Sri Jagadeesha Gowda, Son of Late Veerappa Gowda G P, Aged about 53 years.

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Sri Girish Gowda, Son of Late Veerappa Gowda G P, Aged about 48 years.

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Sri. Umesh Gowda G.V. Son of Late Veerappa Gowda G P, Aged about 46 years.

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Smt. Gnanambika Daughter of late Veerappa Gowda G P, Aged about 42 years,

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All are residing at: Guddekoppa Village, udri Posr, Soraba Taluk, Shivamogga District- 577 429.

...DEFENDANTS

OA 931/2024

Counsel on record/appeared for:

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Applicant : M.S. Vinayaka 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. 64,41,938/- (Rupees Sixty Four Lakh Forty One Thousand Nine Hundred Thirty Eight 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 deceased borrower Veerappa Gowda G.P availed the following credit facilities:-

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AGDL loan of Rs. 3,00,000/- (Rupees Three Lakh Only).

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CCCK loan of Rs. 8,60,000/- (Rupees Eight Lakh Sixty Thousand Only) which was renewed to Rs. 15 Lakhs, defendant No.1 stood as guarantor.

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CKLS loan of Rs. 10,00,000/- (Rupees Ten lakh Only). The late borrower Veerappa and the defendants mortgaged the schedule properties as security to the loan availed.

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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 common deed of hypothecation and mortgage deed.

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OA 931/2024

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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 compliance of 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 amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, hence placed exparte on 23.01.2025.

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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-47 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 the 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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OA 931/2024

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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 the 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 is 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 finding arrived herein above, the Tribunal find

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both these issues in favour of applicant and hence, this Tribunal is of the

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view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.931/2024, stands allowed,

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

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64,41,938/- (Rupees Sixty Four Lakh Forty One Thousand Nine Hundred Thirty Eight Only) with further interest @ 6.00 % p.a.(simple), from the

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OA 931/2024

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date of filing OA till the realization, from the defendants jointly, severally

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& personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule property. 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 the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) 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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iv) The Interim order of Temporary Injunction passed in IA No. 4865/2023 in OA No. 931/2024 is made, absolute.

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

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vi) Interim application pending, if any, are disposed of with 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)

OA 931/2024

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the

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Open Court, this the 27^th Day of October, 2025].

Sd/- (T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sudheendra B Nadig S/o N.S. Bhavanishankar, Branch Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	07.03.2009	Loan application form submitted by veerappa gowda G.P. the father of defendants to applicant bank
A2	24.03.2009	Agreement for term loans executed by veerappa gowda G.P. in favour of applicant bank
A3	24.03.2009	Agreement for covering hypothecated crops executed by veerappa gowda G.P. in favour of applicant bank
A4	20.08.2009	Mortgage deed executed by Veerappagowda G.P. the father of defendants and defendants in favour of applicant registered as document No. 44/2009- 10
A5	12.12.2012	Loan application form submitted by veerappa gowda G.P. the father of defendants
A6	14.12.2012	Credit sanction letter issued to veerappa gowda G.p the father of defendants
A7	14.12.2012	Common deed of hypothecation of crops executed by veerappa gowda G.p the father of defendants in favour of applicant
A8	14.12.2012	Agreement for covering hypothecated crops executed by veerappa gowda G.p the father of defendants in favour of applicant

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OA 931/2024

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A9	14.12.2012	Demand promissory note executed by veerappa Gowda G.P. the father of defendants in favour of applicant
A10	14.12.2012	Take delivery letter to DPN executed by veerappa gowda G.p the father of defendants in favour of applicant
A11	14.12.2012	Letter of consent for disclosure of information relating to credit facility availed executed by veerappa gowda G.p the father of defendants in favour of applicant
A12	14.12.2012	Guarantee agreement executed by 1^stdefendant in favour of applicant
A13	18.01.2014	Renewal application form submitted by veerappa gowda G.p the father of defendants to applicant bank
A14	18.01.2014	Renewal loan sanction letter issued to veerappa gowda G.p the father of defendants
A15	18.01.2014	Supplemental deed of hypothecation of crops executed by veerappa gowda G.p the father of defendants in favour of applicant
A16	18.01.2014	Demand promissory note executed by veerappa gowda G.p the father of defendants om favour of the applicant
A17	18.01.2014	Take delivery letter to DPN executed by veerappa gowda G.P the father of defendants in favour of the applicant
A18	19.02.2015	Renewal application form submitted by veerappa gowda G.P by his GPA holder 1^stdefendant
A19	19.02.2015	Supplemental deed of hypothecation of crops executed by veerappa gowda by his GPA holder 1^st defendant
A20	19.02.2015	Demand promissory note executed by veerappa gowda GP by his GPA holder 1^stdefendant
A21	19.02.2015	Take delivery letter to DPN executed by veerappa gowda GP by his GPA holder 1^stdefendant
A22	07.01.2016	Renewal application form submitted by veerappa gowda GP by his GPA holder 1^stdefendant
A23	02.12.2016	Renewal application form submitted by veerappa gowda GP by his GPA holder 1^stdefendant
A24	04.09.2014	Loan application form submitted by Veerappa Gowda G.P. by his GPA Holder 1^stdefendant
A25	04.09.2014	Loan/credit sanction intimation issued to veerappa gowda GP by his GPA holder 1^stdefendant
A26	04.09.2014	Agreement for term loans executed by veerappa gowda G.P. by his GPA holder 1^stdefendant
A27	04.09.2014	Hypothecation agreement executed by veerappa gowda G P ny his GPA holder 1^stdefendant

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OA 931/2024

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A28	04.09.2014	Letter of undertaking/ declaration executed by veerappa gowda G.P. by his GPA holder 1^st defendant
A29	04.09.2014	Letter of authority executed by veerappa gowda GP by his GPA Holder 1^stdefendant
A30	20.01.2014	Deed of simple mortgage executed by veerappa gowda GP father of defendants
A31	31.01.2015	Deed of simple mortgage executed by veerappa gowda GP the father of defendants and defendants in favour of applicant registered as documents No. 2475/2014-15
A32	04.09.2014	Letter of continuity executed by veerappa gowda G.P. by his GPA holder 1^stdefendant
A33	17.11.2011	Acknowledgement of debt executed by veerappa gowda GP by his GPA holder 1^stdefendant
A34	07.11.2015	Acknowledgement of debt executed by veerappa gowda G.p by his GPA holder 1^stdefendant and 1^st defendant in favour of applicant
A35	28.05.2018	Acknowledgement of debt executed by executed by veerappa gowda G.P. by his GPA 1^stdefendant and 1^stdefendant in favour of applicant
A36	15.02.2022	Request letter/ letter of undertaking given by 1^st defendant
A37	10.08.2022	Legal notice issued to defendants
A38	--	Postal acknowledgement of 1^stdefendant
A39	--	Postal acknowledgement of 2^nddefendant
A40	--	Postal acknowledgement of 3^rddefendant
A41	--	Postal acknowledgement of 4^thdefendant
A42	--	Postal acknowledgement of 5^thdefendant
A43	20.01.2014	General power of attorney executed by Sri. Veerappa gowda G.P. to favour of 1^stdefendant registered as document NO. 102/2013-14
A44	03.03.2017	Death certificate of late Sri Veerappa Gowda
A45	--	Statement of account of CCCK loan
A46	--	Statement of account of AGRTL loan
A47	--	Statement of account of CKLS loan
Witness	Examined fo	r the Defendants: -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

Union Bank of India (Corporation Bank) v. Sri Mahesh Gowda

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Sri Mahesh Gowda

Case brief

What is this about?

What did the court decide?

What the court decided

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