Allowed

Union Bank of India v. Smt Subhadramma

DRT31 Dec 2025OA/960/2024

Case brief

AI extract

What is this about?

In an exparte original application under Section 19 RDB Act, the Debts Recovery Tribunal allowed the bank to recover the loan amount. Considering agricultural purpose, reduced interest to 6.00%. Recovery Certificate to be issued.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 29,80,664.36 with interest @6.00% p.a. (simple). Defendants liable jointly, severally & personally.

Union Bank of India versus Smt Subhadramma — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.960/2024

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BETWEEN:

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Union Bank of India, B H Road, Shivamogga Branch, 1^st Floor, Omkar Omate Building, Near Bhima Jewelers, Shivamogha, Karnataka- 577 201, Through its Senior Manager, Smt. S J Kavitha.

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…APPLICANT

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AND:

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Smt. Subhadramma, W/o, Late Manjunatha, Aged about 67 years, R/o, Mandli Village, Kasaba Hobli, Shivamogga, Karnataka- 577202.

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Smt. Jayahsheela M, D/o, Late. Manjunath, Aged about 50 years, R/o, Mandli Village, Kasaba Hobli, Shivamogga, Karnataka- 577202.

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Sri. Ganesha M, S/o Late Manjunath, Aged about 46 years, R/o, Mandli Village, Kasaba Hobli, Shivamogga, Karnataka- 577202.

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Sri. Sridhar, S/o Late Manjunath, Aged about 42 years, R/o Mandli Village, Kasaba Hobli,

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OA 960/2024

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Shivamogga, Karnataka- 577202.

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Sri. Srinivasa M, S/o Late Manjunath, Aged about 40 years, R/o, Mandi Village, Kasaba Hobli, Shivamogga, Karnataka- 577202.

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Smt. Shantha M, D/o Late Manjunath, Aged about 36 years, R/o Mandli Village, Kasaba Hobli, Shivamogga Karnataka- 577202.

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Sri. Kantha M, S/o Late. Manjunath, Aged about 36 years, R/o Mandli Village, Kasaba Hobli, Shivamogga Karnataka- 577202.

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Smt. Kanchana M, S/o Late Manjunath, Aged about 34 years, R/o Mandli Village, Kasaba Hobli, Shivamogga Karnataka- 577202.

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Smt. Anasuya M, W/o Late Raju, Aged about 44 years, R/o Mandli Village, Kasaba Hobli, Shivamogga Karnataka- 577202.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. VS Associates 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

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OA 960/2024

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of Recovery Certificate against the defendants for Rs. 29,80,664.36 (Rupees Twenty Nine Lakh Eighty Thousand Six Hundred Sixty Four and Paise Thirty Six 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 defendants (defendant No.1 represented by GPA Holder of defendant No. 2 to 9) availed agricultural loan of Rs. 10 lakhs and 6 lakhs.

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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 deed of simple mortgage deed and common deed 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 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, Summons on defendants they failed to appear resulting the defendants being set exparte on 20.03.2025.

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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

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OA 960/2024

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Exhibits A-1 to A-18 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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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 the security interest 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 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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OA 960/2024

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Taking into consideration the facts that the credit facilities are

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availed for Agriculture 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 6.00% (simple).

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In the result, OA.No.960/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 29,80,664.36 (Rupees Twenty Nine Lakh Eighty Thousand Six Hundred Sixty Four and Paise Thirty Six Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Properties 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

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amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA 960/2024

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iv) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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14. 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 31^st Day of December, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Prashantha Kumara D, Assistant Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Loan application dated 07.08.2015
A2	Sanction letter dated 07.08.2015
A3	Loan application dated 23.11.2015
A4	Sanction letter dated 24.11.2015
A5	Deed of simple mortgage deed dated 28.07.2015
A6	Agreement for term loan dated 07.08.2015
A7	Common deed of hypothecation of crops/ stocks dated 07.08.2015
A8	Letter of undertaking/ declaration dated 07.08.2015
A9	Defendant No.1 executed acknowledgement of debts dated 06.08.2018
A10	Advice of rephasing repayment schedule dated 2709.2018

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OA 960/2024

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A11	Amendment agreement to rephase repayment schedule of crop loan dated 27.09.2018
A12	Demand promissory note dated 24.11.2015
A13	Take delivery to demand promissory note dated 24.11.2015
A14	Common deed of hypothecation of crops/ stocks dated 24.11.2015
A15	Defendant No.1 executed acknowledgement of debts dated 16.08.2018
A16	Legal notice dated 07.02.2024
A17	True extract of statement of account pertaining to the defendants aforesaid loan account No. 560941000216567
A18	Treu extract of statement of account pertaining to the defendants aforesaid loan account No. 560961000200883

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

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Union Bank of India v. Smt Subhadramma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Smt Subhadramma

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

Coram

Case details

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