Allowed

Union Bank of India v. Shri Shivagouda Satteppa Shegunashi

DRT30 Jun 2026OA/1077/2022

Case brief

AI extract

What is this about?

Applicant bank sought recovery certificate under RDB Act for agricultural loans. Defendants appeared ex parte. Tribunal found evidence sufficient, allowed application, and reduced interest to 6% p.a. while granting recovery of principal and costs from schedule property.

What did the court decide?

Recovery certificate issued for Rs.89,31,593.76 plus further interest at 6% p.a. (simple) from filing date, recoverable jointly and severally from defendants against schedule property.

Union Bank of India versus Shri Shivagouda… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1077/2022

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BETWEEN:

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Union bank of india

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Patil Building,Near Datta Mandir, Athani, District Begaum, Karnataka-591304 Respresented By Its Manager

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…APPLICANT

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AND:

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Shri shivagoda satteppa shegunashi Aged about 49 yrs, s/o. satteppa shegunashi, R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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Ramanna Basappa Shegunashi Age Adult, S/o. Basappa Sheunashi R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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Bhimanna Apanna Shegunashi Age Adult, S/o. Basappa Sheunashi R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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Ramu Srimanta Nadeshwara Age Adult, S/o. Basappa Sheunashi R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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Ajitha Srimanta Nandeshwara Age Adult, S/o. Basappa Sheunashi R/A Nandagaon, Taluk-Athani,

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OA 1077/2022

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Belgaum District, Karnataka-591304

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Lagemanna Apanna Shegunashi Age Adult, S/o. Appanna Sheunashi R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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Shri Siddagouda Bharamappa Terdul Age Adult, S/o. Bharamappa Terdul R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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Shri Mahalinga Aannappa Hosahuttu Age Adult, S/o. Aannappa Hosahuttu R/A Nandagaon, Taluk-Athani, Belgaum District, Karnataka-591304

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Vignesh Shetty 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

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1993 seeking issuance of Recovery Certificate for Rs.89,31,593.76/- (Rupees Eighty Nine Lakhs Thirty One Thousand Five Ninety Three and Seventy Six 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

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OA 1077/2022

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the following credit facilities from the applicant bank:

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I. Agriculture Loan to avail the first financial assistance facility of Rs.18,00,000/- (Rupees Eighteen Lakhs Only) for the purpose of lift irrigation.

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II. Agriculture loan to avail the second financial assistance facility of Rs. 6,00,000/- (Rupees Six Lakh Only) for the purpose of grape plantation.

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III. Crop loan to avail the third financial assistance facility of Rs. 5,17,000/- (Rupees Five Lakh Seventeen Thousand Only) for the purpose of availing working captial for raising crop.

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IV. Crop loan to avail the fourth financial assistance facility of rs, 5,00,000/- (Rupees Five Lakh Only) for the purpose of availing farm mechanization loan.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with Mortgage Deed.

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It is further contended that, the defendant despite availing the credit facilities, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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

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OA 1077/2022

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failed to appear, resulting the defendants being set exparte on 19.11.2025.

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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-32 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

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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

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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 as stated in the OA, creation of mortgage as claimed by

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the applicant bank and the defaults committed in the accounts.

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OA 1077/2022

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The liability of the defendants and the claim as 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, this Tribunal find both these issues in favour of applicant and hence

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this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendants for agricultural 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 @6% p.a. (Simple).

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In the result, OA.No.1077/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.89,31,593.76/- (Rupees Eighty Nine Lakhs Thirty One Thousand Five Ninety Three and Seventy Six Paise Only) with further interest @6% p.a. (Simple),from the date of filing OA till

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the realization, from the defendants jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property.

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OA 1077/2022

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Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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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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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in terms of 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (ms), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 30^th day of June, 2026].

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Sd/(T. RAJESH)

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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OA 1077/2022

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AW-1: Jagadish Parappanavar, Branch Manager, of the Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Mortgage deed dated 25.03.2009
A2	Agreement for term loans dated 28.03.2009
A3	Guarantee agreement dated 28.03.2009
A4	Unattested deed of Hypothecation of crops to secure crop account dated 28.03.2009
A5	Unattested deed of Hypothecation of movables dated 28.03.2009
A6	Hypothecation agreement for tractors/pumpsets dated 28.03.2009
A7	Rephasement repayment schedule letter dated 22.12.2017
A8 (colly)	Letters of Acknowledgement of Debt/Liability dated 10.01.2012, 05.07.2016
A9	Agreement for term loan dated 27.08.2011
A10	Guarantee agreement dated 27.08.2011 Executed between the defendant no 01. And the defendant no 6
A11	Common deed of Hypothecation of crops/ stocks agreement dated 27.08.2011
A12	Commom deed of Hypothecation of movables/ assets/ debts dated 27.08.2011
A13	Hypothecation agreement for tractors/ pump sets dated 27.08.2011
A14 (Colly)	Letter of undertaking /declaration dated 27.08.2011, letter of continuity dated 27.08.2011 and letter of authority dated 27.08.2011
A15 (Colly)	Letters of Acknowledgement of Debt/Liability dated 06.06.2014, 12.04.2017 and 29.12.2018
A16 (Colly)	Rephasing rephasement schedule letter dated 17.08.2017 and 28.08.2019
A17 (Colly)	Demand promissory note of INR 5,17,000/- along with take delivery letter to D.P.N dated 15.05.2012
A18	Guarantee agreement dated 15.05.2012
A19	Common deed of hypothecation of crops/ stocks agreement dated 15.05.2012

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OA 1077/2022

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A20	Letter of continuity dated 15.05.2012
A21 (Colly)	Request letter dated 14.05.2015, rephasing rephasement schedule letter dated 14.05.2015 and amendment agreement to rephase repayment schedule dated 14.05.2015
A22 (Colly)	Letters of Acknowledgement of Debt/ Liability dated 15.12.2017 and 29.12.2018
A23 (Colly)	Letters of rephasing repayment schedule dated 21.06.2018 and 28.12.2020
A24	Agreement for term loan dated 24.11.2012
A25	Guarantee agreement dated 24.11.2012
A26	Common deed of Hypothecation of crops/ stocks agreement dated 24.11.2012
A27	Common deed of Hypothecation of movables/ assets/ debts dated 24.11.2012
A28 (Colly)	Letter of undertaking/ declaration dated 24.11.2012, letter of continuity dated 24.11.2012 and letter of authority dated 24.11.2012
A29	Request letter dated 14.05.2015, rephasement advice letter dated
(Colly)	14.05.2015 and amendment agreement to rephase repaymentschedule dated 14.05.2015
A30 (Colly)	Letters of Acknowledgement of Debt/ Liability dated 21.02.2015, 16.01.2018, 16.09.2018 and 29.12.2018
A31 (Colly)	Rephasing rephasement schedule letter dated 26.12.2017 and 17.02.2021
A32 (Colly)	Arrear notice dated 09.08.2021, demand notice dated 01.09.2021 and 28.04.2022
Witness	Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Shri Shivagouda Satteppa Shegunashi

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Shri Shivagouda Satteppa Shegunashi

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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