Allowed

Union Bank of India v. Narayanaswamy H C

DRT22 May 2026OA/1086/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for issuance of a Recovery Certificate against two defendants who failed to appear. Upon finding the uncontroverted evidence of debt, mortgage, and default sufficient, the applicant bank was ordered to recover the principal amount along with reduced interest at 6% p.a. from the date of filing. The Recovery Certificate was authorized for execution again

What did the court decide?

Recovery Certificate issued for Rs.50,17,936/- with 6% p.a. simple interest against defendants personally and jointly severally; execubtable against scheduled property.

Union Bank of India versus Narayanaswamy H C — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 22^nd Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1086/2023

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BETWEEN:

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Union Bank of India Branch office at: Yeshawanthapura Branch Chokkandahalli Gate, Hoskote- Malur Main Road, Malur Taluk, Kolar District, Karnataka

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…APPLICANT

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AND:

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Sri. Narayanaswamy H.C S/o. Sri. Chinnappa

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Sri H.N. Krishnappa S/o. Sri. Narayanappa

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Both are R/at: Hedaginabale Village & Post, Kasaba Hobli, Malur Taluk, Kolar District, Karnataka- 563130

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : N.G RaviKumar Defendants : Exparte

OA 1086/2023

FINAL ORDER

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 for Rs.50,17,936/- (Rupees fifty lakh seventeen thousand nine hundred thirty six 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 following credit facilities from the applicant bank:-

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I. CCCK Loan of a sum of Rs.13,00,000/- (Rupees Thirteen Lakh Only) and

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II. Drip Irrigation loan limit of Rs.12,00,000/- (Rupees Twelve lakhs Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with deed of hypothecation, demand promissory note and simple mortgage deed in favor of the applicant bank.

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

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OA 1086/2023

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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 failed to appear, resulting the defendants being set exparte on 22.10.2024.

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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 A-1 to A-25 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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OA 1086/2023

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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 hypothecation and mortgage as claimed by the applicant bank and the defaults committed in the accounts. 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

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Tribunal 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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Taking into consideration the facts that the credit facilities are availed by defendants for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced

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OA 1086/2023

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interest @6% p.a. (Simple).

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In the result, OA.No.1086/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.50,17,936/- (Rupees fifty lakh seventeen thousand nine hundred thirty six only) consisting of:-

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a) Rs.25,90,443/- (Rupees twenty five lakh ninety thounsand

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four hundred forty three Only) with further interest @6% p.a. (Simple) for which defendant No.1 is personally liable and

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b) Rs.24,27,493/- (Rupees twenty four lakh twenty seven thousand four hundred ninety three Only) with further interest @6% p.a. (Simple) for which defendants NO.1 & 2 jointly severally and personally are liable,

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

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after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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OA 1086/2023

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(ii) If the sale proceeds are not sufficient, the defendants

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are liable to be proceeded against for the balance amount for

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their respective loans.

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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

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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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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 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 22^nd day of May, 2026].

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Sd/ (T. RAJESH) PRESIDING OFFICER

OA 1086/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sachin Kumar L, Manager, of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	09.06.2016	Loan Application
A2	09.06.2016	Credit sanction intimation
A3	09.06.2016	Common deed of hypothecation of crops and stocks
A4	09.06.2016	Demand Promissory note
A5	09.06.2016	Take delivery letter to DPN
A6	07.06.2016	Registered simple mortgage deed for aggregated loan of Rs.30 lakhs
A7	21.03.2019	Demand promissory note
A8	30.09.2022	Demand promissory note
A9	30.09.2022	Letter of undertaking /fresh promise in case of time barred debts
A10	11.10.2022	Statement of account from 24.09.2022 to 11.10.2022
A11	16.06.2016	Loan Application
A12	16.06.2016	Credit sanction intimation
A13	16.06.2016	Agreement for term loan
A14	16.06.2016	Common deed of hypothecation of movables/assets/debts
A15	16.06.2016	Supplemental deed of hypothecation of crops/stocks
A16	16.06.2016	Agreement of Hypothecation
A17	16.06.2016	Guarantee agreement
A18	26.03.2019	On demand promissory note
A19	26.03.2019	Take delivery letter to DPN
A20	30.09.2022	Demand promissory note
A21	30.09.2022	Letter of undertaking/fresh promise
A22	11.10.2022	Statement of account from 24.09.2022 to 11.10.2022 with certificate

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OA 1086/2023

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A23	21.11.2022	Office copy of legal notice
A24	02.12.2022	Original postal receipt
A25		Original post acknowledgement

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/
(T. RAJESH)
PRESIDING OFFICER

Union Bank of India v. Narayanaswamy H C

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Narayanaswamy H C

Case brief

What is this about?

What did the court decide?

What the court decided

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