Allowed

Union Bank of India v. G.K. Balaraj

DRT22 May 2026OA/1091/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Union Bank of India for issuance of a Recovery Certificate against a defendant who failed to appear. The Court reduced the interest rate to 6% p.a. and ordered recovery of the principal amount with further interest from the filing date.

What did the court decide?

Recovery Certificate for Rs.44,66,354/- with interest @6% p.a. (Simple) from the date of filing OA till realization.

Union Bank of India versus G.K. Balaraj — 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.1091/2023

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BETWEEN:

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Union Bank of India Branch office at: Omkar ornate, 1^st Floor, B.H Road, Shivamogga-577201 …APPLICANT

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AND:

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Sri. G.K Balaraj S/o. Krishna Naik R/at: House No.50, ABCD Nivas, 4^th Cross, Vidyanagar, Shivamogga- 577203

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Shivashankara 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 for Rs.44,66,354/- (Rupees forty four lakh sixty six thousand three hundred fifty four only) with further interest thereon from the

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2 OA 1091-2023

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date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the following credit facilities from the applicant bank:-

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I. AGTL Loan of a sum of Rs.20,00,000/- (Rupees Twenty Lakh Only) and

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II. CCCK loan limit of Rs.4,00,000/- (Rupees Four lakh Only).

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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 deed of hypothecation, simple mortgage deed and demand promissory note in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, 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 defendant, he failed to appear, resulting the defendant being set exparte on

OA 1091-2023

24.01.2025.

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-15 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: i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

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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 defendant 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 security as claimed by

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OA 1091-2023

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the applicant bank and the defaults committed in the accounts.

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The liability of the defendants and the claim as the amount due

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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

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are availed by defendant for agricultural purpose and also that

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

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In the result, OA.No.1091/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.44,66,354/- (Rupees forty four lakh sixty six thousand

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three hundred fifty four only) with further interest @6% p.a. (Simple),

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

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OA 1091-2023

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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 proceedings against other assets including the schedule. Schedule to the OA be the schedule to the recovery certificate.

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

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iv) 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 (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)

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PRESIDING OFFICER

OA 1091-2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ramana Reddy Chukka, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	20.11.2015	Loan application
A2	21.11.2015	Sanction letter
A3	21.11.2015	Agreement for term loans
A4	21.11.2015	Letter of undertaking
A5	21.11.2015	Common deed of hypothecation of crops/stocks
A6	20.11.2015	Deed of simple mortgage deed
A7		Statement of Account bearing A/C No.560931000428939
A8	18.02.2016	Loan application
A9	20.02.2016	Sanction letter
A10	20.02.2016	Demand promissory notice
A11	20.02.2016	Take delivery letter to DPN
A12	20.02.2016	Common deed of hypothecation of crops/stocks
A13	30.11.2020	Letter of undertaking/fresh promise in case of time barred
A14	14.10.2022	Legal notice
A15		Certified copy of the statement of A/c No.560381002672611

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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)

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PRESIDING OFFICER

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7 OA 1091-2023

Union Bank of India v. G.K. Balaraj

Case brief

What is this about?

What did the court decide?

Union Bank of India v. G.K. Balaraj

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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