Allowed

Hdfc Bank v. Babugouda S Biradar

DRT24 Jun 2026OA/1097/2024

Case brief

AI extract

What is this about?

In an original application under the RDB Act for a recovery certificate, the Tribunal found the Applicant Bank's claim unrebutted due to the defendant's ex parte status. The Tribunal allowed the OA, granting recovery of the principal amount with reduced interest.

What did the court decide?

Recovery Certificate issued allowing recovery of Rs. 1,25,42,827/- with further interest at 6% p.a. simple from the date of filing until realization.

Hdfc Bank versus Babugouda S Biradar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1097/2024

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BETWEEN:

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HDFC Bank Limited RV Paradise, No. 103/31, 26^th Main Road, Jayanagar 4^th ‘T’ Block, Bangalore-560 041. Represented by its Officer and Power of Attorney Holder, Mr. Karthik. S. …APPLICANT

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AND:

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Mr. Babugouda S Biradar Aged about 39 years S/o of Mr. Sanganagouda, Residing at Plot No. 146, New Jewargi Road, Near Subhash Memorial School, Maka Layout, Jewargi Colony, Gulbarga -585102.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : FX & Co., 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. 1,25,24,827/-

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(Rupees One Crore Twenty Five Lakh Twenty Four Thousand Eight Hundred Twenty Seven 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 defendant availed the KGCAgriculture Infrastructure Loan credit facility of Rs. 1,20,96,000/- from the applicant bank.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Term loan cum guarantee cum Hypothecation, Power of attorney.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendant 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, taking out summons the defendant failed to appear, resulting the defendants being set exparte on 19.06.2025.

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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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Exhibits A-1 to A-11 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 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 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 facility as stated in the OA, creation of Hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant 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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11. 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

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility 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.1097/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 1,25,42,827/- (Rupees One Crore Twenty Five Lakh Forty Two Thousand Eight Hundred Twenty Seven only) with further interest @ 6.00% p.a. (Simple), from the date of filing OA till the realization, from the defendant 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 the defendant and their assets including the schedule hypothecation. 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 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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of June, 2026].

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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: Anatha Krishna B, Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	--	Term Loan Application
A2	29.09.2022	Sanction Letter
A3	28.09.2022	Term Loan cum guarantee cum Hypothecation
A4	--	B Extract
A5 & A6	--	Temporary registration certificate KA 32TC 2603 & 2602
A7 & A8	--	Tax invoice dated 17.11.2022 and 26.12.2022 issued by Trans Mech System and Shivalingeshwara Enterprises
A9	04.09.2023	Office copy of Legal notice
A10	--	Postal Receipts

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A11 -- Statement of Account for the loan account with foreclosure statement certified with Bankers books of evidence act

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

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Hdfc Bank v. Babugouda S Biradar

Case brief

What is this about?

What did the court decide?

Hdfc Bank v. Babugouda S Biradar

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

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