Allowed

Union Bank of India v. Sri K a Manjunath Gowda

DRT4 Mar 2026OA/1157/2025

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by Union Bank of India for issuance of a Recovery Certificate against two defendants. Having found the defendants' plea to be exparte and the evidence uncontradicted, the Tribunal decreed recovery of Rs. 45.47 lakhs plus interest at a reduced simple rate of 6% p.a.

What did the court decide?

Issuance of a Recovery Certificate for Rs. 45,47,546.00 with further interest @ 6.00% p.a. (simple) from the date of filing, to be recovered jointly and severally and against schedule property.

Union Bank of India versus Sri K a Manjunath Gowda — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 04^th Day of March, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1157/2025

¶5

BETWEEN:

¶6

Union Bank of India, Hebbalu Branch, #Belur Halebeedu Road, Hebbalu Belur Taluk and Dist, Haasan Karnataka- 573121, Through its Senior Manager, Sri. Ravikumar.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. K A Manjunath Gowda, S/o Annegowda, Aged about 63 years, R/o, Kandhavara Village, Arehalli Hobli, Belur Taluk, Hassan District, Karnataka- 574 151.

¶10

Sri. Chandregowda, S/o Channamallegowda, Aged about adult, R/o Yelahanka Village, Halebeedu Hobli, Belur Taluk, Hassan District, Karnataka- 573216.

¶11

...DEFENDANTS

¶12

Counsel on record/appeared for:

¶13

Applicant : VS Associates Defendants : Exparte

¶14

FINAL ORDER

¶15

The present Original Application in short (OA) has been filed under

¶16

OA 1157/2025

¶17

¶18

section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 45,47,546.00 (Rupees Forty Five Lakh Forty Seven Thousand Five Hundred Forty Six Only) with further interest thereon from the date of filing the Application till realization.

¶19

It is the case of the applicant that the defendants availed a sum of Rs. 5,00,000/- (Rupees Five Lakh Only) and Rs. 15,00,000/- (Rupees Fifteen Lakh Only) for agricultural purposes.

¶20

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Mortgage deed, deed of hypothecation and guarantee agreement.

¶21

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.

¶22

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.

¶23

Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 08.10.2025.

¶24

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced

¶25

OA 1157/2025

¶26

¶27

Exhibits A-1 to A-37 and got the same marked in evidence.

¶28

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.

¶29

The following issues arise for consideration in this matter:

¶30

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

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.

¶34

Hence in view of the findings arrived herein above, the Tribunal

¶35

find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶36

OA 1157/2025

¶37

¶38

Taking into consideration the facts that the credit facilities are

¶39

availed for Agricultural 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).

¶40

In the result, OA.No.1157/2025, stands allowed,

¶41

i) The applicant is allowed to recovery an aggregate sum of Rs. 45,47,546.00 (Rupees Forty Five Lakh Forty Seven Thousand Five Hundred Forty 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.

¶42

ii) If the sale proceeds are not found sufficient to cover the

¶43

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

¶44

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.

¶45

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

¶46

OA 1157/2025

¶47

¶48

transferred to Recovery for execution.

¶49

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

¶50

of this final order.

¶51

14. Communicate a copy of the order to the parties concerned in terms

¶52

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶53

Rules, 1993.

¶54

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 04^th Day of March, 2026].

¶55

Sd/- (T. RAJESH)

¶56

PRESIDING OFFICER

¶57

ANNEXURES

¶58

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶59

AW-1: Shravan Kumar, Branch Manager, of Applicant Bank

¶60

Exhibits on the part of the Applicant:

¶61

Annexure	List of Documents
A1	Loan application dated 12.06.2007
A2	Sanction letter dated 15.06.2007
A3	Loan application dated 09.04.2014
A4	Sanction letter dated 11.04.2014
A5	Mortgage deed dated 24.03.2007
A6	Agreement for term loans dated 14.07.2007
A7	Deed of hypothecation dated 14.07.2007
A8	Unattested deed of hypothecation dated 14.07.2007
A9	Guarantee agreement dated 14.07.2007

¶62

OA 1157/2025

¶63

¶64

A10	Mortgage deed dated 29.02.2008
A11	Acknowledgement of debts dated 30.06.2010
A12	Memorandum of agreement dated 29.09.2010
A13	Letter requesting rephrasing dated 29.09.2010
A14	Memorandum of agreement to amend repayment schedule dated 29.09.2010
A15	Acknowledgement of debts dated 05.06.2013
A16	Acknowledgement of debts dated 05.02.2014
A17	Acknowledgement of debts dated 03.02.2017
A18	Letter for advice of rephrasing repayment schedule dated 19.05.2017
A19	Letter for advice of rephrasing repayment schedule dated 11.09.2017
A20	Acknowledgement of debts dated 01.02.2020
A21	Letter for advice of rephasing repayment schedule dated 31.12.2020
A22	Simple debit balance confirmation letter dated 28.02.2023
A23
A24	Mortgage deed dated 10.04.2014
A25	Memorandum of deposit of title deeds dated 12.04.2014
A26	Demand promissory note dated 12.04.2014
A27	Take delivery to demand promissory note dated 12.04.2014
A28	Common deed of hypothecation dated 12.04.2014
A29	Agreement for covering hypothecated crops dated 12.04.2014
A30	Letter of nomination dated 12.04.2014
A31	Letter of undertaking dated 12.04.2014
A32	Acknowledgement of debts dated 20.03.2017
A33	Acknowledgement of debts dated 18.03.2020
A34	Acknowledgement of debts dated 28.03.2023
A35	Legal notice dated 08.05.2024

¶65

OA 1157/2025

¶66

¶67

A36	True extract of statement of account pertaining to the defendants aforesaid loan account No. 560881000067546
A37	True extract of statement of account pertaining to the defendants aforesaid loan account No. 040226010000163
Witne	ss Examined for the Defendants: -Nil -
List o	f Documents Exhibited for the Defendants: -Nil –

¶68

Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Sri K a Manjunath Gowda

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri K a Manjunath Gowda

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

Similar cases

Idbi Bank versus Sri Avijeet Ghosh and Anr.

Aamner Multi Food Processing versus Central Bank of India

Icici Bank Limited versus M/S S.S. Sandhu Trading Company

M Rajshekar versus State Bank of India

Canara Bank versus Basavaraj Ningappa

Bank of Baroda versus Sri Sai Ram Print Tec