Allowed

Union Bank of India v. Shri Shrikant Tippanna Shegunashi

DRT24 Feb 2026OA/1186/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the application for issuance of a Recovery Certificate for Rs. 38.76 lakhs plus interest. The Tribunal reduced the interest rate to 6% simple, noting agricultural loan purposes, and authorized recovery proceedings against schedule property.

What did the court decide?

Issuance of Recovery Certificate for Rs. 38,76,338.52 with 6% simple interest; recovery from schedule property and personal assets of defendants.

Union Bank of India versus Shri Shrikant Tippanna… — Contract and Commercial Disputes | 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 February, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1186/2022

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BETWEEN:

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Union Bank of India, Patil Building, Near Datta Mandir, Athani, Dist. Belgaum, Karnataka- 591304, Through its Manager, Mr. Mohan Pratap Singh.

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…APPLICANT

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AND:

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Shri Srikant Tippanna Shegunashi, S/o Tippanna Shegunashi, Aged about 29 years, R/a Nandagaon, Taluk-Athani, Belgaum Dist, Karnataka- 591304.

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Shri Srimant Tippanna Shegunashi, S/o Tippanna Shegunashi, R/a Nandagaon, Taluk- Athani, Belgaum Dist, Karnataka- 591304.

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Shri Lagamanna Appanna Shegunashi, S/o Appanna Shegunashi, R/a Nandagaon, Taluk- Athani, Belgaum Dist, Karnataka- 591304.

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Shri Siddagoda Bharamappa Terdal, S/o Bharamappa Terdal, R/a Nandagaon, Taluk- Athani, Belgaum Dist, Karnataka- 591304.

...DEFENDANTS

OA 1186/2022

Counsel on record/appeared for:

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Applicant : M/s. VS Associates 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. 38,76,338.52 (Rupees Thirty Eight Lakh Seventy Six Thousand Three Hundred Thirty Eight and Paise Fifty Two 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 defendants Nos. 1 & 2 availed the following loans:-

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1^st - Agricultural loan of Rs. 06 lakhs and the defendant No. 3 stood as a guarantor.

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2^nd - Crop loan of Rs. 05.20 lakhs -defendant No. 3 stood as a guarantor.

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3^rd - Asset Finance of Rs. 5 lakhs- defendant No. 4 stood as a guarantor.

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

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It is further contended that, despite availing the credit facilities,

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OA 1186/2022

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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.

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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, summons the defendants, they failed to appear, resulting the defendants being set exparte on 17.12.2024.

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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 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

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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 remains

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OA 1186/2022

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unrebutted as defendants remained exparte. The evidence tendered by

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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.

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Hence in view of the findings arrived herein above, the Tribunal 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 facilities 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.1186/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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38,76,338.52 (Rupees Thirty Eight Lakh Seventy Six Thousand Three

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Hundred Thirty Eight and Paise Fifty Two Only) with further interest @6.00

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% p.a.(simple) as follows:-

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a) 1^st - Rs. 16,38,344.00 (Rupees Sixteen Lakh Thirty Eight Thousand

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OA 1186/2022

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Three Hundred Forty Four Only) from the date of filing OA till the realization, from the defendants Nos. 1 to 3 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

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against schedule property.

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b) 2^nd – Rs. 11,03,245.52 (Rupees Eleven Lakh Three Thousand Two Hundred Forty Five and Paise Fifty Two Only) from the date of filing OA till the realization, from the defendants Nos. 1 to 3 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.

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c) 3^rd - Rs. 11,34,749.00 (Rupees Eleven Lakh Thirty Four Thousand Seven

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Hundred Forty Nine Only) from the date of filing OA till the realization, from the defendants Nos. 1, 2 & 4 jointly, severally & personally, after

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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.

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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 found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for the respective

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OA 1186/2022

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amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 order and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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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) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of February, 2026].

Sd/- (T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Rahul Huddar, Chief Manager, of Applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	List of Documents
A1	Deed of simple mortgage dated 12.08.2011

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OA 1186/2022

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A2	Agreement for term loan dated 26.08.2011
A3	Guarantee agreement dated 26.08.2011
A4	Common deed of hypothecation of crops/ stocks agreement dated 26.08.2011
A5	Common deed of hypothecation of crops/ stocks agreement dated 26.08.2011
A6	Hypothecation agreement for tractors/ pump sets dated 26.08.2011
A7 (Colly)	Letter of undertaking/ declaration dated 26.08.2011 and letter of authority dated 26.08.2011
A8 (Colly)	Letter of rephasing repayment schedule dated 17.08.2017 and 28.08.2019
A9 (Colly)	Letter of acknowledgement of debt/ liability dated 06.06.2014, 05.04.2017, 12.04.2018 and 20.06.2020
A10	Guarantee agreement dated 14.05.2012
A11	Common deed of hypothecation of crops/ stocks agreement dated 14.05.2012
A12 (Colly)	Demand promissory note along with take delivery letter to D.P.N dated 14.05.2012
A13 (Colly)	Letters of acknowledgement of Debt/ liability dated 19.12.2014, 05.04.2017, 03.12.2017 and 20.06.2020
A14 (Colly)	Request letter dated 14.05.2015 from the defendant, Rephasement advice letter dated 14.05.2015 and amendment agreement to rephase repayment schedule dated 14.05.2015
A15 (Colly)	Rephasement advice letter dated 21.06.2018 and 28.12.2020
A16	Agreement for term loan dated 24.11.2012
A17	Guarantee agreement dated 24.11.2012
A18	Common deed of hypothecation of crops/ stocks agreement dated 24.11.2012

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OA 1186/2022

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A19	Common deed of hypothecation of movables/ assets/ debts dated 24.11.2012
A20 (Colly)	Letter of authority dated 24.11.2012
A21	Request letter dated 14.05.2015, Rephasement advice letter
(Colly)	dated 14.05.2012 and amendment agreement to rephase repayment schedule dated 14.05.2012
A22 (Colly)	Rephasement advice letter dated 26.12.2017 and 19.03.2020
A23	Letter of acknowledgement of debt/ liability dated 21.02.2012,
(Colly)	01.01.2018 and 20.06.2020
A24	Demand notice dated 09.08.2021 demanding repayment of the entire outstanding liabilities of the defendants
A25	True extract of statement of accounts pertaining to the
(Colly)	defendants three loans accounts

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Shri Shrikant Tippanna Shegunashi

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Shri Shrikant Tippanna 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

All orders in this case

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