The Tribunal allowed the applicant bank's Original Application for issuance of a Recovery Certificate against the defendant for defaulted loans, reducing the agreed interest rate to 12% per annum.
Issuance of Recovery Certificate for Rs.22,27,801/- with interest @12% p.a. (Simple) from the date of filing till realization, executable against defendant's assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU
Dated this 22nd Day of May, 2026
Present: Sri. T. RAJESH Presiding Officer OA.No.1397/2024
BETWEEN:
Union Bank of India Branch office at: Kolar Town, Near Doom Light Circle, Kolar, Kolar Taluk, Kolar District, Karnataka
…APPLICANT
AND:
Smt. Renukamma G W/o. Sri. Manjunatha M Proprietor of M/s Guru Foods, R/at: Door No.27, Mylandahalli Village, Vokkaleri Hobli, Kolar Taluk, Kolar District, Karnataka- 563101
...DEFENDANT
Counsel on record/appeared for:
Applicant : N.G Ravikumar Defendants : Exparte
FINAL ORDER
eight hundred one only) with further interest thereon from the
date of filing the Application till realization from the Defendant.
OA 1397/2024
2
OA 1397/2024
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to appear, resulting the defendant being set exparte on 06.01.2025.
Both these issues are gone into and decided together.
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 hypothecation as
OA 1397/2024
4
claimed by the applicant bank and the defaults committed in the
accounts. The liability of the defendant and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.
Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.
availed by defendant for Cash Credit and Term loan purpose and also that 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 @12% p.a. (Simple).
i) The applicant is allowed to recovery an aggregate
sum of Rs.22,27,801/- (Rupees twenty two lakh twenty seven
thousand eight hundred one only) with further interest
@12% 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
OA 1397/2024
5
received during the pendency of the OA and allowed the same
to be recovered by proceedings against the other assets including the schedule. Schedule to the OA be the schedule to the recovery certificate.
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.
iii) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
iv) Interim application pending, if any, stands disposed of
in terms of this final order.
13. Communicate a copy of the order to the parties concerned
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16
of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 22nd day of May, 2026].
Sd/ (T. RAJESH) PRESIDING OFFICER
OA 1397/2024
6
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Pralay Kanti Mandal, Manager, of the Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Date | Particulars of Documents |
|---|---|---|
| A1 | 06.08.2018 | Loan application |
| A2 | 04.08.2018 | Hypothecation agreement for goods and debts |
| A3 | 04.08.2018 | Demand promissory note |
| A4 | 04.08.2018 | Letter of continuity |
| A5 | 06.08.2018 | Demand promissory note |
| A6 | 06.08.2018 | Letter of continuity |
| A7 | 06.08.2018 | Composite hypothecation deed |
| A8 | 16.03.2022 | Simple debt balance confirmation letter |
| A9 | 16.03.2022 | Letter of undertaking/fresh promise in cases of time barred debts |
| A10 | 01.03.2024 | Statement of accounts for the period from 04.08.2018 to 29.02.2024 with certificate |
| A11 | 09.07.2019 | Sanction of credit |
| A12 | 22.03.2019 | Term loan agreement |
| A13 | 22.03.2019 | Demand promissory note |
| A14 | 16.03.2022 | Simple debit balance confirmation letter |
| A15 | 16.03.2022 | Letter of undertaking/fresh promise in cases of time barred debt |
| A16 | 14.03.2024 | Statement of accounts for the period from 28.03.2019 to 13.03.2024 with certificate |
| A17 | 01.06.2020 | Request letter of sanction of loan |
| A18 | 01.06.2020 | Term loan agreement |
| A19 | 01.06.2020 | Composite hypothecation deed |
| A20 | 16.03.2022 | Simple debit balance confirmation letter |
| A21 | 16.03.2022 | Letter of undertaking/fresh promise in cases of time barred debts |
OA 1397/2024
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| A22 | 14.03.2024 | Statement of account 01.06.2020 to 13.03.2024 |
of period with certific |
from ate |
|---|---|---|---|---|
| A23 | 01.12.2021 | Office copy of the legal receipt |
notice with | postal |
| A24 | Postal acknowledgements |
Witness Examined for the Defendant:
-Nil -
List of Documents Exhibited for the Defendant:
-Nil -
Sd/
(T. RAJESH)
PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving the OA claim as against the defendant?
What order are to be passed?
1 provisions across 1 enactments
Union Bank of India
Smt. Renukamma G
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
