Allowed

City Union Bank Limited v. Ask Tahura Spices

DRT30 Jan 2026OA/1476/2023

Case brief

AI extract

What is this about?

In a Money Bill default case where the defendant was absent, the Deputy DRT allowed the applicant bank's Original Application. The court reduced the interest rate to 12% per annum simple and directed the issuance of a Recovery Certificate enforceable against the borrower, guarantors, and mortgaged property.

What did the court decide?

Recovery Certificate issued for Rs.27,38,870/- with interest at 12% p.a. (simple) from filing date, recoverable against defendants jointly/severally and schedule property.

City Union Bank Limited versus Ask Tahura Spices — 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 30^th Day of January, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1476/2023

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BETWEEN:

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City Union Bank Ramnagara Branch No.316, 1^st Stage B.M. Road, Near Bus Stand, Bengaluru, Mysore Main Road, Karnataka-562159 Rep. by its Branch Manager Sri. M Suresh

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… APPLICANT

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AND:

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M/s. A S K Tahura Spices Represented by its Proprietor Muqeeb UR Rahaman, Major Shop No.3, J M Trust Building, Kanakapura – 56217, Karnataka

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Mr. Muqeeb UR Rahaman S/o. Abdul Razak Major, R/at:No.19, Muslim Block, Old Police Station Road, Kanakapura Taluk, Ramanagaram

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Mrs. Sameera Kousar W/o. Muqeeb UR Rahaman R/at: No.19, Muslim Block, Old Police Station Road, Kanakapura Taluk, Ramangara

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OA. No.1476/2023

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Mr. Shujath Hussain S/o. Abdul Razak, Major, R/at: No.19, Muslim Block, Old Police Station Road, Kanakapura Taluk, Ramanagara District ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Malini Vinay 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 for seeking issuance of Recovery Certificate against the defendants for Rs.27,38,870/- (Rupees Twenty Seven Lakh Thirty Eight Thousand Eight hundred and Seventy only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the OD of Rs.15.00 lakhs on 16.09.2017; CUB OSL special of Rs.75,000/- on 30.03.2020 and FITL of Rs.1,24,000/- on 17.10.2020.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendant executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the schedule property.

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OA. No.1476/2023

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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 defendants, they failed to appear, resulting the defendant being set exparte on 21.03.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A55 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: i) Whether the applicant had succeeded in proving the OA

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OA. No.1476/2023

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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 facilities as stated in the OA, as to the execution of loan documents 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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Hence in view of the above finding which cover both the issues raised in this manner, 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 were availed for business 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 to 12.00% p.a. (simple).

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OA. No.1476/2023

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In the result, OA.No.1476/2023 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.27,38,870/- (Rupees Twenty Seven Lakh Thirty Eight Thousand Eight hundred and Seventy only) with further interest of 12.00% p.a.(simple), from the date of filing OA till the realization from defendants, 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 defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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

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

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iii) The applicant bank is allowed cost of the proceeding which 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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OA. No.1476/2023

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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14. 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 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of January 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Arul G, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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SL. NO.	PARTICULARS	DATE OF DOCUMENTS	EXHIBITS
1	Sanction letter	16.09.2017	A 1
2	Promissory note	18.09.2017	A 2
3	Letter of continuity	18.09.2017	A 3
4	Overdraft rules for running account facilities	18.09.2017	A 4
5	Consent letter of borrowers and guarantor	18.09.2017	A 5
6	Guarantee agreement	18.09.2017	A 6
7	Confirmation of balance along with the letter of revival	15.08.2020	A 7 & A 8

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OA. No.1476/2023

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8	Confirmation of balance along with the letter of revival	27.07.2023	A 9 & A 10
9	Sanction ticket by applicant	30.03.2020	A 11
10	Promissory note	30.03.2020	A 12
11	Application cum undertaking for loan	30.03.2020	A 13
12	Guarantee agreement	30.03.2020	A 14
13	Confirmation of balance along with the letter of revival	10.02.2023	A15 & A 16
17	Sanction ticket by applicant	17.10.2020	A 17
18	Consent letter to avail FITL	16.10.2020	A 18
19	Statements of accounts		A 19 to A 21

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

City Union Bank Limited v. Ask Tahura Spices

Case brief

What is this about?

What did the court decide?

City Union Bank Limited v. Ask Tahura Spices

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

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