Allowed

Union Bank of India v. Veena

DRT31 Jul 2026OA/1520/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Union Bank of India against legal heirs for recovery of a term loan availed for poultry business. The court reduced the claimed interest to 6% p.a. simple and directed issuance of a Recovery Certificate against the schedule property and the personal assets of the defendant.

What did the court decide?

Issuance of a Recovery Certificate for Rs. 3,33,51,985.35/- along with further interest at 6% p.a. (simple) from filing date till realization against the defendant.

Union Bank of India versus Veena — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1520/2023

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BETWEEN:

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Union Bank of India Branch at: S C Road branch, No.71/1, first floor, Brigade Plaza, Subedar Chatram Road, Near Ananda Rao Circle, Bangalore – 560 009

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Represented by its Branch Manager

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Mr. Harish Saliyavar …APPLICANT

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AND:

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Mrs. Veena (Since deceased rep by her Lr Defendant no.2)

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Mr. Chandra Kumar S S/o. Shankare Gowda Aged about 43 years R/at: No.7, Muthyalapete, Kamakshamma Temple Street, Mulabagi Town, Mulabagil Taluk, Kolara District – 563 131 ...DEFENDANTS

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OA. No. 1520/2023

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Counsel on record/appeared for:

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Applicant : Shivashankar A Defendant nos. 2 : Ex parte Defendant no.1 : Deceased

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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 defendant for Rs. 3,33,51,985.35/- (Rupees Three Crore Thirty-Three Lakhs Fifty-One Thousand Nine Hundred and Eighty-Five and Paisa ThirtyFive 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 defendant no.2 is the legal heir of the deceased borrower. The Late borrower Mrs. Veena availed a term loan of Rs. 2,00,00,000/- (Rupees Two Crores Only) for purpose of poultry business.

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It is also the case of the applicant that, in view of the above availed loan, the defendant no.2 executed the necessary loan documents along with Simple mortgage deed.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, borrower failed in complying the same, resulting in

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OA. No. 1520/2023

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defaults 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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After filling of the OA, summons sent to defendant by registered post. The applicant bank has filed a memo dated 14.07.2025 stating that, the defendant no.1 expired and requesting to treat the defendant no.1 as abated in suit. Despite, entering appearance/filing vakalat, no written statement filed by the defendant no.2. Hence, the chance for filing written statement stands closed on 27.11.2025. The Defendant no. 2 placed ex parte on 28.07.2026.

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The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A13 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the 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

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claim as against the defendant?

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OA. No. 1520/2023

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ii) What orders 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

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remains unrebutted as defendant remained ex parte. 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 security interest as claimed by the applicant bank and the defaults committed in the account. 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 findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

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is the view that the OA can be allowed with a reduced interest of

6.00% (simple).

OA. No. 1520/2023

In the result, OA.No.1520/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 3,33,51,985.35/- (Rupees Three Crore Thirty-Three Lakhs

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Fifty-One Thousand Nine Hundred and Eighty-Five and Paisa Thirty-Five Only) with further interest @6.00 % p.a.(simple), from the date of filing OA till the realization, from the defendant no. 2, to the extent of their inheritance of any estate form the deceased

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borrower, Mrs. Veena after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered 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 the amount due and payable to the applicant bank, the defendant no.

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2 personally and 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

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA. No. 1520/2023

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

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order and transferred to Recovery for execution.

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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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Communicate a copy of the order to the parties concerned in

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July, 2026]

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Vijaya Kumar T S, S/o. Sonnappa, Assist Manager, of the applicant bank.

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Exhibits on the part of the Applicant: Witness Examined for the Defendant:

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-Nil -

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Annexure	Particulars
A1	Loan Application Dated 10.05.2013
A2	Take delivery letter dated 24.07.2013 executed by the defendants
A3	Agreement For Term Loan Dated 24.07.2013 Executed by The Defendants
A4	Letter of undertaking dated 24.07.2013 executed by the defendants
A5	Common deed of hypothecation of movables/assets/debts dated 24.07.2013 executed bydefendants

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OA. No. 1520/2023

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A6	Common deed of hypothecation of crops/stocks dated 24.07.2013 executed bydefendants
A7	Simple mortgage deed dated 22.07.2013, registered dated 23.07.2013 executed bythe first defendant
A8	Simple mortgage deed dated 27.07.2013 executed by the 2^nd defendant
A9 to A12	Three demand promissory note dated 01.01.2015 and take deliverynote dated 24.10.2017
A13	Statement of account 560931000264006
List of Docu	ments Exhibited for the Defendant: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Veena

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Veena

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

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Case details

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