Allowed

Union Bank of India v. Nexq Pharmaceuticals

DRT27 Apr 2026OA/155/2025

Case brief

AI extract

What is this about?

DRT allowed an original application for a recovery certificate of Rs. 25.38 lakhs plus interest at 12% simple p.a. in favor of Union Bank of India against M/s. Nexq Pharmaceuticals for default on a cash credit facility. The respondent appeared ex parte.

What did the court decide?

Recovery Certificate issued for Rs. 25,38,000 plus 12% simple interest from filing date; enforceable against personal assets and schedule properties.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of April, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.155/2025

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BETWEEN:

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Union Bank of India Rajarajeshwari Nagar Branch, No. 457/C, Ideal Homes Township, Raja Rajeshwari Nagar, Bangalore – 560 098 …APPLICANT

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AND:

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M/s. Nexq Pharmaceuticals Represented by its Proprietor, Mr. Anand A S/o. Sri. Arul Das Aged about 32 years No. 43/13/1, 20^th cross, 1^st Block, 19^th Main, Rajajinagar, Navarang, Bangalore – 560 010

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Also, at: No. 2/1, 1^st main, Markandeshwaranagar, Opp.: Magadi road, Near ETA mall, Bangalore – 560 023 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Rohit R Achar Defendant : Ex parte

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FINAL ORDER

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

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under section 19 of Recovery of Debts and Bankruptcy Act 1993

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2 OA-155/2025

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seeking issuance of Recovery Certificate against the defendant for Rs. 25,38,000/- (Rupees Twenty-Five Lakhs Thirty-Eight Thousand 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 defendant is availed a cash credit facility of Rs. 25,00,000/- (Rupees Twenty-Five Lakhs Only) for pharmaceutical business needs.

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It is also the case of the applicant that, in view of the above availed loan, the defendant executed the necessary loan document along with hypothecation agreement.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant 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, service of summons on the defendant, failed to appear, resulting the defendant being set ex parte on 20.11.2025.

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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-8 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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3 OA-155/2025

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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 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 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,

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creation of the security interest 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

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

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

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Taking into consideration the facts that the credit facility is

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availed for Business purpose and also that the OA claim is arrived at

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by calculating interest at the agreed rate, this Tribunal of the view

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4 OA-155/2025

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that OA can be allowed with a reduced interest of 12.00%(simple).

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In the result, OA.No.155/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 25,38,000/- (Rupees Twenty-Five Lakhs Thirty-Eight Thousand Only) with further interest @12.00% 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 received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule properties. 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

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amount due and payable to the applicant bank, the defendant personally and assets are liable for balance amounts due under the loan accounts.

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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

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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

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terms of this final order.

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5 OA-155/2025

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14. 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 DRT

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(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 27^th Day of April, 2026].

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Sd/-

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(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: Mr. Manjunata Virbhadra Teli, S/o. Mr. Virbhadra, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	date	Particulars of Documents
Nos.
A1	01.05.2024	Loan application
A2	21.05.2024	Demand promissory note
A3	21.05.2024	Hypothecation agreement
A4	21.05.2024	Letter of undertaking
A5	21.05.2024	Letter of continuity
A6	21.05.2024	Interest agreement
A7	15.12.2024	Legal notice
A8	-------	Account extract
Witness	Examined for	the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Nexq Pharmaceuticals

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Nexq Pharmaceuticals

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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