Allowed

Yes Bank v. Srinivas Prabhakar

DRT27 Aug 2026OA/1589/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for a recovery certificate seeking Rs. 29 lakhs plus interest from defaulting borrowers. Despite the defendants' absence, the court found the case proved by documentary evidence and granted the principal with reduced interest.

What did the court decide?

Recovery of Rs. 29,00,000 plus 10% p.a. simple interest from defendants via the schedule property and other assets.

Yes Bank versus Srinivas Prabhakar — 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 27^th Day of August 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1589/2024

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BETWEEN:

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YES Bank Prestige Obelisk, Municipal No.3, Ground Floor, Kasturba Road, Bangalore-560001.

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… APPLICANT

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AND:

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Mr.Srinivas Prabhakar

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S/o.S.Prabhakar No.413, Athena Living Walls, Flat No.3, 4^th B Cross, 7^th A Main, 1^st Block, HRBR Layout, Bangalore North, Bangalore-560043,

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Also at:

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Mr.Srinivas Prabhakar S/o.S.Prabhakar Surya Corporation No.46/2, Behind Old Police Station, Ramamurthy Nagar Main Road, Bengalore-560016.

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Mr.Prabhakar Subbarayalu S/o.Subrayalu.G No.413, Athena Living Walls, Flat No.3, 4^th B Cross, 7^th A Main, 1^st Block, HRBR Layout, Bangalore North, Bangalore-560043.

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...DEFENDANTS

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2 OA No.1589/2024

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Counsel on record/appeared for:

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Applicant : FX & Co., 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.29,00,000/(Rupees Twenty-Nine Lakhs Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendants availed a sum of Rs.25,85,585.18 (Rupees TwentyFive Lakhs Eighty-Five Thousand Five Hundred Eighty-Five and Paisa Eighteen Only) for the purchase Mercedes Benz E 200 BSIV Car.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents. Apart from the creation of security interest by way of hypothecation over the Schedule property.

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It is further contended that, despite availing the credit facility, 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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3 OA No.1589/2024

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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 defendants being set exparte on 14.11.2025.

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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 A1 to A12 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 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 unrebutted as defendants 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 facility as stated in the OA, creation of security interest

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4 OA No.1589/2024

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as claimed by the applicant bank and the defaults committed in the account. 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 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 was availed for Vehicle Loan 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 of 10% p.a.(simple)

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In the result, OA.No.1589/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.29,00,000/- (Rupees Twenty-Nine Lakhs Only) with further interest of 10% p.a.(simple) from defendants after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed

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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

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amount due and payable to the applicant bank, the defendants and their other assets are liable for all such amounts due in respective 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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v) Interim Application pending, if any, stands disposed of with this Final Order.

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14. 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)

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Rules, 1993.

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[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August 2026].

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6 OA No.1589/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Niranjan.B, Legal Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1.	The Loan Application	A1
2.	The Loan Agreement dated 12.01.2022	A2
3.	Copy of Legal Notice dated 19.07.2023	A3
4.	Postal Receipts	A4 to A7
5.	Served Acknowledgement	A8 and A9
6.	Returned RPAD covers	A10 to A11
	Statements of Account for the Loan Account
7.	with foreclosure statement certified with Bankers books evidence Act.	A12

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Sd/(T. RAJESH) PRESIDING OFFICER

Yes Bank v. Srinivas Prabhakar

Case brief

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Yes Bank v. Srinivas Prabhakar

Case brief

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