Allowed

Union Bank of India v. Bhavya N

DRT31 Jul 2026OA/1607/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application for a recovery certificate of Rs.43.43 lakh. The primary claim was rejected as excessive interest was applied. The court reduced the interest rate to 6% p.a. (simple) given the agricultural purpose of the loan and granted the applicant costs.

What did the court decide?

Recovery Certificate for Rs.43,43,363.00 with simple interest at 6% p.a., recoverable from schedule property and other assets.

Union Bank of India versus Bhavya N — 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.1607/2023

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BETWEEN:

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Union Bank of India Kolar M B Road Branch Kolar Taluk, Kolar District

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…APPLICANT

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AND:

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Smt. Bhavya N W/o.Sri.Suni Kumar C.R R/at: No.94, 2^nd Main, 1^st Cross, Opp: to Park, Byregowda Nagar, Kolar Town, Kolar Taluk, Kolar District, Karnataka-563101.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. N.G. Ravi Kumar Defendant : 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 defendant for Rs.43,43,363.00/- (Rupees Forty-Three Lakhs Forty-Three Thousand Three Hundred and Sixty-Three Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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2 OA No.1607/2023

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The Defendant availed a sum of Rs.50,00,000/- (Rupees Fifty Lakhs Only) for the purpose of Construction and Establish Broilers Poultry Unit.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents, being owner of the schedule property. Apart from the creation of security interest by way of mortgage, movables, promissory note, hypothecation Agreement (For Agricultural Advances) 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 defendant 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 defendant, they failed to appear, resulting the defendant being set exparte on 10.07.2025.

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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 A8 and got the same marked in evidence.

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3 OA No.1607/2023

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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 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 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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4 OA No.1607/2023

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Taking into consideration the facts that the credit facility was availed for agricultural 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 of 6.00% p.a.(simple).

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In the result, OA.No.1607/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.43,43,363.00/- (Rupees Forty-Three Lakhs Forty-Three Thousand Three Hundred and Sixty-Three Only) with further interest @ 6% (simple) p.a from the defendant after giving credit to all the amounts recovered and received during the pendency of the OA if any, in the loan account and allowed the same to be recovered by proceeding 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 and his other assets are liable for all such amounts due in loan account.

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iii) The applicant bank is allowed cost of the proceeding which

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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

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transferred to Recovery for execution.

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5 OA No.1607/2023

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

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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 31^st Day of July 2026].

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Sd/(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Pralay Kanti Mondal, 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	Date	Exhibit Number
1.	Loan Application	01.01.2021	A1
2.	Hypothecation Agreement for loan of Rs.50,00,000/-	20.01.2021	A2
3.	Simple Loan Agreement for the loan of Rs.50,00,000/-	20.01.2021	A3
4.	Composite Hypothecation deed for the loan of Rs.50,00,000/-	20.01.2021	A4
5.	Demand Promissory note for the loan amount of Rs.50,00,000/-	20.01.2021	A5

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6 OA No.1607/2023

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6.	Registered Memorandum of Deposit of title deeds for the loan limit of Rs.50,00,000/-	18.01.2021	A6
7.	Statement of accounts for the Term Loan transaction from 20.01.2021 to 19.06.2023	27.06.2023	A7
8.	Office copy of the Demand notice	29.04.2023	A8

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Union Bank of India v. Bhavya N

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Bhavya N

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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