Allowed

Union Bank of India v. Ms Sri Ramsai Industries

DRT24 Jul 2026OA/1614/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's recovery certificate application against the defendants, who appeared ex parte. The court found the loan documents, defaults, and amount claimed proved based on uncontroverted documentary evidence and ordered recovery.

What did the court decide?

Recovery Certificate issued for Rs.3.62 Crores including principal and interest at specified rates; defendants jointly and severally liable; execution against schedule properties permitted.

Union Bank of India versus Ms Sri Ramsai Industries — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1614/2023

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BETWEEN:

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Union Bank of India Gandhi Chowk Branch, No.11-9-28, Brestawarpet Raichur, Raichur District, Karnataka-584101.

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… APPLICANT

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AND:

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Sri.Ramsai Industries

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Represented by it’s partners, No.9-13-191, Gadwal Road,

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Raichur District,

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Karnataka-584102

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Mr.Maram Narasayya Shetty Partner of Sri.Ramsai Industries, S/o.Maram Mrutunjaya R/o.House No.4-9-66, Mangalawarpet,

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Raichur District, Karnataka-584101

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Mr.Maram Jaganatha Partner of Sri.Ramsai Industries S/o.Maram Mrutunjaya R/o.House No.4-9-66, Mangalawarpet, Raichur District, Karnataka-584101.

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2 OA No.1614/2023

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Mr. Maram Venkatesh Partner of Sri.Ramsai Industries, S/o.Maram Mrutunjaya R/o.House No.4-9-66, Mangalawarpet, Raichur District, Karnataka-584101.

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Mrs.Maram Kasturi Bai Partner of Sri.Ramsai Industries, W/o.Maram Mrutunjaya R/o.House No.4-9-66, Mangalawarpet, Raichur District, Karnataka-584101.

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Mrs.Maram Pavani Partner of Sri.Ramsai Industries W/o.Maram Venkatesh R/o.House No.4-9-66, Mangalawarpet, Raichur District, Karnataka-584101. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates 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 defendants for Rs.3,62,11,485.14/- (Rupees Three Crore Sixty-Two Lakhs Eleven Thousand Four Hundred Eighty-Five and Paisa Fourteen Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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3 OA No.1614/2023

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The Defendant No.1 along with its partners Defendants No.2 to 6 has availed for a sum of Rs.2,60,00,000/- (Two Crore Sixty Lakhs Only) for purpose of Working Capital Term Loan.

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The Defendant No.1 availed for a sum of Rs.26,00,000/- (Rupees Twenty Six Lakhs Only) as CECL Loan Facility.

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The Defendant No.1 availed financial facility for a sum of Rs.51,00,000/- (Rupees Fifty-One Lakhs Only) GECL Loan Scheme.

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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, apart from the creation of security interest by way of mortgage, Guarantee Agreement, Demand Promissory Note and hypothecation over the Schedule properties.

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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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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 21.03.2024.

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4 OA No.1614/2023

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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 A27 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 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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5 OA No.1614/2023

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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 Working Capital Term Loan, CECL Loan Facility, and GECL Loan Scheme also that OA claim is arrived at by calculating interest at the agreed rate this Tribunal in view of the OA can be allowed.

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In the result, OA.No.1614/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.3,62,11,485.14/- (Rupees Three Crore Sixty-Two Lakhs Eleven Thousand Four Hundred Eighty-Five and Paisa Fourteen Only)

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a) The Defendants No.1 to 6 jointly, severally liable to pay a sum of Rs.2,93,07.554.40/- (Rupees Two Crore Ninety-Three Lakhs Seven Thousand Five Hundred and Fifty-four and Paisa Forty Only) along with current and future interest @ 9.50% with effect from 01.02.2023 in full till the date of realization, due as Term Loan

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The Defendants No.1 to 6 jointly, severally liable to pay a sum of b) Rs.13,80,652.45/- (Rupees Thirteen Lakhs Eighty Thousand Six Hundred and Fifty-Two and Paisa Forty-Five Only) along with current and future interest @ 8% with effect from 01.02.2023 in full till the date of realization due as Term Loan.

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6 OA No.1614/2023

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c)^{The Defendants No.1 to 6 jointly, severally liable to pay a sum of}

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Rs.55,23,278.29/- (Rupees Fifty-Five Lakhs Twenty-Three Thousand Two Hundred Seventy-Eight and Paisa Twenty-Nine Only) along with current and future interest @ 7.50% with effect from 01.02.2023 in full till the date of realization, due as Term Loan

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The Defendants jointly are severally after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule properties. The schedule properties to the OA be the schedule properties 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 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

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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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v) Interim Application pending, if any, stands disposed of with this Final Order.

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7 OA No.1614/2023

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16. 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 24^th Day of July 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: Sri. Om Prakash Pandey, Branch Head 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.	Loan Application dated 09.06.2020	A1
2.	Memorandum of Deposit of title deed dated 21.05.2020	A2
3.	Demand Promissory note dated 27.03.2020	A3
4.	Take delivery note to demand promissory note dated 27.03.2020	A4
5.	Loan Application Dated 16.05.2020	A5
6.	Sanction Letter Dated 16.05.2020	A6
7.	Partnership letter dated 02.06.2020	A7
8.	Supplemental agreement dated 02.06.2020	A8
9.	Letter of Undertaking dated 02.06.2020	A9
10.	Guarantee agreement dated 02.06.2020	A10
11.	Undertaking letter dated 02.06.2020	A11
12.	Demand Promissory note dated 02.06.2020	A12
13.	Take delivery note to demand promissory note dated 02.06.2020	A13

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8 OA No.1614/2023

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14.	Undertaking letter dated 15.07.2020	A14
15.	Sanction letter dated 10.07.2020	A15
16.	Letter of undertaking 01.07.2020	A16
17.	Letter of continuity dated 15.07.2020	A17
18.	Demand promissory note dated 15.07.2020	A18
19.	Undertaking letter dated 15.07.2020	A19
20.	Letter of undertaking dated 15.07.2020	A20
21.	Termm Loan agreement dated 17.08.2020	A21
22.	EM extension of Deposit of title deeds dated 17.08.2020	A22
23.	Supplemental agreement dated 17.08.2020	A23
24.	Simple agreement dated 17.08.2020	A24
25.	Hypothecation agreement dated 25.09.2020	A25
26.	General term loan agreement dated 25.09.2020	A26
27.	Section 13 (2) dated 15.12.2021	A27

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Sd/(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Ms Sri Ramsai Industries

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ms Sri Ramsai Industries

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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Case details

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