Allowed

Union Bank of India v. Ramakka

DRT27 Aug 2026OA/1619/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India against two respondents for recovery of a loan debt of approximately Rs. 1.38 Crores. Defaulted agricultural and term loans were recovered by reducing interest to 6% p.a. against the respondents.

What did the court decide?

Recovery Certificate issued for Rs. 1,38,30,422.00 plus 6% simple interest from date of application; executable against schedule and other assets.

Union Bank of India versus Ramakka — 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

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Presiding Officer

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OA. No.1619/2024

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BETWEEN:

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Union Bank of India Robertsonpet Branch, KGF Town, Bangarpet Taluk, Kolar District, Karnataka State.

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…APPLICANT

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AND:

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Smt.Ramakka

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W/o.Sri.Yallappa R/at: No.72, 9^th Cross,

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Ambedkar Colony,

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Hongasandra Village,

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Begur Hobli, Bangalore South Taluk, Bangalore-560068.

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Sri.Y. Sampangi S/o.Sri.Yallappa R/at: No.72, 9^th Cross, Ambedkar Colony, Hongasandra Village, Begur Hobli, Bangalore South Taluk, Bangalore-560068. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr.N.G.Ravikumar Defendants : Exparte

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2 OA No.1619/2024

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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.1,38,30,422.00 (Rupees One Crore Thirty-Eight Lakhs Thirty Thousand Four Hundred and Twenty-Two Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant No.1 availed a sum of Rs.1,61,50,000/- (Rupees One Crore Sixty-One Lakhs Fifty Thousand Only) for the purpose of Agricultural Term Loan. Defendant No.2 stood as Guarantee.

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The Defendant No.1 availed a sum of Rs.17,98,000/- (Rupees Seventeen Lakhs Ninety-Eight Thousand Only) for the purpose of Funded Interest Term Loan. Defendant No.2 stood as Guarantee

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The Defendant No.1 availed a sum of Rs.25,00,000/- (Twenty-Five Lakhs Only) for the purpose of AGRTL. Development of Poultry Farm. Defendant No.2 stood as Guarantee

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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 properties. Apart from the creation of security interest by way of mortgage, hypothecation over the Schedule properties

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3 OA No.1619/2024

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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 18.12.2024.

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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 A60 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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4 OA No.1619/2024

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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 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 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% p.a.(simple).

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In the result, OA.No.1619/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.1,38,30,422.00 (Rupees One Crore Thirty-Eight Lakhs Thirty Thousand Four Hundred and Twenty-Two Only) along with current and future interest 6% from the date of filing the application till the date of realization, from the Defendant, after giving credit to all the amounts

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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 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 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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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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Sd/-

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.G.Ravi, Manager of the Applicant Bank.

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SL No	Exbhits Number	Description of the Documents	Date
1	A1	Loan application	02-05-2011
2	A2	Agreement for term loans	24-09-2011
3	A3	Common Deed Hypothecation of Movables /Assets/Debts	24-09-2011
4	A4	Registered Simple mortgage deed for the aggregated loan limit of Rs.1,61,50,000/- in respect pf the A schedule property executed by the defendant No.1	30-08-2011
5	A5	Registered Memorandum of deposit of title deeds for the aggregated loan limit of Rs.1,61,00,000/- in respect pf the B schedule property executed by the defendant No.1	19-10-2011
6	A6	Guarantee Agreement	24-09-2011
7	A7	Demand promissory Note for the outstanding loan liability	01-06-2014
8	A8	Take Delivery letter to DPN	01-06-2014
9	A9		04-11-2015

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7 OA No.1619/2024

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10	A10	Acknowledgement of Debt/Liability executed by the defendant No.1 Acknowledgement of Debt/Liability	04-11-2015
11	A11	executed by the defendant No.2 Letter requesting for rephasing	04-11-2015
12	A12	repayment schedule of the term loan Amendment Agreement to rephase	04-11-2015
13	A13	repayment schedule for 108 months Demand promissory Note for the	04-10-2018
14	A14	outstanding loan liability	04-10-2018
15	A15	Take Delivery letter to DPN Application for repayment /	25-02-2021
16	A16	Restructuring of loans for 66 months Draft letter to be issued to the borrower	25-02-2021
17	A17	for restructure	25-02-2021
18	A18	General term loan agreement	25-02-2021
19	A19	Hypothecation Agreement	25-02-2021
		Demand promissory Note for the outstanding loan liability with
20	A20	continuity letter	25-02-2021
21	A21	Deed of Guarantee for agriculture loan	06-04-2024
		Statement of Account from 23-07-2023 to 06-04-2024
22	A22	Credit Sanction letter	17-10-2013

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8 OA No.1619/2024

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23	A23	Demand promissory Note	22-10-2013
24	A24	Take Delivery letter to DPN	22-10-2013
25	A25	Guarantee Agreement	22-10-2013
26	A26	Acknowledgement of Debt/Liability executed by the defendant No.1	04-11-2015
27	A27	Acknowledgement of Debt/Liability executed by the defendant No.2	04-11-2015
28	A28	Letter requesting for rephasing repayment schedule of the term loan	04-11-2015
29	A29	Amendment Agreement to rephase repayment schedule for 108 months	04-11-2015
30	A30	Demand promissory Note for the outstanding loan liability	04-10-2018
31	A31	Take Delivery letter to DPN	04-10-2018
32	A32	Letter requesting for rephasing repayment schedule of the term loan	25-02-2021
33	A33	Draft letter to be issued to the borrower for restructure	25-02-2021
34	A34	Acknowledgement of Debt/Liability executed by the defendant No. 1 and 2	25-02-2021
35	A35	General Term loan Agreement	25-02-2021
36	A36	Hypothecation Agreement (for agricultural advances)	25-02-2021

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9 OA No.1619/2024

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37	A37	Demand promissory Note with continuity letter	25-02-2021
38	A38	Guarantee Agreement	25-02-2021
39	A39	Statement of Account from 23-07-2023 to 06-04-2024 with certificate	06-04-2024
40	A40	Agreement For Term Loans	09-09-2014
41	A41	Common Deed of Hypothecation of Movables/Assets/Debts	09-09-2014
42	A42	Guarantee agreement by defendant No.2	09-09-2014
43	A43	Registered Simple mortgage deed for the aggregated loan limit of Rs.2,12,00,000/- in respect pf the A schedule property executed by the defendant No.1	08-09-2014
44	A44	Acknowledgement of Debt/Liability by defendant No.1	04-11-2015
45	A45	Acknowledgement of Debt/Liability by defendant No.2	04-11-2015
46	A46	Letter requesting for rephasing repayment schedule of the term loan	04-11-2015
47	A47	Amendment Agreement to rephase repayment schedule for 108 months	04-11-2015
48	A48	Demand promissory Note for the outstanding loan liability	04-10-2018

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10 OA No.1619/2024

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49	A49	Take Delivery letter to DPN	04-10-2018
50	A50	letter Requesting for Rephasing repayment schedule	25-02-2021
51	A51	Draft letter to be issued to the borrower for restructure	25-02-2021
52	A52	Acknowledgement of Debt/Liability	25-02-2021
53	A53	General term loan agreement	25-02-2021
54	A54	Hypothecation Agreement	25-02-2021
55	A55	Demand promissory Note for the outstanding loan liability with continuity letter	25-02-2021
56	A56	Deed of Guarantee for agriculture loan	25-02-2021
57	A57	Statement of Account from 23-07-2023 to 06-04-2024 with certificate	06-04-2024
58	A58	Office copy of the legal notice16.12.2023
59	A59	Original two Postal Receipts22.12.2023
60	A60	Original two unserved Postal articles 28.12.2023

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Sd/(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Ramakka

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ramakka

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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