Allowed

Bank of India v. Muniyamma

DRT17 Jul 2026OA/1664/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of RDB Act 1993 for issuance of Recovery Certificate against agricultural loan defaults. Due to ex-parte respondent default, evidence was uncontroverted. Tribunal allowed reduced interest at 6%.

What did the court decide?

Issuance of Recovery Certificate for Rs. 23,89,294.20 with 6% simple interest from filing date, recoverable from schedule properties and personal assets of defendants jointly, severally, and personall

Bank of India versus Muniyamma — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 17^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1664/2024

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BETWEEN:

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Bank of India #135/3, Next to RTO Office, NH-7, Vijayapura Cross, Devanahalli- 562 110, Bangalore. Represented by its Senior Branch Manager And Letter of Authority Holder, Mrs. Rachna Yadav.

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…APPLICANT

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AND:

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Mrs. Muniyamma W/o Munivenkatappa, Aged about 57 years, Chimachanahalli Village, Channarayapatna Hobli, Devanahalli Taluk, Bengaluru Rural District- 562135.

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Mrs. Rangamma, W/o Munivenkatappa, Aged about 50 years, Chimachanahalli Village, Channarayapatna Hobli, Devanahalli Taluk, Bengaluru Rural District- 562135.

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Mr. Munivenkatappa S/o Chikkapillappa, Aged about 62 years, Chimachanahalli Village, Channarayapatna Hobli, Devanahalli Taluk, Bengaluru Rural District- 562135. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Kiran Mirajakar Defendants : Exparte

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2 1664/2024

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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 seeking issuance of Recovery Certificate against the defendants for Rs. 23,89,294.20/(Rupees Twenty Three Lakh Eighty Nine Thousand Two Hundred Ninety Four and Paise Twenty 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 availed the Agricultural credit loan facility of Rs. 4,73,000/- from the applicant bank on 19.04.2010.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Letter of authority, Hypothecation cum loan Agreement, Registered Mortgage Deed, On demand Promissory Note.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants 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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 24.10.2025.

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3 1664/2024

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This matter was posted for orders on 30.06.2026, but the defendants filed IA ‘s, hence the order was not passed. On 02.07.2026 the matter was taken up for the hearing on the IA’s filed by the Defendant. Those IA’s were on defect, hence stands dismissed and the written statement filed by the defendants stands declined.

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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-23 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

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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 defendant remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, creation of Mortgage and

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Hypothecation as claimed by the applicant bank and the defaults

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4 1664/2024

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committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim

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of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal 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 was availed for Agricultural purpose and also that the 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% (simple).

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In the result, OA.No.1664/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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23,89,294.20/- (Rupees Twenty Three Lakh Eighty Nine Thousand Two Hundred Ninety Four and Paise Twenty Only) with further interest @ 6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and 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 schedule property. Schedule Properties 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 defendants jointly,

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5 1664/2024

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severally and personally and their assets are liable for the amounts due

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under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 in terms of this final order.

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15. 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) Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 17^th Day of July, 2026].

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Sd/-

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(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: Satish M, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	25.01.2010	Application

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6 1664/2024

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A2, A3 & A4	25.01.2010	Borrower’s Profiles (Three)
A5	19.04.2010	Sanction Letter
A6	19.04.2010	Hypothecation cum loan Agreement
A7	19.04.2010	Registered Mortgage Deed
A8	19.04.2010	Agreement in form L-516
A9	19.04.2010	Deed of Guarantee
A10	19.04.2010	On demand promissory Note
A11	19.04.2010	Loan Bearer Letter in Form of L-435
A12	19.04.2010	Declaration in Form No. L-440
A13	19.04.2010	Supplemental Term Loan Agreement
A14	19.04.2010	Draft Declaration
A15	28.06.2014	Supplemental Term Loan Agreement
A16	15.04.2013	Acknowledgement of Debt/ Securities in L-444C
A17	28.06.2014	Acknowledgement of Debt/ Securities in L-444C
A18	28.06.2017	Acknowledgement of Debt/ Securities in L-444C
A19	26.06.2020	Acknowledgement of Debt/ Securities in L-444C
A20	28.11.2022	Notice
A21	--	Postal receipts
A22	--	Acknowledgement Cards
A23	--	Statement of Account along with Certificate under section 2A(b) and 2A(c) of the Banker’s Book Evidence Act, 1891

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

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7 1664/2024

Bank of India v. Muniyamma

Case brief

What is this about?

What did the court decide?

Bank of India v. Muniyamma

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

Coram

Case details

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