Restriction on bankruptcy recovery tribunal allowed recovery certificate for debt of Rs. 73,83,610.87 against proprietors and concern. Court reduced interest rate to 11% simple and ordered recovery from assets.
Allowed OA.No.1745/2024 and issued Recovery Certificate for Rs. 73,83,610.87 with 11% interest against defendants jointly and severally.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU
Dated this 22nd Day of May, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.1745/2024
BETWEEN:
Bank of India Head Office at “ Star House”, Plot No.C-5, “G” Block, Bandra Kurla Complex., Bandra (East), Mumbai-400 051.
Branch at : J C Road Branch, #4/2, OTC Road, Off J C Road, Behind LIC Building, Near Sharada Talkies, Bangalore-560 002, Represented by its Chief Manager, Sri Kotragound M
…APPLICANT
AND:
...DEFENDANTS
2 1745/2024
Counsel on record/appeared for:
Applicant : M Kumar Defendants : Exparte
FINAL ORDER
3 1745/2024
by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.
ii) What order are to be passed?
Both these issues are gone into and decided together.
forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of security as
4 1745/2024
claimed by the applicant bank and the defaults committed in the accounts.
The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.
both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.
availed for the purpose of business 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 11.00% (simple).
73,83,610.87/- (Rupees Seventy three Lakhs Eighty Three Thousand Six hundred Ten and Eighty Seven Paise only) with further interest of 11.00% 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 proceedings against the schedule property. Schedule property to the OA be the schedule property to the
5 1745/2024
recovery certificate.
(ii) If the sale proceeds are not sufficient, the defendants jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.
iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in terms of this final order.
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (DV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 22th day of May, 2026].
Sd/-
(T. RAJESH) PRESIDING OFFICER
6 1745/2024
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mrs. Gowthami Varre, Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Date | Particulars of Documents |
|---|---|---|
| A1 | -- | Loan application |
| A2 | 09.08.2019 | On demand promissory note |
| A3 | 09.08.2019 | Bearer letter |
| A4 | 09.08.2019 | Hypothecation cum Loan agreement |
| A5 | 09.08.2019 | Draft declaration to be obtained from the borrower |
| A6 | 09.08.2019 | Composite Loan Agreement |
| A7 | 09.8.2019 | Stamped letter of undertaking |
| A8 | 09.08.2019 | Stamped letter of undertaking |
| A9 | 09.08.2019 | Stamped letter of undertaking |
| A10 | 09.08.2019 | Authorization letter |
| A11 | 09.08.2019 | MCLR agreement |
| A12 | 09.08.2019 | Draft letter |
| A13 | 24.06.2021 | Application for restructure |
| A14 | 30.06.2021 | Sanction letter |
| A15 | 30.06.2021 | Supplemental term Loan agreement |
| A16 | 30.06.2021 | Acknowledgment of debt/ securities |
| A17 | 10.05.2024 | Legal Notice, Postal receipts and returned RP cover |
| A18 | -- | Certified copy of the statement of account (TL) A/c No. 840770410000033) with certificate |
Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:
-Nil -
-Nil -
Sd/- (T. RAJESH) PRESIDING OFFICER
7 1745/2024
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
3 provisions across 2 enactments
Bank of India
M/s Vaishnvai Industries
Sri Mrutyunjaya VM
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
