Allowed

Karnataka Bank Limited v. Pavan Bhandar

DRT27 Mar 2026OA/190/2025

Case brief

AI extract

What is this about?

Applicant bank sought recovery certificate for overdue overdraft via DRT. Defendants appeared ex parte. Tribunal found evidence sufficient, allowed application with interest capped at 11% p.a., and directed issuance of recovery certificate against joint personal and schedule property.

What did the court decide?

Recovery certificate issued for Rs.61,09,487.87 with 11% p.a. simple interest recoverable from defendants jointly, severally and personally and from schedule property.

Karnataka Bank Limited versus Pavan Bhandar — Banking and Recovery | 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 March, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.190/2025

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BETWEEN:

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Karnataka Bank Ltd., Branch office at Chamarajanagar Branch, B.R. Hills Road, Near Eastern side of KEB Circle, Chamarajanagar, Karnataka – 571313 Rep. by its Branch Manager Sri. Rahul

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… APPLICANT

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AND:

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M/s. Pavan Bhandar Rep. By its Proprietor Mrs. B S Leelavathi W/o. V Krishna Murthy No.736, Big Bazar Street, Chamarajanagar, Karnataka, Chamarajanagara Distrct, Karnataka-571313

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Also at: #22/195, Bramaramba Extn., 1^st Cross, Chamarajanagra, Karnataka, Chamarajanagar – 571313, Karnataka

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Mrs. B S Leelavathi W/o. V Krishna Murthy Aged about 72 years #22/195, Bramaramba Extn., 1^st Cross, Chamarajanagra, Karnataka, Chamarajanagar – 571313, Karnataka

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OA. No.190/2025

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Mr. Ramakrishna S/o. V Krishnamurthy Aged about 54 years H.No.22/195, Bramaramba Extention, Chamarajanagar-571313, Karnataka

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Mr. B K Ananda Rao S/o. V Krishnamurhty Aged about 65 years H.No.23/538, 6th Cross, Bramaramba Extention., Chamarajanagar – 571313, Karnataka

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Nithin Chandra M Defendants : 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.61,09,487.87 (Rupees Sixty One Lakh Nine Thousand Four Hundred Eighty Seven and Eighty Seven Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed Overdraft limit of Rs.50,00,000/- on 07.05.2020.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan

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OA. No.190/2025

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documents. Apart from the creation of security interest by way of hypothecation and mortgage 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 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 27.11.2025.

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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 A21 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

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OA. No.190/2025

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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

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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 business 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 11.00%

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OA. No.190/2025

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p.a.(simple).

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In the result, OA.No.190/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.61,09,487.87 (Rupees Sixty One Lakh Nine Thousand Four Hundred Eighty Seven and Eighty Seven Paisa only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against 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 defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

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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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OA. No.190/2025

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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

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with this Final Order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of March 2026].

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Sd/(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. Rahul R, Branch 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	Exhibit Number
1	True copy of the credit sanction order dated 07.05.2020	A1
2	True copy of the account opening for proprietorship concern dated 13.05.2020	A2
3	True copy of the take delivery letter dated 13.05.2020	A3
4	true coy of the hypothecation agreement dated 13.05.2020	A4

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OA. No.190/2025

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5	True copy of the general power of attorney for book debts dated 13.05.2020	A5
6	True copy of the memorandum of deposit of title deed dated 08.05.2020	A6
7	True coy of the credit sanction intimation dated 10.11.2021	A7
8	True copy of the account opening form of proprietorship concern dated 29.11.2021	A8
9	True copy of the MITC acknowledgment letter dated 29.11.2021	A9
10	True copy of the request for renewal of Overdraft/Cash Credit facilities dated 29.11.2021 executed by defendant	A10
11	True copies of the take delivery letter dated 29.11.2021	A11
12	True copies of the declaration by borrower and guarantor/s dated 29.11.2021	A12 to A15
13	True copy of the acknowledgment of debt dated 29.11.2021	A16
14	True copy of the recall notice/s dated 07.06.2023 through bank	A17
15	True copy of the separate legal notice dated 21.07.2023 through bank’s advocate	A18
16	True copy of the request letter dated 29.11.2023	A19
17	True copy of the demand notice dated 20.09.2023	A20
18	True copy of correct and certified statement of account A/c. No. 1807000600000501	A21

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Bank Limited v. Pavan Bhandar

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Pavan Bhandar

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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Case details

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