Allowed

Karur Vysya Bank v. Ajit Regalla

DRT27 Aug 2026OA/1908/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application filed under Section 19 RDB Act. Defaulting borrowers were absent; evidence was uncontroverted. The order directed recovery of principal and interest at a reduced rate of 8% per annum via recovery certificate.

What did the court decide?

Recovery certificate to be drawn for recovery of Rs. 52,17,022.32/- plus 8% simple interest p.a. from filing date from defendants jointly, severally and personally.

Karur Vysya Bank versus Ajit Regalla — Company and Corporate | 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 Presiding Officer OA.No.1908/2023

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BETWEEN:

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The Karuru Vysya Bank Ltd Branch at: No.6, 2^nd floor, Shri Vasavi Temple Road, VV Puram Branch, Near Sajjan Rao Circle, Bangalore – 560 004

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Rep by its Bank Manager

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Anjaneyulu Sanagala K …APPLICANT

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AND:

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Mr. Ajit Regalla S/o. Hanumantha Rao Ragella

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Aged about 52 R/at: No. 152, Vayupuri, Near East Parm, Sainikpuri, Hyderabad, Telangana – 560 094

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Mrs. Regalla Swapna W/o. Mr. Ajit Regalla R/at: No. 152, Vayupuri, Near East Parm, Sainikpuri, Hyderabad, Telangana – 560 094

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M/s. Suvastu Housing (P) ltd Represented by MD Mr. Manoj Kumar No. 49, AMR Plaza, 18^th Main, HSR layout, 3^rd Sector, Bangalore – 560 102

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M/s. N D Developers (p) ltd Represented by MD Mr. M K K Durani No. 398, 1^st floor, 7^th Cross, Micro Layout, BTM 2^nd stage, Bangalore – 560 076 ...DEFENDANTS

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OA-1908/2023

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Counsel on record/appeared for:

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Applicant : Tejas Rai K Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs 52,17,022.32/- (Rupees Fifty-Two Lakhs Seventeen Thousand and Twenty-Two and Paisa Thirty-Two 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 defendants are availed a housing loan of Rs. 52,00,000/- (Rupees Fifty-Two Lakhs Only) for the purpose to purchase the residential flat.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents. 4. 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 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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OA-1908/2023

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 18.03.2026.

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The applicant had let in evidence through AW-1, who filed Proof

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-10 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

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unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed.

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The evidences put forth by the applicant were found admissible and

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are sufficient to prove availment of credit facility as stated in the OA,

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and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the

OA-1908/2023

limitation.

Hence in view of the finding arrived herein above, the Tribunal

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finds that both these issues are 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 is availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1908/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 52,17,022.32/- (Rupees Fifty-Two Lakhs Seventeen Thousand and Twenty-Two and Paisa Thirty-Two Only) with further interest @8.00% p.a.(simple) from the date of filing OA till the realization,

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from the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency

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of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule 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, severally and personally and their assets are liable for all such

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OA-1908/2023

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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

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and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), 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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(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: Naresh S, D/o. S Narasimhaiah Setty, Senior Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhib	Documents
its
A1	Sanction communication dated 07.10.2020
A2	Expression of consent for availing loan through digital lending platform of the bank by Ajith Regalla i.e., defendant no.1 dt. 18.08.2020

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OA-1908/2023

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A3	Expression of consent for availing loan through digital lending platform of the bank by Mrs. Swapna Regalla i.e., defendant no.2 dt. 18.08.2020
A4	Sale agreement dated 24.07.2020
A5	Housingloan agreement dated 12.10.2020
A6	Agreement cum undertaking to/ mortgage dated 12.10.2020
A7	Tripartite agreement dated 07.10.2020
A8	Recall notice dated 04.01.2023
A9	Postal RC
A10	True extract of statement of accounts pertaining to the defendant’s loan account 1343777000000770 along with certificate under section 2a of banker’s book evidence act, 1891
Witnes	s Examined for the Defendants: -Nil -
List of	Documents Exhibited for the Defendants: -Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karur Vysya Bank v. Ajit Regalla

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. Ajit Regalla

Case brief

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