Allowed

Union Bank of India v. Jayamma

DRT31 Jul 2026OA/1927/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India for issuance of a Recovery Certificate against defaulting agricultural borrowers. The Tribunal found the claim uncontroverted due to ex-parte proceedings, allowed recovery of the principal and reduced interest, and directed execution against secured property.

What did the court decide?

Applicant allowed to recover Rs. 23,46,962/- with interest at 6% p.a. from defendants jointly/severally; Recovery Certificate to be drawn and executed against schedule properties.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1927/2024

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BETWEEN:

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The Union Bank of India Branch Office at Harohalli Village, Devanahalli Taluk, Bangalore Rural District, Karnataka-562135, Represented by its Branch Senior Manager, Sri. V Ravi Kumar.

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…APPLICANT

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AND:

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Smt. Jayamma Aged Major, W/o Late Pillachannappa, Residing at Koramangala Village, Vijayapura Hobli, Devanahalli Taluk, Bangalore Rural District-562135.

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Sri. Keshavappa Aged Major, S/o Late Pillachannappa Residing at Koramangala Village, Vijayapura Hobli, Devanahalli Taluk, Bangalore Rural District-562135.

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Sri. Muniyappa, Aged Major, S/o Late Pillachannappa Residing at Koramangala Village, Vijayapura Hobli, Devanahalli Taluk, Bangalore Rural District-562135.

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Sri. Papanna Aged Major,

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2 1927/2024

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S/o Late Pillachannappa Residing at Koramangala Village, Vijayapura Hobli, Devanahalli Taluk, Bangalore Rural District-562135.

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Sri. Munivenkatappa Aged major, S/o Sri. Kempanna Residing at Koramangala Village, Vijayapura Hobli, Devanahalli Taluk, Bangalore Rural District-562135. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Ravi Kumar. N.G. 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 seeking issuance of Recovery Certificate against the defendants for Rs. 23,46,962/- (Rupees Twenty Three Lakh Forty Six Thousand Nine Hundred Sixty 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 availed the Agricultural Term Loan credit facility of Rs. 8,00,000/- from the applicant bank on 19.01.2015.

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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 Agreement for Term Loan, Common Deed of Hypothecation, Demand Promissory Note, Registered Deed of Simple Mortgage.

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3 1927/2024

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It is further contended that, despite availing the credit facilities, 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 23.07.2026.

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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-19 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

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4 1927/2024

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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 facilities as stated in the OA, creation of Mortgage and hypothecation as claimed by the applicant bank and the defaults 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 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 facilities 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 8.00% (simple).

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In the result, OA.No.1927/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 23,46,962/- (Rupees Twenty Three Lakh Forty Six Thousand Nine Hundred Sixty Two Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly,

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5 1927/2024

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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, severally and personally and their assets are liable for the amounts due 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 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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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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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6 1927/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: G. Ramudu, Manager and authorized officer 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	19.01.2015	Loan Application
A2	19.01.2015	Credit sanction intimation
A3	19.01.2015	Agreement for Term Loans executed by the defendant No.1 and 2
A4	19.01.2015	Common Deed of Hypothecation of Crops/ Stocks executed by the defendant No.1 and 2
A5	19.01.2015	Demand Promissory Note executed by the defendant No.1 and 2
A6	19.01.2015	Take Delivery letter to DPN executed by the defendant No.1 and 2
A7	08.01.2015	Registered Deed of Simple mortgage for aggregated limit of Rs. 8,00,000/- executed by the defendant No.1 and 4
A8	19.01.2015	Guarantee Agreement by defendant No.5
A9	26.10.2017	Demand Promissory Note executed by the defendant No.1 and 2 for the outstanding loan liability of Rs. 10,91,900/-
A10	26.10.2017	Take delivery letter to DPN executed by the defendant No.1 and 2
A11	26.10.2017	Acknowledgement of debt and liability by borrowers executed by the defendant No.5
A12	27.03.2017	Letter requesting conversion of Crop loan to term loan / rephasing repayment schedule of Term loan

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7 1927/2024

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A13	27.03.2017	Advice of Rephasement Repayment Schedule
A14	27.03.2017	Amendment Agreement to rephase repayment schedule of the outstanding loan liability of Rs. 10,02,970/- in 7 yearly equal instalments of Rs. 1,43,300/- due from 27.03.2018 executed by the defendant No. 1 and 2
A15	28.04.2023	Composite debit Balance Confirmation executed by the defendant No.1 and 2
A16	29.05.2024	Statement of Accounts from 19.01.2015 to 29.05.2024
A17	11.03.2024	Office Copy of the demand Notice
A18	13.03.2024	Postal receipts
A19	--	Postal acknowledgement

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Jayamma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Jayamma

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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