Allowed

Karnataka Bank Limited v. Satish

DRT31 Jul 2026OA/2043/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Karnataka Bank Ltd. for issuance of a Recovery Certificate against a defendant who failed to appear. The court proved the loan avails and defaults through uncontroverted evidence and awarded the principal amount with reduced interest.

What did the court decide?

Recovery Certificate allowed for aggregate sum of Rs.75,39,032.48 with 10% p.a. simple interest from 17.11.2023 until realization.

Karnataka Bank Limited versus Satish — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA 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.2043/2023

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BETWEEN:

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The Karnataka Bank Ltd., No.374, Kolar Main Road, Near Taluk Panchayath Office, Bangarpet-563114, Kolar District.

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…APPLICANT

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AND:

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Mr.R. Satish S/o.R.Rajanna R/at:Katha No.63/A, Yaluvaguli Village, Tekal Hobli & Post, Malur Taluk, Kolar-563137 Karnataka.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Nithin Chandra.M Defendant : 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 defendant for Rs.75,39,032.48 (Rupees Seventy-Five Lakhs Thirty-Nine Thousand Thirty-Two and Paisa Forty-Eight Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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2 OA No.2043/2023

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The Defendant availed a sum of Rs.63,00,000/- (Rupees Sixty-Three Lakhs Only) for the purpose of Two New Ashok Leyland Tipper i.e Rs.32,50,000/- for each New Ashok Leyland Tipper, Credit Facilities of Term Loan and executed loan documents. By Hypothecated the Two Vehicles.

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The Defendant availed a sum of Rs.31,50,000/- (Rupees Thirty-One Lakh Fifty Thousand Only) Term Loan by hypothecating the Item No.1 & 2 New Ashok Leyland Tipper also executing other necessary loan documents.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents. Apart from the creation of security interest and hypothecation.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant 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 24.11.2025.

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3 OA No.2043/2023

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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 A12 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 defendant?

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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 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 defendant 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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4 OA No.2043/2023

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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 Term Loan 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 10% p.a.(simple)

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In the result, OA.No.2043/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs.75,39,032.48/- (Rupees Seventy-Five Lakhs Thirty-Nine Thousand Thirty-Two and Paisa Forty-Eight Only).

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a) The applicant is allowed to recover an aggregate sum of

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Rs.37,69,468.48/- (Rupees Thirty-Seven Lakhs Sixty-Nine Thousand Four Hundred and Sixty-Eight and Paisa Forty-Eight Only) with further interest of 10% p.a.(simple) from 17.11.2023 to till the date of realization, due as Term Loan-1

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b) The applicant is allowed to recover an aggregate sum of Rs.37,69,564/- (Rupees Thirty-Seven Lakhs Sixty-Nine Thousand Five Hundred and Sixty-Four Only) with further interest of 10% p.a.(simple) from 17.11.2023 to till the date of realization, due as Term Loan-2

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5 OA No.2043/2023

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The Defendant after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered 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) 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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iii) 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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iv) Interim Application pending, if any, stands disposed of with 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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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6 OA No.2043/2023

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ravi Shankar M.H, 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
	Original copy of the credit sanction intimation vide
1.	sanction reference CMRS/RLPC/650/1991/2021- 22/19-04-2021 dtd 19-04-2021	A1
2.	Original copy of the Term Loan Agreement dated 23-04.2021 in respect of Term Loan-1	A2
3.	Original Copy of the Term Loan Agreement dated 24-04-2021 in respect of Term Loan-2	A3
4.	Original Copy of the Declaration dtd 23-04-2021 executed by Defendant in respect of Term Loan-1 & 2 respectively.	A4
5.	Original Copy of the Undertaking dtd 23-04-2021 executed by Defendant in respect of Term Loan-1 & 2 respectively	A5
6.	Original Copy of the Affidavit dtd 23-04-2021 executed by Defendant in respect of Term Loan-1 & 2 respectively	A6
7.	Original Copy of the Letter dtd 23-04-2021 undertaking to hypothecate the moveable assets purchased out of loanproceeds	A7
8.	Original copy of th3e Hypothecation Agreement dtd26.07.2021	A8
9.	Original Copy of the Recall Notice/s dated 19-05-2022	A9
10.	Original Copy of the Legal Notice dtd 15-07-2023 through the Applicant Bank’s Advocate: along with Postal receipts (1 No’s) returned postal envelope with an endorsement “Addressee refused, hence returned to sender”(1 No’s)	A10
	Original, correct and certified statement of account
11.	relating to the above said Term Loan bearing No.9387001800014601(Term Loan-1)maintained	A11

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7 OA No.2043/2023

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	by the Applicant bank in its ordinary course of business and duly certified as per the Banker’s Book Evidence Act.
	Original, correct and certified statement of account relating to the above said Term Loan bearing
12.	No.9387001800014701 (Term Loan -2) maintained by the applicant bank in its ordinary course of business and duly certified as per the Banker’s Book Evidence Act.	A12

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Sd/(T. RAJESH) PRESIDING OFFICER

Karnataka Bank Limited v. Satish

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Satish

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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