Allowed

Bank of India v. Lekhana B and Another

DRT28 Jan 2026OA/2299/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act for issuance of a Recovery Certificate. Being in exparte, undisputed evidence proved defaults on a home loan, leading to a recovery order with interest reduced to 8% p.a.

What did the court decide?

Recovery Certificate issued for Rs.74,74,754.54 with interest @8% p.a. (Simple) recoverable from defendants jointly and severally.

Bank of India versus Lekhana B and Another — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2299/2024

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BETWEEN:

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Bank of India Asset Recovery Branch No.11, 1^st floor, Bank of India Building, Kempegowda Road, Bangalore- 560009

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…APPLICANT

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AND:

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Smt. Lekhana B W/o Dhanush Ram K

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Sri. Dhanushram K S/o. Kuppusamy Kirubakaram

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Both are R/at: No.24, Flat No.F4, MM Aura Oyester APTS, 2^nd Main Road, Chinanna Layout, Bengaluru-32

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Also at: No.22, 2^nd Cross, 5^th Main, Abrijth Nilaya, Kanaka Nagar, Bhuwaneshwarinagar, Near Govt. College, RT Nagar, Bengaluru- 560032

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Defendant No.1 office address : Randstad India Pvt Ltd., Group-C, #69, 5^th Main, 1^st Stage, Hutting Colony, Domlur Layout, Bengaluru- 560071

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OA 2299-2024

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Defendant NO.2 Office address:

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Amazon Development Centre (1) Pvt. Ltd 10^th floor, WTC, Dr. Raj Kumar Road, Bengaluru- 560029

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : A. Mahammed Tahir 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 for Rs.74,74,754.54 (Rupees seventy four lakh seventy four thousand seven hundred fifty four and paisa fifty four 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 No.1 & 2 are the borrowers who availed the Home Loan credit facilities of Rs.65,00,000/- (Rupees sixty five lakhs only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with Vehicle Loan Agreement, Memorandum of

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OA 2299-2024

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Term loan agreement, memorandum relating to deposit of title deeds, agreement of loan cum hypothecation and letter of arrangement.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 18.09.2025.

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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 A-1 to A-14 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

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OA 2299-2024

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evidence and the 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

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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 unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of mortgage as 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.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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OA 2299-2024

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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

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are availed by defendants for Housing loan purpose and also that OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @8% p.a.(Simple).

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In the result, OA.No.2299/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.74,74,754.54 (Rupees seventy four lakh seventy four

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thousand seven hundred fifty four and paisa fifty four only) with further interest @8% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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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. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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jointly severally and personally and their other assets are liable

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OA 2299-2024

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to be proceeded against for the balance amount.

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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 receipt of the order.

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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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in terms of this final order.

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14. 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 28^th day of January, 2026].

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Sd/

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Akash. T, Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	27.09.2022	Housing loan application executed by D1 & D2
A2	01.10.2022	Loan sanction letter

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OA 2299-2024

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A3	03.10.2022	Agreement for home loan
A4	03.10.2022	Copy of on demand
A5	03.10.2022	Common term agreement
A6	03.10.2022	Affidavit cum undertaking
A7	03.10.2022	RBLR (Repo based lending rate)
A8	03.10.2022	Special power of attorney
A9	03.10.2022	Agreement RBI IRACP Norms
A10	03.10.2022	Bearer Letter
A11	03.10.2022	Copy of installment letter
A12	22.08.2024	Copy of notice U/s 13(2) of Sarfaesi Act.
A13	03.10.2024	Copy of Regd. Memorandum of deposit of title deeds
A14		The statement of Account in Star Home Loan A/c No.840575110000380

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

Bank of India v. Lekhana B and Another

Case brief

What is this about?

What did the court decide?

Bank of India v. Lekhana B and Another

Case brief

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