Allowed

Icici Bank Limited v. Manjunatha

DRT28 Jan 2026OA/2408/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed under Section 19 of RDB Act 1993 by ICICI Bank Limited for issuance of a Recovery Certificate against two defendants for a loan default. The Tribunal found the defendants jointly and severally liable for the principal amount, agreeing to a reduced interest rate of 6%.

What did the court decide?

Issuance of Recovery Certificate for Rs. 39,99,806.31 with 6% simple interest; defendants liable to pay after crediting amounts recovered.

Icici Bank Limited versus Manjunatha — 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 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2408/2024

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BETWEEN:

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ICICI Bank Limited, Nr. Hotel Kuberan Palace, Station Road, Raichur, Karnataka- 584101, Represented through its Constituted attorney, Sri. Pramodh G, Son of B Gurumallappa.

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…APPLICANT

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AND:

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Manjunatha, S/o Sanna Malla Reddeppa, Aged about 31 years, Residing at # Devadurga, Gabbur Raichur, Taluk- Devadurga, District- Raichur, Karnataka- 584113.

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Somalingamma, W/o Mallareddeppa, Aged about 51 years, Residing at # Devadurga, Gabbur Raichur, Taluk- Devadurga, District- Raichur, Karnataka- 584113.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. Vidhii Partners Defendants : Exparte

OA 2408/2024

FINAL ORDER

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. 39,99,806.31 (Rupees Thirty Nine Lakh Ninety Nine Thousand Eight Hundred Six and Paise Thirty One 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 a sum of Rs. 32,00,000/- (Rupees Thirty Two lakh Only).

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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 hypothecation deed and indenture of mortgage.

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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, summons the defendants, they failed to appear, resulting the defendants being set exparte on 24.07.2025.

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

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OA 2408/2024

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-8 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 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 the security interest 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

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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

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find both these issues in favour of applicant and hence, this Tribunal is of

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OA 2408/2024

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agriculture 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 6.00% (simple).

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In the result, OA.No.2408/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 39,99,806.31 (Rupees Thirty Nine Lakh Ninety Nine Thousand Eight Hundred Six and Paise Thirty One Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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. 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 amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for 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

OA 2408/2024

order.

iv) 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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v) Interim application pending, if any, stands disposed of in terms

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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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of January, 2026].

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Sd/- (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: Promodh G, Collection Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Facilities credit facility application form bearing No. 1000154230 dated 08.01.2019
A2	Sanction letter and the most important terms and conditions dated 29.01.2019
A3	Hypothecation deed dated 08.01.2019
A4	Direct debit form dated 29.01.2019
A5	Indenture of mortgage dated 15.03.2019
A6	Loan recall notice dated 15.06.2023

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OA 2408/2024

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A7	Ledger extract dated 02.04.2024
A8	Statement under bankers book of evidence act dated 03.09.2024

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Icici Bank Limited v. Manjunatha

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. Manjunatha

Case brief

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