Allowed

Punjab National Bank v. Discovery Ventures

DRT28 Jan 2026OA/2552/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Punjab National Bank for issuance of a Recovery Certificate against a defendant who failed to repay a term loan and cash credit facility, reducing the claimed interest rate to 9% p.a.

What did the court decide?

Recovery Certificate issued for Rs. 30,69,406.03 with 9% p.a. simple interest from filing date, recoverable from personal assets and secured schedule.

Punjab National Bank versus Discovery Ventures — 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

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Presiding Officer

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OA. No.2552/2024

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BETWEEN:

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Punjab National Bank Having its Branch office at: No.1149, 26^th Main, 4^th T Block, Jayanagar, Bangalore – 560041 Rep. through its Stressed Assets Targeted Resolution and Action (SASTRA) Raheja Towers, No.26-27, M.G. Road, Bangalore-560001 And authorized officer and Senior Manager Sri. Ameet Nayak …

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… APPLICANT

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AND:

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M/s. Discovery Ventures A proprietary concern Rep. by its Proprietor Mr. Devaraj S Aged about 60 years Son of Sanjeevaiah R/at.No. Depot 4, BMTC, 26th Main Road, 4^th Block, East Jayanagar, Bangalore-560041

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. S R Narayanappa Defendant : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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OA. No.2552/2024

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.30,69,406.03 (Rupees Thirty Lakh Sixty Nine Thousand Four Hundred Six and Three Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed the Term loan limit of Rs.25,00,000/- and Cash Credit limit of Rs.5,00,000/- on 07.06.2023.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendant executed necessary loan documents. Apart from the creation of security interest by way of hypothecation over the schedule.

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It is further contended that, despite availing the credit facilities, 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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OA. No.2552/2024

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 18.09.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A10 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 facilities as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the

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OA. No.2552/2024

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accounts. 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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Hence in view of the above finding which cover both the issues raised in this manner, 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 were availed for business purpose 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 to 9.00% p.a. (simple).

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In the result, OA.No.2552/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.30,69,406.03 (Rupees Thirty Lakh Sixty Nine Thousand Four Hundred Six and Three Paisa only) with further interest of 9.00% p.a.(simple), from the date of filing OA till the realization from defendant, 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 defendant personally and also by proceeding against the schedule. The schedule to the OA be the schedule to the Recovery Certificate.

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OA. No.2552/2024

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendant personally and his other assets are liable for all such amounts due under the loan account.

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iii) 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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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 with this Final Order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), 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) PRESIDING OFFICER

OA. No.2552/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ravi Ranjan, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Application Form for Micro, Small and Medium Enterprises (MSME) For Loans dated 13.04.2023
A2	Sanction letter dated 07.06.2023
A3	Term loan agreement dated 08.06.2023
A4	Hypothecation of assets to secure term loan dated 08.06.2023
A5	Hypothecation of goods and book debts to secure cash credit facility dated 08.06.2023
A6	Master agreement cash credit dated 08.06.2023
A7	Letter of undertaking dated 08.06.2023
A8	Recall notice dated 10.04.2024
A9	Account extract of TL limit A/c.No.099010CN00000011
A10	Account extract of CC A/c.No.0990108700000068

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Punjab National Bank v. Discovery Ventures

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Discovery Ventures

Case brief

What is this about?

What did the court decide?

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