The Tribunal allowed the Original Application filed by Union Bank of India for recovery of Rs. 23,16,000 against the defendant in ex parte proceedings. The claim related to defaulted gold loans availed on October 2023.
Recovery of Rs. 23,16,000 with 12% simple interest, costs awarded, and Recovery Certificate directed to be drawn.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA
AT BENGALURU
Dated this 31st Day of July, 2026
Present: Sri. T. RAJESH Presiding Officer OA NO.2701/2024
BETWEEN:
Union Bank of India Sri Manjunatha Arcade LLR Road, Durgaigudi Shivamogga, Karnataka – 577 201
Represented by its Branch Head Sri. Mukesh Kumar Singh …APPLICANT
AND:
Mr. Manjunath T K S/o. Krishnappa T N Aged about 44 years R/at: Harige Main Road, Near Anganavadi, Harige, Shivamogga …DEFENDANT
Counsel on record/appeared for:
Applicant : Praveen M R Defendant : Ex parte
FINAL ORDER:
of the Recovery of Debts due to Banks and Financial Institutions Act 1993 for recovery of sum of 23,16,000/- (Rupees Twenty-Three
OA-2701/2024
2
Lakhs Sixteen Thousand Only) with further interest thereon from the date of filing the Application till realization.
availed loans, the defendant executed the necessary loan document along with gold pledge form.
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 accounts as NPA.
OA-2701/2024
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Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.
Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-22 and got the same marked in evidence.
ii) What order are to be passed?
Both these issues are gone into and decided together.
OA-2701/2024
4
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 defendant and the claim of the amount due are also proved by the above document. The claim of the applicant is well within the limitation.
find both these issues are in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.
at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 10.00% (simple).
Rs. 23,16,000/- (Rupees Twenty-Three Lakhs Sixteen Thousand
Only) with further interest @12.00% p.a.(simple) from the date of filing OA till the realization, from the defendant personally, after
giving credit to all the amount recovered and received during the
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5
pendency of the OA.
ii) In the event of failure of the defendants to pay the
aforesaid amount, the bank is at liberty to proceed against the
defendant personally, and his assets are liable for all such amounts due under the loan account.
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order
and transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in
terms of this final order.
terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT
(Procedure) Rules, 1993.
[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31st Day of July, 2026].
Sd/-
(T. RAJESH) PRESIDING OFFICER
OA-2701/2024
6
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mr. Raju S M, S/o. Shri. Malleshappa G S, Manager, of
Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit | Particulars of Documents |
|---|---|
| Nos. | |
| A1 | Loan application for advances against gold ornaments/sanction letter dated 19.10.2023 |
| A2 | Demand promissory dated 19.10.2023 |
| A3 | Gold loan pledge form dated 19.10.2023 |
| A4 | Loan application for advances against gold ornaments/sanction letter dated 19.10.2023 |
| A5 | Demand promissory dated 19.10.2023 |
| A6 | Gold loan pledge form dated 19.10.2023 |
| A7 | Loan application for advances against gold ornaments/sanction letter dated 19.10.2023 |
| A8 | Demand promissory dated 19.10.2023 |
| A9 | Gold loan pledge form dated 19.10.2023 |
| A10 | Loan application for advances against gold ornaments/sanction letter dated 19.10.2023 |
| A11 | Demand promissory dated 19.10.2023 |
| A12 | Gold loan pledge form dated 19.10.2023 |
| A13 | Loan application for advances against gold ornaments/sanction letter dated 19.10.2023 |
| A14 | Demand promissory dated 19.10.2023 |
| A15 | Gold loan pledge form dated 19.10.2023 |
| A16 | Legal notice |
| A17 | Postal receipt |
| A18 | Extract of statement accounts |
OA-2701/2024
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| A19 | Extract of statement accounts |
|---|---|
| A20 | Extract of statement accounts |
| A21 | Extract of statement accounts |
| A22 | Extract of statement accounts |
| Witness | Examined for the Defendants: -Nil - |
| List of D | ocuments Exhibited for the Defendants: -Nil – |
Sd/-
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the Original Application claim exceeding the limit of 20 lakhs?
Whether the debt was outstanding and admissible under the Recovery of Debts Act?
3 provisions across 2 enactments
Union Bank of India
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
