Allowed

Union Bank of India v. Sri Nandan M

DRT29 May 2026OA/276/2024

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. The court found the bank's evidence uncontroverted due to the defendants' absence, approved the principal claim, and ordered a reduced simple interest rate of 6% p.a.

What did the court decide?

Recovery Certificate to be drawn for Rs.21,43,550.30 plus 6% p.a. simple interest from filing date, recoverable jointly and severally against the personal assets and schedule property of defendants.

Union Bank of India versus Sri Nandan M — 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 26^th Day of May, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.276/2024

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BETWEEN:

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Union Bank of India B H Road, Shivamogga Branch 1^st floor, Omkar Omate Building, Near Bhima Jewelers, Shivamogha, Karnataka -577201 Through its Chief Manager Sri. Y Shashidhara

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… APPLICANT

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AND:

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Sri. Nandan M

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S/o. Malleshappa Aged about 39 years R/o. 277, Agardalli village Holehonnur Hobli, Bhadravathi Taluk, Shivamogga, Karnataka-577277

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Chandramma - deceased Rep. by GPA Holder of Defendant No.1 W/o. Halappa Aged about 98 years R/o. 277, Agaradalli village, Holehonnur Hobli, Bhadravathi Taluk, Shivamogga, Karnataka-577277

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Sri. M H Malleshappa S/o. Halappa Aged about 71 years R/o. 277, Agaradalli village,

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OA. No.276/2024

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Holehonnur Hobli, Bhadravathi Taluk, Shivamogga, Karnataka - 577277

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Vignesh Shetty 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 for seeking issuance of Recovery Certificate against the defendants for Rs.21,43,550.30 (Rupees Twenty One Lakh Forty Three Thousand Five Hundred Fifty and Thirty Paisa 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 availed credit facility of Rs.5,00,000/- on 06.06.2016 and Rs.7,50,000/on 02.06.2016 towards agricultural purposes.

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

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and

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OA. No.276/2024

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regularly, the defendants 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 No.1 and 3 being set exparte on 28.04.2025. The applicant submits that, the defendant No.2 is deceased and the defendant No.3 is the legal heir of defendant No.2.

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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 A19 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

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claim as against the defendants?

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OA. No.276/2024

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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

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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 security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendants and the claim of the amount due are also

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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 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 facilities

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were availed for agricultural 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 of 6.00%

OA. No.276/2024

p.a.(simple).

In the result, OA.No.276/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.21,43,550.30 (Rupees Twenty One Lakh Forty Three

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Thousand Five Hundred Fifty and Thirty Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant No.1 and 3 and defendant No.3 to the extent of inheritance of any estate from the deceased defendant No.2, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendants No.1 and 3 jointly, severally and personally and also 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) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendants No.1 and 3 jointly, severally and personally and their other assets and the defendant No.3 to the extent of inheritance of any estate from the deceased defendant No.2 are liable for all such amounts

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OA. No.276/2024

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due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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which applicant to file cost memo within 7 days from the date of

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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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with this Final Order.

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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 of

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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 29^th Day of May 2026].

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(T. RAJESH) PRESIDING OFFICER

OA. No.276/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ramana Reddy Chukka, Chief 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
1	Loan application dated 04.06.2016	A1
2	Sanction letter dated 06.06.2016	A2
3	Loan application dated 02.06.2016	A3
4	Sanction letter dated 02.06.2016	A4
5	Mortgage deed dated 06.06.2016	A5
6	Common deed of hypothecation dated 06.06.2016	A6
7	Agreement for term loans dated 06.06.2016	A7
8	Letter of undertaking dated 06.06.2016	A8
9	Composite debit balance confirmation with securitydated 27.09.2021	A9
10	Common deed of hypothecation dated 10.06.2016	A10
11	Demand promissory note dated 10.06.2016	A11
12	Take delivery to demand promissory note dated 10.06.2016	A12
13	Letter of Authority dated 10.06.2016	A13
14	Acknowledgment of debts dated 02.03.2019	A14
15	Composite debit balance confirmation with securitydated 27.09.2021	A15
16	Re-call notice dated 25.10.2021	A16

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OA. No.276/2024

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17	Legal notice dated 17.07.2023	A17
	True extract of statement of account pertaining
18	to the defendants’ aforesaid loan account No.560941000217180	A18
	True extract of statement of account pertaining
19	to the defendants’ aforesaid loan account No.560961000298415	A19

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Sri Nandan M

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Sri Nandan M

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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