Allowed

Union Bank of India v. Puttathayamma

DRT31 Jul 2026OA/282/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Union Bank of India for issuance of a Recovery Certificate against four defendants for an unpaid agricultural loan. The defendants appeared ex parte. The claim was admitted as uncontroverted, and the Tribunal allowed it with reduced interest.

What did the court decide?

Issued Recovery Certificate for Rs.52,69,328.80 with 6% p.a. simple interest against defendants jointly, severally, and against schedule properties.

Union Bank of India versus Puttathayamma — 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 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.282/2024

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BETWEEN:

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Union Bank of India (Erstwhile Corporation Bank) Branch at: Channapatna Branch No.2191/4-10, B.M. Road, Kuvempunagar, Channapatna, Channapatna Taluk, Ramanagar District-562160 Rep. By its Senior Manager Mr. Ravi Ranjan … APPLICANT

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AND:

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Mrs. Puttathayamma – [Deceased as memo dated 14.08.2025] W/o. Late Doddathammaiah Aged about 52 years R/at. Kodipura village, Channapatna Taluk, Ramanagara District – 562160

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Mr. Madhusudan S/o. Late. Doddathammaiah Aged about 34 years R/at. Kodipura village, Channapatna Taluk, Ramanagara District- 562160

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Mrs. Usha

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W/o. Prakash H R D/o. Late Doddathammaiah Aged about 37 years R/at: Hottiganahosahalli village Malur Hobli, Channapatna Taluk, Ramanagara District-562160

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OA. No.282/2024

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Mr. Ramegowda S/o. Late Mottegowda Aged about 76 years R/at: Hottiganahosahalli village, Malur Hobli, Channapatna Taluk, Ramanagara District - 566160

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Shivashankar A 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.52,69,328.80 (Rupees Fifty Two Lakh Sixty Nine Thousand Three Hundred Twenty Eight and Eighty 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 along with deceased defendant No.1 availed the Corp Hi-Tech Floriculture loan for a sum of Rs.29,00,000/- on 25.05.2016.

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It is also the case of the applicant that, in view of the above financed credit facility, 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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OA. No.282/2024

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and 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 Nos.2 to 4 being set exparte on 21.11.2025. The defendant No.1 reported deceased and the defendant No.2 is the legal heir of deceased defendant No.1.

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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 A15 and got the same marked in evidence. 8. 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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OA. No.282/2024

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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 facility 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 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 facility was 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%

p.a.(simple).

OA. No.282/2024

In the result, OA.No.282/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.52,69,328.80 (Rupees Fifty Two Lakh Sixty Nine Thousand Three Hundred Twenty Eight and Eighty Paisa only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants No.2 to 4 and the defendant No.2 to the to the extent of inheritance of any estate from the deceased borrower, 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 jointly, severally and personally and also by proceeding against the schedule property including the hypothecation movables. 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 the amount due and payable to the applicant bank, the defendants Nos.2 to 4 jointly, severally and personally and their other assets

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are liable for all such amounts 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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OA. No.282/2024

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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 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 31^st Day of July 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Arun Ramani, Branch 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 25.05.2016	A1
2	Sanction letter dated 25.05.2016	A2
3	Demand Promissory Note dated 25.05.2016	A3
4	Take delivery letter to DPN dated 25.05.2016	A4
5	Agreement for Term loans dated 25.05.2016	A5

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OA. No.282/2024

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6	Letter of undertaking dated 25.05.2016	A6
7	Common Deed of Hypothecation of Movables/Assets/ Debts dated 25.05.2016	A7
8	Common Deed of Hypothecation of Crops/ Stocks dated 25.05.2016	A8
9	Deed of Simple Mortgage dated 23.05.2016	A9
10	Memorandum of Agreement dated 23.05.2016	A10
11	Guarantee Agreement dated 25.05.2016	A11
12	Demand promissory note dated 31.12.2018	A12
13	Take delivery letter to DPN dated 31.12.2018	A13
14	Legal notice issued dated 20.06.2022	A14
15	Certified copy of the statement of account bearing No.560931000160359	A15

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Sd/(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Puttathayamma

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Puttathayamma

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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