Allowed

Karnataka Bank Limited v. Mr Manjunatha Mudradi Upadhya

DRT27 Aug 2026OA/2847/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by The Karnataka Bank seeking issuance of a Recovery Certificate against five defendants for a loan amount of Rs. 1.91 crore. The defendants appeared ex parte, and the evidence produced by the bank was deemed uncontradicted and sufficient to prove the claim and default.

What did the court decide?

Recovery Certificate to be issued for Rs. 1,91,34,233.96 plus further interest at 12% p.a. (simple) from filing date, to be recovered jointly, severally, and personally from defendants against schedul

Karnataka Bank Limited versus Mr Manjunatha Mudradi Upadhya — Execution and Attachment | 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 August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2847/2025

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BETWEEN:

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The Karnataka Bank Manipal Addressed at No. 329-D2, RSB Sabha Bahavan, No. 16, Halevoor – Manipal, Opp. MJC Ground, Eshwar Nagar, Manipal, Udupi District-576 104. Represented by its Branch Manager & Authorized Officer, Mr. Srikantha Rao.

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…APPLICANT

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AND:

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Mr. Manjunatha Mudradi Upadhya S/o M Lakshminarayana Upadhya, Aged about 70 years, Residing at House No. 7-116-E2, Sri. Raksha, Sri Mahalingeshwara Temple Road, Parkala, Udupi-576 107.

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Dr. Mithun M Upadhaya S/o M Lakshminarayana Upadhya, Aged about 70 years, Residing at House No. 7-116-E2, Sri. Raksha, Sri Mahalingeshwara Temple Road, Parkala, Udupi-576 107.

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Also at: M/s Exceldent superspeciality dental clinic, First Floor, Himalaya Square building, Kadiyali Temple Road, Opp. Hotel Ocean Pearl, Kunjibettu, Udupi -576102 Karantaka.

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Dr. Keerthan Kumar M Upadhaya S/o M Lakshminarayana Upadhya, Aged about 37 years, Residing at House No. 7-116-E2, Sri. Raksha, Sri Mahalingeshwara Temple Road, Parkala, Udupi-576 107.

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Mrs. Geethashree Manjunath Upadhya, W/o Manjunatha Mudradi Upadhaya, Aged about 63 years, Residing at House No. 7-116-E2, Sri. Raksha, Sri Mahalingeshwara Temple Road, Parkala, Udupi-576 107.

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Also at:No. B-28, Industrial Area, Udupi, Manipal-576 105 Karantaka.

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M/s Pragathi Industries, Prop. Geethashree Manjunatha Upadhya, No. B-28, Industrial Area, Udupi, Manipal-576 105. Karnataka. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Nithin Chandra M 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 seeking issuance of Recovery Certificate against the defendants for Rs. 1,91,34,233.96/(Rupees One Crore Ninety One Lakh Thirty Four Thousand Two Hundred Thirty Three and paise Ninety Six Only) with further interest thereon from

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the date of filing the Application till realization.

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It is the case of the applicant that the defendants availed the following credit facilities from the applicant bank:-

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I. Term Loan I of a sum of Rs. 67,11,381/- (Rupees Sixty Seven lakh Eleven Thousand Three Hundred Eighty One Only) was restructured on 05.02.2014.

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II. Over draft facility of sum of Rs. 25,00,000/- (Rupees Twenty Five lakh Only) on 28.12.2020.

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III. Term Loan II of sum of Rs. 75,00,000/- (Rupees Seventy Five Lakh Only) on 02.12.2019.

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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 Letter of Attorney, Declaration letter regarding undertaking of use of funds, credit sanction intimation.

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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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 26.03.2026.

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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 A-1 to A-84 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 Mortgage as claimed by the applicant bank and the defaults committed in the accounts.

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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 findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, 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 was availed for Business 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 12.00% (simple).

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In the result, OA.No.2847/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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1,91,34,233.96/- (Rupees One Crore Ninety One Lakh Thirty Four Thousand Two Hundred Thirty Three and Paise Ninety Six Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and 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. Schedule Properties 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 and personally and their assets are liable for the 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 order.

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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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14. 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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of August, 2026].

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Sd/-

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(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: Srikantha Rao, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	05.02.2014	True Copy Term Loan Agreement
A2	7.04.2016	True Copy of letter requesting for migration from
		the present Base rate/ PLR System of interest on

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		loan and advances to Marginal Cost of funds Based Lending Rate (MCLR) System
A3	12.02.2021	True Copy Key fact statement
A4	24.02.2021	True copy key fact statement
A5	24.02.2021	True Copy Letter w.r.t Debt Restructuring Scheme
A6	24.02.2021	True Copy of the Declaration cum undertaking
A7	24.02.2021	True Copy of the Declaration by defendant No.1 to 4
A8	24.02.2021	True Copy Term Loan Agreement
A9	24.02.2021	True Copy of Application for standing instruction
A10	--	True Copy MITC of Home Loan
A11	--	True Copy EMI Extension Letter
A12	24.02.2021	True Copy Letter of acceptance of EBLR Interest System
A13	24.02.2021	True Copy Consent to disclose credit / Security information Utilities issued by defendant
A14	24.02.2021	True Copy declaration letter regarding undertaking of use of funds released by the applicant Bank for the purpose for which it obtained
A15	04.09.2019	True Copy Acknowledgement of debt
A16	23.06.2022	True Copy Acknowledgement of debt
A17	20.10.2022	True Copy Credit sanction intimation vide sanction reference AGMS/ R850/3643/2020-21/20-10-2020
A18	28.12.2020	True Copy Key Fact Statement
A19	28.12.2020	True Copy undertaking Letter
A20	28.12.2020	Tur Copy Request letter for Overdraft/ CASH Credit facilities
A21	28.12.2020	True Copy renewal of Overdraft facilities
A22	28.12.2020	True Copy Take delivery letter cum on demand Promissory Note

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A23	28.12.2020	True Copy Letter of Authority w.r.t Item No.1 to 7 of the Schedule Property
A30	28.12.2020	True Copy MITC of SUVIDHA-OD
A31	28.12.2020	True Copy undertaking Letter
A32	28.12.2020	Ture Copy Declaration letter
A33	28.12.2020	True Copy Consent for Disclose credit / security information to information utilities issued by Borrower
A34	28.12.2020	True Copy Consent to disclose credit / Security information Utilities issued by Guarantor (defendant No.4)
A35	28.12.2020	True Copy Consent to disclose credit / Security information Utilities issued by Guarantor (defendant No.5)
A36 to A37	28.12.2020	True Copy Consent for sharing/ furnishing of Aadhar details issued by Guarantor (defendant No. 1& 4)
A38	28.12.2020	Ture Copy Declaration letter issued by Guarantor (defendant No. 1)
A39	28.12.2020	Ture Copy Declaration letter issued by Guarantor (defendant No. 4)
A40	28.12.2020	Ture Copy Declaration letter issued by Guarantor (defendant No. 5)
A41	18.10.2022	True Copy Credit sanction intimation bearing Ref. No. CMRS/ CLPSC/ 32622/ 2022-23/18.10.2022
A42	29.11.2022	True Copy Key Fact Statement
A43	29.11.2022	True Copy undertaking Letter
A44	29.11.2022	True Copy renewal of Overdraft facilities
A45	29.11.2022	True Copy Request to retain account number of OD A/c even after its renewal

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A46	29.11.2022	Ture Copy Declaration letter issued by (defendant No. 1)
A47	29.11.2022	Ture Copy Declaration letter issued by (defendant No. 5)
A48	29.11.2022	Ture Copy Declaration letter issued by (defendant No. 4)
A49	29.11.2022	True Copy Take delivery letter cum on demand Promissory Note
A50	29.11.2022	True Copy Consent for disclose credit / security information to information utilities issued by Borrower
A51	29.11.2022	True Copy Consent for disclose credit / security information to information utilities issued by guarantor
A52	29.11.2022	True Copy Consent for disclose credit / security information to information utilities issued by Borrower (defendant No. 5)
A53	29.11.2022	True Copy MITC of SUVIDHA OD
A54	29.11.2022	Ture Copy Declaration letter issued by borrower (defendant No. 1)
A55	29.11.2022	True Copy Acknowledgement of debt
A56	30.11.2019	True Copy Credit sanction intimation Vide sanction reference GMS/CS-R/001/5447/2019-2030-11- 2019
A57	02.12.2019	True Copy Key Fact Statement
A58	02.12.2019	True Copy -Term Loan Agreement
A59	02.12.2019	Ture Copy Declaration letter executed by (defendant No. 1-5)
A60 to A66	02.12.2019	True Copy Letter of Authority w.r.t Item No.1 to 7 of the Schedule Property

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A67 to A71	18.11.2019	Ture Copy Declaration by co-obligants / Guarantor
A72	--	True Copy application cum Invocation request for resolution plan under Resolution Framework-2.0
A73	--	True copy Proposal for Postponement/ Rescheduling of repayment for retail loans under resolution framework-2.0
A74	--	True Copy Debt Resolution frame work-2.0 resolution of Covid 19 related stress
A75	--	True Copy Acknowledgement by borrower/ co obiligants
A76	--	True Copy Undertaking from the borrower/ Co obilgants Guarantor
A77	09.09.2022	True Copy Acknowledgement of debt
A78	12.02.2013	True Copy Memorandum of Deposit of Title Deeds
A79	29.04.2015	True Copy Memorandum of Deposit of Title Deeds
A80	09.11.2016	True Copy Memorandum of Deposit of Title Deeds
A81, A81 (a) to A81 (d)	13.08.2024	True Copy Recall Notice along with its respective receipts / online postal acknowledgement for having served the recall notice on defendants
A82	--	True copy PIRP applications i.e., C.P. (IB)/48/CHE/2025 & C.P. (IB)/54/CHE/2025 filed by defendant No. 2& 4 here in before the NCLT- Chennai
A82	--	Certified True extract of the said statement of Account of the Term Loan -1 certified as per Bankers Books of evidence -4401
A83	--	Certified True extract of the said statement of Account of the overdraft certified as per Bankers Books of evidence

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A84 -- Certified True extract of the said statement of Account of the Term Loan -2 certified as per Bankers Books of evidence

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Karnataka Bank Limited v. Mr Manjunatha Mudradi Upadhya

Case brief

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What did the court decide?

Karnataka Bank Limited v. Mr Manjunatha Mudradi Upadhya

Case brief

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