Allowed

Karur Vysya Bank v. Dakshyini Venugopal and Others

DRT23 Feb 2026OA/319/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by the bank under Section 19 of the RDB Act, 1993. Due to the ex parte nature of the hearing and undisputed evidence of loan default, the bank was granted a Recovery Certificate for the principal amount and future interest but at a reduced rate of 8% simple interest.

What did the court decide?

Recovery Certificate issued for Rs.1,28,83,867.33 plus 8% simple interest post-filing.

Karur Vysya Bank versus Dakshyini Venugopal and Others — Insurance | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 23^rd Day of February, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.319/2024

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BETWEEN:

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The Karur Vysya Bank limited Registered office at: Erode Road, Karur, Tamil Nadu Branches Office At: No. 549, avenue road, main Branch, Bangalore – 560 002

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Represented by its Chief Manager

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Sri. S R Mahadevan …APPLICANT

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AND:

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Smt. Dakshayini Venugopal W/o. Sri. Venugopal C K Aged about 41 years

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Sri. Venugopal C K S/o. Sri. C Krishnamurthy Aged about 50 years

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Both are r/at: No.266, ‘Lakshmi Nilaya’, Kariyannapalya, St. Thomas Town Post, Bangalore – 560 084

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OA. No. 319/2024

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Smt. Lakshmi Jayaram W/o. Sri. Jayarama Lakhminarayanappa Aged about 49 years R/at: no. 108, ‘Lakshmi Nilaya’, 5^th Near Kathriguppe Water Tank, BSK III Stage, 1^st Block, 3^rd Phase, Bangalore – 560 085

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Sri. Jayarama Lakshminarayanappa Alias L Jayarama Chartered accountant, S/o. late. Lakshminarayanappa Aged about 59 years R/at: No. 7, Ground Floor, 9^th Main, 2^nd Block, Jayanagar, Bangalore – 560 011

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Sri. G V Nagaraja Reddy S/o. Sri. G T Venkataswamy Reddy Since Deceased by His Lrs.

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5(a). Smt. N Sudha W/o. Late G V Nagaraja Reddy Major

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5(b). Smt. G N Dhruthi D/o. Late G V Nagaraja Reddy Major

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5(c). Smt. G N Rashmi D/o. Late G V Nagaraja Reddy Major,

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Defendants 5(a to c) are r/at: Gunjur Village & Post, Varthur Hobli, Bangalore East Taluk, Bangalore – 560 087

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OA. No. 319/2024

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M/s. N D Developers Pvt. Ltd Having its registered office at: No. 398, 1^st floor, 7^th cross, MICO layout, BTM 2^nd stage, Bangalore – 560 076 Represented by its Managing Director Sri. M K K Durani ...DEFENDANTS

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Counsel on record/appeared for: Applicant : T Mohandas Rao Defendant’s no.1 to 4, 5(a to c) & 6 : Ex parte Defendant no. 5 : Deceased

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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. 1,28,83,867.33/- (Rupees One Crore Twenty Right Lakhs Eighty Three Thousand Eight Hundred and Sixty Seven and Paisa Thirty Three 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, defendant nos.1 to 3, are availed an housing loan of Rs. 2,00,00,000/- (Rupees Two Crores only) for to purchase a residential villa.

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OA. No. 319/2024

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It is also the case of the applicant that, in view of the above financed credit facility, the deceased borrower Sri. G V Nagaraja Reddy, executed necessary loan documents. Apart from the creation of security interest by way of hypothecation agreement over the schedule property.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, borrower failed in complying the same, resulting in defaults 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, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 02.01.2025.

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The applicant let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A27 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 the proof affidavit.

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OA. No. 319/2024

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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 orders 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 ex parte. 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 are

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availed for housing purpose and also that the OA claim is arrived

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OA. No. 319/2024

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at by calculating interest at the agreed rate, this Tribunal is the

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view that the OA can be allowed with a reduced interest of 8.00%(simple).

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In the result, OA.No.319/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 1,28,83,867.33/- (Rupees One Crore Twenty Right Lakhs Eighty Three Thousand Eight Hundred and Sixty Seven and Paisa Thirty Three Only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization, from the defendant nos. 5(a) to (c) to the extent of their inheritance of any estate of deceased borrower Sri. G V Nagaraja Reddy, after giving credit to all the amount recovered and be recovered 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 sufficient to clean the liability defendant nos. 5 (a) to (c) are liable to the extent of estate they inherited from deceased Sri. G V Nagaraja Reddy for the balance amount.

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OA. No. 319/2024

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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 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 in

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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 (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 23^rd Day of February, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Shachi Singh, Legal Officer, of the applicant bank.

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OA. No. 319/2024

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Affidavit in Lieu Of Evidence
A2	List of exhibits
A3	Sharing Agreement Dated 24.07.2014
A4	Agreement of sale & construction dated 20.11.2015
A5	Sanction letter dated 20.01.2016
A6	Term loan agreement dated 20.01.2016
A7	Agreement ofguarantee dated 20.01.2016
A8	Agreement cum undertaking to create equitable mortgage dated 20.01.2016
A9	Term loan agreement for housing finance dated 20.01.2016
A10	Confirmation letter dated 19.01.2016
A11	Tripartite agreement dated 20.01.2016
A12 to A18	Legal notice dated 06.06.2022, postal receipts and postal acknowledgements
A19	Recall notice dated 28.07.2022
A20 to A26	Legal notice dated 31.01.2023, postal receipts and postal acknowledgements
A27	Extracts of the statement of account

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

Karur Vysya Bank v. Dakshyini Venugopal and Others

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. Dakshyini Venugopal and Others

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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