Allowed

Punjab National Bank v. Babu R Rathod and Another

DRT8 Jan 2026OA/325/2024

Case brief

AI extract

What is this about?

DRT allowed an OA for issuance of a recovery certificate for loans availed for agricultural and vehicle purposes. The court, due to unavailability of defendants and high claimed interest, granted recovery at reduced simple interest rates.

What did the court decide?

Issuance of Recovery Certificate for Rs. 23,98,138.67 plus reduced interest @ 6.00% and 10.00% simple p.a. from filing date till realization.

Punjab National Bank versus Babu R Rathod and Another — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 08^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.325/2024

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BETWEEN:

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Punjab National Bank Head office at: Plot no. 4, sector 10, Dwaraka, New Delhi – 110 075 Branches at: Srinivasa Saradgi, Gulbarga Taluk, Gulbarga Dist. Gulbarga Karnataka – 585 101

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Represented by its officer and GPA holder

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Sri. Sanjeev Vithal Deshpande …APPLICANT

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AND:

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Sri. Babu R Rathod S/o. Sri. Ramachandra Aged about 44 years Residing at: No. 5/6, Sri. Saradagi, H No. 0 To 47, Srinivas Saradagi Gulbarga – 585 285

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Sri. Arjun Gopal Power S/o. Sri. Gopal Power Aged about 32 years Tukarma Nayak Tamde, Srinivas Sardagi, Gulbarga – 585 102 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : S R Narayanappa Defendants : Ex parte

OA-325/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 23,98,138.67/- (Rupees Twenty Three Lakhs Ninety Eight One Hundred and Thirty Eight and Paisa Sixty Seven Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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KCC loan of Rs. 90,000/- (Rupees Ninety Thousand Only) for purchase of drip irrigation materials.

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KCC of Rs. 7,28,000/- (Rupees Seven Lakhs Twenty Eight Thousand Only) on 13.07.2011.

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Agricultural term loan of Rs. 55,000/- (Rupees Fifty Thousand Only) for purchase of two wheeler for agricultural.

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Vehicle loan of Rs. 6,00,000/- (Rupees Six Lakhs Only) for the purpose of purchase of new car-Maruti Suzuki India ltd., swift desire tour diesel BSIV car.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with deed of mortgage.

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It is further contended that, despite availing the credit facilities, 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 accounts as NPA.

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In the above circumstances, the applicant approached this

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OA-325/2024

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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 05.09.2024.

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The applicant had let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-33 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 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 facilities as stated in the OA, creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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OA-325/2024

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due are also proved by the above document. 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 are 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 are

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availed for Agricultural and Vehicle purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this

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Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% & 10.00% (simple).

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In the result, OA.No.1796/2023 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 23,98,138.67/- (Rupees Twenty Three Lakhs Ninety Eight One

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Hundred and Thirty Eight and Paisa Sixty Seven Only) with further interest @6.00 % & 10.00 % p.a.(simple) from the date of filing OA

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till the realization, from the defendants jointly, severally and personally, 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 the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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OA-325/2024

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants

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jointly, severally and personally and their assets are liable for all such

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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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 order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of 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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 08^th Day of January, 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 Vaidyam Nagaraju, S/o. V Srinivasa Rao, Senior Manager, of Applicant Bank.

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OA-325/2024

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A3	Application form cum sanction for OGC facility dated 05.03.2011 from the 1^stdefendant
A4	Agreement for hypothecation dated 05.03.2011 for a sum of Rs. 90,000/-executed by the 1^stdefendant
A5	Deed of mortgage deed of agricultural land dated 08.03.2011 executed by the 1^stdefendant in favour of the bank
A6	Application form for agricultural credit card dated 13.07.2011 from the 1^stdefendant
A7	Letter of sanction for term loan dated 13.07.2011 for crop loan of Rs. 7.28 lakhs by the bank duly acknowledged by the 1^stdefendant
A8	Agreement for hypothecation of existing and future crops/movable assets/livestock to secure a cash credit account of OGC dated 13.07.2011 for a sum of Rs. 7.28 lakhs
A9	Letter of undertaking executed by the 1^stdefendant dated 13.07.2011 that they will not avail any loan from any other bank
A10	Letter of consent (revised) executed by the 1^stdefendant dated 13.07.2011 that they will not avail any loan from any other bank
A11	Deed of mortgage deed of agricultural land dated 13.07.2011 executed by the 1^stdefendant in favour of the bank
A12	Application form cum sanction for agricultural credit facility dated 10.04.2013 from the 1^stdefendant
A13	Agreement for hypothecation of existing and future crops/movable assets/livestock to secure a cash credit account of OGC dated 10.04.2013 for a sum of Rs. 55,000
A14	Letter of consideration dated 10.04.2013 executed by the defendant no .1
A15	Mortgage deed dated 09.04.2013 executed by the defendant no.1 in favour of the bank for sum of Rs. 55,000/-
A16	Application for car/vehicle loan-sanction letter dated 20.05.2017 from the Arjun Gopal Pawer
A17	Letter of hypothecation for (car loan) of Rs. 6.00 lakhs dated 22.05.2017 duly executed by the 1^stdefendant
A18	Agreement guarantee dated 22.05.2017 for a sum of Rs. 6.00 lakhs in favour of the bank by the Arjun Gopla Pawer
A19	The first defendant has executed balance and security confirmation letter dated 23.03.2011 confirming the balance of Rs. 3,18,319/-in respect of ac. No. 88-1949

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OA-325/2024

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A20	The first defendant has executed balance and security confirmation letter dated 04.04.2013 confirming the balance of Rs. 7,71,687/-in respect of Ac. No. 88-1949
A21	The first defendant has executed balance and security confirmation letter dated 04.04.2013 confirming the balance of Rs. 73,710/-in respect of Ac. No. AL-55
A22	The first defendant has executed balance and security confirmation letter dated 01.03.2014 confirming the balance of Rs. 62,710/-in respect of Ac. No. AL-55
A23	The first defendant has executed balance and security confirmation letter dated 15.04.2015 confirming the balance of Rs. 57,912/-in respect of Ac. No. AL-57
A24	The first defendant has executed balance and security confirmation letter dated 15.04.2015 confirming the balance of Rs. 73,439/-in respect of Ac. No. AL-55
A25	The first defendant has executed balance and security confirmation letter dated 15.04.2015 confirming the balance of Rs. 8,31,218.26/-in respect of Ac. No. 88-1949
A26	The first defendant has executed balance and security confirmation letter dated 28.12.2016 confirming the balance of Rs. 73,087/-in respect of Ac. No. AL-55
A27	The first defendant has executed balance and security confirmation letter dated 06.12.2019 confirming the balance of Rs. 5,23,108/-in respect of Ac.no. AJ-51 & NG-2638
A28	The first defendant has executed balance and security confirmation letter dated 06.12.2019 confirming the balance of Rs. 13,86,396.23/-in respect of Ac. No. AL-55 & AE977
A29	The legal notice dated 28.04.2023 in (3 no’s)
A30	Account extract no. 284900AL00000055
A31	Account extract no. 284900AL00000977
A32	Account extract no. 284900AL00000051
A33	Account extract no. 019200NG00002638
Witness	Examined for the Defendants: -Nil -
List of D	ocuments Exhibited for the Defendants: -Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

Punjab National Bank v. Babu R Rathod and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Babu R Rathod and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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