Allowed

Union Bank of India v. H M Swamy Gowda

DRT29 May 2026OA/494/2024

Case brief

AI extract

What is this about?

The Tribunal allowed a Recovery Certificate application filed by Union Bank of India against three respondents for an agricultural and other loan default. Despite the applicants evidence remaining unrebutted due to a default hearing, the Tribunal reduced the interest rate to 6% simple per annum considering the agricultural purpose and directed recovery from properties.

What did the court decide?

Recovery Certificate allowed for Rs. 29,93,515.32 with 6% p.a. simple interest from filing date, recoverable from respondents jointly and severally via schedule properties.

Union Bank of India versus H M Swamy Gowda — 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 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.494/2024

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BETWEEN:

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Union Bank of India Head office at: No. 239, Vidhan Bhavan Marg, Nariman point, Mumbai – 400 021 Branch office at: Hunsur Branch, Old B M road,

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Near Bus stand, Hunsur – 571 105 …APPLICANT

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AND:

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Sri. H M Swamy Gowda S/o. Marilinge Gowda Aged about 60 years R/at: Habbana Kuppe Grama, Hanagodu Hobli, Hunsur Taluk, Mysuru District – 571 105

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Smt. K T Mahadevamma W/o. H M Swamy Gowda Aged about 53 years R/at: Habbana Kuppe Grama, Hanagodu Hobli, Hunsur Taluk, Mysuru District – 571 105

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Sri. H S Raja Shekar S/o. Sanne Gowda Aged about 63 years R/at: Habbana Kuppe Grama, Hanagodu Hobli, Hunsur Taluk, Mysuru District – 571 105 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : C B Prabu Rao Defendants : Ex parte

OA-494/2024

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 29,93,515.32/- (Rupees Twenty-Nine Lakhs Ninety-Three Thousand Five Hundred and Fifteen and Paisa Thirty-Two 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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AGTL of Rs. 5,40,000/- (Rupees Five Lakhs Forty Thousand Only) for agricultural purpose.

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CCCK of Rs. 11,74,000/- (Rupees Eleven Lakhs Seventy-Four Thousand Only) for the purpose of reimbursement of expenses.

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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 mortgage deed.

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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 Tribunal by filing this OA seeking issuance of Recovery Certificate for

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OA-494/2024

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the amount due in the account.

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Despite, entering appearance/filing vakalat, no written statement filed. Hence, the chance for filing written statement stands closed on 20.03.2025.

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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-36 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-494/2024

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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 is availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.494/2024 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 29,93,515.32/- (Rupees Twenty-Nine Lakhs Ninety-Three Thousand Five Hundred and Fifteen and Paisa Thirty-Two Only) with further interest @6.00 % 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 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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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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OA-494/2024

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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 the Open Court, this the 29^th Day of May, 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 Pradeep Kumar E V, S/o. E Thulasinaik, Manager, of Applicant Bank.

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OA-494/2024

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Exhibits on the part of the Applicant:

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S N	DESCRIPTION
1.	Ann-A1Copy of loan application dated 30.08.2012.
2.	Ann-A2Copy of the sanction dated 30.08.2012
3.	Ann-A3Copy of Letter of undertaking dated 30.08.2012
4.	Ann-A4Copy of Common Deed of Hypothecation dated Common Deed of Hypothecation dated 30.08.2012
5.	Ann-A5Copy of Guarantee Agreement dated 30.08.2012
6.	Ann-A6Copy of Letter of consent for disclosure of information dated 30.08.2012
7.	Ann-A7Copy of agreement for term loan dated 30.08.2012
8.	Ann-A8Copy of Acknowledgment of Debt dated 15.06.2015
9.	Ann-A9Copy of Acknowledgment of Debt dated 02.06.2018
10.	Ann-A10Copy of Acknowledgment of Debt dated 01.06.2021
11.	Ann-A11Copy of request for restructure undated
12.	Ann-A12Copy of advice for rephasing dated 18.09.2019
13.	Ann-A13Copy of sanction dated 08.07.2013
14.	Ann-A14Copy of renewal application dated 05.02.2014
15.	Ann-A15Copy of format sanction dated 05.02.2014
16.	Ann-A16Copy of Demand promissory Note dated 7.2.2014
17.	Ann-A17Copy of Take Delivery Letter to DPN dated 07.02.2014
18.	Ann-A18Copy of letter of undertaking dated 07.02.2014
19.	Ann-A19Copy of loan letter of authorization cum undertaking undated
20.	Ann-A20Copy of Common deed of Hypothecation dated 07.02.2014
21.	Ann-A21Copy of Guarantee Agreement dated 07.02.2014
22.	Ann-A22Copy of Acknowledgment of debt dated 23.5.2016
23.	Ann-A23Copy of Acknowledgment of debt dated 24.5.2016

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OA-494/2024

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24.	Ann-A24Copy of request for rephase dated 19.12.2019
25.	Ann-A25Copy of Advice of rephasing repayment schedule dated 19.12.2019
26.	Ann-A26Copy of letter requesting for conversion of crop loan to term loan dated 19.12.2020
27.	Ann-A27Copy of Amended agreement to rephase dated 19.12.2019
28.	Ann-A28 to A31Copy of mortgage deed
29.	Ann-A32Copy of Legal notice dated 30.11.2023
30.	Ann-A33 and A34Postal receipts and served acknowledgments
31.	Ann-A35Copy of statement of account bearing loan account No.560931000192897
32.	Ann-A36Copy of statement of account bearing loan account No. 560961000451773 along with Certificate as per Banker’s Banker’ s Book Evidence Act
Witne	ss Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. H M Swamy Gowda

Case brief

What is this about?

What did the court decide?

Union Bank of India v. H M Swamy Gowda

Case brief

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What did the court decide?

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