Allowed

Union Bank of India v. Hemanth Kumar

DRT24 Jul 2026OA/548/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Union Bank of India for issuance of a Recovery Certificate against three respondents for loan defaults. The Tribunal found the evidences sufficient and the claim within limitation, permitting recovery with reduced simple interest rates.

What did the court decide?

Recovery Certificate ordered for Rs. 4,82,17,911.48 with reduced simple interest rates (12% to 14.35%) to be executed jointly and severally against the defendants.

Union Bank of India versus Hemanth Kumar — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.548/2023

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BETWEEN:

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Union Bank of India Kudumangalore Village & Post – 571 232, Somwarpet Tq., Kodagu Dist. Kudumangalore Branch

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Represented by Branch Manager Sri. Girijesh Singh …APPLICANT

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AND:

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Sri. Hemanth Kumar K K S/o. Mr. Krishnappa M P Aged about 47 years

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Sri. K K Hariprasad S/o. Mr. Krishnappa M P Aged about 39 years

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Sri. Manjunath M V S/o. Sri. Manchegowda Aged about 52 years

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All are residing at: Kudumangalore village, & post - 571 232, Somwarpet Tq., Kodagu dist. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Satyanarayana Defendants : Ex parte

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2 OA-548/2023

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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. 4,82,17,911.48/- (Rupees Forty Crore Eighty-Two Lakhs Seventeen Thousand Nine Hundred and Eleven and Paisa Forty-Eight 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 credit facilities:

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OD loan facility of Rs. 3,40,00,000/- (Rupees Three Crore Forty Lakhs Only).

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Vehicle loan of Rs. 8,76,000/- (Rupees Eight Lakhs Seventy-Six Thousand Only) for purchasing an Innova car.

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WCTLE loan facility of Rs. 9,75,000/- (Rupees Nine Lakhs Seventy-Five Thousand Only)

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FITLN loan facility of Rs. 42,00,000/- (Rupees Forty-Two Lakhs Only)

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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 hypothecation agreement.

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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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3 OA-548/2023

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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 21.03.2024.

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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-40 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

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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

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sufficient to prove availment of credit facilities as stated in the OA,

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creation of the security interest and the defaults committed in the

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4 OA-548/2023

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accounts. The liability of the defendants and the claim of the amount

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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

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find both these issues in favour of applicant and hence, this Tribunal

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is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities is

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availed for Business & Vehicle purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00% & 10.00% (simple).

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In the result, OA.No.548/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 4,82,17,911.48/- (Rupees Forty Crore Eighty-Two Lakhs Seventeen Thousand Nine Hundred and Eleven and Paisa Forty-Eight Only) consisting of:

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a. Rs. 4,24,27,777/- (Rupees Four Crore Twenty-Four Lakhs Twenty-

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Seven Thousand Seven Hundred and Seventy-Seven Only) with further interest @12.40 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 3:

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5 OA-548/2023

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b. 3,04,769/- (Rupees Three Lakhs Four Thousand Sevent Hundred and Sixty-Nine Only) with further interest @ 10.80 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 2:

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c. Rs. 11,42,548.35/- (Rupees Eleven Lakhs Forty-Two Thousand

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Five Hundred and Forty Eighty and Paisa Thirty-Five Only) with further interest @12.20 % p.a.(simple) from the date of filing OA till the realization, from the defendant no.1:

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d. Rs. 43,42,817.13/- (Rupees Forty-Three Lakhs Forty-Two Thousand Eight Hundred and Seventeen and Paisa Thirteen Only) with further interest @14.35 % p.a.(simple) from the date of filing OA till the realization, from the defendant nos.1 & 3:

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After giving credit to all the amounts recovered and received during

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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 schedule property. 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 jointly, severally and personally and their assets are liable for balance amounts due under the loan accounts.

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6 OA-548/2023

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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

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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 24^th Day of July, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Diguvapalem Venkataramana, S/o. D Reddeppa, Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exh	ibit	Particulars
A1		Loan application dt: 16.10.14
A2		Credit Sanction Intimation dt: 21.10.14.
A3 A4	&	D.P.N. & Take Delivery Letter to DPN dt: 03.03.16
A5		Letter of Undertaking dt: 03.03.16
A6	to	Registered Memorandum of DTD’s dt: 08.07.2014, 21.10.2014 &
A8		03.03.2016

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7 OA-548/2023

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A9	Guarantee Agreement dt: 03.03.16
A10	Agreement for Term Loans dt: 02.09.2015
A11	Letter of Undertakingdt: 02.09.15
A12	Agreement for Hypothecation- do
A13	DeliveryReceipt dt: 02.09.15
A14	‘B’ register Extract.
A15	Guarantee Agreement dt: 02.09.15
A16	Request Letter dt: 19.09.19.
A17	Credit Sanction Intimation dt: 27.09.19
A18 & A19	D.P.N. & Take Delivery Letter to DPN dt: 27.09.19
A20	Agreement for Term Loans dt: 27.09.19
A21	Letter of Undertakingdt: 31.12.19
A22	Credit Sanction Intimation dt: 31.12.19.
A23 & A24	D.P.N. & Take Delivery Letter to DPN dt: 31.12.19
A25	Agreement for Term Loans dt: 31.12.19
A26	Letter of Undertakings dt: 31.12.19
A27	Guarantee Agreement dt: 31.12.19
A28 & A29	D.P.N. & Take Delivery Letter to DPN dt: 03.07.18
A30	Debit Balance Conformation dt: 08.06.22
A31 & A32	D.P.N. & Take Delivery Letter to DPN dt: 15.03.20
A33 & A34	Copies of Legal Notice dt: 15.10.20 & 19.10.20
A35	Copyof Demand Notice dt: 06.04.21
A36	Copies of Legal Notice dt: 28.11.22 & Postal receipts &Acknowledgements
A37 to A40	Certified Copies of Loan Ledger Extracts

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Hemanth Kumar

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Hemanth Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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