Allowed

Karur Vysya Bank v. Omkareshwara

DRT30 Jun 2026OA/639/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for a recovery certificate. The defendants appeared ex parte. The court found the bank's evidence uncontroverted regarding availed housing loan, mortgage, and defaults, awarding a reduced simple interest rate.

What did the court decide?

Recovery Certificate issued for Rs. 49,04,092.14 with further interest @ 8% p.a. simple against defendants jointly, severally and personally. Provision for recovery through schedule property included.

Karur Vysya Bank versus Omkareshwara — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 30^th Day of June, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.639/2022

¶5

BETWEEN:

¶6

The Karur Vysya Bank Ltd., ISRO Layout Branch, No. 254, 3^rd Main Road, 8^th Cross, ISRO Layout, Bangalore, Karnataka -560078. Through its Senior Manager Mr. Srikanth S R.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. S Omkareshwara, S/o Subbaiah,

¶10

No. 117/02, Beereshwara Nagar, Chunchughatta Main Road, Konankunte, Bangalore. Karnataka- 560062.

¶11

Sri. B. Venkatesh, S/o Basavaraj, No. 37, II Floor, Beereshwaranagar, Chunchughatta Main Road, Konanakunte, Bangalore. Karnataka-560062. ...DEFENDANTS

¶12

Counsel on record/appeared for:

¶13

Applicant : Vignesh Shetty Defendants : Exparte

¶14

FINAL ORDER

¶15

The present Original Application in short (OA) has been filed under

¶16

section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 49,04,092.14/(Rupees Forty Nine Lakh Four Thousand Ninety Two and paise Fourteen Only) with further interest thereon from the date of filing the Application till realization.

¶17

It is the case of the applicant that the defendant availed the Housing Loan credit facility of Rs. 34,35,500/- from the applicant bank on 08.01.2015.

¶18

It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Demand Promissory Note, Term Loan agreement for Housing Finance, Agreement of Guarantee, Mortgage deed.

¶19

It is further contended that, despite availing the credit facility, 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.

¶20

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.

¶21

Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 07.01.2026.

¶22

The applicant had let in evidence through AW-1, who filed Proof

¶23

Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-6 and got the same marked in evidence.

¶24

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.

¶25

The following issues arise for consideration in this matter:

¶26

i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶27

ii) What order are to be passed?

¶28

Both these issues are gone into and decided together.

¶29

The case put forth by the applicant in the Application remains unrebutted as defendant 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 facility as stated in the OA, creation of Mortgage as claimed by the applicant bank and the defaults committed in the accounts. 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.

¶30

Hence in view of the findings arrived herein above, the Tribunal

¶31

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

¶32

the view that OA is to be allowed.

¶33

Taking into consideration the facts that the credit facility are

¶34

availed for Housing 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 8.00% (simple).

¶35

In the result, OA.No.639/2022, stands allowed,

¶36

i) The applicant is allowed to recovery an aggregate sum of Rs. 49,04,092.14/- (Rupees Forty Nine Lakh Four Thousand Ninety Two and Paise Fourteen Only) with further interest @8.00 % 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.

¶37

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.

¶38

iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the

¶39

order.

¶40

iv) The Recovery Certificate to be drawn in terms of this order and

¶41

transferred to Recovery for execution.

¶42

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

¶43

of this final order.

¶44

Communicate a copy of the order to the parties concerned in terms

¶45

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶46

Rules, 1993.

¶47

[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of June, 2026].

¶48

Sd/-

¶49

(T. RAJESH)

¶50

PRESIDING OFFICER

¶51

ANNEXURES

¶52

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶53

AW-1: Prema Kumar. B, Chief Manager of the applicant Bank

¶54

Exhibits on the part of the Applicant:

¶55

Annexure	Date	List of Documents
A1	09.01.2015	Demand Promissory Note executed by defendant No.1 in favour of Applicant
A2	08.01.2015	Letter of undertaking to repay in instalments executed by Defendant No.1 in favour of Applicant
A3	08.01.2015	Agreement of Guarantee executed by Defendant No.1 in favour of Applicant

¶56

A4	08.01.2015	Confirmation of Deposit of Title Deeds executed by Defendant No.1 in favour of Applicant
A5	08.01.2015	Agreement / Undertaking to create equitable mortgage executed by Defendant No.1 in favour of Applicant
A6	--	True Extract of Statement of Accounts pertaining to the defendants loan Account 1313753000001229

¶57

Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

¶58

-Nil -

¶59

Sd/-
(T. RAJESH)
PRESIDING OFFICER

Karur Vysya Bank v. Omkareshwara

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. Omkareshwara

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

Coram

Case details

Similar cases

Bank of Baroda versus M/s Anugya Enterprises

Bank of Baroda (Vijaya Bank) versus M/s Maa Sharde Agritech

Bank of Baroda versus M/s Balajee Coal Depot

Manoj Kumar Sharma versus Punjab National Bank

Sri Ram Bhagat Sharma versus Icici Bank Limited

Icici Bank Limited versus M/S Niraj Marble and Tiles and Ors.