Allowed

Karnataka Bank Limited v. Omkar Pharma Distributors

DRT31 Jul 2026OA/68/2022

Case brief

AI extract

What is this about?

Admitted original application (OA) under Section 19 RDB Act for recovery certificate. Found applicants proved default and existence of loan. Allowed OA with reduced interest at 12% simple p.a. and ordered recovery against defendants jointly and severally including assets.

What did the court decide?

Recovery of Rs. 63,61,551.02 with further interest at 12% p.a. simple from date of filing till realization, to be recovered from respondents jointly, severally and personally, by proceeding against sc

Karnataka Bank Limited versus Omkar Pharma… — 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 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.68/2022

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BETWEEN:

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Karnataka Bank Limited Shivamogga Main Branch, No.5, First Floor, M.G. palace Gopi Circle, Nehru Road, Shivamogga-577201, Represented by its Senior Branch Manager, Sri. Aravinda K.V.

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…APPLICANT

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AND:

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M/S. Omkar Pharma & Distributors A partnership Firm having its Office At Kuvempu Road, Opp. Zilla Panchayath Office, Shivamogga-577201, Shivamogga District, Represented by its Partners.

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Sri. Shamhulingappa M S/o Chandrashekarappa, Aged about 60 years,

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Smt. Hemalatha M.S. W/o Shambulingappa M, Aged about 53 years,

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Both 2 &3 are R/at Skanda Nilaya, Vinobanagae, 60 Feet Road, 6^th Cross, Shivamogga -577201.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : A. Ganesh Defendants : Exparte

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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. 63,61,551.02/(Rupees Sixty Three Lakh Sixty One Thousand Five Hundred Fifty One and Paise 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 defendant No.1 is the partnership firm, defendants No.2 & 3 are the partners availed the Over draft facility of Rs. 8,25,000/- from the applicant bank on 01.07.2013. The defendants availed the existing credit facility by renewing up to a limit of Rs. 22,00,000/- on time to time.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Memorandum of Deposit of Title Deeds, Sale Deed, Credit Sanction Intimation, Demand Promissory Note, Guarantee letter, Letter of Attorney.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment

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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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 30.01.2026.

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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-17 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 exparte. The evidence tendered by

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the applicant remains uncontroverted and undisputed. The evidences put

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forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of Mortgage and Hypothecation 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.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues 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 was availed for business 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 12.00% (simple).

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In the result, OA.No.68/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 63,61,551.02/- (Rupees Sixty Three Lakh Sixty One Thousand Five Hundred Fifty One and paise Two Only) with further interest @12.00 % 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

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property. Schedule Properties 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 the amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which

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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 and transferred to Recovery for execution.

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

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of this final order.

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

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

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July, 2026].

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Sd/- (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: Kiran K.S., Senior Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	01.07.2013	Sanction Order
A2	10.07.2013	Memorandum of Deposit of Title Deeds
A3	13.05.2011	Sale Deed executed by P.A. Davis in favour of Sri. Shabulingappa
A4	30.12.2015	Credit sanction Intimation
A5	08.02.2016	Letter for opening the account in the name of the defendant No.1
A6	08.02.2016	Declaration by defendant No.1 by defendants
A7	08.02.2016	Letter by defendant No.1
A8	08.02.2016	Request for overdraft facility
A9	08.02.2016	Take delivery Letter along with on demand promissory note
A10	08.02.2016	Letter by the defendants
A11	08.02.2016	Guarantee Letter
A12	08.02.2016	Hypothecation Agreement by the defendant No.1
A13	08.02.2016	Letter of Authority
A14	25.01.2019	Acknowledgement of Debt by the Defendants
A15	11.10.2017	Demand Notice u/sec 13(2) of SARFAESI Act
A16	--	Certificate
A17	--	Statement of Account
Witnes List of	s Examined Documents	for the Defendants: -Nil - Exhibited for the Defendants: -Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

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Karnataka Bank Limited v. Omkar Pharma Distributors

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Omkar Pharma Distributors

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

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