In an original application for a recovery certificate under the RDB Act, the Tribunal allowed the applicant Bank's claim for principal and interest against defaulting borrowers despite their ex-parte absence, capping interest at 10% simple.
Recovery Certificate directed for the aggregate sum of Rs.22,41,865.90 plus interest at 10% p.a. (simple) from filing date.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 30th Day of June, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.826/2024
BETWEEN:
Bank of India J.C. Road Branch, # 4/2, OTC Road, Off J.C Road, Behind LIC Building, Near Sharada Talkies, Bangalore- 560 002. Represented by its Chief Manager and CA, Sri. Manoranjan Mishra.
…APPLICANT
AND:
...DEFENDANTS
Counsel on record/appeared for:
Applicant : M Kumar Defendants : Exparte
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FINAL ORDER
3 826/2024
Both these issues are gone into and decided together.
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 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
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well within the limitation.
a. Rs.22,25,415.22 /- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization with respect to the Term Loan Facility and
b. Rs.16,450.62/- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization with respect to Cash Credit Facility 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 proceedings against the defendant
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and their assets including the schedule hypothecation. Schedule to the
OA be the schedule to the recovery certificate.
ii) 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 order.
iii) The Recovery Certificate to be drawn in terms of this order and
transferred to Recovery for execution.
iv) Interim application pending, if any, stands disposed of in terms
of this final order.
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30th Day of June, 2026].
Sd/-
PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mrs. Sabeena, Chief Manager of the applicant Bank
Exhibits on the part of the Applicant:
| Annexure | Date | List of Documents |
|---|---|---|
| A1 | 01.10.2019 | Loan Application |
| A2 | 01.10.2019 | On Demand Promissory Note |
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| A3 | 01.10.2019 | Bearer Letter |
|---|---|---|
| A4 | 01.10.2019 | Installment Letter |
| A5 | 01.10.2019 | Authorization Letter |
| A6 | 01.10.2019 | Hypothecation cum Loan Agreement |
| A7 | 01.10.2019 | Draft Declaration to be obtained from the Borrower |
| A8 | 01.10.2019 | Composite Loan Agreement |
| A9 | 01.10.2019 | MCLR Format |
| A10 | 01.10.2019 | Stamped Letter of Undertaking |
| A11 | 01.10.2019 | On demand promissory note |
| A12 | 01.10.2019 | Bearer Letter |
| A13 | 01.10.2019 | Draft Declaration to be obtained from the Borrower |
| A14 | 01.10.2019 | Composite Loan Agreement |
| A15 | 01.10.2019 | MCLR format |
| A16 | 01.10.2019 | Stamped letter of Undertaking |
| A17 | 01.10.2019 | Stamped letter of Undertaking |
| A18 | 01.10.2019 | Stamped letter of Undertaking |
| A19 | 01.10.2019 | Draft |
| A20 | 21.01.2022 | Legal Notice |
| A21 | -- | Certified Copy of the statement of account (TL A/c No. 840777710000013) with Certificate |
| A22 | -- | Certified Copy of the statement of account (TL A/c No. 840730110000121) with Certificate |
Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:
-Nil -
-Nil –
Sd/- (T. RAJESH) PRESIDING OFFICER
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2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
1 provisions across 1 enactments
Bank of India J.C. Road Branch
Kiran Concrete Blocks (A Proprietor Concern)
Mr. Kiran B M
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
