Allowed

Union Bank of India v. Bhaskar Munirathnam Naidu

DRT27 Aug 2026OA/93/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by the bank against the defendants for default on agricultural loans. Despite appearing ex-parte, the defendants did not file a written statement. The court held the evidence sufficient and allowed recovery of the principal amount with court-determined reduced interest.

What did the court decide?

The applicant is allowed to recover Rs.67,45,110/- plus interest at 6% p.a. from the date of the OA till realization, against the defendants jointly, severally, and personally, and against the schedul

Union Bank of India versus Bhaskar Munirathnam Naidu — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of August, 2026

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

¶5

OA. No.93/2025

¶6

BETWEEN:

¶7

Union Bank of India Robertsonpet Branch, B M Road, PB No.22, Robertsonpet, KGF Town, KGF Taluk, Kolar District, Karnataka, Rep. by its Branch Manager … APPLICANT

¶8

AND:

¶9

Sri. Bhaskar Munirathnam Naidu

¶10

Aged 53 years S/o. Sri. Munirathnam Naidu Residing at Kangandalahalli village, Kyasambahalli Hobli, Bangarpet Taluk, Kolar District – 563114

¶11

Sri. K. Munirathnam Naidu Aged major S/o. Late K M Doraswamy Naidu Residing at Kangandalahalli, Kyasambahalli Hobli, Bangarpet Taluk, Kolar District-563114

¶12

...DEFENDANTS

¶13

Counsel on record/appeared for:

¶14

Applicant : Sri. N G Ravikumar Defendants : Exparte

¶15

:FINAL ORDER:

¶16

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

¶17

OA. No.93/2025

¶18

¶19

under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.67,45,110/- (Rupees Sixty Seven Lakh Forty Five Thousand One Hundred and Ten only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶20

It is the case of the applicant that, the defendants availed CCCK loan of Rs.3,00,000/- on 20.06.2011, which later got rephased/restructured to Rs.7,92,184/- on 30.12.2020; KLS loan of Rs.6,00,000/- on 18.10.2011; CCCK loan of Rs.7,50,000/- on 12.02.2014 and CKFM loan of Rs.8,30,000/- on 04.04.2014.

¶21

It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

¶22

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 account as NPA.

¶23

OA. No.93/2025

¶24

¶25

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.

¶26

Despite, entering appearance/filing vakalath, no written statement filed by the defendants. Hence, the chance for filing written statement stands closed on 08.04.2026.

¶27

The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A78 and got the same marked in evidence.

¶28

Heard the Ld. Counsel for the Applicant and considered

¶29

the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

¶30

The following issues arise for consideration in this matter:

¶31

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

¶32

ii) What order are to be passed?

¶33

Both these issues are gone into and decided together.

¶34

OA. No.93/2025

¶35

¶36

The case put forth by the applicant in the Application remains unrebutted as defendants 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 facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.

¶37

Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

¶38

Taking into consideration the facts that the credit facilities were availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal

¶39

in view of the OA can be allowed with a reduced interest of 6.00% p.a.(simple).

¶40

OA. No.93/2025

¶41

¶42

In the result, OA.No.93/2025 stands allowed,

¶43

i) The applicant is allowed to recovery an aggregate

¶44

sum of Rs.67,45,110/- (Rupees Sixty Seven Lakh Forty Five Thousand One Hundred and Ten only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendants, 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 defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶45

ii) If the sale proceeds are not found sufficient to cover

¶46

the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan accounts.

¶47

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

¶48

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

¶49

OA. No.93/2025

¶50

¶51

order and transferred to Recovery for execution.

¶52

v) Interim Application pending, if any, stands disposed of

¶53

with this Final Order.

¶54

Communicate a copy of the order to the parties concerned

¶55

in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

¶56

DRT (Procedure) Rules, 1993.

¶57

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August 2026].

¶58

Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.93/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶63

AW-1: Sri. G Ravi, Manager of the applicant bank.

¶64

Exhibits on the part of the Applicant:

¶65

Anx	Description of the Documents	Date of
No.		Document
A1	Loan Application	20-06-2011
A2	Credit Sanction Intimation	20-06-2011
A3 A4 A5 A6	Unattested deed of hypothecation of crops/Stocks /live/Non-live stocks to secure to secure demand cash credit accounts executed by defendant No.1 On-demand promissory note Take delivery letter to DPN Declaration in Form No.3 under Rule 4 Karnataka Agricultural Credit operations and Miscellaneous provisions Rules 1975	20-06-2011 20-06-2011 20-06-2011 13-06-2011
A7 A8 A9 A10 A11 A12	Registered mortgage deed for the loan amount of Rs.3,00,000/- Guarantee Agreement executed by defendant No.2. Application for rephasement/Restructuring of loan Credit Sanction Intimation General Term loan Agreement	20-06-2011 20-06-2011 30-12-2020 30-12-2020 30-12-2020 30-12-2020

¶66

OA. No.93/2025

¶67

¶68

A13	Hypothecation agreement	30-12-2020
A14	On-demand promissory note	30-12-2020
	Letter of Continuity to On-demand promissory note
A15		30-12-2020
	Letter of Continuity for equitable mortgage/simple
A16	mortgage executed by defendant No.1.	30-12-2020
A17	SD08 Deed of Guarantee executed by defendant No.1	30-12-2020
A18	Letter of Confirmation executed by defendant No.1	09-08-2023
	SD-23 Composite debit balance confirmation letter
A19	executed by defendant No.1. Statement of accounts 12-02-2024 to 14-03-2024 with certificate - A/c No. 0003	14-03-2024
A20	Loan Application	18-10-2011
A21 A22	Credit Sanction Intimation Agreement for term loan executed by executed by defendant No.1.	18-10-2011 19-10-2011
A23	Common deed o hypothecation of /Assets movables /Debts	19-10-2011
A24	Unattested deed of hypothecation of crops /Stocks /live/Non-live stocks to secure to secure demand cash credit accounts	19-10-2011
A25	Continuity Letter executed by defendant No.1

¶69

OA. No.93/2025

¶70

¶71

A26	Guarantee Agreement executed by defendant No.2	19-10-2011
A27	Confirmation and Acknowledgment of liability executed by defendant No.1 & 2	19-10-2011 30-12-2020
A28	Application for rephasement/Restructuring of loan	12-02-2021
A29	Credit Sanction Intimation	12-02-2021
A30	General Term loan Agreement	12-02-2021
A31	Hypothecation agreement	12-02-2021
A32	On-demand promissory note	12-02-2021
A33	Letter of Continuity to On-demand promissory note	12-02-2021
A34	Letter of Continuity for equitable mortgage/simple mortgage executed by defendant No.1.	12-02-2021
A35	SD08 Deed of Guarantee executed by defendant No.2	12-02-2021
A36	Confirmation and Acknowledgment of liability executed by defendant No.1 & 2	12-02-2021 12-02-2021
A37	Letter of Confirmation executed by defendant No.1	09-08-2023
A38 A39	SD-23 Composite debit balance confirmation letter executed by defendant No.1. Statement of accounts for the period from 12-02-2024 to 14-03-2024- A/c No. 0158	14-03-2024
A40	Loan Application	12-02-2014
A41	Credit Sanction Intimation	12-02-2014

¶72

OA. No.93/2025

¶73

¶74

A42	Common deed of Hypothecation of crops /Stocks executed by the defendant No.1	12-02-2014 12-02-2014
A43 A44	On-demand promissory note Take delivery letter to DPN	12-02-2014 08-02-2014
A45	Registered simple mortgage deed executed by the defendant No. for the aggregated loan amount of Rs.8,00,000/-	12-02-2014
	Memorandum of deposit of title deeds	12-02-2014
A46	Letter of Continuity for equitable mortgage/simple	12-02-2014
A47	mortgage executed by defendant No.1.	20-11-2015
A48	Guarantee Agreement executed by defendant No.2.	20-11-2015
A49	On-demand promissory note	02-01-2017
A50	Take delivery letter to DPN	02-01-2017
A51	On-demand promissory note	26-12-2019
A52	Take delivery letter to DPN	14-03-2024
A53	Acknowledgment of debt and liability
A54	Statement of accounts 12-02-2024 to 14-03-2024 -A/c No.8680
A55	Loan Application	04-04-2014
A56	Credit Sanction Intimation	04-04-2014
A57	Agreement for term loan executed by executed by	04-04-2014

¶75

OA. No.93/2025

¶76

¶77

A58	defendant No.1.	04-04-2014
A59	Hypothecation agreement for tractors /pumpsets	04-04-2014
	Common deed of Hypothecation of crops /Stocks
A60	executed by the defendant No.1	04-04-2014
A61	On-demand promissory note	04-04-2014
A62	Take delivery letter to DPN	04-04-2014
A63	Continuity Letter	04-04-2014
A64	Guarantee Agreement executed by defendant No.2	02-04-2017
A65	On-demand promissory note	02-04-2017
A66	Take delivery letter to DPN	12-02-2021
A67	Application for rephasement/Restructuring of loan	12-02-2021
A68	Credit Sanction Intimation	12-02-2021
A69	General Term loan Agreement	12-02-2021
A70	Hypothecation agreement	12-02-2021
A71	On-demand promissory note	12-02-2021
A72	Letter of Continuity to On-demand promissory note
A73	Letter of Continuity for equitable mortgage/simple	12-02-2021
A74	mortgage	12-02-2021
A75	Letter of Confirmation	09-08-2023
	SD-23 Composite debit balance	14-03-2024
	Statement of accounts for the period from 12-02-2024 to

¶78

OA. No.93/2025

¶79

¶80

A75A	14-03-2024-Ac No. 6992 Consolidated statement of accounts	08-08-2024
A76	Office copy of the legal notice	01-05-2024
A77	Postal receipts	14-05-2024
A78	Postal acknowledgment & consignment	--------

¶81

Sd/-

¶82

(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Bhaskar Munirathnam Naidu

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Bhaskar Munirathnam Naidu

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

Icici Bank Limited versus Shilpy

Bank of India versus Sh. Hardev Singh

Bank of India versus Amarjit Kaur

Santosh Kumari versus Central Bank of India

State Bank of India versus Mokksh

Ms Tamanna Enterprises versus Indian Bank