Allowed

Union Bank of India v. S K Hanumesh

DRT30 Jun 2026OA/94/2023

Case brief

AI extract

What is this about?

In an exparte original application under the RDB Act, the Tribunal found in favor of the bank due to uncontroverted documentary evidence of loan default and executed security documents. The Tribunal allowed the OA, granting a recovery certificate for the principal amount with reduced interest at 6% p.a. simple, not compound, adjustable against inherited assets and schedule properties.

What did the court decide?

Recovery Certificate issued for Rs. 60,51,775.80/- plus further interest @ 6.00% p.a. (simple) from filing date till realization, adjustable against defendants' inherited assets and schedule propertie

Union Bank of India versus S K Hanumesh — Contract and Commercial Disputes | DRT (2026)

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1 94/2023

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.94/2023

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BETWEEN:

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Union Bank of India Channapatna Branch, No. 2191/4-10, B.M. Road, Kuvempunagar, Channapatna, Channapatna Taluk, Ramanagar District-562160. Represented by its Senior Manager, Mr. Ravi Ranjan. …APPLICANT

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AND:

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Mr. S.K. Hanumesh S/o Late Sanjeevappa Aged about 70 years, R/at Komanahalli Village, Channapatna Taluk, Ramanagara District-562160.

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Mr. Santhosh Kumar T. H. S/o S.K. Hanumesh Aged about 47 years, R/at Komanahalli Village, Channapatna Taluk, Ramanagara District-562160.

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Mr. Sanjeev Kumar T. H. S/o S.K. Hanumesh Aged about 45 years, R/at Komanahalli Village, Channapatna Taluk, Ramanagara District-562160.

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Mrs. Anithalakshmi W/o Jayashankar, Aged about 49 years,

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2 94/2023

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Residing at: # 757/18, 18^th Cross, 5^th Main Road, M.C. Layout, Vijaya Nagar, Bangalore North, Bangalore- 560040. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Shivashankara A 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 for Rs. 60,51,775.80/- (Rupees Sixty Lakh Fifty One Thousand Seven Hundred Seventy Five and Paise Eighty only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that defendants No. 2 and 3 are the legal heirs of the deceased Borrower S.K. Hanumesh who availed the Crop Hi-Tech Floriculture Loan credit facility of Rs. 34,62,000/- from the applicant bank on 12.09.2016.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with Agreement for Term Loan, Demand Promissory Note, Common Deed of Hypothecation of Movable/ Assets/ Debts, Common Deed of Hypothecation of Crops/ Stocks, Deed of Simple Mortgage.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly,

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3 94/2023

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failed in complying the same, resulting in defaults in repayment 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 for 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 exparte on 07.10.2025.

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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-14 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 the 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

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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

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4 94/2023

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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 as the amount due is 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 finding arrived herein above, this 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 are availed for Construction of Polyhouse 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 6.00% (simple).

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In the result, OA.No.94/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.

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60,51,775.80/- (Rupees Sixty lakh Fifty One Thousand Seven Hundred Seventy Five and Paise Eighty only) with further interest @ 6.00% p.a. (Simple) from the date of filing OA till the realization, from the defendants No.2 and 3 to the extent of his inheritance of any estate from the deceased borrower S.K. Hanumesh 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 schedule property.

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5 94/2023

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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 amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets and the from the defendants No. 2 and 3 to extent of their inheritance of any estate from the deceased borrower S.K. Hanumesh are liable for all such amounts due

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under the loan accounts.

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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 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 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 him, corrected and signed and pronounced by me in the Open Court, this the 30^th day of June, 2026].

(T. RAJESH)

6 94/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sharon C Nelson, Senior Manager of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	12.09.2016	Loan Application submitted by the defenda	nts
A2	12.09.2016	Sanction Letter issued by Applicant/ Plai Bank	ntiff
A3	12.09.2016	Agreement for Term Loans executed defendants	by
A4	12.09.2016	Demand Promissory note executed defendants	by
A5	12.09.2016	Take Delivery Letter to DPN executed defendants	by
A6	12.09.2016	Letter of Undertaking executed by defenda in favour of Applicant Bank	nts
A7	12.09.2016	Common Deed of Hypothecation of Movab Assets/ Debts submitted by defendants	les/
A8	12.09.2016	Common Deed of Hypothecation of Cro Stocks executed by defendants	ps/
A9	08.09.2016	Deed of Simple Mortgage executed defendants	by
A10	08.09.2016	Deed of Simple Mortgage executed defendants	by
A11	31.01.2019	Demand Promissory note executed by defendant	2^nd
A12	31.01.2019	Take Delivery Letter to DPN executed by defendant	2^nd
A13	20.06.2022	Legal Notice issued by applicant / Plai Bank along with Acknowledgement	ntiff
A14	--	Certified Copy of the Statement of Acco Bearing No. 560931000160448	unt

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

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7 94/2023

Union Bank of India v. S K Hanumesh

Case brief

What is this about?

What did the court decide?

Union Bank of India v. S K Hanumesh

Case brief

What is this about?

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