Allowed

Karur Vysya Bank v. Shivanna D

DRT29 May 2026OA/949/2023

Case brief

AI extract

What is this about?

The DRT restored a vehicle loan application filed by Karur Vysya Bank against a defaulting borrower. Finding the claim valid and uncontroverted in ex parte proceedings, the Tribunal allowed the OA for sum principal with 12% simple interest and issued a recovery certificate enforceable against personal and hypothecated assets.

What did the court decide?

Recovery Certificate issued for Rs. 22,42,388.21 plus 12% p.a. simple interest from date of OA till realization, enforceable against defendant and hypothecated assets.

Karur Vysya Bank versus Shivanna D — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.949/2023

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BETWEEN:

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Karur Vysya Bank Ltd. Head Office at Erode, Karur, Also having branch at J C Road, Ashraff Commercial Complex, J C Road, Bengaluru-560 002. Represented by its Senior Branch Head, Mr. Ananth Krishna A.

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…APPLICANT

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AND:

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Mr. Shivanna D S/o Devegowda, Aged about 52 years, Residing at #260, 12^th A Main, 6^th Block , Rajaji Nagar, Bengaluru North, Bengaluru-560 010.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Thejas Rai K & Savitha Shetty 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. 22,42,388.21/-

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OA 949/2023

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(Rupees Twenty Two Lakh Forty Two Thousand Three Hundred Eighty Eight and Paise Twenty One 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 availed vehicle loan facility of Rs. 22,50,000/- (Rupees Twenty Two Lakh Fifty Thousand Only) on 03.12.2015.

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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 Application of Loan, Sanction Letter, hypothecation of Motor Vehicle agreement.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendant failed in complying the same, resulting in default 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 issuance of Recovery Certificate for the amount due in the account.

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Despite, summons the defendant, he failed to appear, resulting the defendant being set exparte on 28.04.2025.

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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-9 and got the same marked in evidence.

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OA 949/2023

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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 defendant?

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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 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 facilities as stated in the OA, creation of hypothecation and the defaults committed in the accounts. The liability of the defendant 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 facility was

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OA 949/2023

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availed for Vehicle purchase purpose and also that the OA claim is arrived

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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.949/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 22,42,388.21/- (Rupees Twenty Two Lakh Forty Two Thousand Three Hundred Eighty Eight and Paise Twenty One Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, after giving credit to all the amount recovered

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and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendant personally and his assets including the hypothecated assets.

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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.

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) 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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OA 949/2023

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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 29^th Day of May, 2026].

Sd/-
(T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Madesh, Manager of Applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	02.12.2015	Loan application
A2	03.12.2015	Sanction Letter
A3	03.12.2015	Hypothecation of Motor Vehicle Agreement
A4	03.12.2015	Demand Promissory Note
A5	03.12.2015	Letter of Undertaking
A6	03.12.2015	Letter to the Applicant by Defendant giving right to seize the hypothecation vehicle.
A7	03.12.2015	Letter of authority authorizing the Applicant to make payment to the suppliers at the instance of and/ or on behalf of the Defendant
A8	13.01.2023	Recall Notice
A9	--	True Extract of statement of accounts pertaining to the defendants Loan Accounts along with

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OA 949/2023

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Certificate under section 2a of Banker ‘s Book evidence act, 1891.

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

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

Karur Vysya Bank v. Shivanna D

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. Shivanna D

Case brief

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