Allowed

Union Bank of India v. Ms Future Fitness

DRT30 Jun 2026OA/969/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for a Recovery Certificate against defaulting borrowers. The unopposed evidence proved credit facility availing and defaults. The court directed recovery of the principal sum with reduced interest rates.

What did the court decide?

Issued a Recovery Certificate for Rs. 3.20 Crores with further interest at reduced simple rates of 8%, 10%, 12%, 7% and 7% from filing date till realization.

Union Bank of India versus Ms Future Fitness — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.969/2023

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BETWEEN:

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Union Bank of India Jayanagar Branch, No. 261, 22^nd cross, 9^th , “A” Main, 3^rd Block, Jayanagar Bengaluru – 560 011

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Represented by its Senior Manager Sri. Shivaprashanth M …APPLICANT

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AND:

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M/s. Future Fitness Proprietor: KY Srinivasamurthy S/o. Yalakkaiah Aged about 44 years

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K P Swetha W/o. K Y Srinivasamurthy

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Aged about 36 years

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Defendant no.1 to 2 Rep: Flat No. S-5, 2^nd block, “C” block, Himagiri green forest apartments, Silver Oak Street, 1^st cross, Silver Oak Layout, Puttenahalli, Vinayakanagar, 7^th phase, JP Nagar, Bengaluru – 560 078

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OA-969/2023

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Anitha Bhati W/o. Late Ranveer Singh Bhati Aged about 36 years R/at: Magan Silver Apartments 1^st main road, Chikkalasandra, Bengaluru – 560 061 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. M R Rajini Defendants : Ex parte

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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 for issuance of Recovery Certificate against the defendants for Rs 3,20,04,202/- (Rupees Three Crore Twenty Lakhs Four Thousand two hundred and 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 defendants are availed the credit facilities:

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Housing loan of Rs. 28,39,000/- (Rupees Twenty-Eight Lakhs Thirty-Nine Thousand Only) for take over of housing loan from other bank/financial institution.

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Car loan of Rs. 40,00,000/- (Rupees Forty Lakhs Only) for Purchase of Mercedes Benz Car.

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Overdraft Loan of Rs. 3,10,000/- (Rupees Three Lakhs Ten Thousand Only) for to meet business expenses.

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Personal Loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) for to meet domestic expenses.

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OA-969/2023

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Cash Credit Limit of Rs. 2,00,00,000/- (Rupees two crores Only) for working capital requirement.

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UGEL Term loan of Rs. 11,53,000/- (Rupees Eleven lakhs FiftyThree Thousand Only) for Working Capital.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with hypothecation agreement.

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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 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, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 21.10.2025.

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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-56 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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OA-969/2023

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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 ex parte. 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,

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and the defaults committed in the accounts. The liability of the defendants and the claim of 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, the Tribunal

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finds that both these issues are 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 is

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availed for Housing, Car, OD, Personal, Cash Credit limit & UGEL term loan purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA

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OA-969/2023

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can be allowed with a reduced interest of 8.00%, 10.00%, 12.00%,

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7.00% & 7.00% (simple).

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In the result, OA.No.969/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 3,20,04,202/- (Rupees Three Crore Twenty Lakhs Four Thousand two hundred and two Only) with further interest 8.00%, 10.00%, 12.00%, 7.00% & 7.00% (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 the schedule properties. 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

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amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for all such amounts due 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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OA-969/2023

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

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and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of June, 2026].

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Sd/-

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(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 Aswathy S, W/o. Syammohan S V, Senior Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibits	Date	Description of loan documents
A-1	23.11.2013	Sanction letter
A-2	25.11.2013	Agreement for term loans
A-3	23.06.2017	Application for seeking permission for migration of housing loan
A-4	07.06.2017	Consent letter for migration
A-5	04.08.2016	Take delivery letter to DPN
A6	04.08.2016	Loan application
A7	03.05.2019	Credit sanction intimation
A8	07.09.2017	Agreement for term loans
A9	07.09.2014	Agreement for hypothecation of vehicles
A10	08.09.2017	Demand promissory note

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OA-969/2023

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A11	08.09.2017	Take delivery letter
A12	30.05.2020	Simple debit balance confirmation
A13	30.05.2020	Request for overdraft facility/cash credit limit
A14	16.06.2021	Credit sanction intimation
A15	03.05.2018	Agreement for overdraft/cash credit
A16	03.05.2018	Demand promissory note
A17	03.05.2018	Take delivery note
A18	03.05.2018	Simple debit balance confirmation
A19	03.05.2018	Loan application
A20	02.05.2021	Sanction letter
A21	06.05.2020	Demand promissory note
A22	06.05.2020	Undertaking letter
A23	06.05.2020	General term loan agreement
A24	06.05.2020	Interest agreement
A25	04.06.2021	Offer cum acceptance letter
A26	26.11.2013	Request for overdraft facility/cash credit limit
A27	17.01.2015	Supplemental common deed of hypothecation of movables/assets/debts
A28	26.11.2013	Guarantee agreement
A29	14.01.2015	Credit sanction intimation
A30	17.01.2015	Request for overdraft facilities/cash credit
A31	17.01.2015	Demand promissory note
A32	17.01.2015	Take delivery letter to DPN
A33	17.01.2015	Agreement for loans against shares securities
A34	17.01.2015	Guarantee agreement
A35	22.06.2016	Demand promissory note
A36	22.06.2016	Take delivery letter to DPN
A37	22.06.2016	Supplemental common deed of hypothecation of movables
A38	22.06.2016	Guarantee agreement
A39	09.11.2017	Request for overdraft facility/cash credit limit
A40	09.11.2017	Demand promissory note
A41	09.11.2017	Take delivery letter to DPN
A42	09.11.2017	Supplemental common deed of hypothecation of movables
A43	09.11.2017	Guarantee agreement
A44	09.11.2017	General power of attorney for book debts and supple bills
A45	05.12.2018	Take delivery letter to DPN
A46	03.03.2020	Credit sanction intimation
A47	30.03.2020	Demand promissory note
A48	30.03.2020	Take delivery letter to DPN
A49	09.11.2017	Letter of proprietorship
A50	17.08.2017	Loan application

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OA-969/2023

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A51	28.02.2023	Statement showing the balance outstanding in the loan A/c. of the defendant i.e, A/c. no. 560631000393852
A52	28.02.2023	Statement showing the balance outstanding in the loan A/c. of the defendant i.e, A/c. no. 560761000769931
A53	28.02.2023	Statement showing the balance outstanding in the loan A/c. of the defendanti.e,A/c. no.5656012100032897
A54	28.02.2023	Statement showing the balance outstanding in the loan A/c. of the defendant i.e, A/c. no. 565671000685234
A55	28.02.2023	Statement showing the balance outstanding in the loan A/c. of the defendanti.e,A/c. no.560101000047096
A56	28.02.2023	Statement showing the balance outstanding in the loan A/c. of the defendanti.e,A/c. no.560716000575723
Witness	Examined f	or the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Union Bank of India v. Ms Future Fitness

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Ms Future Fitness

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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