UNION BANK OF INDIA vs LATE SRI KHANDOBA S.S KULKARNI Smt Sewtha Kulkarni Mantri Reality Limited on 16 January 2026

FINAL ORDER

1. The present application was filed before the Debts Recovery Tribunal-I, Bengaluru on 21.08.2015 under section 19 of Recovery of Debts and Bankruptcy Act 1993 to recover a sum of Rs. 28,51,698.00 (Rupees Twenty Eight Lakh Fifty One Thousand Six Hundred Ninety Eight Only) with further interest thereon from the date of filing the application till realization from the defendants. Subsequently, the application was transferred from Debts Recovery Tribunal- I to this Tribunal and renumbered as TA No. 546/2017.

2. It is the case of the applicant that, the defendant No.1 is reported deceased and defendant No.2 is the legal heir of defendant No.1.

3. It is the case of the applicant that the deceased defendant and defendant No.2 availed Housing loan of Rs. 37,50,000/- (Rupees Thirty Seven lakh Fifty Thousand Only) for the purchase of flat to be constructed by defendant No.3 i.e, the builder. The defendant No.3, the applicant bank and the borrowers entered into a Tripartite agreement.

4. It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with demand promissory note, letter of guarantee and Tripartite Agreement.

5. It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in compliance of the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

6. In the above circumstances, the applicant approached this Tribunal by filing this TA seeking issuance of Recovery Certificate for the amount due in the account.

7. Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 16.10.2025.

8. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the TA and also produced Exhibits A-1 to A-14 and got the same marked in evidence.

9. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the TA in the light of documentary evidence and the proof affidavit.

10. The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the TA claim as against the defendants? ii) What order are to be passed?

Both these issues are gone into and decided together.

11. 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 the availment of credit facilities as stated in the TA, 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.

12. 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 TA is liable to be allowed.

13. Taking into consideration the facts that the credit facilities are availed for Housing purpose and also that the TA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the TA can be allowed with a reduced interest of 8.00% (simple).

14. In the result, TA.No.546/2017, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs. 28,51,698.00 (Rupees Twenty Eight Lakh Fifty One Thousand Six Hundred Ninety Eight Only) with further interest @ 8.00% p.a. (simple) from the date of filing TA till the realization, from the defendants Nos. 2 & 3 jointly, severally & personally after giving credit to all the amount recovered and received during the pendency of the TA and allowed the same to be recovered by proceeding against the defendants Nos. 2 & 3 jointly, severally & personally and their assets including the schedule property. Schedule to the TA 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, are disposed of with this

Final Order.

15. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993. [Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 16th Day of January, 2026]. Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Cyril Monteiro, Manager, of Applicant Bank.

Exhibits on the part of the Applicant:

Exhibit Nos. Date Particulars of Documents A1 30.08.2013 Agreement for sale of Flat A2 30.08.2013 Agreement to build A3 20.09.2013 Letter of loan sanction

A4 24.09.2013 Housing loan agreement A5 24.09.2013 Base rate agreement A6 24.09.2013 Demand promissory note A7 24.09.2013 Letter of guarantee A8 24.09.2013 Tripartite agreement A9 24.01.2014 Letter from defendant No. 2 A10 22.01.2014 Letter for cancelation of Tripartite agreement addressed to defendant No.3 A11 25.03.2014 Letter addressed to defendant No.3 A12 08.08.2014 Letter addressed to defendant No.3 A13 07.04.2015 Letter recalling loan facility A14 31.07.2015 Statement of account

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

Sd/- (T. RAJESH) PRESIDING OFFICER