CORPORATION BANK vs M/S.INTERACTIVE SPECTRUM WEBTEK P LTD & ORS (BLR) on 30 January 2026

FINAL ORDER

1. The present application was filed before the Debts Recovery Tribunal-I, Bengaluru on 17.04.2016 under section 19 of Recovery of Debts and Bankruptcy Act 1993 to recover a sum of Rs. 2,38,72,801/- (Rupees Two Crore Thirty Eight Lakh Seventy Two Thousand Eight Hundred One) 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. 1755/2017.

2. It is the case of the applicant that, the defendant No.1 is a company incorporated under the Indian Companies Act and defendants 2 to 5 are the directors of the 1st defendant company. Defendant No.6 is the mortgager. The applicant submits that the defendants 2 to 6 have stood as guarantors for the loan availed by the 1st defendant and have executed the guarantee agreement in favour of the applicant.

3. It is the case of the applicant that defendants availed SME liquid plus loan of Rs. 1,80,00,000/- (Rupees One Crore Eighty lakh Only), bank guarantee of Rs. 6 lakhs.

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 on demand promissory note, take delivery letter to DPN, letter of undertaking, guarantee agreement and deed of simple mortgage.

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 26.04.2022.

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-18 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, creation of security interest 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.

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 Business 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 12.00% (simple).

14. In the result, TA.No.1755/2017, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs. 2,38,72,801/- (Rupees Two Crore Thirty Eight Lakh Seventy Two Thousand Eight Hundred One) with further interest @12.00% p.a. (simple) from the date of filing TA till the realization, from the defendants 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 schedule property. Properties schedule to the TA be the schedule to the recovery certificate.

ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and other assets of the defendants are liable for all such amounts due under the loan accounts.

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.

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

v) 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 30th day of January, 2026]. Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Vasnatha Kumar S K, Chief Manager, of Applicant Bank.

Exhibits on the part of the Applicant:

Exhibit Nos. Particulars of Documents A1 Resolution dated 09.05.2014 A2 Request for credit facilities dated 29.05.2014 A3 On demand promissory note dated 29.05.2014 A4 Take delivery letter to DPN dated 29.05.2014 A5 Letter of undertaking dated 29.05.2014 A6 Agreement of book debts dated 29.05.2014 A7 Guarantee agreement dated 29.05.2014 A8 Deed of simple mortgage dated 29.05.2014

A9 Common deed of hypothecation of movables/ asset/ debts dated 29.05.2014 A10 Account extract A11 Account extract A12 Email dated 25.07.2014 A13 Letter dated 28.07.2014 A14 Application for issuance of bank guarantee dated 28.07.2014 A15 Counter guarantee for the bank guarantee/s issued by the bank dated 28.07.2014 A16 Letter dated 10.07.2015 A17 Letter dated 23.07.2015 A18 Letter dated 27.07.2025

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

Sd/- (T. RAJESH) PRESIDING OFFICER