INDIAN OVERSEAS BANK vs T. NAGARAJU (BLR) on 10 August 2026

:FINAL ORDER:

1. The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.30,16,106.80 (Rupees Thirty Lakh Sixteen Thousand One Hundred Six and Eighty Paisa only) with further interest thereon from the date of filing the Application till realization from the

Defendant.

2. It is the case of the applicant that, the defendant availed the housing loan of Rs.30,00,000/- on 21.02.2014.

3. It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents.

4. It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan account as NPA.

5. 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.

6. Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 06.03.2024.

7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A7 and got the same marked in evidence.

8. 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.

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

Both these issues are gone into and decided together.

10. 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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.

11. Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

12. Taking into consideration the facts that the credit facility was availed for house purchasing purpose and also that 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 8.00% p.a.(simple).

13. In the result, TA.No.1261/2017 stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs.30,16,106.80 (Rupees Thirty Lakh Sixteen Thousand One Hundred Six and Eighty Paisa only) with further interest of 8.00% p.a.(simple) from the date of filing TA till the realization from the defendant, after giving credit to all the amounts recovered and received during the pendency of the TA and allowed the same to be recovered by proceeding against defendant personally and also by proceeding against the schedule property. The schedule property to the TA be the schedule property 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 defendant personally and his other assets are liable for all such amounts due under the loan accounts.

iii) The applicant bank is allowed cost of the proceeding 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, stands disposed of with this Final Order.

14. 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 (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 10th Day of August 2026].

Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Smt. Apeksha Chincholikar, Manager of the applicant bank.

Exhibits on the part of the Applicant: Sl. No. Description of Documents Exhibit Number

The original sale deed executed in favour by Sri. N. Narayana Reddy A1

The original memorandum of deposit of title deed dated 22.02.2014 A2

Original demand notice under sub-section (2) of section 13 of the SARFAESI Act, 2002 dated 04.02.2015 A3

Certified statement of accounts showing the running current account of the defendant for the period from 01.01.2014 to 18.12.2016 A4

The certified copy of the Demand Promissory Note A5

The certified copy of Term loan agreement dated 21.02.2014 A6

The certified copy of the installment payment letter dated 21.04.2014 A7

Sd/- (T. RAJESH) PRESIDING OFFICER