UCO BANK vs SHIVAKUMAR L on 30 September 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 seeking issuance of Recovery Certificate against the defendants for Rs. 56,54,600.38/- (Rupees Fifty Six Lakh Fifty Four Thousand Six Hundred and Paise Thirty Eight Only) with further interest thereon from the date of filing the Application till realization.

2. It is the case of the applicant that the defendants availed the Housing Loan credit facility of Rs. 50,00,000/- from the applicant bank on 22.04.2016.

3. It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Sanction Letter, Loan Agreement, On demand Promissory Note, Equitable Mortgage , Demand Notice, Possession Notice.

4. It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts 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, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 14.05.2026.

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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 A-1 to A-9 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 defendants? 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 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 availment of credit facility as stated in the OA, creation of Mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants 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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11. 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.

12. Taking into consideration the facts that the credit facility was availed for Housing purpose and also that the 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 6.00% (simple).

13. In the result, TA.No.19/2023, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs. 56,54,600.38/- (Rupees Fifty Six Lakh Fifty Four Thousand Six Hundred and Paise Thirty Eight Only) with further interest @6.00 % p.a.(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 schedule property. Schedule Properties to the OA 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 and personally and their assets are liable for the amounts due under the loan accounts.

iii) The applicant bank is allowed cost of the proceedings which 5 19/2023

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 in terms of 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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30th Day of September, 2026].

Sd/- (T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Hemanth Kumar, General Manager and Authorized signatory of the applicant Bank Exhibits on the part of the Applicant:

Annexure Date List of Documents A1 20.04.2016 Application for Term Loan under UCO Home Loan scheme A2 22.04.2016 Sanction of Credit facility under UCO Home Loan A3 22.04.2016 Loan Agreement

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A4 22.04.2016 On Demand Promissory Note for Rs. 45,00,000/- A5 25.04.2016 Equitable Mortgage by way of Deposit of Title Deeds A6 10.08.2020 Demand Notice A7 23.11.2020 Possession Notice A8 10.04.2020 Recall Notice A9 -- Statement of account in respect of UCO Home Loan a/s No. 19580610007747

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

Sd/- (T. RAJESH) PRESIDING OFFICER