AXIS BANK vs SRI VEEREGOWDA on 18 July 2025

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 defendants for Rs.12,60,440/- (Rupees Twelve Lakh Sixty Thousand Four Hundred and Forty only) with further interest thereon from the date of filing the Application till realization.

2. It is the case of the applicant that, the defendant No.1 as a borrower and the defendant No.2 as a mortgagor have availed the production credit with limit of Rs.10,00,000/- on 13.02.2014 for meeting cost of cultivation of hybrid tomato, potato and mango crops.

3. The deceased mortgagor and the defendants have executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The deceased borrower had also Simple Mortgage Deed 3 TA/2006/2017

dated 28.05.2014.

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 defaults 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 as against the 1st defendant and the legal heirs.

6. Despite, service of summons on the defendants, they failed to appear, resulting the defendants No.1 and defendant No.2 (a &

b) being set exparte on 17.01.2024.

7. The applicant let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A11 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 the proof affidavit.

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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 orders 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 security interest as claimed by the applicant bank and the defaults committed in the account. 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.

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.

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12. Since the OA claim is arrived at by calculating agreed rate of interest, penal interest/default interest, which this Tribunal considers as on the higher side, pendentalite and future interest is awarded at fixed rate.

13. In the result, TA.No.2006/2017 stands allowed,

i) The applicant is allowed to recover an aggregate sum of Rs.12,60,440/- (Rupees Twelve Lakh Sixty Thousand Four Hundred and Forty only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization, from the 1st defendant and defendants No.2(a) & 2(b) to the extent of their inheritance of any estate from the deceased borrower Late Chikkammaiah, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against 1st defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) 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.

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

iv) 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 18th Day of July 2025].

(T. RAJESH) PRESIDING OFFICER

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sri. Babu B R, Senior Manager of the applicant bank. Exhibits on the part of the Applicant: Annexure Particulars A1 Affidavit Evidence A2 List of documents A3 Application form for credit facility duly filled and signed by defendant No.1

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A4 Sanction letter dated 13.02.2014 issued by the applicant bank with sanction of the credit facility as per the following terms and conditions specified therein A5 Loan cum hypothecation agreement dated 29.04.2011 1annexed with schedule executed by defendant No.1 in favour of applicant bank A6 & A7 Demand Promissory Note dated 29.04.2014 duly signed by defendant No.1 on Demand to pay the facility availed amount to applicant bank with DP note delivery cum Waiver letter A8 The Deed of Simple Mortgage without possession dated 28.04.2014 entered between defendant No.1 and 2 (Mortgagors) and applicant bank (Mortgagee) registered as document No.KLR-1- 00465-2014-15 A9 Statement of account A10 Legal notice dated 23.07.2016 A11 Postal receipts

(T. RAJESH) PRESIDING OFFICER