UNION BANK OF INDIA (ANDHRA BANK) vs MS PVR CONSTRUCTIONS AND OTHERS on 12 November 2025

FINAL ORDER

1. The present application was filed before the Debts Recovery Tribunal-I, Bengaluru on 18.09.2019 under section 19 of Recovery of Debts and Bankruptcy Act 1993 to recover a sum of Rs. 3,92,20,450/- (Rupees Three Crore Ninety Two Lakh Twenty Thousand Four Hundred Fifty 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. 111/2019.

2. It is the case of the applicant that, the defendant No.1 is a partnership firm and defendant No. 2 to 11 are its partners and defendant No. 12 is a guarantor and defendant No. 13 is the guarantor and mortgagor.

3. It is the case of the applicant that defendants availed SOD limit of Rs. .80 crore and Guarantee limit of Rs. 3.75 crores.

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, general form of guarantee, letter evidencing deposit of title deeds

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 29.11.2023.

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-42 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.111/2019, stands allowed,

i) The applicant is allowed to recovery an aggregate sum of Rs. 3,92,20,450/- (Rupees Three Crore Ninety Two Lakh Twenty Thousand Four Hundred Fifty Only) 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 12th day of November, 2025]. Sd/- (T. RAJESH) PRESIDING OFFICER ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mahadeva K S, Branch Manager, of Applicant Bank. Exhibits on the part of the Applicant:

Exhibit Nos. Particulars of Documents A1 Original of the demand promissory note dated 17.02.2014 A2

A3 Original of the general form of guarantee executed by defendant Nos. 2,3,4 & 5 dated 28.02.2014 A4 Original of the general form of guarantee executed by defendant No. 12 dated 28.02.2014 A5 Original of the composite agreement dated 05.07.2014 A6 Original of the counter guarantee executed by the defendant No. 1 firm dated 05.07.2014

A7 Original of the counter guarantee executed by defendant No. 12 guarantee dated 05.07.2014 A8 Original of the general form of guarantee executed by defendant Nos. 2,3,4 & 5 dated 05.07.2014 A9 Original of the letter evidencing deposit of title deeds executed by defendant No. 13 dated 11.07.2014 A10 Original of the memorandum of deposit of title deeds dated 12.08.2014 A11 Original of the letter of sanction dated 13.03.2015 A12 Original of the demand promissory note dated 18.03.2015 A13

A14 Original of the general form of guarantee executed by the defendant No. 2,3,4 & 5 dated 18.03.2015 A15 Original of the general form of guarantee executed by the defendant No. 6, 9 & 8 dated 18.03.2015 A16 Original of the general form of guarantee executed by the defendant No. 7 dated 18.03.2015 A17 Original of the general form of guarantee executed by the defendant No. 12 & 13 dated 18.03.2015 A18 Original of the memorandum of deposit of title deeds executed by the defendant No. 6,7,8 & 9 dated 20.03.2015 A19 Original of the memorandum of deposit of title deeds defendant No. 2,3 & 4 dated 18.09.2015 A20 Original of the demand promissory note dated 27.09.016 A21

A22 Original of the counter guarantee executed by defendant No.1 firm dated 27.09.2016 A23 Original of the general form of guarantee executed by defendant No. 4,5,6 & 7 dated 27.09.2016 A24 Original of the general form of guarantee executed by defendant No. 8 & 9 dated 27.09.2016 A25 Original of the general form of guarantee executed by defendant No. 2,3, 10 & 11 dated 27.09.2016 A26 Original of the general form of guarantee No. 12 & 13 dated 27.09.2016 A27 Original of the letter evidencing deposit of title deeds executed by defendant No. 4 dated 27.09.2016 A28 Original of the letter evidencing deposit of title deeds executed by defendant No.3 dated 27.09.2016 A29 Original of the letter evidencing deposit of title deeds executed by defendant No.2 dated 27.09.2016 A30 Original of the letter evidencing deposit of title deeds executed by defendant No.6 dated 27.09.2016 A31 Original of the letter evidencing deposit of title deeds executed by defendant No.7 dated 27.09.2016

A32 Original of the letter evidencing deposit of title deeds executed by defendant No.8 dated 27.09.2016 A33 Original of the letter evidencing deposit of title deeds executed by defendant No.9 dated 27.09.2016 A34 Original of the letter evidencing deposit of title deeds executed by defendant No.13 dated 27.09.2016 A35 Original of the bank guarantee for contract performance 1851/ BG0001 dated 07.07.2014 (along with extension letters) A36 Original of the bank guarantee for contract performance 1851/ BG0002 dated 07.07.2014 (along with extension letters) A37 Original of the letter of M/s. Chamundeshwari Electricity Supply Corporation Ltd., dated 05.10.2018 A38 Original of the letter of the applicant bank addressed to M/s chamundeshwari electricity supply corporation Ltd, dated 05.10.2018 A39 Original of the letter of the applicant bank addressed to defendant No.1 firm dated 06.10.2018 A40 Original of the letter of the applicant bank addressed to defendant No. 12 dated 06.10.2018 A41 Original of the statement of account certified under banker’s book of evidence act, showing the outstanding liabilities under the SOD account No. 185131100000016 A42 Original of the statement of account certified under banker’s book of evidence act, showing the outstanding liabilities under the Guarantee invoked account No. 18513100000140

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

Sd/- (T. RAJESH) PRESIDING OFFICER