Debts Recovery Tribunals and Appellate Tribunals
KARNATAKA BANK LIMITED vs SRI.ABOOBAKKER SIDDIQ on 30 September 2026
Presiding Officer
**30.09.2026**
**30.09.2026**
TA.No.29/2024 stands allowed
with pendent lite interest and
costs, vide separate order.
Presiding Officer
**IN THE DEBTS RECOVERY TRIBUNAL - I, KARNATAKA
AT BENGALURU**
Dated this the 30<sup>th</sup> day of September, 2026
**Present: Sri Imtiaz Ali**
**Presiding Officer**
**TA No.29/2024**
**BETWEEN:**
**KARNATAKA BANK LTD.,**
Its Branch Known as
Someshwara Uchila Branch
situated at #NH 66,
Someshwara Uchila,
Mangalore - 575 023
Dakshina Kannada District
Karnataka.
Represented by its Branch Manager
Shri. Hemanth Kumar Gatty
** ..APPLICANT**
**AND:**
**1. Mr. Aboobakker Siddiq**
S/o. Mohammed Kunhi
Aged about 40 years
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**2. Mrs. Fathima**
W/o. Mr Mohammed Kunhi
Aged about 69 years
**Sl.No. 1 & 2 are R/at:-**
Door No.7/122, Heritage,
Uchila Gudde,
Opp: Rahamaniya Masjid,
Someshwara Uchil - 575 023
**3. M/s. Plycom Boards and Plywoods**
Prop: Mr. Aboobakker Siddiq
Aged about 40 years
#Plot No.269, Baikampady
Industrial Estate, Dakshin
Kannada District
Mangalore - 575 011
** ..DEFENDANTS**
**Counsels on record/appeared for:**
Applicant : Nithin Chandra M
Defendants : *Ex parte*
2TA No.29/2024**FINAL ORDER**
1. The present TA have been filed by the Applicant Bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, seeking recovery of money of **Rs.51,92,088.09 (Rupees Fifty One Lakh Ninety Two Thousand Eighty Eight and Paisa Nine)** together with costs, interest, etc.
2. The case of the Applicant Bank is that, the Defendant No.1 is a Proprietor as Principal Borrower, Defendant No.2 as Co-obligant/Guarantor and Defendant No.3 is a Business Firm represented by its Proprietor Defendant No.1 as Borrower/Mortgagor have approached the Applicant Bank for various loan facilities for the purpose of Business. Accordingly, considering the request the Applicant Bank sanctioned the following loan facilities:-
Page 2 of 9
- i) Term Loan of Rs.13,75,000/- on 04.12.2017 for the purpose of starting a new furniture manufacturing unit.
- ii) Overdraft – 1 Loan of Rs.5,00,000/- on 16.12.2017 for the purpose of Working Capital requirements.
- iii) Overdraft – 2 Loan of Rs.15,00,000/- on 28.02.2019 for the purpose of Working Capital requirements.
Hence, the Defendants executed Loan Documents and other documents in favour of the Applicant Bank and agreed to repay the loan in equated monthly installments 3TA No.29/2024
with interest as stipulated in the loan agreement.
In order to secure the loan, the Defendants side have executed documents, viz., Sanction Letters, Demand Promissory Notes, Memorandum of Deposit of title deeds, etc.
3. The Defendants after utilising the said loans have failed and neglected to make the repayment of the loan dues as agreed and Defendants have not serviced the interest thereon as per the terms and condition agreed by the Defendants. Hence, the loan account of the Defendants was declared as NPA. Thereafter, the Applicant Bank issued a Notice dated 06.09.2019 & 23.10.2019. In spite of repeated reminders, the Defendants have failed to pay the outstanding dues and hence the recovery process is initiated to recover the dues.
4. In the light of these factors, it is contended by the Applicant Bank that Defendants are liable to pay a total sum of **Rs.51,92,088.09 (Rupees Fifty One Lakh Ninety Two Thousand Eighty Eight and Paisa Nine)**
5. After filing this TA, summons sent to the Defendants 4TA No.29/2024
through RPAD was duly served. When the Defendants were called out, the Defendants remained absent and placed ex parte.
6. To prove the case of the Applicant Bank, its Manager, Mr. Shyam Kumar., has filed her affidavit by way of evidence the same was considered as evidence of AW.1 and marked at Ex.A1 and list of documents came to be marked at Ex.A2 and 37 documents came to be marked at Ex.A3 to A39.
7. No evidence on behalf of the Defendants.
8. Arguments of Learned Counsel for the Plaintiff/Applicant Bank heard and perused the records of the case.
9. Following points arise for my consideration:
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1. 1) Whether Plaintiff/Applicant Bank proves its case as contended in the plaint/application?
2. 2) What Order?
10. For the following reasons, I answer the above-referred points in the following manner:
**REASONS**
11. The Manager of the Applicant Bank came to be examined as AW.1. Her affidavit by way of evidence 5TA No.29/2024
reiterated the facts pleaded in the plaint and her affidavit is also corroborated by the above-referred Ex.A3 to A39 which clearly establish the case of the Applicant Bank to allow the present TA. Added to this, the Defendants have remained absent, hence it is to be construed that Defendants have admitted the entire case pleaded by the Applicant Bank in the present TA.
12. Therefore, for these reasons, present TA is to be allowed with costs as sought by the Applicant Bank.
ORDER
Present TA stands allowed with interest and costs.
Accordingly, the Defendants are jointly and severally liable to pay a sum of **Rs.51,92,088.09** to the Applicant Bank with pendeite lite and future interest @**10%** p.a. from the date of application till realization *as follows:-*
1. a. The Defendant No.1 & No.2 are jointly and severally liable to pay a sum of **Rs.13,14,667.03** to the Applicant Bank with pendeite lite and future interest from the date of application till realization.
2. b. The Defendant No.1 & No.2 are jointly and severally liable to pay a sum of **Rs.10,36,806.36** to the 6TA No.29/2024
Applicant Bank with pendent lite and future interest from the date of application till realization.
- c. The Defendant No.2 & No.3 are jointly and severally liable to pay a sum of **Rs.28,40,614.70** to the Applicant Bank with pendent lite and future interest from the date of application till realization.
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In the event of failure of the Defendants to pay the said TA amount, the Applicant Bank is at liberty to sell the Schedule Property in accordance with law as sought by the Applicant Bank in the TA.
In spite of sale of the Schedule Property, if the TA amount is not fully realised, then the Applicant Bank is at liberty to proceed against the persons and other properties of the Defendants in accordance with law.
Applicant Bank shall file latest Memo of Calculation of TA amount together with interest, costs etc., to be paid by Defendant duly taking into account the amount/s, if any, paid by the Defendant and/or amount realised by sale of assets, etc., during the intervening period after filing the TA, to enable the office to prepare Recovery Certificate for the amount to be paid by the Defendant to the Applicant Bank.
7TA No.29/2024
Office is directed to issue Recovery Certificate as sought by the Applicant Bank in the TA and do the needful as required under the law forthwith.
The Office is directed to issue, as far as possible, free copy of this order to the parties concerned.
(Dictated to the Stenographer, after its transcription and necessary corrections, signed and pronounced by me in the Open Court on this the 30<sup>th</sup> day of September, 2026)
**(Imtiaz Ali)** **Presiding Officer** **DRT-I, Bengaluru**
**ANNEXURES**
**Witness Examined for the Applicant Bank:**
AW-1 : Mr. Shyam Kumar The Manager of the Applicant Bank
**List of Documents Exhibited for the Applicant Bank:**
Ex.A-1 : Affidavit of AW-1
Ex.A-2 : List of Documents
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Ex.A-3 : True Copy of the Power of Attorney Ex.A-4 : True Copy of the sanction order bearing Ref.No.CMRS/R600/3679/2017-18/
04.12.2017 dated 04.12.2017
Ex.A-5 : True Copy of the key fact statement dated 04.12.2017
8TA No.29/2024
Ex.A-6 : True Copy of the Term Loan Agreement dated 04.12.2017
Ex.A-7 : True Copy of Memorandum of Deposit of Title deeds dated 10.10.2017
Ex.A-8 : True copy of the Letter of Authority dated 04.12.2017
Ex.A-9 : True copy of the Letter dated 04.12.2017 undertaking to Hypothecate the movable assets purchased out of loan proceeds
Ex.A-10 : True Copy of the Hypothecation Agreement dated 16.12.2017
Ex.A-11 : True Copy of the Declaration dated 04.12.2017 executed by Defendant No.1
Ex.A-12 : True Copy of the Letter of Acknowledgement of Debt dated 20.10.2020 in respect of the Term Loan Account
Ex.A-13 : True Copy of the Key fact statement dated 16.12.2017
Ex.A-14 : True Copy of the request for Overdraft Letter dated 16.12.2017
9TA No.29/2024
Ex.A-15 : True Copy of the Take Delivery Letter cum on Demand Promissory Note dated 16.12.2017
Ex.A-16 : True Copy of the Letter of Authority dated 16.12.2017
Ex.A-17 : True copy of letter dated 16.12.2017 undertaking to hypothecate the movable assets purchased out of loan proceeds
Ex.A-18 : True copy of Hypothecation Agreement dated 16.12.2017
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Ex.A-19 : True copy of the General Power of Attorney for book Debts dated 16.12.2017 executed Defendant No.1
Ex.A-20 : True copy of the letter of Acknowledgement of Debt dated 10.11.2021 in respect of the Overdraft - 1
Ex.A-21 : True copy of Credit Sanction Intimation vide sanction reference CMRS/RLPC/600/50792/2018-19 28.02.2019 dated 28.02.2019
Ex.A-22 : True copy of the Key fact statement dated 28.12.2019
10TA No.29/2024
Ex.A-23 : True copy of the Account opening form for Proprietorship Concern dated 28.02.2019
Ex.A-24 : True copy of the Request for overdraft Letter dated 28.02.2019
Ex.A-25 : True copy of the Take Delivery Letter cum on Demand Promissory Note dated 28.02.2019
Ex.A-26 : True copy of said letter of Authority dated 28.02.2019
Ex.A-27 : True copy of Letter dated 28.02.2019 undertaking to Hypothecate the movable assets purchased out of loan proceeds Ex.A-28 : True copy of Hypothecation Agreement dated 28.02.2019
Ex.A-29 : True copy of the General Power of Attorney for Book debts dated 28.12.2019 executed by Defendant No.3
Ex.A-30 : True copy of Letter of Acknowledgement of Debt dated 13.07.2020 in respect of Overdraft - 2
Ex.A-31 : True copy of the Legal Notice dated 06.09.2019 along with the true copies of Postal acknowledgement cards/returned 11TA No.29/2024
postal cover for having served the Legal Notice to Defendant Ex.A-32 : True copy of the Legal Notice dated 06.09.2019 along with the true copies of Postal acknowledgement cards/returned postal cover for having served the Legal Notice to Defendant Ex.A-33 : True copy of the Legal Notice dated 23.10.2019 along with the true copies of Postal acknowledgement cards/returned postal cover for having served the Legal Notice to Defendant Ex.A-34 : True copy of the Demand Notice dated 04.02.2021
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Ex.A-35 : True copy of the Letter dated 21.09.2019 along with translated copy
Ex.A-36 : True copy of the letter dated Nil which was served on Applicant Bank on 01.06.2022 along with its translated copy
Ex.A-37 : Certified true extract of the statement of Account of the Term Loan A/c.No.6997001800012501 certified as per Bankers Books of Evidence 12TA No.29/2024
Ex.A-38 : Certified true extract of the statement of Account of the Overdraft Loan A/c.No.6997000600001501 certified as per Bankers Books of Evidence Ex.A-39 : Certified true extract of the statement of Account of the Overdraft Loan A/c.No.6997000600001201 certified as per Bankers Books of Evidence **Witness Examined for the Defendants:**
- Nil -
**List of Documents Exhibited for the Defendants:**
- Nil -
(IMTIAZ ALI) **PRESIDING OFFICER** **DRT-I, Bengaluru**
-CR-
13TA No.29/2024**SCHEDULE 'A' PROPERTY****(Description of the Property Mortgaged by Defendant No.2)**
All that piece and parcel of the Non-Agricultural immovable property measuring 9.79 cents out of 10 cents (Converted), bearing Sy.No.93/6, together with building constructed thereon bearing D.No.4-148/3, situated at Kotekar Village, Mangaluru Taluk, within the Registration Sub District of Mangaluru Taluk; **Boundaries:-**
North : Road; South : Sy.No.93/2A2; East : Sy.No.93/7; West : Sy.No.93/5;
**SCHEDULE 'B' PROPERTY****(Description of the Property Hypothecated by Defendant No.1 & 3)**
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**ITEM No.1** Hypothecation of Sheets, Steel Items, Pillers, Industrial machinery foe wood cutting, aluminium partition, wooden raw materials and other accessories installed, stored stocked or parked in the place where the Defendant no.1 is carrying out its Business activities.
**ITEM No.2** Hypothecations of Stock in Trade stored, stocked or parked in the place where the Defendant No.1 is carrying out its Business activities.
*A. 30.09.26* **PRESIDING OFFICER**
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