Karur Vysya Bank Vs Electronics Marvel (DRT Karnataka)
The case concerns an Original Application (OA) filed before the Debts Recovery Tribunal (DRT), Karnataka under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993. The applicant bank sought issuance of a Recovery Certificate against the defendant for a sum of ₹99,81,419.26 along with further interest from the date of filing the application until realization.
According to the applicant, the defendant had availed an overdraft loan facility of ₹1 crore, which was later renewed to ₹95 lakh. In connection with the loan facility, the defendant executed the required loan documents including a letter of undertaking, a demand promissory note, and a hypothecation agreement. These documents were executed to secure the loan and record the borrower’s obligations.
The applicant contended that despite availing the credit facilities and agreeing to service the loan account regularly, the defendant failed to comply with the repayment obligations. As a result of this default, the loan account was classified as a Non-Performing Asset (NPA). Due to the continued default and outstanding dues, the applicant approached the Tribunal by filing the Original Application seeking recovery of the balance amount due in the account.
Summons were issued to the defendant. However, the defendant failed to appear before the Tribunal despite service of summons. Consequently, the defendant was set ex parte on 13 November 2024.
