Allowed

State Bank of India v. Sri.Ramprathap Alias Prathapram

DRT29 May 2025OA/103/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for a Recovery Certificate of Rs. 21.92 Lakhs. The defendant failed to appear, leaving the applicant's evidence undisputed. The sanction included recovery from personal assets and scheduling of the secured residential property.

What did the court decide?

Recovery Certificate issued for Rs. 21,92,888.48 plus 10% p.a. interest from filing, recoverable from defendant personally or from mortgage schedule property.

State Bank of India versus Sri.Ramprathap Alias… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of May, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.103/2022

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BETWEEN:

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State Bank of India, And amongst other branches One called Hebbal Branch, Mysore- Represented, By Chief Manager, Stressed Assets Recovery Branch, At No. 11/90, 3^rd Floor, Near Old Shivaji Talkies, J.C. Road, Bangalore- 560 002, N. Nagendra.

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…APPLICANT

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AND:

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Sri. Ramprathap @ Prathapram, Aged about 63 years, S/o Late Sri. L.S. Siddaiah, No. 1251, 8^th Cross, 4-A Main Road, Ground Floor, Kanakadasa Nagar, Dattagalli, Mysore.

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And also at:-

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No. 518, BEML Layout, Mandakalli Village, Gejjagalli Dhakale, Kasaba Hobli, Mysore- 570 008

...DEFENDANT

OA 103/2022

Counsel on record/appeared for:

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Applicant : Sri. T.S. Krishnamurthy Defendant : Exparte

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FINAL ORDER

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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 for Rs. 21,92,888.48 (Rupees Twenty One Lakh Ninety Two Thousand Eight Hundred Eighty Eight and Paise Forty Eight Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant availed the

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Housing/ Term loan of Rs. 23,25,810.00 (Rupees Twenty Three Lakh Twenty Five Thousand Eight Hundred and Ten Only) which includes SBI life insurance premium of Rs. 2,25,810.00 (Rupees Two Lakhs Twenty Five Thousand Eight Hundred and Ten Only)

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan agreements along with Memorandum of term loan agreement for housing loan, deed of undertaking, personal guarantee of the defendants and equitable mortgage of the residential property in favour of the applicant bank.

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OA 103/2022

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It is further contended that, the defendant 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.

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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.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 03.02.2025.

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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-14 and got the same marked in evidence.

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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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The following issues arise for consideration in this matter:

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OA 103/2022

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i) Whether the applicant had succeeded in proving the

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OA claim as against the defendant?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendant 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 facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendant for Housing purpose and interest is

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OA 103/2022

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claimed at a lower rate, this Tribunal in view of the rate of interest as claimed need not be reduced. However as the OA Claim is arrived at by calculating interest at the agreed rate and also by applying default interest, the prayer for monthly rest and future penal interest are declined.

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In the result, OA.No.103/2022, stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 21,92,888.48 (Rupees Twenty One Lakh Ninety Two Thousand Eight Hundred Eighty Eight and Paise Forty Eight Only) with further interest @ 10% p.a. (Simple), from the date of filing OA till the realization, from the defendant 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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendant personally and other assets of the defendant are liable for all such amounts due under the loan accounts.

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OA 103/2022

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with

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this Final Order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 29^th Day of May, 2025].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Nagaraja S/o. Late Nagappa, Chief Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	Loan Application of the defendants dated 15.11.2014

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OA 103/2022

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A2	Sanction communication letter/ letter of arrangement dated 05.12.2014
A3	Memorandum of loan agreement dated 05.12.2014
A4	Deed of undertaking 05.12.2014
A5	Affidavits dated 047.12.2014 executed by the defendant in favour of the applicant bank
A6	Letter dated 06.05.2015 requesting the bank to release 50% of the loan amount
A7	Disbursement letter dated 15.04.2015
A8	Registered memorandum relating to deposit of title deeds dated 05.12.2014
A9	Demand notice dated 10.10.201 issued under section 13(2) of the Sarfeasi Act to the defendant in respect of suit schedule property
A10	Possession notice dated 06.05.2019 issued under section 13(4) of the Sarfeasi Act to the defendants in respect of suit schedule property
A11	Confirmation of balance and revival letter dated 18.05.2020
A12	Confirmation of balance and revival letter dated 10.08.2020
A13	Certified statement of account in respect of home/ term loan account along with interest calculation sheet
A14	Certified statement of account in respect of home/ term loan insurance account along with interest calculation sheet

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Witness Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant: -Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sri.Ramprathap Alias Prathapram

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri.Ramprathap Alias Prathapram

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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