The DRT allowed an Original Application filed by a bank to obtain a recovery certificate against a defendant who defaulted on a housing loan. The defendant appeared ex parte.
Issuance of a Recovery Certificate for Rs. 1,12,94,605/- with 8% p.a. simple interest; applicant allowed costs; previous injunction made absolute.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 29th Day of September, 2025
Present: Sri. T. RAJESH Presiding Officer
OA. No.1042/2024
BETWEEN:
State Bank of India Stressed Assets Recovery Branch, 1/90, 3rd Floor, Near Old Shivaji Theater, Opp: Trustwell Hospital, J.C. Road, Bangalore-560002, Represented by its chief Manager, Sri. Nagendra N … APPLICANT
AND:
Mrs. Afshan Afreen W/o. Mohammed Kazam Aged about 33 years, Residing at: No.84/B, MIG, Santhosh Nagar, Saidabad, Hyderabad, Andra Pradesh-500059
...DEFENDANT
Counsel on record/appeared for:
Applicant : Sri. Vijay S Defendant : Exparte
FINAL ORDER
under section 19 of Recovery of Debts and Bankruptcy Act 1993
OA. No.1042/2024
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for seeking issuance of Recovery Certificate against the defendant for Rs.1,12,94,605/- (Rupees One Crore Twelve Lakh Ninety Four Thousand Six Hundred and Five only) with further interest thereon from the date of filing the Application till realization from the Defendant.
OA. No.1042/2024
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the contentions as taken in the OA in the light of documentary evidence and proof affidavit.
Both these issues are gone into and decided together.
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
OA. No.1042/2024
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admissible and are sufficient to prove availment of credit facility
as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.
issues raised in this manner, this Tribunal is of the view that OA is to be allowed.
was availed for housing purpose and also that OA claim is arrived
at by calculating interest at the agreed rate, this Tribunal in view
of the OA can be allowed with a reduced interest of 8.00%
(simple).
i) The applicant is allowed to recovery an aggregate
sum of Rs.1,12,94,605/- (Rupees One Crore Twelve Lakh Ninety
Four Thousand Six Hundred and Five only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from defendant, after giving credit to all the amount
OA. No.1042/2024
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recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendant personally and the assets of the defendant, including the schedule property are liable for all such amounts due under the loan accounts. The schedule to the OA 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 defendant personally and his other assets are liable for all such amounts due under the loan account.
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) The Interim Order of Injunction passed in
IA.No.217/2024 in OA.No.1042/2024 is made, absolute.
v) Interim Application pending, if any, stands disposed of with this Final Order.
OA. No.1042/2024
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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 29th Day of September 2025].
Sd/-
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mr. Nagaraja V, chief Manager of the applicant bank.
Exhibits on the part of the Applicant:
| Annexure | Particulars |
|---|---|
| A1 | Copy of the Memorandum of loan agreement dated 22.05.2023 |
| A2 | Copy of the Agreement to Mortgage dated 22.05.2023. |
| A3 | Copy Of The Mortgage Deed Dated 24.05.2023 |
| A4 | Copy of the Deed of Undertaking dated 22.05.2023 |
| A5 | Copy of the Indemnity Bond dated 22.05.2023 |
| A6 | Copy of Undertaking letter dated 22.05.2023 |
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| A7 | Copy of Arrangement letter dated 22.05.2023 |
|---|---|
| A8 | Legal notice dated 11.01.2024 |
| A9 | Statement of account duly certified under Bankers’ Book Evidence. |
Sd/-
2 issues framed by the court
Whether the applicant succeeded in proving the OA claim as against the defendant?
Whether the recovery certificate should be issued given the defendant failed to appear?
2 provisions across 1 enactments
State Bank of India Stressed Assets Recovery Branch
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
