Allowed

State Bank of India v. Srinivas R

DRT31 Dec 2025OA/138/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India for a recovery certificate against two respondents for defaults on availed credit facilities. The loan accounts were declared NPA due to defaults. The Tribunal found the defendants ex parte and the evidence uncontroverted, holding the claim valid within limitation. A reduced interest rate of 12% simple was ord

What did the court decide?

Recovery Certificate to be drawn for Rs. 76,12,889/- with interest at 12% p.a. simple; recovery from schedule properties or personal assets if proceeds insufficient.

State Bank of India versus Srinivas R — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.138/2023

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BETWEEN:

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State Bank of India No. 11/90, 3^rd floor, Near old shivaji theater, JC road, Bengaluru – 560 002

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Represented by its Authorized Officer, Ms. Jayanthi A …APPLICANT

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AND:

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Sri. Srinivas R S/o. Sri. Rudrappa Aged about 38 years R/o. no. 845, 5^th main, 11^th cross, Near BBMP office, RBI layout, JP Nagara, 7^th phase, Bengaluru – 560 078

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And also at: Sri. Srinivas R Flat no. T-1, 3^rd floor, RJR Laguna apartment, Royal country, JP Nagara, 8^th phase, Bangalore – 560 078

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And also at: Sri. Srinivas R Kamakya, no. 43/2, 100 feet ring road, Banashankari 3^rd stage, Bengaluru – 560 085

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Sri. Channappa Rudrappa S/o. Sri. Channappa Aged about 72 years Residing at no. 845, 5^th main, 11^th cross,

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2 OA-138/2023

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Near BBMP office, RBI layout, JP Nagara, 7^th phase, Bengaluru – 560 078

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And also at: Sri. Channappa Rudrappa Flat no. T-1, 3^rd floor, RJR Laguna Apartment, Royal County, JP Nagara, 8^th phase, Bengaluru – 560 078 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : FX & Co. Defendants : Ex parte

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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 against the defendants for Rs. 4,76,12,889/- (Rupees Four Crores Seventy Six Lakhs Twelve Thousand Eight Hundred and Eighty Nine Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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Term loan of Rs. 2,69,00,000/- (Rupees Two Crores Sixty Nine Lakhs Only) on 7.03.2019.

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Working capital of Rs. 70,00,000/- (Rupees Seventy Lakhs Only) on 11.12.2020.

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FITL-I of Rs. 19,00,000/- (Rupees Ninety Lakhs Only).

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3 OA-138/2023

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FITL-II of Rs. 3,00,000/- (Rupees Three Lakhs Only).

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WCTL of Rs. 50,00,000/- (Rupees Fifty Lakhs Only).

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It is also the case of the applicant that, in view of the above

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availed loans, the defendants executed the necessary loan document along with deposit of title deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default 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 defendants, they failed to appear, resulting the defendants being set ex parte on 01.08.2024.

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The applicant had let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-20 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 proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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4 OA-138/2023

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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 defendants remained ex parte. 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 the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are 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, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00%(simple).

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In the result, OA.No.138/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 76,12,889/- (Rupees Four Crores Seventy Six Lakhs Twelve

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5 OA-138/2023

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Thousand Eight Hundred and Eighty Nine Only) with further interest @12.00% p.a.(simple) from the date of filing OA till the realization,

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from the defendants jointly, severally and 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 proceeding against the schedule properties. 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 the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for balance amounts due under the loan accounts.

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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

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

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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6 OA-138/2023

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14. Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of December, 2025].

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Sd/-

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mahesh Kumar Chotia, S/o. Nathmal Chotia, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A3	Copy of the power of attorney
A4	The copy of the letter of arrangement dated 7.03.2019 is produced and marked
A5	The copy of the guarantee agreement dated 07.03.2019 is produced and marked
A6 &	The copy of the registered memorandum of deposit dated
A7	12.03.2019 and rectification of memorandum relating to deposit of title deeds dated 06.12.2019
A8	Copy of the letter of arrangement dated 11.12.2020 is produced and marked

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7 OA-138/2023

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A9	Copy of the link letter dated 11.12.2020
A10	Copy of the guarantee agreement dated 11.12.2020 is produced and marked
A11 & A12	Title deed of the scheduled property and letter of confirmation
A13	The copy of the notice dated 13.07.2021 of the notice dated 13.07.2021
A14	Postal receipts and delivery status are produced and marked
A15	Copy of the symbolic possession notice dated 08.11.2021
A16 to A20	A copies of the statement of accounts certified

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Srinivas R

Case brief

What is this about?

What did the court decide?

State Bank of India v. Srinivas R

Case brief

What is this about?

What did the court decide?

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