Allowed

State Bank of India v. B N Jayamma

DRT19 Nov 2025OA/1568/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for issuance of a Recovery Certificate. The Defendants were heard ex parte. The Tribunal awarded recovery with interest reduced to 8% simple interest due to the housing purpose of the loan.

What did the court decide?

Recovery of Rs. 55,51,151/- with interest @8.00% p.a. (simple) from Defendant's jointly, severally and personally, executable against Schedule Properties.

State Bank of India versus B N Jayamma — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1568/2024

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BETWEEN:

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State Bank of India SARB. JC road, 3^rd Floor, near shivaji theatre, Bengaluru.

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Represented by Its Chief Manager & Authorized officer, Krishan Kant …APPLICANT

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AND:

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B N Jayamma W/o. Mr. Shivanna G Aged about 56 years

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Ms. Shruti P S D/o. Shivanna G Aged about 21 years

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R/o. Sri. Lakshmi Venkateshwara Nilaya, No.43, 2^nd floor, 2^nd cross, 3rd stage, 4^th block, JC nagara, Basaveshwaranagara, Bangalore north Taluk, Bangalore – 560 079

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And also at: DS-MAX SAROVAR Flat no. 381, 3^rd floor, Attibele Village, Attibele Hobli, Anekal Taluk, Bangalore – 562 107

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OA-1568/2024

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And also at: Prabhuvanahalli Village and Post, Gubbi Taluk, Kasaba Hobli, Tumkur – 572 216

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Office at: Deputy General Manager BSNL office, no. 179,

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3^rd Floor, Roopa Complex Vijaya Nagara Extension, Opp. to Hosahalli Metro Station, Sheshadripuram Main Road,

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Bangalore – 560 020 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : G N Satyamurthy 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. 55,51,151/- (Rupees Fifty Five Lakhs Fifty One Thousand One Hundred and Fifty One 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 an home loan of Rs. 50,00,000/- (Rupees Fifty Lakhs Only) on 31.10.2022.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents along with deposit of title deeds.

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OA-1568/2024

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It is further contended that, despite availing the credit facility,

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agreeing to service the loan account promptly and regularly, the defendants failed in compliance of 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 18.12.2024.

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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-13 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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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

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unrebutted as defendants remained ex parte. The evidence tendered

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OA-1568/2024

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by the applicant remains uncontroverted and undisputed.

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The evidences put forth by the applicant were found admissible

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and are sufficient to prove availment of credit facility 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 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 finding arrived herein above, the Tribunal

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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 facility are

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availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the

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OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1568/2024, stands allowed,

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

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Rs. 55,51,151/- (Rupees Fifty Five Lakhs Fifty One Thousand One

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Hundred and Fifty One Only) with further interest @8.00% p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all

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the amount recovered and received during the pendency of the OA

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OA-1568/2024

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and allowed the same to be recovered by proceeding against the

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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

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amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for all such amounts due under the loan accounts.

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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 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, are disposed of with this

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Final Order.

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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 19^th Day of November, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER

OA-1568/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Jayalakshmi M, W/o. Ramachandra S, Chief Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	12.09.2022	Loan application
A2	31.10.2022	Arrangement letter of housing finance
A3	31.10.2022	Agreement for home loan
A4	31.10.2022	Guarantee agreement
A5	31.10.2022	Agreement to mortgage
A6	31.10.2022	Deed of undertaking
A7	08.11.2022	Memorandum of deposit of title deeds
A8	08.11.2022	Absolute sale deed
A9	03.05.2023	Legal notice
A10	------	Paper publication
A11	------	Paper publication
A12	07.05.2024	Statement of account
A13	07.05.2024	Foreclosure letter/statement

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

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. B N Jayamma

Case brief

What is this about?

What did the court decide?

State Bank of India v. B N Jayamma

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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