Allowed

State Bank of India v. Sanganna Basagouda Budnal

DRT19 Sept 2025OA/1815/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an original application for a recovery certificate against two defaulters for agricultural loans totaling over Rs. 31 lakhs. The claim, unrebutted due to respondent's absence, was admitted with reduced simple interest of 6% p.a.

What did the court decide?

Issuance of Recovery Certificate for Rs. 31,44,953 plus further simple interest at 6% p.a. recoverable from defendants jointly, severally, and personally.

State Bank of India versus Sanganna Basagouda Budnal — Arbitration | 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 SEPTEMBER, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1815/2024

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BETWEEN:

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State Bank of India

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Represented By its Chief Manger, Stressed Asset Recovery Branch (SARB) Mr. Vinaya K Ground Floor, AvaniEmporio Jayachamraja Nagar, Hubbali-580 020 …APPLICANT

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AND:

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Mr. Sanganna BasagoudaBadnal S/o Basagouda Sanganna, Aged about 54 years, R/at H no.240, Tonsanhalli(s), Chittapur Taluk, Gulbarga – 585 211

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Mr. Basagouda, S/o Sanganna, Aged about 28 years, R/at H no.240 Tonsanhalli(s), Chittapur Taluk, Gulbarga – 585 211 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Ranjitha T O Defendants : Exparte

OA-1815/2024

FINAL ORDER

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. 31,44,953/-(Rupees Thirty One Lakhs Forty Four Thousand Nine Hundred and Fifty Three 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 availed the following credit facilities :

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Agricultural Term loan of Rs. 2,50,000/-(Rupees Two Lakhs Fifty Thousand Only)

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Short Term Crop loan of Rs. 1,50,000/- (Rupees One Lakhs Fifty Thousand Only)

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Rephased Agricultural Term Loan of Rs. 2,16,000/- (Rupees Two Lakhs Sixteen Thousand Only)

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with Hypothecation agreement and mortgage Deed.

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

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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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OA-1815/2024

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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 exparte on 28.01.2025

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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-10 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

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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 unrebutted as defendants remained exparte. The evidence tendered

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by the applicant remains uncontroverted and undisputed. The

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OA-1815/2024

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evidences put forth by the applicant were found admissible and are

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sufficient to prove availment of credit facilities as stated in the OA,

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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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

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find both these issues in favour of applicant and hence, this Tribunal

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is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Agricultural 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 6.00% (simple).

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In the result, OA.No.1815/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 31,44,953/-(Rupees Thirty One Lakhs Forty Four Thousand Nine Hundred and Fifty Three Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule

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OA-1815/2024

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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 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 balance

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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, stands disposed of in

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terms of this final order.

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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 19^th Day of September, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

OA-1815/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Vinaya K S/o. Rama Bhatta K working as 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	25.05.2007	Sanction Letter
A2	25.05.2007	Sanction Letter of Crop loan
A3	25.05.2007	Agreement Of Hypothecation
A4	21.10.2010	Mortgage Deed
A5	23.08.2022	Rephasement letter
A6	------	Legal Notice and Postal Receipt
A7	------	Statement of account no.62032635794
A8	------	Statement of account no.52157426182
A9	------	Statement of account no.62166648463
A10	------	Banker’s certificate

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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. Sanganna Basagouda Budnal

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sanganna Basagouda Budnal

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

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Case details

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