Allowed

State Bank of India v. Ravichandra

DRT29 Sept 2025OA/1864/2024

Case brief

AI extract

What is this about?

In an application under Section 19(1) of the RDB Act for a recovery certificate regarding a defaulted housing loan, the Debt Recovery Tribunal found the Applicant's evidence un-rebutted and sufficient. The court allowed the application, permitting recovery of the principal sum along with reduced future interest at 8% p.a. from the schedule property and, if insufficient, from the Defendants' person

What did the court decide?

Recovery certificate issued for Rs. 64,50,377 with future interest at 8% p.a., recoverable from mortgaged property and, if insufficient, from Defendants' personal assets. Costs of proceedings allowed.

State Bank of India versus Ravichandra — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 29^th Day of September, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1864 of 2024

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State Bank of India, Represented by its Chief Manager, Stressed Asset Recovery Branch (SARB), J.C.Road, Bangalore – 560 002.

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… Applicant.

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Vs.

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Ravichandra M.A., S/o.Appanna Gowda, Residing at : Chathramaidana Mudigere, Near Sandesh Theatre, Chickmagalur, Karnataka – 577 132.

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Having Office Address : Aryan Coffee Traders, No.115, Kanasu, Chatramaidana, Mudigere, Near Sandesh Theatre, Chickmagalur, Karnataka – 577 132.

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Aishwarya MR, D/o.Mudigere Appanna G, Residing at : No.537, 4^th Floor, SIRI NEST, 1^st Block, 18^th Cross, Thimiah Garden, R.T.Nagar, Near V-Care Hospital, Bangalore – 560 032.

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Also Having Address : Chathramaidana Mudigere, Near Sandesh Theatre, Chickmagalur, Karnataka – 577 132.

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Having Office Address : Allegis Services India Pvt. Ltd., Commerce @ Mantri, Level 3, No.12/1 and 12/2, NS Palya, Near Shoppershop, Bangalore – 560 076. … Defendants. Counsel for Applicant : M/s.R & J Associates. Defendants : Exparte. …… ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of Rs.64,50,377/- along with further interest @7.2% p.a. from the date of application till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

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The Applicant contends that the defendants approached the applicant bank for housing loan of Rs.67,26,000/- and availed the same on 26.11.2020 by execution of necessary loan documents. The defendants have also created mortgage over the property described in schedule to the OA on 04.01.2021 to secure the repayment of loan.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan account of the defendants was declared as Non-Performing Asset on 19.12.2023. The applicant bank has also issued Demand Notice dt.21.12.2023 and possession notice dt.30.12.2023. Despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 18.02.2025.

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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 A1 to A11, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Housing Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 8% p.a. (simple).

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In view of the above

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i) OA No.1864 of 2024 stands allowed,

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ii) Applicant is permitted to recover an amount of Rs.64,50,377/(Rupees Sixty Four Lakhs Fifty Thousands Three Hundred and Seventy Seven only) together with interest @8% p.a. (simple) from the date of filing of OA till the date of realization from the defendants 1 and 2 jointly, severally and personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule property. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 29^th day of September, 2025)

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Sd./- (T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mr.Nagaraj, Chief Manager, Applicant Bank

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Exhibits on the part of the Applicant:

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Ext A1 - Application Form dt.28.10.2020.

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Ext A2 - Arrangement letter dt.26.11.2020. Ext A3 - Affidavit dt.21.12.2020. Ext A4 - Agreement to mortgage dt.21.12.2020. Ext A5 - Deed of undertaking dt.21.12.2020. Ext A6 - Memorandum of Loan agreement for Home Loan Granted to public dt.21.12.2020. Ext A7 - Memorandum of Deposit of Title Deeds dt.04.01.2021. Ext A8 Series - Demand notice and postal receipt dt.21.12.2023. Ext A9 - Possession notice dt.28.03.2024. Ext A10 - Account Statement (A/c.No.39885523139). Ext A11 - Banker’s Certificate.

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Witness Examined for the Defendants:

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NIL

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List of Documents Exhibited for the Defendants :

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NIL

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Sd./- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ravichandra

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ravichandra

Case brief

What is this about?

What did the court decide?

What the court decided

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