Allowed

State Bank of India v. Ahamed Mylappuram Shafeeq

DRT28 Oct 2025OA/1921/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application seeking recovery for an housing loan default. The defendant appeared exparte. The Tribunal allowed the claim but reduced interest to 8% p.a. and authorized recovery from the defendant and mortgage property.

What did the court decide?

Recovery Certificate to be drawn for Rs. 58,18,763/- with interest at 8% p.a. from defendant personally and against schedule property.

State Bank of India versus Ahamed Mylappuram Shafeeq — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1921/2023

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BETWEEN:

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State Bank of India, Branch office amongst other places At 3^rd Floor, Near Old Shivaji Theatre, J.C. Road Bangalore, Represented by its Chief Manager, Sri. Mahesh Kumar C, S/o Sri. Nathmal Chotia, Aged about 57 years.

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…APPLICANT

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AND:

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Mr. Ahamed Mylappuram Shafeeq, S/o Kunhimoideen Kutty, Aged about 34 years. R/o flat No. 1301, ‘D’ Block, 13^th Floor, Gold Smith, Hennur Main Road, Kothanur, Bangalore- 560 077.

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Also at: ii. Mylapurram House, Paradi, Koottilangadi PO, Malappuram DT, Kerala- 676506, 32592, Malappuram.

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iii. Flat No. 002, “B” Block “B” Ground Floor, MJ ‘Lifestyle’ Astro Apartments, Chikkanagamangala Village, Sarjapur Hobli, Anekal Taluk, Bangalore- 560099. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M Anitha Defendant : Exparte

OA 1921/2023

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 defendant for Rs. 58,18,763/- (Rupees Fifty Eight Lakh Eighteen Thousand Seven Hundred Sixty 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 defendant availed the housing loan of Rs. 51,36,000/- (Rupees Fifty One Lakh Thirty Six Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with agreement to mortgage and memorandum of deposit of title deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant 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, the summons on defendant, he failed to appear, hence placed exparte on 18.12.2024.

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The applicant had let in evidence through AW-1, who filed Proof

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OA 1921/2023

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-17 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 the 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 defendant?

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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 defendant remained exparte. 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 the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank 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

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OA 1921/2023

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

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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 Housing purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1921/2023, stands allowed,

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

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58,18,763/- (Rupees Fifty Eight Lakh Eighteen Thousand Seven Hundred Sixty Three Only) with further interest @ 8.00 % p.a.(simple), from the date of filing OA till the realization, from the defendant personally after

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giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule Property. Property 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 defendant personally

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and his other 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 which

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applicant to file cost memo within 7 days from the date of receipt of the

OA 1921/2023

order.

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

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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 terms

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

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th day of October, 2025].

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Govind L Ballal S/o Laxman Ballal, Chief Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant’s evidence
A2	--	List of documents
A3	21.05.2022	Loan application
A4	06.06.2022	Arrangement letter
A5	06.06.2022	Agreement for home loan granted to public
A6	06.06.2022	Agreement to mortgage
A7	09.06.2022	Memorandum of deposit
A8	0906.2022	Letter confirming of deposit of title deed
A9	08.06.2022	Sale deed
A10	28.06.2022	Rectification deed

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OA 1921/2023

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A11	06.06.2022	Affidavit
A12	09.06.2022	Sanction letter
A13	08.12.2022	Demand notice
A14	11.09.2023	Certified accounts extracts
A15	11.09.2023	Certified accounts extract
A16	11.09.2023	Account closure summary
A17	11.09.2023	Account closure summary

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

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-Nil -

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

State Bank of India v. Ahamed Mylappuram Shafeeq

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ahamed Mylappuram Shafeeq

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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Case details

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