Allowed

State Bank of India v. Ramesh Babu Mylapillai

DRT31 Dec 2025OA/2057/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for a recovery certificate against the defaulting borrower. The court upheld the claim for principal and reduced interest, permitting recovery via the mortgaged schedule G of the case and personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 71,82,608/- plus 8% p.a. simple interest; recovery first from mortgaged schedule property and then from personal assets.

State Bank of India versus Ramesh Babu Mylapillai — Company and Corporate | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 31^st Day of December, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.2057 of 2023

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State Bank of India, Stressed Asset Recovery Branch, No.11/90, 3^rd Floor, Near Shivaji Theatre, JC Road, Bangalore – 560 002. Represented by its Chief Manager.

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… Applicant.

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Vs.

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Sri Ramesh Babu Mylapilli, S/o. Upendra Rao, R/at. C-703, Purva Mio Town Apartments, Dooravani Nagaram FCI Godown Road, Tin Factory, K.R.Puram, Bengaluru – 560 016.

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And Also at #2-70, Vadapalaam, Calimgapatnam, Srikakulam, Andhra Pradesh – 532 406.

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And Also at Saatchi & Saatchi Pvt. Ltd., 8^th Floor, SN Tower Trenity Circle, Bengaluru – 560 001.

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And Also at Site No.23, S2 Homes Butterfly Gardens, Vaderman Chanahalli & Konasandra Village Jigini, Anekal Taluk – 562 106. … Defendant.

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Counsel for Applicant : Sri Prabhu Rao C.B. Defendant : Exparte.

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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.71,82,608/- together with further interest @9.1% plus 2% overdue charges compounded with monthly rests from 31.10.2023 till the date of realisation together with costs from the defendant and by way of sale of schedule mentioned property.

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The Applicant contends that the defendant approached the applicant bank for Home loan under the scheme called as “SBI Reality” of Rs.55,40,000/- and availed the same on 23.08.2019 by execution of necessary loan documents including Memorandum of Loan Agreement. The defendant has also mortgaged the schedule mentioned property in favour of applicant by execution of Memorandum relating to Deposit of Title Deeds dt.31.08.2019 vide registered document bearing No.ABL-1-03665/2019-20.

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

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The Applicant further contends that after availing the aforesaid facility, the defendant failed to regularize the said loan and hence the

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loan account of the defendant was classified as NPA on 15.01.2021.

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The applicant bank had issued notice u/s.13(2) of the SARFAESI Act dt.17.02.2021 calling upon the defendant for repayment of dues. Despite availing the credit facility by obliging to pay back the amount, the defendant failed in compliance of the same and all the efforts of the Applicant to make the defendant pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendant failed to enter appearance, he was set exparte on 20.03.2025.

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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 A10, 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 Defendant?

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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

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found to be entitled for the OA claim. The OA claim is made within

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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 Home 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.2057 of 2023 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.71,82,608/(Rupees Seventy One Lakhs Eighty Two Thousands Six Hundred and Eight only) together with interest @8% p.a. (simple) from the date of filing of OA till the date of realization from the defendant 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 mentioned 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 Defendant is personally and his 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 31^st day of December, 2025)

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Sd./- (T. RAJESH)

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PRESIDING OFFICER

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Applicant Witness:

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AW1 –Sri Vivek Raina, Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Loan Application. Ext.A2 - Sanction dt.21.08.2019. Ext.A3 - Letter of Undertaking dt.23.08.2019. Ext.A4 - Agreement to Mortgage dt.23.08.2019. Ext.A5 - Memorandum of Loan Agreement for Home Loan dt.23.08.2019. Ext.A6 - Memorandum relating to Deposit of Title Deeds

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dt.31.08.2019.

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Ext.A7 - Sale Deed dt.31.08.2019. Ext.A8 - Registration of Security Interest Acknowledgement Report dt.30.09.2019. Ext.A9 - Demand Notice u/s.13(2) dt.17.02.2021. Ext.A10 - Statement of Account along with Certificate as per Banker’s Book Evidence Act.

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Witness Examined for the Defendant:

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NIL

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List of Documents Exhibited for the Defendant :

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NIL

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Sd./-

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(T. RAJESH)

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PRESIDING OFFICER

State Bank of India v. Ramesh Babu Mylapillai

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ramesh Babu Mylapillai

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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