Allowed

State Bank of India v. R v Traders

DRT12 Nov 2025OA/2224/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's recovery certificate application against the defendant trader for a cash credit loan default. The court found the claim proved and admissible, ordering recovery of the principal sum plus 10% p.a. simple interest.

What did the court decide?

Issuance of Recovery Certificate for Rs.2,15,68,392/- with 10% p.a. simple interest, recoverable from hypothecated properties or Defendant's personal assets.

State Bank of India versus R v Traders — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 12^th Day of November, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.2224 of 2024

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State Bank of India, Hassan Branch, Behind Suvarna Gate, Hassan District, Hassan – 573 116. Represented by its Chief Manager. … Applicant.

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Vs.

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R.V.Traders, Represented by its Proprietor, Smt.Ranjitha L.G., D/o.Sri Giri Gowda, Unit at: No.254, Near Canara Bank ATM, Ground Floor, Sai Sri Building, Beernahalli, Hoysala Nagara Main Road, Hassan, Hassan District – 573 201.

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And Also at: R/o.Vishweshwaraiah Extension, Royal Appolo School Road, Chikkakondagula, Hassan – 573 201. … Defendant. Counsel for Applicant : Sri G.N.Sathyamurthy. 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.2,15,68,392/- together with further interest @14.25% compounded with monthly rests from 09.08.2024 till the date of realisation together with costs from the defendant and by way of sale of schedule mentioned hypothecated movables.

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The Applicant contends that the defendant approached the applicant bank for Cash Credit loan of Rs.2,00,00,000/- and availed the same on 07.03.2023 by execution of necessary loan documents including Agreement of Loan-cum-Hypothecation, hypothecating the movable properties described in the schedule to the OA in favour of applicant.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendant obliging herself 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 loan account of the defendant was classified as NPA on 29.06.2024.

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The applicant bank has also issued legal notice dt.16.08.2024 calling upon the defendant for repayment of dues. Despite availing the credit facility by obliging to pay back the amount, the defendant

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failed in compliance of the same and all the efforts of the Applicant to

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make the defendant pay back the amount failed, forcing the Applicant

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to file this Application.

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Summons was taken out and as the defendant failed to enter appearance, she was set exparte on 01.04.2025.

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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 A8, 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 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 Cash Credit

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Loan the pendent lite and future interest is awarded at simple rate

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that too at reduced rate of 10% p.a. (simple).

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In view of the above

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i) OA No.2224 of 2024 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.2,15,68,392/- (Rupees Two Crores Fifteen Lakhs Sixty Eight Thousands Three Hundred and Ninety Two only) together with interest @10% 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 movable properties. 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 her 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 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 PS, transcribed by him corrected and pronounced by me in the open Court on this the 12^th day of November, 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 –Mr.Vivek Raina, Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Application dt.16.02.2023. Ext.A2 - Arrangement Letter dt.07.03.2023. Ext.A3 - Agreement of Loan-cum-Hypothecation dt.07.03.2023. Ext.A4 - Undertaking/Declarations dt.07.03.2023. Ext.A5 - Legal Notice dt.16.08.2024. Ext.A6 - Postal Receipt dt.17.08.2024. Ext.A7 - Certified Accounts Extract dt.08.08.2024. Ext.A8 - Account Closure Summary dt.08.08.2024.

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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. R v Traders

Case brief

What is this about?

What did the court decide?

State Bank of India v. R v Traders

Case brief

What is this about?

What did the court decide?

What the court decided

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