Allowed

State Bank of India v. C Namratha

DRT29 Sept 2025OA/29/2024

Case brief

AI extract

What is this about?

An Original Application under section 19 of the RDB Act was filed to obtain a recovery certificate for a defaulted home loan. The defendant appeared ex parte. The Tribunal found the credit facility and default proved, allowing the claim with interest reduced to 8% simple p.a. and ordering recovery against personal and schedule assets.

What did the court decide?

Issuance of Recovery Certificate for Rs.70,72,795 with future interest at 8% p.a. simple, executable against personal assets and schedule property.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.29/2024

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch, 1/90, 3^rd Floor, Near Old Shivaji Theater, Opp: Trustwell Hospital, J.C. Road, Bangalore-560002, Represented by its chief Manager, Sri. Binoy Kumar Shrivastava … APPLICANT

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AND:

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C. Namratha Aged about 26 years D/o. Sri. E.T. Chndrappa House No.111/6/932, 2^nd Cross, Hosapalya Main Road, Near HDFC Bommanahalli Post, Sectgor – I, Muneshwara Nagar, Bengaluru – 560068

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Also at: 1^st Cross, Kittur Chennamma Road, Viveknagar, Hassan-573201

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Emp.No.ATPL 251195 Department of Training Altruist Technologies Pvt. Ltd., No.4,5 & 6, Behind RNS Motors, Garvebhavipalya, Bengaluru-560068

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OA. No.29/2024

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‘Garden Residency’ Apartment No. F-201, 1^st Floor, ‘F’ Block, Kachanayakanahalli Village, Jigani Hobli, Anekal Taluk, Bangalore - 562106

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...DEFENDANT

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Counsel on record/appeared for: Applicant : Sri. T S Krishnamurthy Defendant : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.70,72,795/- (Rupees Seventy Lakh Seventy Two Thousand Seven Hundred and Ninety Five only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the borrower availed the home loan of Rs.68,00,000/- for the purpose of purchase of flat on 28.01.2022.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule property.

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OA. No.29/2024

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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, service of summons on the defendant, she failed to appear, resulting the defendant being set exparte on 03.02.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A11 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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OA. No.29/2024

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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? 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 credit facility as stated in the OA, as to the execution of loan documents as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant 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 above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility

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was availed for housing purpose and also that OA claim is arrived

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OA. No.29/2024

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at by calculating interest at the agreed rate, this Tribunal in view

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of the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.29/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.70,72,795/- (Rupees Seventy Lakh Seventy Two Thousand Seven Hundred and Ninety Five only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization from defendant, 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 the defendant personally and the assets of the defendant, including the schedule property are liable for all such amounts due under the loan accounts. The 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}

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the amount due and payable to the applicant bank, the defendant personally and her other assets are liable for all such amounts due under the loan account.

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OA. No.29/2024

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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Communicate a copy of the order to the parties concerned

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

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of September 2025].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Rajendra S, chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure		Particulars
A1	Loan application defendant	dated 20.12.2021 of the

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OA. No.29/2024

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A2	Sanction letter dated 28.01.2022
A3	Sanction communication/arrangement letter dated 28.01.2022
A4	Memorandum of loan agreement dated 28.01.2022
A5	Deed of Undertakings dated 28.01.2022
A6	Affidavit along with covering letter dated 28.01.2022
A7	Agreement to mortgage dated 28.01.2022
A8	Registered memorandum relating to deposit of title deeds dated 02.02.2022
A9	Operational letter dated 28.01.2022
A10	Demand notice dated 04.07.2023 issued under S.13(2) of the SARFAESI Act
A11	Certified statement of account in respect of term loan account along with certificate

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. C Namratha

Case brief

What is this about?

What did the court decide?

State Bank of India v. C Namratha

Case brief

What is this about?

What did the court decide?

What the court decided

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