Allowed

State Bank of India v. Hariprasad D P

DRT31 Dec 2025OA/467/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by State Bank of India against Mr. Hariprasad D P for issuance of a Recovery Certificate for a car loan default of Rs. 21.25 lakhs with interest capped at 10% per annum simple.

What did the court decide?

Recovery Certificate issued for Rs. 21,25,350 with 10% p.a. simple interest from filing till realization, executable against personally or schedule asset.

State Bank of India versus Hariprasad D P — 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 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.467/2023

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BETWEEN:

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State Bank of India, Near Old Shivaji Theatre, J.C. Road, Bangalore, Represented by its Chief Manager, Sri. Kiran S Mathada, S/o M. Shekharaiah, Aged about 58 years.

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…APPLICANT

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AND:

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Mr. Hariprasad D P, S/o D Pape Gouda, Aged about 39 years, R/o EWS 149, 1^st Main, 3^rd Cross, Kuvempu Nagar, Mysuru- 570 009. And also at: R/o Jayaram Shetty Nilaya, Vasavi Compound, Shankaripuram, Alur, Hassan- 573201. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : G.N. Satyamurthy 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 seeking issuance of Recovery Certificate against the defendant for Rs. 21,25,350/- (Rupees Twenty One Lakh Twenty Five Thousand Three Hundred Fifty Only) with further interest thereon from the date of filing the Application till

OA 467/2023

realization.

It is the case of the applicant that the defendant availed car loan facility of Rs. 13,00,000/- (Rupees Thirteen Lakh 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 of loan cum hypothecation.

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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 complying 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 balance amount due in the account.

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Despite, summons on the defendant, he failed to appear resulting the defendant being set exparte on 13.11.2024.

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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 A-1 to A-10 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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The following issues arise for consideration in this matter:

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OA 467/2023

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i) Whether the applicant had succeeded in proving the OA claim

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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 credit facilities as stated in the OA, creation of Hypothecation

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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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find both these issues in favour of applicant and hence, this Tribunal is of 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 Vehicle purpose and also that the OA claim is arrived at by

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OA 467/2023

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calculating interest at the agreed rate, this Tribunal in view of the OA can

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be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.467/2023, stands allowed,

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

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21,25,350/- (Rupees Twenty One Lakh Twenty Five Thousand Three Hundred Fifty Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, 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 also proceeding against his assets including the schedule asset. Schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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

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

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OA 467/2023

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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 31^st Day of November, 2025].

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Sd/- (T. RAJESH)

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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: Kiran Mathada S/o Shekharaiah, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	List of documents
A3	31.07.2015	Application for loan
A4	31.07.2015	Arrangement letter
A5	31.07.2015	Agreement of loan-cum-hypothecation
A6	30.03.2022	Legal notice
A7	--	Postal returned cover
A8	--	Postal returned cover
A9	07.12.2022	Certified accounts extract
A10	07.12.2022	Computer output of loan closure enquiry

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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) PRESIDING OFFICER

State Bank of India v. Hariprasad D P

Case brief

What is this about?

What did the court decide?

State Bank of India v. Hariprasad D P

Case brief

What is this about?

What did the court decide?

What the court decided

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