Allowed

State Bank of India v. Sri. Hanumanthappa Ganganna

DRT19 Jun 2025OA/470/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by State Bank of India for issuance of a Recovery Certificate against a defaulting borrower of agricultural and KCC loans, permitting recovery of confirmed dues with reduced simple interest.

What did the court decide?

Recovery Certificate issued for Rs.55,95,894 plus future simple interest at 8% pending realization, and order to proceed against secured and personal assets.

State Bank of India versus Sri. Hanumanthappa… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 19^th Day of June, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A. No. 470 of 2022

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State Bank of India, Asset Recovery Branch, At Mysore Bank Building, BKG Complex, A- Block, 2^nd Floor, Avenue Road, Bengaluru-560009, Represented by its Chief Manager, Sri. Binoy Kumar S/o Late J.P. Srivastava, Aged 57 Years. . . . Applicant

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Versus

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Sri. Hanamathappa Ganganna, S/o Ganganna, Aged about 62 Years, R/o Gandhinagar, Ramadurga Taluq, Belagaum District- 591123 and also at: R/o Mallapur, Ramadurga Taluq, Belagaum District- 591123.

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---Respondent

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Ld. Counsels on record / appeared :- Counsel for Applicants :- Sri. G N Satyamurthy Counsel for Respondent :- EXPARTE

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OA 470/2022

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The Application is filed Under Section 19 (1) of the Recovery of Debt And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for Rs.55,95,894 (Rupees Fifty Five lakh Ninety Five Thousand Eight Hundred Ninety Four Only) due in the Agricultural Term Loan for Rs. 5,80,000/(Rupees Five lakh Eighty Thousand Only) and KCC Limit of Rs. 4,00,000/(Rupees Four lakh Only) availed by the defendants and defaulted subsequently in gross violation of the terms and conditions stipulated in the loan agreement.

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The Agricultural term loan was rephased to Rs. 3,90,000/- (Rupees Three Lakh Ninety Thousand Only) which was again rephased and closed to an amount of Rs. 5,79,000/- (Rupees Five Lakh Seventy Nine Thousand Only). The KCC loan was converted into a term loan of Rs. 5,47,700/- (Rupees Five Lakh Forty Seven Thousand Seven Hundred Only).

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It is also stated that the facilities is secured by Hypothecation agreement and registered mortgage deed.

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The Applicant further contents that 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

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back the amount failed forcing the Applicant to file this Application.

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OA 470/2022

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Summons was taken out and as the defendant failed to appear he was set

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exparte on 05.03.2024 and evidence was adduced by the applicant through AW1, who filed proof affidavit, produced documents and got marked Ext.A3 to A19 list of which are annexed to this order.

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The Applicant evidence remain 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 to be found entitled for the OA claim as the only issue as to the proof of OA claim is answered in favour of the applicant. The OA claim is made within limitation and there is no capitalization of penal interest.

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Taking into consideration the facts that the credit facilities are availed for agricultural 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 view of the above

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i. OA 470 OF 2022 stands allowed

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ii. Applicant is permitted to recover an amount of Rs.55,95,894/(Rupees Fifty Five lakh Ninety Five Thousand Eight Hundred Ninety Four Only) with future and pendentalite interest @ 8.00% (Simple) from the date of filing of the OA till realization from the defendant

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OA 470/2022

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personally after giving credit to all the amount recovered and

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received during the pendency of the OA.

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iii. The schedule property to be proceeded against and sold and if the sale proceeds are not sufficient the defendant personally and his other assets are liable to be produced against. The schedule to the OA to be the schedule to the Recovery Certificate.

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iv. A Recovery Certificate is to be drawn and issued to the recovery Officer to enable recovery of the as per the above terms.

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

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(Dictated to AJ, transcribed by her, corrected, signed and pronounced by me in Virtual Court on this day of 19^th Day of June, 2025)

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Sd/- (T. RAJESH)

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Hon’ble Presiding Officer DRT-II- BANGALORE

OA 470/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Selvarani D/o Late K Velusamy , Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	--	Affidavit of Evidence
A2	--	List of Documents
A3	08.06.2007	Application for loan
A4	08.06.2007	Sanction letter
A5	08.06.2007	Hypothecation Agreement(AB-1)
A6	08.06.2007	Sanction letter
A7	08.06.2007	Hypothecation Agreement(AB-1)
A8	25.05.2007	Registered Mortgage deed
A9	01.06.2010	Revival letter
A10	30.05.2013	Revival Letter
A11	03.02.2022	Legal Notice
A12	16.02.2022	Certified Accounts Extract
A13	16.02.2022	Certified Accounts Extract
A14	16.02.2022	Certified Accounts Extract
A15	16.02.2022	Certified Accounts Extract
A16	31.03.2022	Account Closure Summary
A17	31.03.2022	Account Closure Summary
A18	31.03.2022	Account Closure Summary
A19	31.03.2022	Account Closure Summary

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

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-Nil -

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-Nil -

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Sd/- (T. RAJESH) Hon’ble Presiding Officer DRT-II- BANGALOREP

State Bank of India v. Sri. Hanumanthappa Ganganna

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri. Hanumanthappa Ganganna

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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