Allowed

State Bank of India v. Nagesh B T

DRT28 Oct 2025OA/509/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by State Bank of India against a defendant for a housing loan default, issuing a recovery certificate despite the defendant's exparte default.

What did the court decide?

Issuance of Recovery Certificate for Rs. 35,78,940/- plus interest @ 8.00% p.a. (simple) from filing date until realization, recoverable from defendant personally and schedule property.

State Bank of India versus Nagesh B T — Money Laundering | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 28^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.509/2024

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BETWEEN:

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State Bank of India, At stressed Assets recovery branch (SARB), 3^rd Floor, Near Old Shivaji Theatre, J.C. Road, Bengaluru, Represented by its Chief Manager, Sri. Raviprakash H V.

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…APPLICANT

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AND:

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Mr. Nagesh B T, S/o Mr. Thirumalaiah Baregenahalli, Aged about 40 years, Sompura Hobli, Nelamangala Tq, Bangalore Rural- 562 111.

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Also at:

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#10, Sri Sai Krishna Residency, Jakkasandra, Nelamangala Taluq, Bangalore- 560034.

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Also at:

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#A-70, 1^st Floor, 2^nd Cross, 1^st Main, Upkar, Solitaire, Attibele, Bangalore- 562 109.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M Anitha 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 sum of Rs. 35,78,940/- (Rupees Thirty Five Lakh Seventy Eight Thousand Nine

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OA 509/2024

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Hundred Forty Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant availed the housing loan facility of Rs. 35,00,000/- (Rupees Thirty Five 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 deed of undertaking and memorandum of deposit of title deeds.

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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 compliance of 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 amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 19.09.2024.

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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-3 to A-14 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 the proof affidavit.

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OA 509/2024

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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?

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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 the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank 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

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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 Housing purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the

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OA 509/2024

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

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In the result, OA.No.509/2024, stands allowed,

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

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35,78,940/- (Rupees Thirty Five Lakh Seventy Eight Thousand Nine Hundred Forty Only) with further interest @ 8.00 % p.a.(simple), from the date of filing OA till the realization, from the defendant personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule Property. 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 the

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

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iii) The applicant bank is allowed cost of the proceedings which

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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 order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this Final Order.

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OA 509/2024

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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)

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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 28^th day of October, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Raviprakash H V S/o Vishwanath Shastry, Chief Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Applicant’s evidence
A2	--	List of documents
A3	--	Loan application
A4	18.04.2022	Arrangement letter of housing finance
A5	18.04.2022	Agreement for home loan
A6	18.04.2022	Agreement to mortgage
A7	18.04.2022	Deed of undertaking
A8	19.04.2022	Memorandum of deposit of title deeds
A9	07.08.2020	Absolute sale deed
A10	18.04.2022	Affidavit
A11	23.05.2023	Demand notice
A12	27.05.2023	Postal receipts
A13	05.01.2024	Statement of account
A14	05.01.2024	Foreclosure letter/ statement

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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/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Nagesh B T

Case brief

What is this about?

What did the court decide?

State Bank of India v. Nagesh B T

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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