Allowed

State Bank of India v. Kalakana Gouda

DRT19 Nov 2025OA/550/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for a recovery certificate. The defendant appeared ex parte. The court found the loan documents, defaults, and liability proved by undisputed evidence and awarded recovery of the principal plus reduced interest.

What did the court decide?

Recovery Certificate issued for Rs. 46,70,567/- plus 7% simple interest from filing date; defendant personally liable for shortfall; cost of proceedings awarded.

State Bank of India versus Kalakana Gouda — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 19^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.550/2024

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BETWEEN:

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State Bank of India, Stressed Assets Recovery Branch, No. 11/9, 3^rd Floor, Near Old Shivaji Theater, J C Road, Bangalore- 560002.

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…APPLICANT

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AND:

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Shri Kalakana Gouda, S/o Mr. Hanumagaud Gaudra, Aged about 32 years, Door No. 25-11-662, Srinivas Kripa Compound, Sooterpete, Kankanady, Mangalore- 575002.

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Also at: 1. R/o. Door No. 214-45212, Pallikere Complex, KFDC Ice Factory, Mangalore- 575001.

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R/o 10148/43, Yamuna Gaudra, Biddel Homes Layout, Near Ramakrishna Mission, Shaktinagara, Mangalore- 575016.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Naveen Tao Defendant : EXPARTE

OA 550/2024

FINAL ORDER

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. 46,70,567/- (Rupees Forty Six Lakh Seventy Thousand Five Hundred Sixty Seven 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 a sum of Rs. 39 lakhs which included the takeover loan from DHFL and the construction of the house at Mangalore.

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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,

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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 amount due in the account.

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Despite, summons on defendant, he failed to appear resulting the defendant being set exparte on 27.09.2024.

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OA 550/2024

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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-16 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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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 credit facilities as stated in the OA, creation of the security interest 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 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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OA 550/2024

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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 the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 7.00% (simple).

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In the result, OA.No.550/2024, stands allowed,

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

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46,70,567/- (Rupees Forty Six Lakh Seventy Thousand Five Hundred

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Sixty Seven Only) with further interest @7.00 % 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 schedule property. Properties 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 assets are liable for amounts due under the loan account.

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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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OA 550/2024

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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14. 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 19^th 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:Govind L Ballal, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A3	05.09.2020	Application for home loan
A4	05.09.2020	Customer information sheet
A5	30.09.2020	Memorandum of loan agreement for home loan
A6	30.09.2020	Deed of undertaking
A7	30.09.2020	Agreement to mortgage
A8	30.09.2020	Affidavit by the borrower
A9	30.09.2020	Arrangement letter
A10	28.10.2020	Memorandum of deposit of title deeds registered as document No. MGC-1-02902-2020-21, at the office of Sub-registrar, Mangalore City
A11	06.11.2023	Demand notice u/s 13(2) of SARFEASI Act
A12	08.11.2023	Three postal receipts

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OA 550/2024

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A13 &	--	Two postal acknowledgement cards served
A14
A15	--	Bank statement A/c No. 3970079995
A16	--	Bank statement A/c No. 40335741509

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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) PRESIDING OFFICER

State Bank of India v. Kalakana Gouda

Case brief

What is this about?

What did the court decide?

State Bank of India v. Kalakana Gouda

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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