Allowed

State Bank of India v. Sri.Gopal Muttappa Pujari

DRT19 Jun 2025OA/583/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by State Bank of India for a Recovery Certificate against two defendants who remained in absentia. The court confirmed the loans, defaults, and calculated dues, granting recovery of the principal and interest via the schedule property.

What did the court decide?

Recovery Certificate authorized for aggregate sum of Rs. 26,27,130/- with further interest @ 7.05% p.a., recoverable jointly/severally/personally and against schedule property.

State Bank of India versus Sri.Gopal Muttappa Pujari — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 19^th Day of June, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.583/2024

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BETWEEN:

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State Bank of India, Branch Office amongst other places At Stressed Assets Recovery Branch (SARB), 3^rd Floor, Near Old Shivaji Theatre, J.C. Road, Bengaluru, Represented by its Chief Manager, Smt. Daya S Naik.

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…APPLICANT

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AND:

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Mr. Gopal Muttappa Pujari, S/o Muttappa Pujari, Aged about 55 years, No.4, Majukar Building, Rayanna Nagar, Majagoan, Belgaum- 590 008. Karnataka.

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Also at: Sri. Durgaparmeshwari Tea Stall, Macche Industrial Area, Belgaum- 590 014.

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Bharath Gopala Poojary, S/o Gopala Muttappa Pujari, Aged about 38 years, No.4, Majukar Building, Rayanna Nagar, Majagoan, Belgaum- 590 008. Karnataka.

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OA 583/2024

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Also at: Amit Ferro Cast, Macche Industrial Estate, Macche, Belgavi- 590 014. Karnataka. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M. Anitha Defendants : 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 for Rs. 26,27,130/(Rupees Twenty Six Lakh Twenty Seven Thousand One Hundred Thirty Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendants availed housing loan of Rs. 24,00,000/- (Rupees Twenty Four lakh Only) and SBI-Suraksha of Rs. 42,000/- (Rupees Forty Two Thousand Only)

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan agreements along with arrangement letter, memorandum of loan

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OA 583/2024

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agreement, agreement to mortgage, deed of undertaking and memorandum relating to deposit of title deeds in favour of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in compliance of the same, resulting in defaults 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 defendants, they failed to appear, resulting the defendants being set exparte on 22.11.2024.

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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-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

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OA 583/2024

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evidence and the 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

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OA claim as against the defendants?

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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 defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

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admissible and are sufficient to prove availment of 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 as the amount due is 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 finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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OA 583/2024

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this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendants for Housing purpose and interest is claimed at a lower rate, this Tribunal in view of the rate of interest as claimed need not be reduced. However as the OA Claim is arrived at by calculating interest at the agreed rate and also by applying default interest, the prayer for monthly rest and future penal interest are declined.

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13. In the result, OA.No.583/2024, stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 26,27,130/- (Rupees Twenty Six Lakh Twenty Seven

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Thousand One Hundred Thirty Only) with further interest @ 7.05% p.a. (Simple), from the date of filing OA till the realization, from the defendants jointly, severally & 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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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OA 583/2024

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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 defendants jointly, severally & personally and other assets of the defendants 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

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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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v) Interim application pending, if any, are disposed of with

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this Final Order.

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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 (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 19^th Day of June, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER

OA 583/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Govind L Ballal S/o Laxman Ballal, 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	17.07.2021	Loan application-HL
A2	25.10.2021	Arrangement letter
A3	25.10.2022	Memorandum of loan agreement
A4	25.10.2022	Agreement to mortgage
A5	25.10.2021	Deed of undertaking
A6	26.04.2022	Memorandum relating to deposit of title deeds
A7	25.10.2021	Affidavit
A8	08.01.2024	Legal Notice
A9 & A10	--	Postal receipt and Postal Track
A11 & A12	05.01.2024	Statement of Accounts & Foreclosure
A13 & A14	05.01.2024	Statement of Accounts & Foreclosure

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-
(T. RAJESH)
PRESIDING OFFICER

State Bank of India v. Sri.Gopal Muttappa Pujari

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri.Gopal Muttappa Pujari

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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