Allowed

State Bank of India v. Ultra the Style Studio

DRT29 Sept 2025OA/710/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by State Bank of India seeking a Recovery Certificate. The bank proved availment of credit facilities and defaults through evidence. The defendants did not appear, leaving them ex parte. The Tribunal determined the claim within limitation and allowed recovery of the principal amount along with interest.

What did the court decide?

Recovery Certificate issued for Rs. 2,18,97,706 with interest @12% p.a. simple from filing date; Defendants jointly and severally liable.

State Bank of India versus Ultra the Style Studio — 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 29^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.710/2023

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BETWEEN:

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State Bank of India, Bangalore City Branch, No.22, J.C. Road, Bangalore- 560002. Represented by its Assistant General Manager, Sri. Rajiv Kumar.

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…APPLICANT

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AND:

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M/s. Ultra The Style Studio, No. 2336, K.R. Road, Banashankari 2nd Stage, Bangalore- 560070.

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Sri. Bharath Doshi, S/o Sri. K.G. Doshi, 50 years, No. 29/2, Purva Belmont, Flat No. A404, J.P. Nagar, Kanakapura Road, Bangalore- 560078.

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Also at:- Sri. Bharath Doshi, S/o Sri. K.G. Doshi, Nitesh Estates Apartment, 9th Floor, Flat No. 902, Vajarahalli Metro Station, Vajarahalli, Kanakapura Main Road, Bangalore- 560109.

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Smt. Tejal B Doshi, W/o. Sri. Bharath Doshi, 48 years, No. 29/2, Purva Belmont, Flat No. A404, J.P. Nagar,

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OA 710/2023

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Kanakapura Road, Bangalore- 560078.

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Also at:

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Smt. Tejal B Doshi, W/o. Sri. Bharath Doshi, Nitesh Estates Apartment, 9^th Floor, Flat No. 902, Vajarahalli Metro Station, Vajarahalli, Kanakapura Main Road, Bangalore- 560 109. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Lokesh Murthy G 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 against the defendants for Rs. 2,18,97,706/(Rupees Two Crore Eighteen lakh Ninety Seven Thousand Seven Hundred and Six 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 defendants availed cash credit of Rs. 250.00 lakhs, additional limit of Rs. 25.00 lakhs, liberalized working capital assessment of Rs. 25.00 lakhs, additional credit facility of Rs. 17.00 lakhs, cash credit hypothecation limit of Rs. 150.00 lakhs.

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It is also the case of the applicant that, in view of the above availed

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loans, the defendants executed necessary loan documents along with copy

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OA 710/2023

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of guarantee agreement, copy of mortgage of deposit of title deeds and letter of confirmation of mortgage.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 12.02.2025.

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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-24 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

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as against the defendants?

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ii) What order are to be passed?

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OA 710/2023

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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 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 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 Business 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

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be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.710/2023, stands allowed,

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

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OA 710/2023

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2,18,97,706/- (Rupees Two Crore Eighteen lakh Ninety Seven Thousand

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Seven Hundred and Six Only) with further interest @12.00 % 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 proceeding against schedule property. Properties schedule

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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 defendants jointly, severally & personally and their assets are liable for respective amounts due under the respective 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 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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Communicate a copy of the order to the parties concerned in terms

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OA 710/2023

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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

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Open Court, this the 29^th Day of September, 2025].

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Sd/-

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(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: Nagaraja V S/o Late Nagappa, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Copy of sanction of credit facilities dated 27.03.2019
A2	Copy of letter of arrangement SME-1 dated 30.03.2019
A3	Copy of agreement of loan-cum-hypothecation-SME-2 dated 30.03.2019
A4	Copy of guarantee agreement- SME 3 dated 30.03.2019
A5 & A6	Copy of letter of confirmation of mortgage-SME-8 dated 30.03.2019. SME-7 dated 30.03.2019
A7 to A9	Copy of letter of arrangement dated 08.06.2020, Supplemental agreement of loan-cum hypothecation and guarantee agreement dated 08.06.2020
A10 to A12	Copy of letter of arrangement dated 06.07.2021, Supplemental agreement of loan-cum hypothecation and guarantee agreement dated 06.07.2021
A13 & A14	Copy of sanction copy of facilities renewed dated 08.07.2022, and letter of arrangement SME-1 dated 22.11.2022
A15 to A17	Copy of link letter SME-12 dated 14.07.2022, revival letter SME-11 dated 23.13.2022 and 23.03.2022
A18	Copy of RMODTD dated 22.07.2020
A19 & A20	Copy of search report of CERSAI dated 27.04.2022 and 24.08.2018

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OA 710/2023

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A 21 & Copy of legal notice and RPAD postal receipt dated A22 09.11.2022 A23 & Copy of 2 loan account statements 24

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ultra the Style Studio

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ultra the Style Studio

Case brief

What is this about?

What did the court decide?

What the court decided

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