Allowed

State Bank of India v. Narasimha Pai T

DRT30 Oct 2025OA/710/2024

Case brief

AI extract

What is this about?

Allowed an original application under the RDB Act for issuance of recovery certificate. Tribunal noted non-appearance of respondents and found evidence uncontroverted, allowing recovery with reduced simple interest rates deemed appropriate for business purposes.

What did the court decide?

Recovery certificate directed to be drawn and transferred for execution allowing recovery of Rs.81,98,591/- plus simple interest at varied rates from the date of filing.

State Bank of India versus Narasimha Pai T — 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 30^th Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.710/2024

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch, J C Road, Bangalore-560002 Karnataka, Rep. by its Chief Manager, Smt. Daya S Naik … APPLICANT

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AND:

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Sri. Narasimha Pai T S/o. Raghunaha Pai Aged major,

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Smt. Sandhya N Pai W/o. Sri. Narasimha Pai T Aged major,

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Both are R/at.2-103, Anugraha house Eliyanagodu village, Post Mavina Katte Bantwal Taluk, Dakshina Kannada-574242

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Sri. Sanjeeva Shetty S/o. Mahabala Shetty Aged major, Kadeyl House, Arambody village & Post, Belthangadi Taluk, Dakshina Kannada-574242

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M/s. Shree Vinayaka Venkataramana Industries Rep. By its Prop. Sri. Narasimha Pai T

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OA. No.710/2024

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Kodeylu, Arambody village and Post, Belthangady Taluk, Dakshina Kannada-574242 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mr. Nandish N J 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 for seeking issuance of Recovery Certificate against the defendants for Rs.81,98,591/- (Rupees Eighty One Lakh Ninety Eight Thousand Five Hundred and Ninety One 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 the

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Following credit facilities:

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Housing loan limit of Rs.20,00,000/- on 07.11.2014;

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SBI Life of Rs.74,050/- on 07.11.2014;

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Home loan limit of Rs.6,00,000/- on 29.04.2016

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Cash Credit Limit of Rs.22,00,000/- on 02.03.2021

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GECL of Rs.4,87,000/- on 06.06.2020

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Working Capital Term loan of Rs.2,00,000/- on 02.03.2021

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FITL of Rs.2,56,000/- on 02.03.2021

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OA. No.710/2024

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents apart from the creation of security interest by way of hypothecation and mortgage over the Schedule A & B properties.

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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 account 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 accounts.

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Despite, service of summons on the defendants, failed to appear, resulting the defendants being set exparte on 22.01.2025. 7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A34 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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OA. No.710/2024

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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 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 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 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 above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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OA. No.710/2024

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12. Taking into consideration the facts that the credit facilities

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was availed for business purpose and also that OA claim is arrived

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at by calculating interest at the agreed rate, this Tribunal in view

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of the OA can be allowed with a reduced interest rate (simple).

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In the result, OA.No.710/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.81,98,591/- (Rupees Eighty One Lakh Ninety Eight Thousand Five Hundred and Ninety One only) consisting of:

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a. Rs.30,63,715/- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from the defendant Nos.1 to 3;

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b. Rs.55,749/- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from the defendant Nos.1 to 3;

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c. Rs.7,16,094/- with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from the defendant Nos.1 and 2;

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d. Rs.31,28,909/- with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the defendant No.4;

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e. Rs.6,12,072/- with further interest of 9.00% p.a.(simple) from

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the date of filing OA till the realization from the defendant No.4;

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OA. No.710/2024

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f. Rs.2,72,960/- with further interest of 11.00% p.a.(simple) from

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the date of filing OA till the realization from the defendant No.4

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and

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g. Rs.3,49,092/- with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the defendant No.4.

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after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule A & B properties. The 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 amount due and payable to the applicant bank, the defendants jointly, severally and personally and their 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 proceeding 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 order and transferred to Recovery for execution.

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OA. No.710/2024

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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14. 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 (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of October 2025].

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Govind L Ballal, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Date	Particulars
A1	25.09.2014	Loan application dated 25.09.2014
	07.11.2014	Arrangement letter – my bank home
A2		loan dated 07.11.2014 executed by defendant No.1 to 3
	07.11.2014	Term loan agreement dated
A3		07.11.2014 executed by defendant
		No.1 and 2.
A4	07.11.2014	Guarantee Agreement dated 07.11.2014

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OA. No.710/2024

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A5	07.11.2014	Letter of confirmation of Deposit of Title Deeds dated 07.11.2014 executed by defendant No.1
A6	29.04.2016	Arrangement letter – my bank home loan dated 29.04.2016 executed by defendant No.1 and 2
	29.04.2016	Term loan agreement dated
A7		29.04.2016 executed by defendant No.1 and 2
A8	01.06.2016	Loan application form for Pradhan Mantri Mudra Yojana dated 01.06.2016
	03.06.2016	SME-1 letter of arrangement dated
A9		03.06.2016 executed by defendant No.4
A10	03.06.2016	SME-2 Agreement of loan cum hypothecation dated 03.06.2016
	14.09.2017	SME-1 letter of Arrangement dated
A11		14.09.2017 executed by defendant No.4
	14.09.2017	SME-4 supplemental Agreement of
A12		loan cum Hypothecation dated 14.09.2017
A13	14.09.2017	SME-7 memorandum of recording extension of mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limit and enhanced limits and

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OA. No.710/2024

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		additional facilities dated executed by defendant No of applicant.	14.09.2017 .1 in favour
	29.05.2020	SME-1 letter of arrange	ment dated
A14		29.05.2020 executed by No.4	defendant
	29.05.2020	SME-2 agreement of	loan cum
A15		hypothecation dated executed by defendant No.	29.05.2020 4
A16	06.06.2020	SME-1 letter of Arrange 06.06.2020 for GECL limit defendant No.1	ment dated executed by
	06.06.2020	SME-2 agreement of	loan cum
A17		hypothecation dated executed by defendant No.	06.06.2020 1
A18	06.06.2020	Offer letter dated 29.05.20	20
A19	06.06.2020	SME-12 Link letter dated executed by defendant No.	06.06.2020 4
	29.05.2020	Pre approved loan facility	GECL dated
A20		29.05.2020 executed by No.4	defendant
	02.03.2021	SME-1 letter of arrange	ment dated
A21		02.03.2021 executed by No.4	defendant
	02.03.2021	SME-2 Agreement of	loan cum
A22		hypothecation dated	02.03.2021
		executed by defendant No.	4

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OA. No.710/2024

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A23	03.05.2016	Memorandum of Deposit of Title Deeds dated 03.05.2016
A24	28.11.2017	Memorandum of Deposit of Title Deeds dated 28.11.2017
A25	29.05.2020	SME-7 memorandum of recording extension of mortgage by deposit of title deeds
A26	29.05.2020	SME-8 letter of confirmation for extension of mortgage by deposit of title deeds
A27	04.01.2024	Legal notice dated 04.01.2024, postal receipts, postal acknowledgment and returned covers
A28 to A34	-	Certificate statement of account 7 nos along with certificate

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Narasimha Pai T

Case brief

What is this about?

What did the court decide?

State Bank of India v. Narasimha Pai 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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