Allowed

State Bank of India v. Stalin Jackson Soans

DRT19 Sept 2025OA/748/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for issuance of a Recovery Certificate against the defendant for a home loan default. Interest was reduced to 8% simple pending the case, and recovery was authorized against scheduled properties and personal assets.

What did the court decide?

Recovery Certificate to be drawn for Rs. 75,49,877 with interest at 8% p.a. (simple) recoverable from scheduled property and personal assets of the defendant.

State Bank of India versus Stalin Jackson Soans — 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 September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.748/2024

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BETWEEN:

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State Bank of India, Represented by its Chief Manager, Mrs. Daya S Naik, Stressed Asset Recovery Branch (SARB), JC Road, Bangalore- 560002.

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…APPLICANT

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AND:

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Mr. Stalin Jackson Soans, S/o Samuel Johnson Soans, Aged about 33 years, #4-48/20-2, Soans Cottage, Maroli Kember, Padil Alape, Near K.E.B, Mangalore, Dakshina Karnataka- 575007.

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Also having address at: S No. 60-7(P)2, Kankanady B Village, Mangalore, Dakshina Karnataka- 575003.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : M/s. R & J Associates Defendant : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under

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section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance

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OA 748/2024

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of Recovery Certificate against the defendant for Rs. 75,49,877/- (Rupees Seventy Five lakh Forty Nine Thousand Eight Hundred Seventy 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 Home loan of Rs. 59,00,000/- (Rupees Fifty Nine Lakh Only) for purpose of purchasing a house.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with deed of undertaking, memorandum of loan agreement and memorandum of deposit of title deeds for creation of charge.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount 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, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 27.01.2025.

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The applicant had let in evidence through AW-1, who filed Proof

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OA 748/2024

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-10 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

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forth by the applicant were found admissible and are sufficient to prove

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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

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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 748/2024

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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 8.00% (simple).

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In the result, OA.No.748/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 75,49,877/- (Rupees Seventy Five lakh Forty Nine Thousand Eight Hundred Seventy Seven 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 amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against 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 respective amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA 748/2024

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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, 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 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: Govind Laxman Ballal S/o Laxman, 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
A1	08.04.2018	Application form
A2	20.07.2018	Arrangement letter
A3	20.07.2018	Affidavit
A4	20.07.2018	Deed of undertaking
A5	20.07.2018	Memorandum of loan agreement for home loan granted to public
A6	21.07.2018	Confirmation letter
A7	25.07.2018	Memorandum relating to deposit of title deeds for creation of charge for term loan/ overall limit

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OA 748/2024

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A8	17.02.2024	Legal Notice along with postal receipts and
series		postal tracking report
A9	--	Statement of Acc No. 37829935871
A10	--	Banker’s certificate

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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. Stalin Jackson Soans

Case brief

What is this about?

What did the court decide?

State Bank of India v. Stalin Jackson Soans

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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