Allowed

State Bank of India v. Ibrahim

DRT31 Dec 2025OA/750/2024

Case brief

AI extract

What is this about?

DRT allowed SBI's Original Application for a recovery certificate against a defaulting home loan borrower. The defendant appeared exparte. The court reduced the agreed interest from the claimed rate to 7% simple interest.

What did the court decide?

Recovery Certificate issued allowing recovery of Rs. 34,31,841/- plus interest at 7% p.a. simple from filing date, proceeding against schedule property and personal assets if insufficient.

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

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of December, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No. 750/2024

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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. A P Ibrahim, S/o Mr. Phodiabba, Aged about 52 years, No. 30, 3^rd Cross, Achangi, Sakleshpur Tq, Hassan- 573134.

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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 section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 34,31,841/- (Rupees Thirty Four Lakh Thirty One Thousand Eight Hundred Forty One Only) with further interest thereon from the date of filing the Application till realization.

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OA 750/2024

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It is the case of the applicant that the defendant availed SBI Home Loan of Rs. 30,00,000/- (Rupees Thirty Lakh Only) for the 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 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, 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 they failed to appear resulting the defendant being set exparte on 23.10.2024.

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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-9 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 750/2024

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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 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 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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OA 750/2024

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In the result, OA.No.750/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 34,31,841/- (Rupees Thirty Four Lakh Thirty One Thousand Eight Hundred Forty One 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 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 amount due and payable to the applicant bank, the defendant personally and his assets are liable for amounts due under the 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 of this final order.

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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)

OA 750/2024

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of December, 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 Laxman 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
A1	07.10.2020	Application form
A2	07.11.2020	Arrangement letter
A3	07.11.2020	Memorandum of loan agreement for home loan granted to public
A4	07.11.2020	Affidavit
A5	07.11.2020	Deed of undertaking
A6	09.11.2020	Memorandum of deposit of title deed
A7	--	Legal notice and postal receipts
A8	--	Statement of account of 39797108861
A9	--	Banker’s certificate

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

State Bank of India v. Ibrahim

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ibrahim

Case brief

What is this about?

What did the court decide?

What the court decided

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