Allowed

State Bank of India v. Sri.Channabasappa Bhagavatharaya Walikar

DRT19 Jun 2025OA/809/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a recovery certificate against the defendant borrower, who failed to appear. The court found the loan documents admissible and sufficient to prove the default and authorized recovery of the principal sum plus interest from the defendant and secured properties.

What did the court decide?

Recovery certificate issued for Rs. 31,69,428/- with interest at 8% p.a. from 05.08.2022, recoverable from the defendant personally and against schedule properties.

State Bank of India versus Sri.Channabasappa… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, 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. 809/2023

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BETWEEN:

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State Bank of India, Kalaburgi, HKCCI Building, Kalaburagi District, Rep. by its Chief Manager

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…APPLICANT

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AND:

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Sri. Channabasappa Bhagavantharaya Walikar, S/o. Sri. Bhavanthraya Walikar, R/o. Billad Village, Jewargi Taluq, Kalaburagi District -585310.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. G. N. Satyamurthy Defendant : Exparte

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FINAL ORDER

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The present Original Application in short “OA” has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs. 31,69,428/(Rupees thirty-one lakh sixty-nine thousand four hundred

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twenty-eight only) with further interest thereon and cost from

OA 809/2023

the Defendant.

It is the case of the Applicant that the Defendant as borrower availed the following credit facilities: -

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1. Agricultural Term Loan of Rs. 5,50,000/- (Rupees five lakh fifty thousand only) for the purpose of purchase of tractor and trailer.

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1. Cash credit facility of Rs. 1,20,000/- (Rupees One lakh twenty thousand only) under the Kissan Credit Card Scheme.

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It is also the case of the Applicant that, in lieu of the above loans, the Defendant executed necessary loan documents in favour of the Applicant bank to secure the loan including the hypothecation and mortgage over the schedule property.

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It is the case of the Applicant that the Defendant, despite availing the credit facility, agreeing for the Terms and Conditions for the loan, failed in complying with the same, resulting in defaults and consequentially turning the loan accounts as NonPerforming Asset (NPA).

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In the above circumstances, the Applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate

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OA 809/2023

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for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear and hence was set exparte.

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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-3 to A-20, 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 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 Defendant?

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ii) If so, to what extent?

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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 evidence put forth by the Applicant is found

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OA 809/2023

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admissible and sufficient to prove the averments made in the

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OA, and the default committed by the Defendant in repaying the

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loan amount due. The liability of the Defendant and the loan amount due are also proved by the above documents. The claim

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of the Applicant is well within the limitation.

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Hence in view of the above findings this Tribunal comes

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to the conclusion that the OA is liable to be allowed.

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Taking into consideration the fact that the loan is availed

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by the Defendant for agricultural purposes and also the fact that OA claim is arrived at by calculating interest at the agreed rate, pendente lite and future interest is awarded at 8.00% (simple).

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In the result, OA.No.809/2023, is allowed,

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i) The Applicant is allowed to recover an aggregate sum

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of Rs. 31,69,428/- (Rupees thirty one lakh sixty nine thousand four hundred and twenty eight only) with pendente lite and future interest of 8% p.a. (simple) from 05.08.2022 till the realization, from the Defendant personally after giving credit to

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all the amounts recovered and received during the pendency of the OA if any, and allow the same to be recovered by proceeding

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OA 809/2023

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against the defendants and also by proceeding against the

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schedule properties. Properties schedule to the OA be the

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schedule to the Recovery Certificate.

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ii) If the sale proceeds are not sufficient to clear the

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liability, then the Defendant personally and his other assets are

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liable to be proceed against for realization of respective dues.

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iii) The Applicant bank is allowed cost of the proceedings

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for which Applicant to file cost memo within seven days from the

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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, stands disposed of

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in terms of 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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PY), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 19^th Day of June, 2025].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA 809/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Bansi Lal, 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	--	Applicant Evidence
A2	--	List of Documents.
A3	23.12.2006	Loan Application
A4	23.12.2006	Sanction Letter
A5	23.12.2006	Hypothecation Agreement
A6	09.12.2006	Registered Mortgage Deed
A7	16.12.2017	Revival Letter
A8	01.01.2021	Revival letter
A9	05.06.2010	Application for loan
A10	05.06.2010	Sanction letter
A11	29.06.2010	Hypothecation Agreement
A12	05.06.2010	Registered Mortgage Deed
A13	07.06.2010	Encumbrance Certificate
A14	13.08.2022	Legal Notice
A15	04.08.2022	Certified Account Extract
A16	04.08.2022	Certified Account Extract
A17	04.08.2022	Certified Account Extract
A18	04.08.2022	Account Closure Summary
A19	04.08.2022	Account Closure Summary
A20	04.08.2022	Account Closure Summary

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sri.Channabasappa Bhagavatharaya Walikar

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri.Channabasappa Bhagavatharaya Walikar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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