Allowed

State Bank of India v. B Byre Gowda

DRT31 Dec 2025OA/839/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Application under Section 19 of RDB Act to issue a Recovery Certificate. The court reduced interest to 6% due to agricultural use and directed recovery from legal heirs within the extent of inherited estate.

What did the court decide?

Issued a Recovery Certificate for Rs. 26,52,704/- with interest at 6% p.a. (simple) from the date of filing, recoverable from the legal heirs to the extent of their inherited estate and schedule prope

State Bank of India versus B Byre Gowda — 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.839/2024

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BETWEEN:

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State Bank of India Having Its Corporate Office At: Mumbai and Amongst Other Branches One Called Rasmec, Shimoga

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Branch at: No. 11/90, 3^rd Floor, Near Old Shivaji Talkies, JC Road, Bangalore – 560 002

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Represented by its Chief Manager

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Smt. Daya S Naik …APPLICANT

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AND:

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Sri. B Byre Gowda S/o. Sri. Bore Gowda Aged about 53 years No. 193, Lingayeetara Beedi, Kudligere Hobli, Anthargange Post, Bhadravathi – 577 245

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Smt. Chikkathayamma (Since deceased, represented by her LRs Defendant nos. 1 and 3)

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Sri. B Nagesh S/o. Sri. Byre Gowda Major

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OA. No. 839/2024

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No. 193, Lingayeetara Beedi, Kudligere Hobli, Anthargange Post, Bhadravathi – 577 245 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : T S Krishnamurthy Defendant’s no. 1 & 3 : Ex parte Defendant no. 2 : Deceased

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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. 26,52,704/- (Rupees Twenty Six Lakhs Fifty Two Thousand Seven Hundred and Four 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 defendant nos. 1 and 3 are the legal heirs of the deceased borrower. The Late borrower

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Smt. Chikkathayamma are availed the credit facilities:

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Cash credit facility of Rs. 4,50,000/- (Rupees Four Lakhs Five Thousand Only) on 23.12.2009.

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Term loan of Rs. 36,00,000/- (Rupees Thirty Six Lakhs Only) on 29.09.2016.

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Working capital term loan of Rs. 2,95,000/- (Rupees Two Lakhs Ninety Five Thousand Only) on 20.07.2020.

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Working capital term loan of Rs. 2,40,000/- (Rupees Two

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OA. No. 839/2024

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Lakhs Forty Thousand Only) on 22.06.2021.

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The deceased borrower executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Smt. Chikkathayamma had also executed Simple Mortgage Deed dated 03.12.2009.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in defaults 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 as against the defendants. 6. Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 17.12.2025. 7. The applicant let in evidence through AW-3, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A3 to A34 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary

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OA. No. 839/2024

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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 OA

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claim as against the defendants?

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ii) What orders 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

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remains unrebutted as defendants remained ex parte. 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 account. The liability of the defendants and the claim of the amount due are also

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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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Taking into consideration the facts that the credit facilities

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OA. No. 839/2024

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are availed for Agricultural purpose and also that the OA claim is

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arrived at by calculating interest at the agreed rate, this Tribunal

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is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.839/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum

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of Rs. 26,52,704/- (Rupees Twenty Six Lakhs Fifty Two Thousand

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Seven Hundred and Four Only) with further interest of 6.00% p.a.(simple)from the date of filing OA till the realization, from the defendant nos. 1 and 3, to the extent of their inheritance of any estate form the deceased borrower Smt. Chikkathayamma, 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 the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the liability, the defendant nos. 1 and 3 to the extent of their inherited form the deceased Smt. Chikkathayamma is liable to the proceeds against for the balance amount.

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iii) The applicant bank is allowed cost of the proceeding

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OA. No. 839/2024

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which applicant to file cost memo within 7 days from the date of

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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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with this Final Order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), 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/-

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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: Govind L Ballal, S/o. Sri. Laxman Ballal, Chief Manager, of

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the applicant bank.

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan Application Dated 13.10.2009 Of The Defendants

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OA. No. 839/2024

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A2	Sanction communication/term and conditions letter dated 23.12.2009
A3	Agreement Of Loan-Cum-Hypothecation Dated 23.12.2009
A4	Letter of confirmation for creation of mortgage by deposit of title deeds dated 03.12.2009
A5	Sanction communication/term and conditions letter dated 28.04.2011 for renewal
A6	Agreement Of Loan-Cum-Hypothecation Dated 28.04.2011
A7	Guarantee agreement executed by the 2^nddefendant dated 28.04.2011
A8	CIBIL letter executed bythe 1^stdefendant dated 28.04.2011
A9	Sanction communication/term and conditions letter of renewal with enhancement dated 01.02.2012
A10	Agreement Of Loan-Cum-Hypothecation Dated 01.02.2012
A11	Guarantee agreement executed by the 2^nddefendant dated 01.02.2012
A12	Guarantee agreement executed by the 3^rddefendant dated 01.02.2012
A13	Registered mortgage deed executed by the defendants 1 and 2 dated 19.01.2012
A14	Sanction communication/term and conditions letter of renewal dated 09.05.2014-21.03.2014
A15	Agreement of loan-cum-hypothecation executed by the 1^st defendant dated 09.05.2014
A16	Guarantee agreement executed by the defendants 2 & 3 dated 09.05.2014
A17	Sanction communication/term and conditions letter of executed by the 1^stdefendant dated 29.09.2016 in respect of term loan of a sum of Rs. 36 lakhs
A18	agreement of loan-cum-hypothecation executed by the 1^st defendant dated 29.09.2016
A19	MSME loan application given by the 1^stdefendant dated 03.03.2019
A20	Letter of agreement/term and conditions letter executed by the defendants 1 and 2 dated 25.03.2019 in respect of renewal of cash credit and term loan accounts
A21	Guarantee agreement executed by the 2nd defendant dated 25.03.2019

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OA. No. 839/2024

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A22	Letter of agreement/term and conditions letter executed by the defendants 1 dated 20.07.2020 in respect of new WCTL (GECL)of a sum of Rs. 2.95 lakhs
A23	Supplemental agreement of loan-cum-hypothecation executed bythe 1^stdefendant dated 20.07.2020
A24	Link letter executed bythe 1^stdefendant
A25	Letter dated 20.07.2020 written by the 1^stdefendant to release Covid loan sanctioned
A26	Standinginstructions letter dated 20.07.2020
A27	Letter of confirmation for extension of mortgage by deposit of title deeds covering enhanced limits executed by the 1^st defendant dated 21.07.2020
A28	Offer cum acceptance letter for restricting of loan facilities dated 22.06.2021
A29	Letter of agreement/ in respect of restricting of loan facilities executed bythe 1^stdefendant dated 16.07.2021
A30	Notice issued under section 13(2) of the SARFAESI act to the defendants in respect of suit schedule properties dated 16.09.2022
A31	Certified statement of account in respect of working capital cash credit loan account alongwith certificate
A32	Certified statement of account in respect of working capital term loan account of a sum of Rs. 36 lakhs along with certificate
A33	Certified statement of account in respect of working capital term loan account (WCTL - GECL) in a limit of a sum of Rs. 2.95 lakhs alongwith certificate
A34	Certified statement of account in respect of working capital term loan account (ATL) in a limit of a sum of Rs. 2.40 lakhs alongwith certificate
Witness E List of Doc	xamined for the Defendants: -Nil - uments Exhibited for the Defendants: -Nil -

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(T. RAJESH) PRESIDING OFFICER

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Sd/-

State Bank of India v. B Byre Gowda

Case brief

What is this about?

What did the court decide?

State Bank of India v. B Byre Gowda

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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Case details

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