Allowed

State Bank of India v. Sri. Prabhakar Ranga

DRT19 Jun 2025OA/855/2022

Case brief

AI extract

What is this about?

In Debt Recovery Tribunal proceedings, the applicant bank sought a recovery certificate against the defendant for a defaulted loan facility. The defendant appeared ex parte. The tribunal found the applicant's evidence uncontroverted, established the debt and defaults, and allowed the original application, granting recovery of the principal amount plus interest at 8% p.a. simple interest.

What did the court decide?

Recovery Certificate drawn for Rs. 26,97,498.00 plus further interest @ 8% p.a. (simple) from the date of filing OA till realization, executable against the defendant's personal assets and schedule pr

State Bank of India versus Sri. Prabhakar Ranga — Execution and Attachment | 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 June, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.855/2022

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BETWEEN:

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State Bank of India, Asset Recovery Branch at Mysore Bank Building, BKG Complex, A-Block, 2^nd Floor, Avenue Road, Bengaluru- 560009, Represented by its Chief Manager, Sri. Vinaya Bhat S/o Sri. Rama Bhat.

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…APPLICANT

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AND:

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Sri. Prabhakar Ranga, S/o Eshwarappa Ranga, Aged about 65 years, Kalmala Village, Raichur Taluq and District- 584136. ...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 against the

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OA 855/2022

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defendant for Rs. 26,97,498.00 (Rupees Twenty Six Lakh Ninety Seven Thousand Four Hundred Ninety Eight 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 the following credit facilities from the applicant:-

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KCC Loan limit of Rs. 1,40,000/- (Rupees One Lakh Forty Thousand Only) enhanced to Rs. 2,00,000/- (Rupees Two Lakh Only) and further enhanced to Rs. 4,11,339/- (Rupees Four lakh Eleven Thousand Three Hundred Thirty Nine Only) and,

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ATL Facility to the Extent of Rs. 4,50,000/- (Rupees Four Lakh Fifty Thousand Only) for purchase of tractor and trailer.

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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 hypothecation agreement, registered mortgage deed and encumbrance certificate in favour of the applicant bank.

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OA 855/2022

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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 compliance of 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 05.03.2024.

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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-3 to A-25 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 the proof affidavit.

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The following issues arise for consideration in this matter:

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OA 855/2022

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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) 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 the credit facilities as stated in the OA, creation of security interest and hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due is 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 finding arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is liable to be allowed.

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OA 855/2022

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12. Taking into consideration the facts that the credit facilities

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are availed for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.855/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 26,97,498.00 (Rupees Twenty Six Lakh Ninety Seven Thousand Four Hundred Ninety Eight Only) with further interest @ 8 % p.a.(simple) from the date of filing OA till the realization

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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

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the amount due and payable to the applicant bank, the defendant personally and his assets are liable for respective

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OA 855/2022

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amounts due under the respective loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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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

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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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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

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of DRT (Procedure) 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 June, 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: Ravi Kumar SE S/o Late S T Eranna, Chief Manager, of Applicant Bank.

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OA 855/2022

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Affidavit of Evidence
A2	--	List of documents
A3	27.12.2005	Sanction letter
A4	14.11.2007	Hypothecation agreement
A5	21.12.2005	Registered mortgage deed
A6	22.01.2014	Request letter of rephasement
A7	22.01.2014	Sanction letter
A8	21.08.2006	Application for loan
A9	24.08.2006	Sanction letter
A10	24.08.2006	Hypothecation agreement
A11	16.08.2006	Registered mortgage deed
A12	16.08.2006	Encumbrance Certificate
A13	25.03.2014	Request letter for rephasement
A14	30.03.2014	Sanction letter
A15	23.12.2021	Legal Notice
A16	--	Postal acknowledgement
A17	22.12.2021	Certified accounts extract
A18	22.12.2021	Certified accounts extract
A19	22.12.2021	Certified accounts extract
A20	22.12.2021	Certified accounts extract
A21	22.12.2021	Certified accounts extract
A22	24.03.2022	Account closure summary
A23	24.03.2022	Account closure summary
A24	24.03.2022	Account closure summary
A25	24.03.2022	Account closure summary
Witness	Examined fo	r the Defendant: -Nil -
List of D	ocuments Ex	hibited for the Defendant: -Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sri. Prabhakar Ranga

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri. Prabhakar Ranga

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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