Allowed

State Bank of India v. Sri H D Jagadisha Ms Ananya Enterprises

DRT27 Nov 2025OA/872/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's Original Application for a Recovery Certificate against a defaulting borrower. Finding the claim unchallenged due to ex parte proceedings, the Tribunal reduced the interest rate to 12% simple while granting the principal amount.

What did the court decide?

Recovery Certificate directed for Rs. 68,01,949/- plus interest @ 12% p.a. simple from filing date.

State Bank of India versus Sri H D Jagadisha Ms… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of November, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.872/2024

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BETWEEN:

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State Bank of India, Stressed Assets Recovery Branch, No 11/90, 3^rd Floor, Opposite to Trust Well Hospital, J C Road, Bengaluru- 560002, Represented by Its Chief Manager, Smt. Daya S Naik …APPLICANT

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AND:

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Sri. H.D. Jagadisha, S/o Devegowda, Proprietor of M/s Ananya Enterprises, Aged about 47 years, R/at: House No.8 Ananya Nilaya, Ushpagiri Layout, First Cross, BY Pass Road, Chickmaglur- 577101. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Malini Vinay 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 of Recovery Certificate against the defendant for Rs. 68,01,949/- (Rupees Sixty Eight Lakh One Thousand Nine Hundred Forty Nine Only) with further

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OA 872/2024

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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 term loan of Rs. 99 lakhs.

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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 and demand promissory note.

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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 balance amount due in the account.

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Despite, summons on the defendant, he failed to appear resulting the defendant being set exparte on 28.10.2024.

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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 872/2024

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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 Hypothecation 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 Business 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

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OA 872/2024

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be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.872/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of

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Rs. 68,01,949/- (Rupees Sixty Eight Lakh One Thousand Nine Hundred Forty Nine Only) with further interest @12.00 % 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 the defendant personally and also proceeding against his assets including the hypothecated assets. Schedule to the OA be the schedule to the recovery certificate.

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ii) 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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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) 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 872/2024

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the

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Open Court, this the 27^th Day of November, 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 L Ballal, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	List of documents
		Term loan of Rs. 99 lakhs sanctioned on 15.03.2022 in A/c No. 40853551845
A1	04.03.2022	Application form by defendant
A2	15.03.2022	Letter of arrangement
A3	15.03.2022	Agreement of loan cum hypothecation
A4	15.03.2022	Demand promissory note
A5	15.03.2022	D P Note delivery letter
A6	25.02.2022	Proforma invoice for the vehicle by the Authorised dealer, Shruti motors
A7 & A8	02.03.2024	Legal Notice along with postal receipt
A9	--	Statement of account

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sri H D Jagadisha Ms Ananya Enterprises

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri H D Jagadisha Ms Ananya Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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