Allowed

State Bank of India v. Sri Ashwin Lakshmikanthan

DRT28 Oct 2025OA/93/2024

Case brief

AI extract

What is this about?

The DRT allowed an original application seeking issuance of a Recovery Certificate for a housing loan default. The court reduced the claimed interest rate to 8% p.a. simple interest and authorized recovery from the defendant's personal assets and scheduled property.

What did the court decide?

Recovery Certificate issued for Rs. 90,49,347/- with 8% p.a. simple interest; recovery authorized from defendant's personal assets and schedule property.

State Bank of India versus Sri Ashwin Lakshmikanthan — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 28^th Day of October, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.93/2024

¶5

BETWEEN:

¶6

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, Sri. Kishan Kant Rastogi.

¶7

…APPLICANT

¶8

AND:

¶9

Sri Ashwin Lakshmikanthan, S/o Sri. Lakshmikanthan, Aged about 41 years, R/at: 984 BCCHS Layout, Vajarahalli Talghattapura, Bangalore- 560062.

¶10

...DEFENDANT

¶11

Counsel on record/appeared for:

¶12

Applicant : Malini Vinay Defendant : Exparte

¶13

FINAL ORDER

¶14

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. 90,49,347/- (Rupees Ninety Lakh Forty Nine Thousand Three Hundred Forty Seven Only) with further interest thereon from the date of filing the Application till

OA 93/2024

realization.

It is the case of the applicant that, the defendant availed the housing loan of Rs. 79 lakhs and home loan insurance cover of Rs. 3,41,091/(Rupees Three lakh Forty One Thousand Ninety One Only)

¶19

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.

¶20

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.

¶21

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.

¶22

Despite, the defendant entering appearance failed to file written statement, hence written statement of defendant stood closed and placed exparte on 23.10.2025.

¶23

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.

¶24

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and

OA 93/2024

the proof affidavit.

The following issues arise for consideration in this matter:

¶29

i) Whether the applicant had succeeded in proving the OA claim

¶30

as against the defendant?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

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 as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant

¶34

is well within the limitation.

¶35

Hence in view of the findings arrived herein above, the Tribunal

¶36

find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶37

Taking into consideration the facts that the credit facilities are

¶38

availed for Housing purpose and also that OA claim is arrived at by

¶39

OA 93/2024

¶40

¶41

calculating interest at the agreed rate, this Tribunal is of the view that the

¶42

OA can be allowed with a reduced interest of 8.00% (simple).

¶43

In the result, OA.No.93/2024, stands allowed,

¶44

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

¶45

90,49,347/- (Rupees Ninety Lakh Forty Nine Thousand Three Hundred Forty Seven Only) with further interest @ 8.00 % p.a.(simple), from the date of filing OA till the realization, from the defendant personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule Property. Property schedule to the OA be the schedule to the recovery certificate.

¶46

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 other assets are liable for all such amounts due under the loan accounts.

¶47

iii) 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.

¶48

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

¶49

v) Interim application pending, if any, are disposed of with this

OA 93/2024

Final Order.

14. Communicate a copy of the order to the parties concerned in terms

¶54

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

¶55

Rules, 1993.

¶56

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th day of October, 2025].

¶57

Sd/- (T. RAJESH) PRESIDING OFFICER ANNEXURES

¶58

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶59

AW-1: Jayalakshmi M W/o Ramachandra S, Chief Manager, of Applicant Bank.

¶60

Exhibits on the part of the Applicant:

¶61

Exhibit Nos.	Date	Particulars of Documents
	--	Housing loan of Rs. 79 Lakhs in A/c No. 404096618765 sanctioned on 02.09.2021 along with Home Loan insurance cover of Rs. 3,41,091/- in A/c No. 40410872660
A1	01.09.2021	Arrangement letter
A2	02.09.2021	Sanction letter
A3	02.09.2021	Memorandum of loan agreement for home loan
A4	02.09.2021	Deed of Undertaking
A5	03.09.2021	Memorandum relating to deposit of title deeds
A6 & A7	23.11.2023	Legal notice with postal acknowledgement
A8 & A9	--	Statement of account along with certificate

¶62

Witness Examined for the Defendant:

¶63

-Nil -

¶64

List of Documents Exhibited for the Defendant:

¶65

-Nil -

¶66

Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sri Ashwin Lakshmikanthan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri Ashwin Lakshmikanthan

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

Similar cases

Canara Bank versus Aadinath Plastics

Canara Bank versus Harjit Singh

Bank of Baroda versus Sh. Sukhraj Singh

Asset Reconstruction Company India Ltd. versus Krishna Pratap Singh Chandel

Hdfc Bank versus Sunita Tayal

Sh Khusinder Singh versus Himachal Pradesh Gramin Bank