Allowed

State Bank of India v. Ms Sri Ranga Food Products

DRT12 Nov 2025OA/948/2022

Case brief

AI extract

What is this about?

An applicant bank sought issuance of a recovery certificate regarding defaulted loan accounts against defendants who appeared ex parte. The DR tribunal verified credit facilities, agreements, and defaults, finding the claim valid within limitation. The application was allowed with reduced interest.

What did the court decide?

Allowed recovery of Rs. 24,69,839/- with interest at 10% p.a. simple from filing date until realization and directed issuance of Recovery Certificate for execution.

State Bank of India versus Ms Sri Ranga Food Products — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 12^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.948/2022

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BETWEEN:

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State Bank of India, Asset Recovery Branch, K G Road, Bangalore.

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…APPLICANT

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AND:

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M/s. Sri Ranga Food Products, Rep by its Prop: Sri R Lokarangan, Spl. Plot No. 92, Hebbal Industrial Area, Mysore- 570016.

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Sri R Lokarangan, S/o Raghotham, Aged about 34 years, R/o: No. 84, 3^rd Cross, Chamundi Hills Road, J.C. Nagar, Mysore- 570011. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : G.N. Satyamurthy Defendants : Exparte

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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 seeking issuance of Recovery Certificate against the defendants for Rs. 24,69,839/- (Rupees Twenty Four Lakh Sixty Nine Thousand Eight Hundred Thirty Nine Only) with further interest thereon from the date of filing the Application till realization.

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OA 948/2022

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It is the case of the applicant that the defendants availed working capital limit of Rs. 4.75 lakh and term loan facility of Rs. 17.29 lakh.

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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 agreement of loan-cum-hypothecation.

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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 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 defendants, they failed to appear resulting the defendants being set exparte on 25.07.2024.

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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-10 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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The following issues arise for consideration in this matter:

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

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OA 948/2022

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as against the defendants?

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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

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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 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 be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.948/2022, stands allowed,

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

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OA 948/2022

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24,69,839/- (Rupees Twenty Four Lakh Sixty Nine Thousand Eight Hundred Thirty Nine Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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 defendants jointly, severally & personally and also proceeding against their assets including the schedule 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

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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

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of this final order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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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 12^th Day of November, 2025].

Sd/- (T. RAJESH)

OA 948/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Kiran Mathada S/o Shekharaiah, 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
A1	--	Affidavit evidence
A2	--	List of documents
A3	02.12.2013	Application for loan
A4	17.02.2014	Letter of arrangement
A5	17.02.2014	Agreement of loan-cum-hypothecation
A6	29.03.2022	Legal notice
A7	28.03.2022	Certified accounts extract
A8	28.03.2022	Certified accounts extract
A9	28.03.2022	Account closure summary

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

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ms Sri Ranga Food Products

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Sri Ranga Food Products

Case brief

What is this about?

What did the court decide?

What the court decided

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