Allowed

State Bank of India v. Pnk Exports and Garments

DRT27 Aug 2026OA/101/2025

Case brief

AI extract

What is this about?

DRT allowed an Original Application for issuance of a Recovery Certificate against a proprietorship firm for loan defaults. The claim was proved unrebutted due to ex-parte proceedings. The Tribunal granted recovery of the principal amount with reduced simple interest of 12% p.a.

What did the court decide?

Recovery Certificate for Rs. 28,30,146/- with further interest @12% p.a. (simple); liability extended to personal assets if sale proceeds are insufficient; costs awarded to applicant.

State Bank of India versus Pnk Exports and Garments — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of August, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.101/2025

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch, J.C. Road, 3^rd Floor, Near Shivaji Theatre, Bangalore-560 002. Represented by its Chief Manager, Sri. Raviprakash. H.V.

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…APPLICANT

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AND:

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M/s PNK Exports and Graments Represented by its Proprietor Nandini B.L. D/o Lokesh. B.N Aged about 28 years, No. 45, Bairaveshwara Nagar, Dubasipalya, Mallathahalli, Bangalore-560 056.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M. Anitha 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. 28,30,146/- (Rupees Twenty Eight Lakh Thirty Thousand One Hundred Forty Six Only) with

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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 is the Proprietorship concern represented by its proprietor availed the following credit facilities from the applicant bank:-

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I. Cash Credit Loan of a sum of Rs. 7,00,000/- (Rupees Seven lakh Only).

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II. Term Loan of sum of Rs. 19,28,000/- (Rupees Nineteen Lakh Twenty Eight Thousand Only)

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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 Letter of Arrangement, Agreement of Loan Cum Hypothecation, Legal Notice.

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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 amount due in the account.

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 25.03.2026.

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The applicant had let in evidence through AW-1, who filed Proof

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-8 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 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 Mortgage and hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of

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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

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities was 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 12.00% (simple).

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In the result, OA.No.101/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 28,30,146/- (Rupees Twenty Eight Lakh Thirty Thousand One Hundred Forty Six 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 schedule property. Schedule Properties 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 the amount due and payable to the applicant bank, the defendant personally and his assets are liable for the amounts due under the loan accounts.

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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.

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iv) The Recovery Certificate to be drawn in terms of this order and

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transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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14. 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)

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August, 2026].

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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: Anand R, Chief Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	06.01.2023	Application form for Financial assistance under prime ministers Employment Generation (PMEGP)
A2	20.01.2023	Letter of Arrangement
A3	20.01.2023	Agreement of Loan cum hypothecation
A4	14.10.2024	Legal Notice
A5	--	Postal Receipt
A6	--	RPAD Status
A7	--	Foreclosure / Statement of Accounts in Account Number 41607025807

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A8 -- Foreclosure / Statement of Accounts in Account Number 41606888708

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Pnk Exports and Garments

Case brief

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State Bank of India v. Pnk Exports and Garments

Case brief

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