Debts Recovery Tribunal allowed the bank's application for issuance of a Recovery Certificate against defendants operating a firm for an undisputed loan default of Rs. 59.15 crore with reduced interest.
Issuance of Recovery Certificate for Rs. 59,15,92,472 with interest at 7% p.a. from filing date till realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 16th Day of January, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.1052/2022
BETWEEN:
State Bank of India, Stressed Assets management Branch, II Floor, Office Complex, LHO Campus, No. 65, St. Marks Road, Bangalore- 560001, Represented by its Assistant General Manager, Sri. Nagmani Sinha.
…APPLICANT
AND:
Represented by its Partners.
OA 1052/2022
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...DEFENDANTS
Counsel on record/appeared for:
Applicant : M/s. Conscientia Law Associates Defendants : Chandra Shekar L
FINAL ORDER
OA 1052/2022
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5,00,00,000/- (Rupees Five Crore Only), cash credit limit of Rs. 35 crore was renewed to Rs. 26,25,00,000/- and stand by line of credit working capital limit of Rs. 5 crores was renewed to Rs. 3,75,00,000/- and CCECL (Common Covid-19 emergency credit limit) facility was sanctioned for Rs. 2,60,00,000/- (Rupees Two Crore Sixty Lakh Only) and GECL was sanctioned for a sum of Rs. 6,00,00,000/- (Rupees Six Crore Only).
OA 1052/2022
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Exhibits A-1 to A-24 and got the same marked in evidence.
ii) What order are to be passed?
Both these issues are gone into and decided together.
find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.
OA 1052/2022
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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 7.00% (simple).
i) The applicant is allowed to recovery an aggregate sum of Rs.
59,15,92,472/- (Rupees Fifty Nine Crore Fifteen Lakh Ninety Two Thousand Four Hundred Seventy Two Only) with further interest @7.00 % 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 schedule property. Properties schedule to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their assets are liable for amounts due under the loan accounts.
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
transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in terms
of this final order.
14. 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)
Rules, 1993.
[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 16th Day of January, 2026].
Sd/- (T. RAJESH)
PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: K. Raghunandan, Asst.General Manager, of Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Particulars of Documents |
|---|---|
| A1 | Letter of arrangement along with terms and conditions dated 17.10.2017 |
| A2 | Agreement of loan of overall limit on dated 25.10.2017 |
| A3 | Guarantee agreement of loan for overall limit on dated 25.10.2017 |
| A4 | Agreement of hypothecation of goods and assets dated 25.10.2017 |
| A5 | Inter agreement dated 09.08.2019 |
| A6 | Working capital consortium agreement dated 09.08.2019 |
| A7 | Joint deed of hypothecation dated 09.08.2019 |
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| A8 | Deed of guarantee dated 09.08.2019 |
|---|---|
| A9 | Letter of arrangement dated 04.05.2020 |
| A10 | Working capital consortium agreement dated 07.05.2020 |
| A11 | Joint deed of hypothecation dated 07.05.2020 |
| A12 | Deed of guarantee on 07.05.2020 |
| A13 | Inter se agreement dated 01.09.2020 |
| A14 | Joint deed of hypothecation both dated 01.09.2020 |
| A15 | Deed of guarantee on 01.09.2020 |
| A16 | Inter se agreement dated 12.10.2020 |
| A17 | Working capital consortium agreement 12.10.2020 |
| A18 | Joint deed of hypothecation both dated 12.10.2020 |
| A19 | Deed of guarantee on 12.10.2020 |
| A20 | Approval for disbursement of CC |
| A21 | Balance confirmation letter dated 12.10.2020 |
| A22 | D.P Note dated 07.05.2020 |
| A23 | Memorandum extending mortgage dated 07.05.2020 |
| A24 | Statement of accounts |
Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –
Sd/- (T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant succeeded in proving sua OA claim against the defendants?
What order is to be passed?
3 provisions across 2 enactments
State Bank of India
M/s. Thirumala Rice Industries
Mr. Nagaraja Setty T K
Mr. Ramesh Babu T K
Mr. Vivek G N
Mr. G.N. Vinod
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
