Allowed

State Bank of India v. Mr.R.Shivaraj

DRT30 Jan 2026OA/1102/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a recovery certificate amounting to Rs.40.69 lakh with interest capped at 8% p.a., enabling execution against mortgaged property and defendants jointly and severally.

What did the court decide?

Recovery Certificate issued for Rs.40,69,255/- plus 8% p.a. interest, recoverable from schedule property and defendants jointly, severally and personally.

State Bank of India versus Mr.R.Shivaraj — Contract and Commercial Disputes | DRT (2026)

¶1

THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 30^th Day of January, 2026

¶3

Present: Sri. T. RAJESH

¶4

Presiding Officer

¶5

OA. No.1102/2024

¶6

BETWEEN:

¶7

State Bank of India RACPC Koramangala Branch, No.12, 3^rd Floor, 7^th Main, 3^rd Block, Koramangala, Bengaluru-560034 Rep. by the Chief Manager

¶8

… APPLICANT

¶9

AND:

¶10

Mr. R. Shivaraj Aged 43 years S/o. Kasi Viswanath Revadala; No.35, 2^nd Main, GKW Layout, Vyalikaval Society, Vijayanagar, Bengaluru-560040

¶11

M/s. Vasundhara Builder (Partnership Firm & GPA Holder REP Land Owners) Rep. by Partner Mr. Anil.G. Manakame S/o. Ganapathi.M Office: No.286/A, 9^th Main, 7^th Cross, Hanumanthanagar, Bengaluru-560019 ...DEFENDANTS

¶12

Counsel on record/appeared for:

¶13

Applicant : Sri. R N S P Achanta Defendants : Exparte :FINAL ORDER:

¶14

The present Original Application in short (OA) has been filed

¶15

OA. No.1102/2024

¶16

¶17

under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.40,69,255/- (Rupees Forty Lakh Sixty Nine Thousand Two Hundred and Fifty Five only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶18

It is the case of the applicant that, the defendants availed the Home loan of Rs.49,20,000/- to purchase a flat property.

¶19

It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the schedule property.

¶20

It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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, service of summons on the defendants, they failed

¶23

OA. No.1102/2024

¶24

¶25

to appear, resulting the defendants being set exparte on 20.01.2026.

¶26

The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A10 and got the same marked in evidence.

¶27

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.

¶28

The following issues arise for consideration in this matter: i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

¶29

ii) What order are to be passed?

¶30

Both these issues are gone into and decided together.

¶31

The case put forth by the applicant in the Application

¶32

remains unrebutted as defendants 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 facility as stated in the OA, as to the execution of tripartite agreement agreeing creation of security interest as claimed by the applicant

¶33

OA. No.1102/2024

¶34

¶35

bank and the defaults committed in the account. 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.

¶36

Hence in view of the above finding which cover both the issues raised in this manner, this Tribunal is of the view that OA is to be allowed.

¶37

Taking into consideration the facts that the credit facility was availed for housing purpose and also that 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 to 8.00% p.a. (simple).

¶38

In the result, OA.No.1102/2024 stands allowed,

¶39

i) The applicant is allowed to recovery an aggregate sum

¶40

of Rs.40,69,255/- (Rupees Forty Lakh Sixty Nine Thousand Two Hundred and Fifty Five only) with further interest of 8.00% p.a.(simple), from the date of filing OA till the realization from defendants, 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 defendants jointly, severally and personally and also by proceeding against the schedule

¶41

OA. No.1102/2024

¶42

¶43

property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶44

ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

¶45

iii) The applicant bank is allowed cost of the proceeding which applicant to file cost memo within 7 days from the date of receipt of the order.

¶46

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

¶47

order and transferred to Recovery for execution.

¶48

v) Interim Application pending, if any, stands disposed of with this Final Order.

¶49

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.

¶50

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of January 2026].

¶51

Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.1102/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶56

AW-1: Sri. Vivek Raina, Chief Manager of the applicant bank.

¶57

Exhibits on the part of the Applicant:

¶58

Date	Description of the document	Exhibit No.
27-06-2022	Copy of Arrangement letter subject to certain terms and conditions issued by Applicant’s RACPC- Koramangala,	A-1
	Bangalore, and acknowledged by Defendant No.1
27-06-2022	Copy of Memorandum of Loan Agreement for Housing loan (granted to public) executed by Defendant No.1.	A-2
27-06-2022	Copy of Agreement to mortgage executed by Defendant No.1 over proposed purchase of Flat described as Schedule property	A-3
27-06-2022	Copy of Affidavit furnished by Defendant No.1	A-4
27-06-2022	Copy of Deed of Undertaking, Annexure-1 for disclosure & operation letter executed by Defendant No.1	A-5
10-05-2022	Copy of Agreement of Sale executed by and between the Defendants, and NIL EC.	A-6
27-06-2022	Copy of Tripartite Agreement executed by the Defendants with the Applicant, undertaking to refund etc., in case of failure of sale etc. with letters	A-7
29-06-2022	Copy of CERSAI ID	A-8

¶59

OA. No.1102/2024

¶60

¶61

29-08-2023	Copy of Legal notice got issued by the Applicant to the Defendants	A-9
	Copy/ies of Statement/s of Account/s duly certified under the Bankers’ Books Evidence Act, by the Applicant in respect of the Applicant’s total claim as debt due from Defendants is/are enclosed	A-10

¶62

Sd/-

¶63

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Mr.R.Shivaraj

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mr.R.Shivaraj

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

S Rajeswari versus Union Bank of India

Bank of Baroda versus Kishan Mitrapal Chawla Dairy

Bank of India versus Ms Narmada Pipes

Ms Khajuria Constructions and Another versus State Bank of India

Raj Kumar Baniya versus State Bank of India

Smt Firoja Begum versus Indian Bank