Allowed

State Bank of India v. Neeraj Sharma

DRT31 Jul 2026OA/1200/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by a bank against three defendants for a housing loan default of Rs. 1.70 crore. Since the defendants were absent, evidence was accepted as unrebutted. The court issued a recovery certificate, reducing the interest rate to 8% p.a., and authorized proceedings against scheduled mortgage properties.

What did the court decide?

Recovery Certificate issued for Rs. 1,70,29,502/- plus 8.00% simple interest per annum from filing date till realization, recoverable jointly, severally, and personally from defendants against schedul

State Bank of India versus Neeraj Sharma — 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 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1200/2024

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BETWEEN:

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State Bank of Bank RACPC-Shanakarapuram Branch, No.13/1, 3^rd Floor, Bull Temple Road, Opp. RK Ashram, Basavangudi, Bengaluru-560004. Represented by its Chief Manager, Mr. Basavaraja Nagappa Kolur.

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…APPLICANT

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AND:

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Mr. Neeraj Sharma Aged 52 Years, S/o Ram Gopal Sharma R/o:RZ-44A, Vijay Enclave Delhi-110045.

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Mrs. Nisha Sharm Aged 51 Years, W/o Mr. Neeraj Sharma R/o A-39, Sector -15, Noida, Gautam Budhanagar (U.P); Also At: No.5, 2^nd Floor, 8^th C Main Road, Shivanagar, Rajajinagar, Bangalore-560010.

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Mr. Gunjan Maskara Aged 38 Years S/o Mr. Manoj Kumar Maskara R/o: No. 25A, Mount Senoria School Road, Freedom Fighter’s Colony, Leggere, Bangalore-560058. ...DEFENDANTS

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2 1200/2024

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Counsel on record/appeared for:

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Applicant : R.N.S.P. Achanta 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. 1,70,29,502/(Rupees One Crore Seventy Lakh Twenty Nine Thousand Five Hundred Two Only) with 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 defendants availed the Housing Loan credit facility of Rs. 1,71,58,000/- from the applicant bank.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Memorandum of loan Agreement for housing loan, Agreement to Mortgage, Deed of Undertaking.

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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 amount due in the account.

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3 1200/2024

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 22.01.2026.

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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-1 to A-13 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 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 defendants remained exparte. The evidence tendered by

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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 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

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proved by the above documents. The claim of the applicant is well within

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the limitation.

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

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availed for Housing 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 8.00% (simple).

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In the result, OA.No.1200/2024, stands allowed,

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

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1,70,29,502/- (Rupees One Crore Seventy Lakh Twenty Nine Thousand Five Hundred Two Only) with further interest @8.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and 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 defendants jointly,

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5 1200/2024

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severally and personally and their assets are liable for the amounts due

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under the loan accounts.

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iii) 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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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 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 31^st Day of July, 2026].

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Sd/-

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(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: Syed Mohammed Eliyas, 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
	--	Affidavit of the Applicant

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6 1200/2024

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	--	OA/ List of Documents filed in Original Application by the Applicant before Hon’ble Tribunal
A1	06.03.2023	Copies of the Arrangement letter issued by the Applicant to the Defendants No.1 and acknowledged by defendant No.2 as his Power of Attorney holder with application, power etc.
A2	17.02.2023	Copy of the Agreement of Sale executed by and between defendants
A3	06.03.2023	Copy of the Memorandum of Loan Agreement for Home Loan granted to Public, executed by defendants No1 through his Power of Attorney Holder-defendant No.2
A4	06.03.2023	Copy of the Agreement to mortgage , executed by defendants No1 through his Power of Attorney Holder-defendant No.2 over proposed purchase of property described as Schedule Property
A5	06.03.2023	Copy of Deed of Undertaking , executed by defendants No1 through his Power of Attorney Holder-defendant No.2
A6	06.03.2023	Copies of Affidavit, Annexure-I & Operations letter are , executed by defendants No1 through his Power of Attorney Holder-defendant No.2
A7	06.03.2023	(3) Copy of Letters , executed by defendants No1 through his Power of Attorney Holder-defendant No.2
A8	06.03.2023	Copy of Disbursement request & Standing instruction made to Applicant to the account of defendant No.3 with Canara Bank
A9	07.03.2023	Copy of CERSAI ID No. 200069860922 made over the Schedule Property

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A10	16.03.2023	Copy of the Sale Deed got registered by Defendant No.3 in favour of Defendant No.1 through his Power of Attorney Holder-defendant No.2 in respect of Schedule property as Doc. No. RRN-1-11409-2022- 3 stored in CD No. RRND1287 on 17.03.2023 with translated copy from Kannada to English.
A11	16.03.2023	Copy of Memorandum got registered by Defendant No.1 through his Power of Attorney Holder- defendant No.2 in favour of applicant, in respect of Schedule property as Doc. No. RRN-1-11409-2022- 3 stored in CD No. RRND1287 on 17.03.2023
A12	--	Copy of FIR filed by the police as against defendants No.1 and 2 and others
A13		Copy of Statement of Accounts duly certified under the Banker’s Books Evidence Act, by the Applicant in respect of the Applicant’s total claim as debt due from defendants

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

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Neeraj Sharma

Case brief

What is this about?

What did the court decide?

State Bank of India v. Neeraj Sharma

Case brief

What is this about?

What did the court decide?

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