Allowed

State Bank of India v. N Meenakshi

DRT30 Jan 2026OA/1206/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application for issuance of a Recovery Certificate against borrowers who defaulted on a housing loan. Finding the evidence uncontroverted due to ex parte proceedings, the court reduced interest to 8% p.a. and directed execution against jointly, severally, and personally liable parties and mortgaged property.

What did the court decide?

Issuance of Recovery Certificate for Rs. 53,25,288 with interest at 8% p.a. (simple) recoverable jointly, severally, and personally from defendants and from the scheduled property.

State Bank of India versus N Meenakshi — Contract and Commercial Disputes | DRT (2026)

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THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1206/2024

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BETWEEN:

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State Bank of India Branch office at: Stressed Assets Recovery Branch (SARB), 3^rd Floor, Near Old Shivaji Theatre, J.C. Road, Bengaluru, Rep. by its Chief Manager Sri. K. K. Rastogi … APPLICANT

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AND:

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Smt. N. Meenakshi W/o. Sri. A K Ravi Aged about 38 years R/o. No. D 02, 8^th Main, Near Indian Overseas Bank Balaji Layout, Kodigehalli Main Road, Beside Bhardwaj Apt, Bangalore North-560092

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Sri. A K Raghu Aged about 41 years R/o. No. D 02, 8^th Main, Near Indian Overseas Bank Balaji Layout, Kodigehalli Main Road, Beside Bhardwaj Apt, Bangalore North-560092 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. M. Anitha Defendants : Exparte

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:FINAL ORDER:

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

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OA. No.1206/2024

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.53,25,288/- (Rupees Fifty Three Lakh Twenty Five Thousand Two Hundred and Eighty Eight only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the housing loan of Rs.54,45,000/- on 09.07.2022.

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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.

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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.

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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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OA. No.1206/2024

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 13.08.2025.

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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 A13 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: 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 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

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OA. No.1206/2024

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as stated in the OA, as to the execution of tripartite agreement agreeing creation of security interest as claimed by the applicant 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.

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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.

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Taking into consideration the facts that the credit facilities were 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).

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In the result, OA.No.1206/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.53,25,288/- (Rupees Fifty Three Lakh Twenty Five Thousand Two Hundred and Eighty Eight 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

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OA. No.1206/2024

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and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property 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, severally and personally and their other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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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.

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v) Interim Application pending, if any, stands disposed of with 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) Rules, 1993.

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[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].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.1206/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Jayalakshmi, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Date	Description	Exhibi t No.
22.06.2022	Loan Application.	A1
09.07.2022	Arrangement Letter of Housing Finance.	A2
09.07.2022	Agreement for Home Loan.	A3
07.07.2022	Agreement to Mortgage	A4
07.07.2022	Agreement of Sale	A5
09.07.2022	Deed of Undertaking	A6
09.07.2022	Affidavit	A7
09.07.2022	Tripartite Agreement	A8
26.12.2023	Legal Notice	A9
27.06.2023	Postal Receipts (2).	A10
-	Postal Track	A11
-	Statement of Account.	A12
-	Foreclosure Letter/Statement.	A13

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. N Meenakshi

Case brief

What is this about?

What did the court decide?

State Bank of India v. N Meenakshi

Case brief

What is this about?

What did the court decide?

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