Allowed

State Bank of India v. Sharan Gowda

DRT13 Jan 2026OA/1208/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a recovery certificate under Section 19 of the RDB Act. Despite the defendant appearing ex parte, the debtor's liability was established via uncontroverted documentary evidence. The Tribunal awarded the full principal sum with interest reduced to 6% p.a.

What did the court decide?

Recovery cert for Rs.32,83,764/- plus interest @6% p.a. (Simple) from filing date till realization; recovery against schedule properties; personal liability for balance if insufficient.

State Bank of India versus Sharan Gowda — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 13^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1208/2024

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BETWEEN:

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State Bank of India, Asset Recovery Management Branch (SARB) Ground floor, Avani Emporio Jayachamraja Nagar, Hubbali- 580020

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…APPLICANT

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AND:

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Sri. Sharan Gowda S/o. Mahantgowda Kanchargahalli R/at: Rampur PO, Biral B., District Jewargi, Gulbarga- 585310

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : R & J Associates Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for

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OA 1208-2024

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Rs.32,83,764/- (Rupees thirty two lakh eighty three thousand seven hundred sixty four only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that the defendant availed the following credit facilities from the State Bank of Hyderabad which later got amalgamated with State Bank of India.

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I. Agricultural Term Loan of a sum of Rs.2,70,000/- (Rupees two lakh seventy thousand Only) and

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II. Agricultural Term loan-II limit of Rs.1,12,000/- (Rupees Thirty Four Lakh Forty Thousand Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with agreement of hypothecation, Mortgage deed and sanction letters in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this

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OA 1208-2024

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Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 10.03.2025.

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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-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 the 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

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remains unrebutted as defendant remained exparte. The

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OA 1208-2024

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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 as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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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

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are availed by defendant for agricultural purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate,

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this Tribunal, in view of the OA can be allowed with a reduced interest @6% p.a.(Simple).

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In the result, OA.No.1208/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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OA 1208-2024

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sum of Rs.32,83,764/- (Rupees thirty two lakh eighty three

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thousand seven hundred sixty four only) with further interest @6% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant

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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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant personally and his other assets are liable to be proceeded against for the balance amount.

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iii) The applicant bank is allowed cost of the proceedings

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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

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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OA 1208-2024

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 13^th day of January, 2026].

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mr. Vinaya K, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	30.03.2007	Sanction letter
A2	30.03.2007	Agreement of hypothecation
A3	12.03.2007	Mortgage deed
A4	15.02.2013	Revival letter
A5	11.01.2023	Legal Notice and Postal receipt
A6	--	Statement of A/c No.62029692146
A7	--	Statement of A/c No.62270584744
A8		Banker’s Certificate

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Witness Examined for the Defendant:

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-Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sharan Gowda

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sharan Gowda

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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