In an Original Application seeking a Recovery Certificate, the Tribunal allowed the bank's claim of Rs.5.53 crore plus interest against five defendants who appeared ex-parte, reducing interest to 12% p.a.
Issuance of Recovery Certificate for Rs.5,53,40,775/- plus further interest at 12% p.a. simple from date of filing.
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, BENGALURU
Dated this 29th Day of May, 2026
Present: Sri. T. RAJESH Presiding Officer OA.No.1229/2024
BETWEEN:
State Bank of India, Stressed Asset Recovery Branch, No.11/90, 3rd floor, Near old shivaji Theatre, J.C. Road, Bengaluru- 560002
…APPLICANT
AND:
OA 1229/2024
2
R/at: Beeramanahalli Village, Thoradevanahalli Post, Kolar Taluk & District- 563126
Counsel on record/appeared for:
Applicant : M/s PRN Associates Defendants : Exparte
FINAL ORDER
OA 1229/2024
3
amount financed, the defendants executed necessary loan documents along with hypothecation agreement, simple mortgage deed and letters of arrangement in favor of the applicant bank.
OA 1229/2024
4
the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.
Both these issues are gone into and decided together.
OA 1229/2024
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Tribunal find both these issues in favour of applicant and hence
this Tribunal is of the view that OA is to be allowed.
12. Taking into consideration the facts that the credit facilities
are availed by defendants for Cash Credit 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 @12% p.a. (Simple).
i) The applicant is allowed to recovery an aggregate
sum of Rs.5,53,40,775/- (Rupees five crore fifty three lakh forty
thousand seven hundred seventy five only) with further interest @12% p.a. (Simple),
from the date of filing OA till the realization, from the defendants
No.1 to 5 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 proceedings
against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.
OA 1229/2024
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(ii) If the sale proceeds are not sufficient, the defendants No.1 to 5 are jointly severally and personally and their other
assets are liable to be proceeded against for the balance amount.
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.
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.
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29th day of May, 2026].
PRESIDING OFFICER
Sd/ (T. RAJESH)
OA 1229/2024
7
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Dayanand Nagashetty, Branch Manager, of Applicant
Bank.
Exhibits on the part of the Applicant:
| Exhibit Nos. |
Date | Particulars of Documents |
|---|---|---|
| A1 | 17.01.2021 | Loan application |
| A2 | 25.01.2022 | Letter of arrangement |
| A3 | 25.01.2022 | Hypothecation agreement |
| A4 | Guarantee agreement | |
| A5 | 25.01.2022 29.01.2022 |
Registered simple mortgage deed and deed of extension of mortgage |
| A6 | 15.02.2023 | Copy of notice |
| A7 | 27.03.2023 | Copy of legal notice |
| A8 | Cash credit loan A.C No.40739728465 |
Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -
Sd/ (T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
1 provisions across 1 enactments
State Bank of India
M/s Gomanna Agro Farms
Mr. Nandu Kumar
Mr. M. Chandrappa
Smt. Saraswathamma
Sri. A Raja
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
