Allowed

State Bank of India v. Naveen Prakash

DRT22 May 2026OA/134/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by State Bank of India for issuance of a Recovery Certificate against defendants who availed a housing loan and defaulted in repayment. The court reduced the interest rate to 8.00% simple.

What did the court decide?

Recovery Certificate to be issued for Rs. 48,39,133 with 8% simple interest from filing date until realization against defendants jointly, severally and personally.

State Bank of India versus Naveen Prakash — Specific Performance | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 22^nd Day of May, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.134/2024

¶5

BETWEEN:

¶6

State Bank of India, At Madame Cama Road, Nariman Point, Mumbai. Branch office At Stressed Assets Recovery Branch (SARB), 3^rd Floor, Near old Shivaji Theatre, J. C. Road, Bangalore. Represented by its Chief Manager, Sri. K. K. Rastogi.

¶7

…APPLICANT

¶8

AND:

¶9

Sri. Naveen Prakash, S/o Sri S.T. Gowardhan, No. 318/45, 3^rd Cross, Behind Syndicate Bank, Erappa Reddy Layout, Subbaiahnapalya, Bangaluru-560 043.

¶10

Also At: Dubai Knowledge Park, International Quality & Productivity, Dubai, United Arab Emirates, P.O Box: 73000.

¶11

Also At: Sri Naveen Prakash IQPC F2LLC IQPC, Middle East, Commercial Tower-1, Studio City, Dubai, United Arab Emirates, PO Box 502397. 1. Smt. Ranjana S.G. Aged about 54 years R/at No. 318/45, 3^rd Cross, Behind Syndicate Bank, Erappa Reddy layout, Subbaiahnapalya, Bangaluru-560 043.

¶12

...DEFENDANTS

¶13

2 134/2024

¶14

Counsel on record/appeared for:

¶15

Applicant : M. Anitha. Defendants : Exparte

¶16

FINAL ORDER

¶17

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 for Rs. 48,39,133/- (Rupees Forty Eight Lakhs Thirty Nine Thousand One Hundred Thirty Three only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶18

It is the case of the applicant that the defendants availed Housing loan of Rs. 47,30,000/- (Rupees Forty Seven lakhs Thirty Thousand Only).

¶19

It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with Power of Attorney, Application of Home Loan, Memorandum of Loan agreement, Deed of Undertaking.

¶20

It is further contended that, the defendants 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.

¶21

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount

¶22

3 134/2024

¶23

due in the account.

¶24

Despite, service of summons on the defendants, they failed to appear, resulting the defendant being set exparte on 04.04.2025.

¶25

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-14 and got the same marked in evidence.

¶26

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.

¶27

The following issues arise for consideration in this matter:

¶28

i) Whether the applicant had succeeded in proving the OA claim

¶29

as against the defendants?

¶30

ii) What order are to be passed?

¶31

Both these issues are gone into and decided together.

¶32

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 as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts.

¶33

4 134/2024

¶34

The liability of the defendants and the claim as the amount due is also

¶35

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

¶36

11. Hence in view of the finding arrived herein above, this Tribunal find

¶37

both these issues in favour of applicant and hence this Tribunal is of the view that OA is to be allowed.

¶38

Taking into consideration the facts that the credit facility was availed for the purpose of housing 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).

¶39

In the result, OA.No.134/2024 stands allowed,

¶40

i) The applicant is allowed to recovery an aggregate sum of Rs. 48,39,133/- (Rupees Forty Eight Lakhs Thirty Nine Thousand One Hundred Thirty Three only) with further interest of 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

¶41

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 property to the recovery certificate.

¶42

(ii) If the sale proceeds are not sufficient, the defendants jointly

¶43

5 134/2024

¶44

severally and personally and their other assets are liable to be proceeded

¶45

against for the balance amount.

¶46

iii) The applicant bank is allowed cost of the proceedings which

¶47

applicant to file cost memo within 7 days from the date of receipt of the order.

¶48

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

¶49

transferred to Recovery for execution.

¶50

v) Interim application pending, if any, stands disposed of in terms of this final order.

¶51

Communicate a copy of the order to the parties concerned in terms

¶52

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

¶53

Rules, 1993.

¶54

[Dictated to the Stenographer (DV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 22nd day of May, 2026].

¶55

Sd/-

¶56

(T. RAJESH) PRESIDING OFFICER

¶57

6 134/2024

¶58

ANNEXURES

¶59

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶60

AW-1: Syed Mohammed Eliyas, Manager, of Applicant Bank.

¶61

Exhibits on the part of the Applicant:

¶62

Exhibit Nos.	Date	Particulars of Documents
A1	30.06.2017	Power of Attorney
A2	18.08.2017	Application of home loan
A3	18.08.2017	Arrangement letter
A4	21.08.2017	Memorandum of Loan Agreement
A5	21.08.2017	Affidavit
A6	21.08.2017	Deed of undertaking
A7	21.08.2017	Agreement to Mortgage
A8	24.03.2018	Memorandum relating to deposit of Title Deeds
A9	29.03.2018	Confirmation of deposit of title Deeds
A10	24.03.2018	Sale deed
A11	13.09.2021	Demand Notice
		Postal receipts
		Statement of Accounts
		foreclosure

¶63

Witness Examined for the Defendants:

¶64

-Nil -

¶65

List of Documents Exhibited for the Defendants:

¶66

-Nil -

¶67

Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Naveen Prakash

Case brief

What is this about?

What did the court decide?

State Bank of India v. Naveen Prakash

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

Gurdeep Singh versus Hdfc Bank

Punjab National Bank versus Gomati Devi

Mr Victor Serrao versus Karnataka Bank Limited

M/S Amar Singh and Sons Tree Nuts LLP versus Jammu and Kashmir Bank Limited

Poonam Devi versus India Shelter Finance Corporation Limited

Idfc First Bank Ltd. versus Ms Yo Yatra Tours and Travels Private Limited