Allowed

State Bank of India v. Mahalakshmi

DRT24 Jul 2026OA/1361/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by State Bank of India against a borrower for recovery of dues totaling Rs. 49,11,071. The court reduced the interest rate to 12% simple and directed issuance of a recovery certificate executable against the defendant's assets.

What did the court decide?

Issuance of a recovery certificate for Rs. 49,11,071 with 12% p.a. simple interest until realization, executable against schedule properties and personal assets.

State Bank of India versus Mahalakshmi — Company and Corporate | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 24^th Day of July, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.1361/2025

¶4

BETWEEN:

¶5

State Bank of India Koramangala Branch, Represented by its Chief Manager …APPLICANT

¶6

AND:

¶7

Smt. Mahalakshmi W/o. Swamy Badeyar G Proprietor of M/s. Honeybee Packs R/at: #4401/3672/24/129, Hoysala Circle, Anu Circle, 13^th Cross, 100 Feet Ring Road, Kengeri Satellite Town, Bangalore Urban – 560 060 ...DEFENDANT

¶8

Counsel on record/appeared for:

¶9

Applicant : K S Venkataramana Defendant : Ex parte

¶10

FINAL ORDER

¶11

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

¶12

under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 49,11,071/- (Rupees Forty-Nine Lakhs Eleven Thousand and SeventyOne Only) with further interest thereon from the date of filing the

¶13

2 OA-1361/2025

¶14

Application till realization.

¶15

It is the case of the applicant that, the defendant is availed the following credit facilities:

¶16

Cash credit loan of Rs. 10,00,000/- (Rupees Ten Lakhs Only) for business purpose.

¶17

Term loan of Rs. 38,00,000/- (Rupees Thirty-Eight Lakhs Only).

¶18

1. It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan document.

¶19

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

¶20

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.

¶21

Despite, service of summons on the defendant, she failed to appear, resulting the defendant being set ex parte on 20.11.2025.

¶22

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-7 and got the same marked in evidence.

¶23

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.

¶24

3 OA-1361/2025

¶25

The following issues arise for consideration in this matter:

¶26

i) Whether the applicant had succeeded in proving the OA

¶27

claim as against the defendant?

¶28

ii) What order are to be passed?

¶29

Both these issues are gone into and decided together.

¶30

The case put forth by the applicant in the Application remains unrebutted as defendant remained ex parte. 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,

¶31

creation of the security interest and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶32

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

¶33

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

¶34

Taking into consideration the facts that the credit facilities is

¶35

availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00% (simple).

¶36

4 OA-1361/2025

¶37

In the result, OA.No.1361/2025, stands allowed,

¶38

i) The applicant is allowed to recover an aggregate sum of

¶39

Rs. 49,11,071/- (Rupees Forty-Nine Lakhs Eleven Thousand and Seventy-One Only) with further interest @12.00% p.a.(simple) from the date of filing OA till the realization, from the defendant 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 the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

¶40

ii) If the sale proceeds are not found sufficient to cover the

¶41

amount due and payable to the applicant bank, the defendant personally and her assets are liable for balance amounts due under the loan accounts.

¶42

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

¶43

iv) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶44

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

¶45

5 OA-1361/2025

¶46

13. Communicate a copy of the order to the parties concerned in

¶47

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

¶48

(Procedure) Rules, 1993.

¶49

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of July, 2026].

¶50

Sd/-

¶51

(T. RAJESH) PRESIDING OFFICE

¶52

ANNEXURES

¶53

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶54

AW-1: Syed Mohammed Eliyas, S/o. late Syed Abdul Razack,

¶55

Manager, of Applicant Bank.

¶56

Exhibits on the part of the Applicant:

¶57

Exhibit	Particulars
A1	Copyof the loan application dated 27.12.2022
A2	Copyof the letter of arrangement dated 28.12.2022
A3	Copyof the agreement of loan cum hypothecation dated 28.12.2022
A4	Copy of the letter of arrangement dated 26.08.2024
A5	O/C of the legal notice dated 18.03.2025 with postal receipts and RC
A6	Copy of the statement of account of 41544687306
A7	Copy of the statement of account of 41544688810
Witness	Examined for the Defendant: -Nil -
List of D	ocuments Exhibited for the Defendant: -Nil –

¶58

Sd/-

¶59

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Mahalakshmi

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mahalakshmi

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

Kaushelendra Pratap others versus Grihum Housing Finance Limited

Ms Lakshya Textiles Agency versus Uco Bank

Ms Maxx Metal Pvt. Ltd. and Others versus Indian Overseas Bank

Gireesh Chand Garg versus Punjab National Bank

Rohit Jaiswal versus Canara Bank

Smt Alka and Another versus Canara Bank