Allowed

State Bank of India v. Kumar B R

DRT29 May 2026OA/1405/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's OA for issuance of a Recovery Certificate against the defaulting borrower. Reducing claimed interest to 6% simple annual for an agriculture loan, the Tribunal ruled for the recovery of principal and reduced interest from scheduled properties and personal assets.

What did the court decide?

Recovery Certificate issued for Rand Rs. 33,62,727 with 6% simple interest from date of filing tailor recovery from scheduled properties and personal assets.

State Bank of India versus Kumar B R — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1405/2024

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch, J .C Road, Bangalore-560 005. Represented by its Chief Manager, Smt. Daya .S. Naik.

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…APPLICANT

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AND:

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Sri. Kumar. B. R S/o Ramegowda, Channarayapatana TMC, Nagasamudra Road, Gayathri Badaavane, Hassan District-573 116.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Nandish N J Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance

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of Recovery Certificate against the defendants for Rs. 33,62,727/- (Rupees Thirty Three Lakh Sixty Two Thousand Seven Hundred Twenty Seven

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OA 1405/2024

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Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that the defendants availed the following Agriculture loan facilities from the applicant bank:-

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I) The Applicant Bank sanctioned Kisan Credit Card Loan of Rs. 2,10,000/-(Rupees Two Lakh Ten Thousand Only) on 05.04.2018.

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II) The Applicant Bank sanctioned a term loan of Rs. 19,00,000/(Rupees Nineteen Lakhs Only) on 05.04.2018.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Application of Loan, letter of Agreement, Agreement for Hypothecation, Mortgage Deed, Legal Notice.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts 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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Despite, summons the defendant, he failed to appear, resulting the defendants being set exparte on 28.04.2025.

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OA 1405/2024

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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-7 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:

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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 remains unrebutted as defendant 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 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.

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

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find both these issues in favour of applicant and hence, this Tribunal is of

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OA 1405/2024

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities was

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availed for agriculture purpose 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 6.00% (simple).

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In the result, OA.No.1405/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 33,62,727/- (Rupees Thirty Three Lakh sixty Two Thousand Seven Hundred Twenty Seven Only) with further interest @6.00 % 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 schedule property. Schedule Properties to the OA be the schedule 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 defendant personally and his assets are liable for the amounts due under the loan accounts.

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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.

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

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OA 1405/2024

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transferred to Recovery for execution.

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

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of this final order.

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

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

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Rules, 1993.

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[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 29^th Day of May, 2026].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Govind L. Ballal, Chief Manager of Applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
I		Kisan Credit Card Loan limit of Rs. 2,10,000 granted on 05.04.2018 in A/c No. 37634513555
II		Term Loan limit of Rs. 19,00,000/- granted on 05.04.2018 in A/c No. 37635025078
A1	--	Application form for Agriculture Credit

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OA 1405/2024

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A2	05.04.2018	Letter of Arrangement executed by defendants
A3	5.04.2018	Agreement for Hypothecation executed by defendants
A4	31.03.2018	Mortgage Deed executed by defendant in favour of applicant. The Document is registered as No.cpn-1-05808-2017-18 in Book-1 stored in CD. No.CPND216 in the office of sub-registrar, Channarayapatna
A5	31.03.2018	Mortgage Deed executed by defendant in favour of applicant. The document is registered as No.cpn-1-05809-2017-18 in Book -1 stored in CD.No. CPND216 in the office of sub-registrar, Channarayapatna
A6	27.04.2024	Legal Notice
A7	--	Certified Statement of account along with certificate

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Kumar B R

Case brief

What is this about?

What did the court decide?

State Bank of India v. Kumar B R

Case brief

What is this about?

What did the court decide?

What the court decided

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