Allowed

State Bank of India v. Abhishek Shetty

DRT30 Jan 2026OA/1422/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by State Bank of India for a Recovery Certificate against two defaulting borrowers for a housing and suraksha loan totaling Rs. 55,10,553. The relief was granted, but interest was reduced to 8% p.a. due to the housing purpose.

What did the court decide?

Recovery Certificate issued for aggregate sum of Rs.55,10,553/- with interest at 8% p.a. (simple) from filing date till realization, recoverable jointly, severally, and from mortgaged property.

State Bank of India versus Abhishek Shetty — Contract and Commercial Disputes | DRT (2026)

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THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1422/2024

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BETWEEN:

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State Bank of India Branch office at: Stressed Assets Recovery Branch (SARB), 3^rd Floor, Near Old Shivaji Theatre, J.C. Road, Bengaluru, Rep. by its Chief Manager Sri. K. K. Rastogi … APPLICANT

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AND:

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Mr. Abhishek Shetty S/o. Mr. Vittal Shetty R/at.No.42, 3^rd Main Road, 8^th Cross, Sanjeevini Nagar, Nagarbhavi Main Road, Bangalore-560072 Also at: Falt No.104, 1^st Floor, ‘Achuth Grands’ Srigandhakaval Village, Yelahanka Hobli, Bangalore North Taluk, And also at: Fidelity Business Service India Pvt. Ltd., Pinehurst Embassy Golf Links Business Part, Off Internmediate Ring Road, Bangalore-560071

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Mrs. Meghana G Kamat W/o. Mr. Abhishek Shetty Residing at No.42, 3^rd Main Road, 8^th Cross, Sanjeevini Nagar, Nagarbhavi Main Road, Bangalore-560072

OA. No.1422/2024

Also at:

Flat No.104, 1^st Floor, ‘Achuth Grands’ Srigandhakaval Village, Yelahanka Hobli, Bangalore North Taluk ...DEFENDANTS

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Counsel on record/appeared for: Applicant : Smt. M. Anitha 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 for seeking issuance of Recovery Certificate against the defendants for Rs.55,10,553/- (Rupees Fifty Five Lakh Ten Thousand Five Hundred and Fifty Three only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that, the defendants availed the housing loan of Rs.40,00,000/- on 02.05.2018 and SBI- Suraksha loan of Rs.2,67,000/- on 02.05.2018.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the schedule property.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and

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OA. No.1422/2024

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regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account 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, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 03.01.2025.

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The applicant had let in evidence through AW-1, who filed their Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A13 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: i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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OA. No.1422/2024

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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 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, as to the execution of tripartite agreement agreeing creation of security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendants 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 above finding which cover both the issues raised in this manner, 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 were availed for housing 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 to 8.00% p.a. (simple).

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OA. No.1422/2024

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In the result, OA.No.1422/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.55,10,553/- (Rupees Fifty Five Lakh Ten Thousand Five Hundred and Fifty Three only) with further interest of 8.00% p.a.(simple), from the date of filing OA till the realization from defendants, 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 defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property 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 defendants jointly, severally and personally and their other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding 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 transferred to Recovery for execution.

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OA. No.1422/2024

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of January 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Jayalakshmi, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Date	Description	Annexure
24.02.2017	Loan Application -HL	A1
02.05.2018	Arrangement Letter	A2
02.05.2018	Memorandum of Loan Agreement	A3
02.05.2018	Deed of Undertaking	A4
04.05.2018	Memorandum Relating to Deposit of Title Deeds	A5
04.05.2018	Confirmation of Deposit of Title Deeds	A6
04.05.2018	Sale Deed	A7
05.10.2023	Demand Notice & Postal Receipt	A8 & 9
05.10.2023	Statement of Accounts & Foreclosure	A10& 11
05.10.2023	Statement of Accounts & Foreclosure	A12 & 13

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Abhishek Shetty

Case brief

What is this about?

What did the court decide?

State Bank of India v. Abhishek Shetty

Case brief

What is this about?

What did the court decide?

What the court decided

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