Allowed

State Bank of India v. Madivalamma

DRT24 Jun 2026OA/1471/2025

Case brief

AI extract

What is this about?

Original Application filed under Section 19 RDB Act for recovery certificate of approx Rs 26 lakhs against a borrower who defaulted on agricultural loans. Defendant absent. Tribunal allowed OA with reduced interest of 6% p.a. due to agricultural purpose.

What did the court decide?

OA allowed with reduced interest at 6% p.a. simple; applicant directed to recover sum from defendant personally and through schedule properties; Recovery Certificate to be drawn.

State Bank of India versus Madivalamma — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1471/2025

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BETWEEN:

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State Bank of India Branch office at: Ground Floor, Avani Emporio, Near Ananth Residency, Jayachamarajendra Nagar, Dharwad Dist., Hubballi – 580 020 …APPLICANT

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AND:

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Smt. Madivalamma W/o. Yellinga Aged about 27 years Residing at: Shradda Mini, Dall Milli Kutnoor, Jevargi Taluk, Kalburgi District – 585 310 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : K Prakash Defendant : Ex parte

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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 for issuance of Recovery Certificate against the defendant for Rs 25,94,683.22/- (Rupees Twenty-Five Lakhs Ninety-Four Thousand

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OA-1471/2025

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Six Hundred and Eighty-Three and Paisa Twenty-Two 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 defendant is availed the credit facilities:

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Credit loan of Rs. 4,75,000/- (Rupees Four Lakhs Seventy-Five Thousand Only).

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Term Loan of Rs. 19,00,000/- (Rupees Nineteen Lakhs Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents. 4. 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.

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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 defendant, she failed to appear, resulting the defendant being set ex parte on 17.10.2025.

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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-08 and got the same marked in evidence.

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OA-1471/2025

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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

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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 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, creation of the security interest and the defaults committed in the

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accounts. The liability of the defendant and the claim of the amount due are also proved by the above document. 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 are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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OA-1471/2025

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Taking into consideration the facts that the credit facilities is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1471/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 25,94,683.22/- (Rupees Twenty-Five Lakhs Ninety-Four Thousand Six Hundred and Eighty-Three and Paisa Twenty-Two 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 amounts 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.

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

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amount due and payable to the applicant bank, the defendant personally and her assets are liable for all such 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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OA-1471/2025

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

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[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 June, 2026].

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Sd/-

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(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 Jayanthi A, D/o. Anniyappan C, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibits	Description and type of documents
A1	Loan application
A2	Loansanction letter/letterofarrangement
A3	Agreement of loan-cum-hypothecation
A4&5	Legal notice withpostal receipt
A6	Returned postalcover
A7 & 8	Statement ofaccounts
Witness	Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

State Bank of India v. Madivalamma

Case brief

What is this about?

What did the court decide?

State Bank of India v. Madivalamma

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

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