Allowed

State Bank of India v. Shubham Lohiya

DRT24 Jul 2026OA/1567/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by State Bank of India for issuance of a Recovery Certificate against two respondents for an outstanding housing loan amount of approx. 55.90 lakhs with reduced interest at 8% p.a.

What did the court decide?

Allowance of recovery certificate for Rs. 55,90,585/- with 8% simple interest from date of filing till realization against defendants jointly, severally and personally.

State Bank of India versus Shubham Lohiya — 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 July, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1567/2025

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BETWEEN:

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State Bank of India RACPC Shankarpuram (64063) Branch, Basavanagudi, Bangalore – 560 004

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Rep by its Manager Mrs. Seetha Bai K …APPLICANT

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AND:

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Mr. Shubham Lohiya S/o. Hari Prakash Lohiya Aged about 29 years R/at: # Green Park Colony, SBI Main Branch, Elite Jhansi, Uttar Pradesh – 284 001

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M/s. Ozone Urbana Infra Developers Pvt. Ltd Represented by its Authorized Signatory Mr. Mahesh Gowda C S Having office at: No.38, Uisoor Road, Yellappa Garden, Yallappa Chetty Layout, Sivanchetti Gardens, Bengaluru – 560 042 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Smt. Sheela Deepak Defendants : Ex parte

OA-1567/2025

FINAL ORDER

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 defendants for Rs 55,90,585/- (Rupees Fifty-Five Lakhs Ninety Thousand Five Hundred and Eighty-Five 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 are availed a housing loan of Rs. 61,60,000/- (Rupees Sixty-One Lakhs Sixty Thousand Only).

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan documents. 4. It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA. 5. 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, entering appearance/filing vakalat, no written statement filed by the defendant no.2. Hence, the chance for filing written statement stands closed on 02.04.2026. The Defendants placed ex parte on 02.04.2026.

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OA-1567/2025

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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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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 defendants?

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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 defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed.

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The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA, and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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OA-1567/2025

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

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

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Taking into consideration the facts that the credit facility is availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1567/2025, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 55,90,585/- (Rupees Fifty-Five Lakhs Ninety Thousand Five Hundred and Eighty-Five Only) with further interest @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 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 amount due and payable to the applicant bank, the defendants jointly, severally and personally and their assets are liable for all such amounts due under the loan accounts.

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OA-1567/2025

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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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, are disposed of with this

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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 July, 2026].

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Sd/-

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(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: H P Paramesh, S/o. H R Parva Setty, Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Witness Examined for the Defendants: -Nil -

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Exhibit Nos.	date	Particulars of Documents
A1	12.12.2022	True copy of home loan application from defendant no.1 for home loan to applicant
A2	31.12.2022	True copy of arrangement letter for Rs.
		61,60,000/-issued by applicant
List of D	ocuments Ex	hibited for the Defendants: -Nil -

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OA-1567/2025

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A3	31.12.2022	True copy of memorandum of loan agreement for home loan granted to public, executed by defendant no.1
A4	31.12.2022	True copy of agreement for sale executed by and between defendants
A5	31.12.2022	True copy of tripartite agreement executed by defendants with applicant
A6	18.10.2024	True copy of legal notice issued by applicant
A7	04.11.2024	True copy of cancellation notices of the tripartite agreement
A8	----------	True copy of loan account statement, certified under BBEA

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Shubham Lohiya

Case brief

What is this about?

What did the court decide?

State Bank of India v. Shubham Lohiya

Case brief

What is this about?

What did the court decide?

What the court decided

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