Allowed

Karnataka Bank Limited v. Saket Jalan

DRT6 Feb 2026OA/1666/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a recovery certificate against husband and wife respondents for a housing loan default, setting interest at 8% p.a. due to past housing usage, and authorized proceeds against property and personal assets.

What did the court decide?

Recovery Certificate for Rs.4,19,60,137.21 with 8.00% p.a. simple interest from filing date, recoverable from schedule property and respondents jointly, severally and personally.

Karnataka Bank Limited versus Saket Jalan — Contract and Commercial Disputes | DRT (2026)

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THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 06^th Day of February, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.1666/2024

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BETWEEN:

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M/s. Karnataka Bank Ltd., Branch office at: No.18, 6^th Main Road, 1^st Cross, 2^nd Stage, BTM layout, Bangalore – 560076 Rep. by its Power of Attorney holder Branch Manager

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… APPLICANT

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AND:

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Mr. Saket Jalan Son of Santosh Jalan Aged about 50 years Flat No.205, 2^nd Floor Sparta Block, Acropolis Hosur Road, Madiwala, Koramangala, Bengaluru-68, Karnataka

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Mrs. Raadhika Jalan Wife of Saket Jalan Aged about 47 years Flat No.205, 2^nd Floor Sparta Block Acropolis hosur road, Madiwala, Koramangala, Bengaluru-68, Karnataka ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Sriharsha R Londhe Defendants : Exparte

OA. No.1666/2024

:FINAL ORDER:

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.4,19,60,137.21 (Rupees Four Crore Nineteen Lakh Sixty Thousand One Hundred and Thirty Seven and Twenty One Paise 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 to the tune of Rs.2,32,00,000/- on 29.03.2019 for the purpose of purchase of ready built residential apartment and housing top up to the tune of Rs.14,00,000/- on 04.04.2019.

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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 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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OA. No.1666/2024

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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 04.08.2025.

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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 A40 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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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

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OA. No.1666/2024

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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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In the result, OA.No.1666/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.4,19,60,137.21 (Rupees Four Crore Nineteen Lakh Sixty Thousand One Hundred and Thirty Seven and Twenty One Paise 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

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OA. No.1666/2024

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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

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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

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order and transferred to Recovery for execution.

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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 06^th Day of February 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA. No.1666/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ajaykumar Jain, Branch Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Date	Description of the document	Exhibit No.
12.02.2019	Loan application	A1
29.03.2019	Loan sanction order	A2
09.04.2019	^{Declaration by defendants}	A3
09.04.2019	Term loan agreement	A4
09.04.2019	^{Affidavit/undertaking}	A5
21.06.2021	^{Application for rescheduling / restricting of} loan by defendants	A6
08.03.2021	Loan sanction order	A7
10.03.2021	^{Declaration by 1st defendants}	A8
10.03.2021	Declaration by 2^nddefendants	A9
10.03.2021	Term loan agreement	A10
-	Statement of accounts with certificate	A11
13.02.2019	Loan application	A12
04.04.2019	Loan sanction order	A13
09.04.2019	Declaration by defendants	A14
09.04.2019	Term loan agreement	A15
09.04.2019	Affidavit/undertaking	A16
21.06.2021	^{Application for rescheduling/restricting of} loan by defendants	A17
10.02.2021	Loan sanction order	A18
02.03.2021	Declaration by 1^stdefendants	A19

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OA. No.1666/2024

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02.03.2021	Declaration by 2^nddefendants	A20
02.03.2021	Term loan agreement	A21
21.06.2021	Undertaking by the defendants	A22
-	Statement of accounts with certificate	A23
11.04.2019	Lona sanction order	A24
26.04.2019	Declaration by 1^stdefendant	A25
26.04.2019	Declaration by 2^nddefendant	A26
26.04.2019	Term loan agreement	A27
26.04.2019	Letter of authority	A28
21.06.2021	^{application for rescheduling/restricting of} loan by defendants	A29
23.02.2021	Loan sanction order	A30
25.02.2021	Declaration by 1^stdefendants	A31
25.02.2021	Declaration by 2^nddefendants	A32
25.02.2021	Term loan agreement	A33
25.02.2021	Undertaking by the defendant	A34
19.07.2023	Office copy of the legal notice	A35
-	Postal receipts – 2 Nos.	A36 & A37
-	Returned postal covers – 2 Nos.	A38 & A39
-	Statement of accounts with certificate	A40

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Karnataka Bank Limited v. Saket Jalan

Case brief

What is this about?

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Karnataka Bank Limited v. Saket Jalan

Case brief

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