Allowed

State Bank of India v. Ponnamreddy Sivareddy

DRT30 Jan 2026OA/183/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's Original Application for issuance of a Recovery Certificate. The defendant appeared ex parte. The court reduced the interest rate to 8.00% p.a. from the calculated amount and directed recovery from the defendant personally and scheduled mortgaged property.

What did the court decide?

Recovery Certificate granted for Rs. 6.46 Cr with interest at 8.00% p.a. from filing date to realization against defendant personally and schedule property.

State Bank of India versus Ponnamreddy Sivareddy — 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.183/2024

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch No.11/90, 3^rd Floor, Opposite to Trust Well Hospital, J C Road, Bengaluru-560002 Rep. by its Chief Manager Sri. Krishan Kant Rastogi

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… APPLICANT

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AND:

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Sri. Ponnamreddy Sivareddy S/o. Sri. Damodhar Reddy Aged about 36 years R/at: Troy Hills Village APT 538, 1480 US Highway 46 West, Troy Hills Village, Parcippany Morris 07054 New Jersey, United State of America

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Also at: Vinjamur Mandal, Sri Potti Sriramalu Nellore District, Andhra Pradesh-524228 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Smt. Malini Vinay Defendant : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for

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OA. No.183/2024

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seeking issuance of Recovery Certificate against the defendant for Rs.6,46,89,107/- (Rupees Six Crore Forty Six Lakh Eighty Nine Thousand One Hundred and Seven only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed the housing loan of Rs.5,12,00,000/-.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant 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 facility, 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 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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OA. No.183/2024

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 01.04.2025.

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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 A5 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 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 facility as stated in the OA, as to the execution of loan documents and

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OA. No.183/2024

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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 facility was 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.183/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.6,46,89,107/- (Rupees Six Crore Forty Six Lakh Eighty Nine Thousand One Hundred and Seven only) with further interest of 8.00% p.a.(simple), from the date of filing OA till the realization from defendant, 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 defendant personally and also by proceeding against the schedule property. The schedule

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OA. No.183/2024

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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 defendant personally and his 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

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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 30^th Day of January 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.183/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.S.M. Eliyas, 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.
16.12.2020	Arrangement letter	A-1
16.12.2020	Memorandum of loan agreement	A-2
28.12.2020	^{Registered memorandum of deposit of title} deeds	A-3
15.11.2023	Demand notice	A-4
-	Statement of account along with certificate	A-5

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ponnamreddy Sivareddy

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ponnamreddy Sivareddy

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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