Allowed

State Bank of India v. Meghavat Anil Naik

DRT28 Jan 2026OA/1853/2024

Case brief

AI extract

What is this about?

Principal Debts Recovery Tribunal allowed the applicant bank's original application seeking issuance of Recovery Certificate against the defaulting borrower, reducing interest to 8% p.a. given agricultural use and permitting recovery from property proceeds.

What did the court decide?

The order is allowed with a reduced interest @8% p.a. (Simple); Recovery Certificate to be drawn for realization from schedule properties and personally liable assets.

State Bank of India versus Meghavat Anil Naik — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1853/2024

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BETWEEN:

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State Bank of India, Stressed Asset Recovery Branch 3^rd floor, Near Old Shivaji Theatre, JC Road, Bangalore

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…APPLICANT

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AND:

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Sri. Meghavat Anil Naik S/o Sri. Lalu Naik H.No.3-5-139/1/3, Huda Park, Shivanagar Colony, Attapur Hyder Guda, Rajendra Nagar, Rangareddi District, Andhra Pradesh- 500048

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Also at: Flat No.317, Third Floor, Laasya Pride, Chikkathogur Village, Begur Hobli, Bangalore South Taluk, Bangalore- 560100 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : G.N Satyamurthy Defendants : Exparte

OA 1853/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.1,43,36,395/- (Rupees One crore forty three lakh thirty six thousand three hundred ninety five 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 credit facilities of Rs.65,64,000/- (Rupees sixty five lakh sixty four thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with arrangement letter, memorandum of deposit and agreement of mortgage in favor of the applicant bank.

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It is further contended that, the defendant despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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OA 1853/2024

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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 defendant, he failed to appear, resulting the defendant being set exparte on 12.02.2025.

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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-20 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 the 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

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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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OA 1853/2024

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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 facilities as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is 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 finding arrived herein above, this Tribunal find both these issues 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 facilities

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are availed by defendant No.1 for agricultural purpose and also that OA claim is arrived at by calculating interest at the agreed

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rate, this Tribunal, in view of the OA can be allowed with a reduced interest @8% p.a.(Simple).

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OA 1853/2024

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In the result, OA.No.1853/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.1,43,36,395/- (Rupees one crore forty three lakh thirty six thousand three hundred ninety five only) with further interest @8% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same

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to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendant

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personally and his other assets are liable to be proceeded against for the balance amount.

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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 receipt of the order.

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

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OA 1853/2024

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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14. Communicate a copy of the order to the parties concerned

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

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by

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me in the Open Court, this the 28^th day of January, 2026].

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Sd/ (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: Jayalakshmi. M, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Loan Application
A2	12.07.2023	Arrangement letter of housing finance
A3	14.07.2023	Agreement of home loan
A4	14.07.2023	Deed of undertaking
A5	24.07.2023	Memo of deposit of title deed
A6	24.07.2023	Absolute sale deed
A7	14.07.2023	Affidavit
A8		Loan Application
A9	13.07.2023	Arrangement letter of housing finance
A10	14.07.2023	Agreement of home loan
A11	14.07.2023	Agreement to mortgage

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OA 1853/2024

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A12	14.07.2023	Deed of undertaking
A13	24.07.2023	Memorandum of deposit of title deeds
A14	24.07.2023	Absolute sale deed
A15	14.07.2023	Affidavit
A16	16.11.2023	Demand Notice
A17	15.07.2024	Statement of account
A18	15.07.2024	Statement of account
A19	15.07.2024	Foreclosure letter/ statement
A20	15.07.2024	Foreclosure letter/ statement

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

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Sd/ (T. RAJESH) PRESIDING OFFICER

State Bank of India v. Meghavat Anil Naik

Case brief

What is this about?

What did the court decide?

State Bank of India v. Meghavat Anil Naik

Case brief

What is this about?

What did the court decide?

What the court decided

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