Allowed

State Bank of India v. Dharma Teja

DRT28 Jan 2026OA/1876/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDB Act for issuance of a Recovery Certificate. The defendant appeared ex parte. The Court confirmed the loan defaults and liability but reduced interest to 8% p.a. Simple for the housing loan.

What did the court decide?

Recovery Certificate issued for Rs.47,58,347/- with interest at 8% p.a. (Simple) from date of filing, recoverable from schedule property and personal assets.

State Bank of India versus Dharma Teja — Banking and Recovery | 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

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OA.No.1876/2024

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BETWEEN:

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State Bank of India, Stressed Asset Recovery Branch (SARB) JC Road, Bangalore- 560002

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…APPLICANT

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AND:

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Mr. Dharma Teja D S/o. Keshavareddy D No.80, Neriga, Kugur Post, Sarjapura Hobli, Anekal, Bangalore- 562125

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Also Having Address at: (a) Mr. Dharma Teja D M/s Gravity India Technologies Private Limited Employer ID GITPL 235 No.7/2, 3^rd Main. 3^rd Cross, Pipe line West, Kasturba Nagar, Mysore Road, Bangalore- 560026

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(b) Mr. Dharma Teja D Flat No.126, Ground Floor, Pushpa E Town Apartment, Survey No.165/1, Medahalli Village, Sarjapur Hubli, Anekal Taluk, Bangalore- 562125

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : R & J Associates Defendants : Exparte

OA 1876/2024

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.47,58,347/- (Rupees forty seven lakh fifty eight thousand three hundred forty 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 credit facilities of Rs.37,60,000/- (Rupees thirty seven lakh sixty 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 agreement to mortgage, deed of undertaking and memorandum of deposit 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 1876/2024

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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 18.02.2025.

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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-13 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 1876/2024

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The case put forth by the applicant in the Application

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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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12. Taking into consideration the facts that the credit facilities

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are availed by defendant for Housing loan purpose and also that

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OA claim is arrived at by calculating interest at the agreed rate,

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

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OA 1876/2024

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In the result, OA.No.1876/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.47,58,347/- (Rupees forty seven lakh fifty eight thousand three hundred forty seven 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 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 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 order and transferred to Recovery for execution.

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

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OA 1876/2024

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in terms of this final order.

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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 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: Yagnesh 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	04.08.2019	Application form
A2	22.08.2019	Arrangement letter
A3	28.08.2019	Affidavit
A4	28.08.2019	Agreement to Mortgage
A5	28.08.2019	Deed of undertaking
A6	28.08.2019	Memorandum of loan agreement for home loan granted to public
A7	28.08.2019	Confirmation letter
A8	30.08.2019	Memorandum of deposit (Borrowers Property at RACPC/RCPC/RASMECCC/home branch)
A9	30.08.2019	Confirmation letter
A10	20.09.2023	Demand notice along with postal receipts and acknowledgements

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OA 1876/2024

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A11	21.12.2023	Possession notice and copies of paper
		publication in The New Indian Express and
		Kannada Prabha
A12		Statement of A/c No.38722289535
A13		Banker’s Certificate

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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. Dharma Teja

Case brief

What is this about?

What did the court decide?

State Bank of India v. Dharma Teja

Case brief

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What did the court decide?

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