DR&T allowed bank application for recovery certificate against business firm and individual proprietor for loan default, calculating permitted interest at 12% simple per annum pending execution.
Recovery certificate to be issued for Rs. 79,62,116 plus interest @12% p.a. from date of filing payable by defendants jointly and severally and their assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 27th Day of August, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.1887/2024
BETWEEN:
State Bank of India Branch office at: Hassan, Narasimha raja circle Hassan – 573 201
Rep by its Chief Manager Sri. Shivaram B K …APPLICANT
AND:
Also, at: No. 398, 14th main, Basaveshwara Nagar, Bengaluru – 560 079 ...DEFENDANTS
Counsel on record/appeared for:
Applicant : GN Satyamurty Defendants : Ex parte
2 OA-1887/2024
FINAL ORDER
3 OA-1887/2024
parte on 04.07.2025.
ii) What order are to be passed?
Both these issues are gone into and decided together.
unrebutted as defendants remained ex parte. 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,
creation of the security interest and the defaults committed in the accounts. 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.
4 OA-1887/2024
find both these issues in favour of applicant and hence, this Tribunal
is of the view that OA is to be allowed.
availed for Business purpose and also that the OA claim is arrived at
by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00% (simple).
Rs. 79,62,116/- (Rupees Seventy-Nine Lakhs Sixty-Two Thousand One Hundred and Sixteen Only) with further interest @12.00% 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.
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.
5 OA-1887/2024
iii) The applicant bank is allowed cost of the proceedings
which applicant to file cost memo within 7 days from the date of
receipt of the order
iv) The Recovery Certificate to be drawn in terms of this order
and transferred to Recovery for execution.
terms of this final order.
terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT
(Procedure) Rules, 1993.
[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27th Day of August, 2026].
Sd/-
(T. RAJESH) PRESIDING OFFICE
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sri Vivek Raina, S/o. Ashok Kumar Raina, Chief Manager, of
Applicant Bank.
Exhibits on the part of the Applicant:
| Exhibits | Date | Description of documents |
|---|---|---|
| A1 | 01.08.2023 | Application |
| A2 | 10.08.2023 | Arrangement letter |
| A3 | 10.08.2023 | Hypothecation agreement |
| A4 | 10.08.2023 | Guarantee agreement |
6 OA-1887/2024
| A5 | 10.08.2023 | Undertaking/declaration | |
|---|---|---|---|
| A6 | 10.08.2023 | Legal notice | |
| A7 | 03.07.2024 | Certified accounts extract | |
| A8 | 29.06.2024 | Account closure summary | |
| Wit | ness Examin | **ed for the Defendants: ** | -Nil - |
| List | of Documen | **ts Exhibited for the Defendants: ** | -Nil - |
Sd/-
3 issues framed by the court
Whether the applicant successfully proved the OA claim against the defendants?
What order shall be passed based on the evidence and pleadings?
Whether the OA claim is within the limitation period?
2 provisions across 2 enactments
State Bank of India
M/s. Navilu Fabrics
Sonia V
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
