Allowed

State Bank of India v. Rahul Dayal Srivastava and Others

DRT28 Jan 2026OA/1919/2024

Case brief

AI extract

What is this about?

In an exparte application for a recovery certificate, the Tribunal held the Bank's claim proven due to untainted documentary evidence. It allowed the application but reduced the interest rate to 8% per annum simple interest.

What did the court decide?

Recovery certificate issued for Rs.52,76,815/- plus 8% simple interest from date of filing, executable against all defendants jointly, severally, and personally.

State Bank of India versus Rahul Dayal Srivastava and Others — 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 OA.No.1919/2024

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BETWEEN:

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State Bank of India, Retail Assets Central

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Procession Centre (RACPC) Shankarapuram, No.13/1, 3^rd Floor, Bull Temple Road, Basavanagudi, Bengaluru- 560004

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…APPLICANT

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AND:

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Mr. Rahul Dayal Srivastava S/o. Late R.D Srivastava, R/at: No.405, B Block Jhannavi Shelters Near B.G. Road, Beguru Hobli, Yelenahalli Village, Bangalore- 560068

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Mrs. Sweta Dayal Srivastava W/o. Shri Rahul Dayal R/at: No.405, B Block Jhannavi Shelters Near B.G. Road, Beguru Hobli, Yelenahalli Village, Bangalore- 560068

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M/s Gulam Mustafa Enterprises Pvt. Ltd., Registered office at: No.6, GM Pearl, BTM Layout, 1^st Stage, 1^st Phase, Bangalore- 560068

...DEFENDANTS

OA 1919/2024

Counsel on record/appeared for:

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Applicant : Sri. Ramagiriyamma Law Chambers Defendants : Exparte

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FINAL ORDER

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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.52,76,815/- (Rupees fifty two lakh seventy six thousand eight hundred and fifteen 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 following credit facilities from the applicant bank:-

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I. Vehicle Loan of a sum of Rs. 8,00,000/- (Rupees Eight Lakh Only),

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II. Housing loan limit of Rs. 34,40,000/- (Rupees Thirty Four Lakh Forty Thousand Only), and

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III. Cash Credit Loan limit of Rs. 9,00,000/- (Rupees Nine Lakh Only)

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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 demand notice, agreement of sale in favor

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OA 1919/2024

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of the applicant bank. Further, the defendants jointly entered into a Tripartite agreement dated 12.01.2019 with the applicant bank.

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It is further contended that, the defendants 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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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 18.09.2025.

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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-12 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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OA 1919/2024

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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 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 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 and execution of tripartite agreement agreeing the defaults committed in the account. 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

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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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OA 1919/2024

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12. Taking into consideration the facts that the credit facilities

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are availed by defendants for Home 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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In the result, OA.No.1919/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.52,76,815/- (Rupees fifty two lakh seventy six thousand eight hundred and fifteen only) with further interest @8% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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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 proceedings against defendants jointly severally and personally and their assets including the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the

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proceedings which applicant to file cost memo within 7 days from

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OA 1919/2024

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the date of receipt of the order.

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iii) 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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iv) Interim application pending, if any, stands disposed of

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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

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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	29.12.2018	Loan application
A2	22.12.2018	Agreement of sale entered into between M/s Gulam Mustafa Enterprises Pvt. Ltd & D1 & D2
A3	22.12.2018	Construction agreement
A4	12.01.2019	Tripartite agreement entered into between D1, D2 & D3 and applicant bank.
A5	12.01.2019	Loan agreement for home loan granted to public

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OA 1919/2024

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A6	11.01.2019	Arrangement letter
A7	12.01.2019	Agreement to mortgage
A8	12.01.2019	Annexure 1
A9	12.01.2019	Affidavit annexure B
A10	12.01.2019	Deed of undertaking
A11	14.07.2023	Legal notice along with postal receipts and acknowledgements/returned covers
A12	12.07.2023	Computer output of statement of accounts

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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. Rahul Dayal Srivastava and Others

Case brief

What is this about?

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State Bank of India v. Rahul Dayal Srivastava and Others

Case brief

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What did the court decide?

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