Allowed

State Bank of India v. Jyothi Rai

DRT30 Jun 2026OA/1929/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application for a recovery certificate of approx. Rs. 46.28 lakhs against housing loan defaulters who appeared ex parte. The court validated the claim and adjured the certificate to be drawn with 8% simple interest.

What did the court decide?

Recovery Certificate allowed for Rs. 46,28,089/- with 8% simple interest from the filing date, recoverable against persons jointly, severally and personally, and schedule properties.

State Bank of India versus Jyothi Rai — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1929/2023

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BETWEEN:

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State Bank of India Branch office at: JC road, Bengaluru – 560 002

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Represented by its Chief Manager

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Mrs. Jayanthi A …APPLICANT

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AND:

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Mrs. Jyothi Rai D/o. Raghunatha Rai R/at: Radient Prime Rose Apts, 202, II floor, 22^nd main, 2^nd Cross, J P Nagar, V Phase, Bangalore – 560 078

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Mr. Ravichandra Rai S/o. Raghunatha Rai R/at: Shri Durga Associates, 3^rd floor, Vijayashree Arcade, Nanthoor, Mangalore – 575 004

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Mr. Udayachandra Rai S/o. Raghunatha Rai R/at: Korobettu Guthu House Post, Munkurkarlaka Taluk, Udupi – 576 121 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : R & J Associates Defendants : Ex parte

OA-1929/2023

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 46,28,089/- (Rupees Forty-Six Lakhs Twenty-Eight Thousand Eighty-Nine Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed the following credit facilities:

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SBI Housing loan of Rs. 12,00,000/- (Rupees Twelve Lakhs Only).

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SBI Housing Loan of Rs. 28,00,000/- (Rupees Twenty Eighty Lakhs Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan document along with deposit of title deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA. 5. 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-1929/2023

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 22.10.2025.

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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-18 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:

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i) Whether the applicant had succeeded in proving the 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 defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed.

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The evidences put forth by the applicant were found admissible

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and are sufficient to prove availment of credit facilities as stated in

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the OA, and the defaults committed in the accounts. The liability of

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the defendants and the claim of the amount due is also proved by the

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above documents. The claim of the applicant is well within the

OA-1929/2023

limitation.

Hence in view of the finding arrived herein above, the Tribunal

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finds that both these issues are 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 is availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple). In the result, OA.No.1929/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs. 46,28,089/- (Rupees Forty-Six Lakhs Twenty-Eight Thousand Eighty-Nine Only) with further interest @8.00% 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.

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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 defendants jointly, severally and personally and their assets are liable for all such

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OA-1929/2023

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amounts due under the loan accounts.

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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

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receipt of the order.

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

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and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

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Final Order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: G Ajay Kumar, S/o. Ramesh Babu, Deputy Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibits	Date	Description of loan documents
A-1	19.09.2015	Application form for SBI Housing Lona (SBI reality)
A-2	08.09.2015	Arrangement letter

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OA-1929/2023

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A-3	19.09.2015	Memorandum of loan agreement for home loan grantee to public
A-4	19.09.2015	Deed of undertaking
A-5	19.09.2015	Agreement to mortgage
A-6	19.09.2015	Memorandum of deposit
A-7	19.09.2015	Affidavit
A-8	08.11.2015	Application form SBI housing loan (For Individual)
A-9	23.11.2015	Arrangement letter
A-10	23.11.2015	Memorandum of loan agreement for home loan granted to public
A-11	23.11.2015	Deed of undertaking
A-12	23.11.2015	Affidavit
A-13	24.09.2015	Registered memorandum relating to deposit of title deeds
A-14	23.08.2016	Registered memorandum confirming the extension of equitable mortgage
A-15	09.11.2020	Demand notice
A-16		Statement of accounts(35243924528)
A-17		Statement of accounts(35356283766)
A-18		Bankers Certificate

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Jyothi Rai

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jyothi Rai

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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