Allowed

State Bank of India v. Addengada U Nanjappa

DRT31 Jul 2026OA/1938/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India for a recovery certificate. Finding the defendant ex parte and the evidence uncontroverted, the Tribunal granted a reduced interest rate of 8% p.a. and directed the issue of a recovery certificate for the due amounts. Proceed against the schedule property if sale proceeds are insufficient will target other ass

What did the court decide?

Issuance of Recovery Certificate for Rs.97,21,990/ with interest @8% p.a. against defendant and schedule property. Defendant and other assets liable if sale proceeds insufficient.

State Bank of India versus Addengada U Nanjappa — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^th Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1938/2024

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch, NO.11/9, 3^rd Floor, J.C. Road, Bangalore-560002

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… APPLICANT

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AND:

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Mr.Addengada U Nanjappa S/o. A T Uttappa 5^th Cross, Gonikoppalu Virajpet Taluk, Aruvathklu, Gonikoppal Kodagu District-571213

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Also at:

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Mr.Addengada U Nanjappa Proprietor Aadhaar Décor and Furnitures No.24/27, Aruvathoklu, Gonikoppal Kodagu-571213.

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...DEFENDANT

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Counsel on record/appeared for: Applicant : Divya Purandar Defendant : Exparte

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2 OA No.1938/2024

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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 for seeking issuance of Recovery Certificate against the defendant for Rs.97,21,990/(Rupees Ninety-Seven Lakhs Twenty-One Thousand Nine Hundred and Ninety Only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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The Defendant availed a sum of Rs.75,00,000/- (Rupees SeventyFive Lakhs Only) on business for purpose of construction of apartments. The defendant executed necessary loan documents.

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The Defendant availed 7,50,000/- (Rupees Seven Lakh Fifty Thousand Only) for the purpose of Working Capital Limit.

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The Defendant once again availed 12,64,000/- (Rupees Twelve Lakhs Sixty-Four Thousand Only) for the purpose GECL Loan.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents, including Demand Promissory Note, General Indemnity Agreement, supplemental Loan cum hypothecation. Apart from the creation of security interest by way of mortgage, over the Schedule property.

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3 OA No.1938/2024

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It is further contended that, despite availing the credit facility, 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 account 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 10.07.2025.

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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 A1 to A20 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 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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4 OA No.1938/2024

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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 facility as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. 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.

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Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility was 14. availed for purpose of Business Loan and also that OA claim is arrived at

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by calculating interest at the agreed rate, this Tribunal in view of the OA

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can be allowed with a reduced interest of 8.00% p.a.(simple)..

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In the result, OA.No.1938/2024 stands allowed.

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The applicant is allowed to recover an aggregate sum i)

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of Rs.97,21,990/- (Rupees Ninety-Seven Lakhs Twenty-One Thousand

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Nine Hundred and Ninety Only) in the following manner

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5 OA No.1938/2024

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a) The Defendant are liable to pay a sum of Rs.75,00,014.00/- (Rupees Seventy-Five Lakhs and Fourteen Only) as on 20.07.2024 with further interest @ 8% (simple) p.a from the defendant, due as Asset Backed Loan Facility.

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b) The Defendant are liable to pay a sum of Rs.11,03,444.00/- (Rupees Eleven Lakhs Three Thousand Four Hundred and Forty-Four Only) as on 20.07.2024 with further interest @ 8% (simple) p.a from the defendant, due as Working Capital Term Loan.

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c) The Defendant are liable to pay a sum of Rs.11,18,532.00/- (Rupees Eleven Lakhs Eighteen Thousand Five Hundred and Thirty Two Only) as on 20.07.2024 with further interest @ 8% (simple) p.a from the defendant, due as GECL facility Loan.

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The defendants after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property 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 defendant and his other assets are liable for all such amounts due in respective loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which

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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

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transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^th Day of July 2026].

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Syed Mohammed Eliyas, Chief Manager of the Applicant Bank.

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7 OA No.1938/2024

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1.	Copy of Loan Application dated 02.05.2017	A1
2.	Copy of Letter of Arrangement dated 03.05.2017	A2
3.	Copy of Letter of Confirmation deposit on title deeds dated 21.04.2017	A3
4.	Copy of Extension of mortgage by Memorandum of Deposit of Title deeds dated 26.04.2017 registered as Document No.PON-1-00238-2017-18 and CD No.POND 48 registered in office of Sub-Registrar Ponampet	A4
5.	Copy of original title deed dated 17.09.1999 registered as Document NO.850/1999-2000	A5
6.	Copy of the Demand Promissory note dated 03.05.2017 regardingCash Credit Facility	A6
7.	Copy of Hypothecation deed for stocks and Receivables dated 03.05.2017	A7
8.	Copy of General Indemnity Letter dated 03.05.2017	A8
9.	Copy of Application for restructuring loan dated 20.11.2019	A9
10.	Copy of letter of Arrangement dated 26.11.2019	A10
11.	Copy of Supplemental Loan Cum Hypothecation deed dated 26.11.2019	A11
12.	Copy of Letter of Arrangement dated 04.06.2020	A12
13.	Copy of Supplemental hypothecation deed dated 04.06.2020	A13
	Copy of Extension of mortgage by Memorandum of Deposit of Title deeds dated 08.06.2020 registered as
14.	Document No.PON-1-00250-2020-21 and CD No.POND395 registered in office of Sub-registrar Ponampet	A14
15.	Copy of revival letters dated 03.04.2020 dated 07.03.2023 and 30.12.2019	A15 & A16
16.	Copy of Legal Notice dated 29.05.2025 issued on behalf of the Applicant Bank	A17

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8 OA No.1938/2024

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17.	Certified True copy respect of the No.36828250885	of Extra CC	ct of Ac loan	count Stat account	ement in bearing	A18
	Certified True copy	of Extra	ct of Ac	count Stat	ement in
18.	respect of the No.38956899644	CECL	loan	account	bearing	A19
	Certified True copy	of Extra	ct of Ac	count Stat	ement in
19.	respect of the No.39376412328	GECL	Loan	Account	bearing	A20

State Bank of India v. Addengada U Nanjappa

Case brief

What is this about?

What did the court decide?

State Bank of India v. Addengada U Nanjappa

Case brief

What is this about?

What did the court decide?

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