Allowed

State Bank of India v. Saifan Sab

DRT24 Jun 2026OA/1958/2024

Case brief

AI extract

What is this about?

DRT allowed an application for a recovery certificate filed by State Bank of India against defaulting borrowers. The tribunal found the claim unchallenged due to ex parte proceedings and approved recovery at a reduced interest rate of 6% simple.

What did the court decide?

Issuance of Recovery Certificate for Rs. 37,97,405/ plus interest at 6% p.a. simple from filing date until realization, recoverable from schedule properties and assets.

State Bank of India versus Saifan Sab — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1958/2024

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BETWEEN:

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State Bank of India Branch office at: Ground Floor, Avani Emporio, Near Ananth Residency, Jayachamarajendra Nagar, Dharwad Dist., Hubballi – 580 020 …APPLICANT

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AND:

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Mr. Saifan Sab S/o. Sultan Sab Attar Aged about 42 years R/at: D No. 3-5, Karajagi Village, Afzalpur Taluk, Gulbarga – 585 301

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Javed S/o. Saifan Sab Aged about 29 years R/at: 3-5, Karajagi Village, Afzalpur Taluk, Gulbarga – 585 301 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : R & J Associates Defendants : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants

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OA-1958/2024

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for Rs 37,97,405/- (Rupees Thirty-Seven Lakhs Ninety-Seven Thousand Four Hundred and Five 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 credit facilities:

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Agricultural term loan of Rs. 4,61,887/- (Rupees Four Lakhs Sixty-One Thousand Eight Hundred and Eighty-Seven Only) for agricultural purpose.

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Rephased loan of Rs. 3,75,874/- (Rupees Three Lakhs SeventyFive Thousand Eight Hundred and Seventy-Four 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 documents.

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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.

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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 ex parte on 18.07.2025.

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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

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OA-1958/2024

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Exhibits A-1 to A-08 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

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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 facilities 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

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due are also proved by the above document. The claim of the applicant is well within the limitation.

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

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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OA-1958/2024

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Taking into consideration the facts that the credit facilities is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.1958/2024 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 37,97,405/- (Rupees Thirty-Seven Lakhs Ninety-Seven Thousand Four Hundred and Five Only) with further interest @6.00 % 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 amounts 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

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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.

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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.

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OA-1958/2024

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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, stands disposed of in

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terms of this 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 24^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 Vinaya K, S/o. Rama Bhat K, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibits	date	Description and type of documents
A1	30.01.2009	Application form
A2	30.01.2009	Sanction letter
A3	30.01.2009	Agreement of hypothecation
A4	30.01.2009	Mortgage deed
A5	21.07.2022	Legal notice and postal receipts
A6		Statement ofaccount (Accno. 62090641209)
A7		Statement ofaccount (Accno. 62218655676)
A8		Bankers Certificate
Witness	Examined f	or the Defendants: -Nil -

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List of Documents Exhibited for the Defendants:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

State Bank of India v. Saifan Sab

Case brief

What is this about?

What did the court decide?

State Bank of India v. Saifan Sab

Case brief

What is this about?

What did the court decide?

What the court decided

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