Allowed

State Bank of India v. Srinivasa D

DRT24 Feb 2026OA/1978/2023

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's OA for issuance of a Recovery Certificate regarding a default in Home Loan repayment. The court adopted the claimed amount and awarded interest at a reduced simple rate of 8% p.a.

What did the court decide?

OA allowed; Recovery Certificate issued for Rs. 1,71,14,967/- plus interest @8% p.a. (simple) recoverable from property and/or personal assets.

State Bank of India versus Srinivasa D — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 24^th Day of February, 2026

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1978 of 2023

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State Bank of India, SARB, 3^rd Floor, Near Old Shivaji Theatre, J.C.Road, Opp. Trust Well Hospital, Bangalore. Represented by its Chief Manager. Shri Krishan Kant Rastogi.

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… Applicant.

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Vs.

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Mr.Srinivasa.D., S/o.Doddaramaiah.

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Mrs.Manjula, W/o.D.Srinivasa.

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Both are residing at : No.566, Ground Floor, 7^th ‘C’ Cross, Near Kuvempu Circle, Hebbal 1^st Stage, Mysore – 570 016.

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Both also at : Bovi Colony, Kasaba Hobli, Padukote Post, H.D.Kote – 571 114.

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Both also at: Flat No.301, 3^rd Floor, “Swathi Byrava”, D.Rajagopal Road, Sanjay Nagar Main Road, (Above Adishwar Electronics), Geddalahalli Village, Kasaba Hobli Bangalore North Taluk, Bangalore – 560 094. … Defendants.

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Counsel for Applicant : Sri G.N.Sathyamurthy. Defendants : Exparte.

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ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts

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And Bankruptcy Act, 1993 seeking for issuance of a Recovery Certificate for a sum of Rs.1,71,14,967/- together with further interest @8.70% p.a. compounded with monthly rests from 01.11.2023 till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

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The Applicant contends that the defendants approached the applicant bank for Home Loan of Rs.1,52,00,000/- and availed the same on 24.03.2022 by execution of necessary loan documents including Memorandum of Loan Agreement for Home Loan. The 1^st defendant has also created mortgage over the schedule mentioned property in favour of applicant as security for due repayment of loan and executed Memorandum relating to Deposit of Title Deeds duly registered as Doc.No.YAN-1-00610-2022-23 on 13.04.2022.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan account of the defendants was classified as NPA on 22.10.2022. The applicant bank had also issued demand notice u/s.13(2) of SARFAESI Act on 25.10.2022 calling upon the defendants to repay the dues. Despite availing the credit facility by obliging to pay back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 22.11.2024.

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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 A12, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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i) Whether the applicant succeeded in proving the OA claim as against the Defendants?

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Home Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 8% p.a. (simple).

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In view of the above

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i) OA No.1978 of 2023 stands allowed.

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ii) Applicant is permitted to recover a sum of Rs.1,71,14,967/(Rupees One Crore Seventy One Lakhs Fourteen Thousands Nine Hundred and Sixty Seven only) together with interest @8% p.a. (simple) from the date of filing of OA till the date of 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 mentioned property. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 24^th day of February, 2026)

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Sd./- (T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Ms.Jayalakshmi, Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Application for Loan dt.15.02.2022.

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Ext.A2 - Application for Loan dt.15.02.2022. Ext.A3 - Arrangement Letter dt.23.03.2022. Ext.A4 - Agreement for Home Loan granted to Public dt.24.03.2022. Ext.A5 - Agreement to Mortgage dt.24.03.2022. Ext.A6 - Memorandum of Deposit dt.13.04.2022. Ext.A7 - Encumbrance Certificate dt.22.07.2022. Ext.A8 - Sale Deed dt.13.04.2022. Ext.A9 - Affidavit dt.24.03.2022. Ext.A10 - Demand Notice dt.25.10.2022. Ext.A11 - Certified Accounts Extract dt.31.10.2023. Ext.A12 - Account Closure Summary dt.31.10.2023.

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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 :

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NIL

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Sd./- PRESIDING OFFICER

State Bank of India v. Srinivasa D

Case brief

What is this about?

What did the court decide?

State Bank of India v. Srinivasa D

Case brief

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