Allowed

State Bank of India v. Ms Deepak Food Industries

DRT27 Apr 2026OA/2126/2024

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDB Act, the Tribunal allowed the bank's claim for a recovery certificate due to the defendant's default and ex-parte absence. The recovery amount is capped at 11% simple interest p.a.

What did the court decide?

Recovery certificate allowed for Rs.40,74,136/- plus further interest at 11.00% p.a. (simple) on the schedule assets and personally.

State Bank of India versus Ms Deepak Food Industries — Insolvency and Bankruptcy | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of April, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.2126/2024

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BETWEEN:

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State Bank of India SARB (05173), J C Road, Bangalore

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… APPLICANT

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AND:

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M/s. Deepak Food Industries Rep. by its Proprietor: Mr. Deepak Kumar B P S/o. Poovaiah B B Aged about 37 years Office at: No.8/1, Near Government hospital Thirupalya, Bommasandra Industrial Area Anekal Taluk, Bangalore-560099 And also at: K and T Sai Serenity, Flat No.303, 3^rd Floor, Doddathogur, Near JMR Rose Apt, Electronic City Phase 1, Bangalore – 560100

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. G.N. Satyamurthy Defendant : Exparte

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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 for

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OA. No.2126/2024

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seeking issuance of Recovery Certificate against the defendant for Rs.40,74,136/- (Rupees Forty Lakh Seventy Four Thousand One Hundred and Thirty Six only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed Term loan of Rs.27,09,000/- and a Cash Credit of Rs.10,00,000/- total aggregating limit of Rs.37,09,000/- on 31.12.2022 for the purpose of business.

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It is also the case of the applicant that, in view of the above financed credit facilities, the defendant executed necessary loan documents. Apart from the creation of security interest by way of hypothecation over the Schedule.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and regularly, the defendant 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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OA. No.2126/2024

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 26.11.2025.

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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 A9 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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The case put forth by the applicant in the Application remains unrebutted as defendant remained exparte. The evidence

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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 security interest as claimed by the applicant bank and the defaults committed in the account. The

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OA. No.2126/2024

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liability of the defendant and the claim of the amount due are also

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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 facilities

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were availed for business purpose and also that OA claim is arrived

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at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 11.00% p.a.(simple).

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In the result, OA.No.2126/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.40,74,136/- (Rupees Forty Lakh Seventy Four Thousand One

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Hundred and Thirty Six only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the

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defendant, 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 defendant personally and also

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by proceeding against the schedule . The schedule to the OA be

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OA. No.2126/2024

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the schedule to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendant

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personally and his other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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which 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

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order and 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

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

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of April 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.2126/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Dayanand Mallikarjun, Deputy Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit Number
1	21.10.2022	Application	A1
2	31.12.2022	Arrangement letter	A2
3	31.12.2022	Hypothecation agreement	A3
4	02.08.2024	Legal notice	A4
5	03.08.2024	Postal receipt	A5
6	02.08.2024	Certified accounts extract	A6
7	02.08.2024	Certified accounts extract	A7
8	02.08.2024	Account closure summary	A8
9	02.08.2024	Account closure summary	A9

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Sd/(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ms Deepak Food Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Deepak Food Industries

Case brief

What is this about?

What did the court decide?

What the court decided

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Case details

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