Allowed

State Bank of India v. Ms Samskruthi Silk Sarees

DRT28 Jan 2026OA/2146/2024

Case brief

AI extract

What is this about?

In ex parte proceedings under Objectionable Applications No. 2146/2024, the Tribunal allowed the Applicant Bank's recovery claim for a defaulted cash credit. The Tribunal validated the loan documents, hypothecation, and default evidence, directing a Recovery Certificate with interest capped at 12% simple interest.

What did the court decide?

Recovery Certificate drawn for Rs. 25,32,345/- with interest @12% p.a. (simple) from date of filing till realization against Defendants jointly, severally and personally.

State Bank of India versus Ms Samskruthi Silk Sarees — 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 28^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.2146/2024

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BETWEEN:

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State Bank of India Branch office at: JC Road, No. 11/90, 3^rd Floor, Near Old Shivaji Theater JC Road Bangalore – 560 002

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Represented by its Chief Manger Sri. Kiran Mathada …APPLICANT

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AND:

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M/s. Samskruthi Silk Sarees Represented by its Proprietor Smt. Padmini D/o. Ramegowda Aged about 33 years Office at: #No. 373/360, Devanga Street, Chamarajanagar – 571 313

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Smt. Padmini D/o. Ramegowda Aged about 33 years R/o. # No. 373/360, Devanga Street, Chamarajanagar – 571 313

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And also at: R/o. Uthavalli, Chamarajanagar – 571 313 ...DEFENDANTS

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2 OA-2146/2024

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Counsel on record/appeared for:

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Applicant : G N Satya Murthy Defendants : Ex parte

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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 seeking issuance of Recovery Certificate against the defendants for Rs. 25,32,345/- (Rupees Twenty Five Lakhs Thirty Two Thousand Three Hundred and Forty 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 a cash credit limit of Rs. 20,00,000/- (Rupees Twenty Lakhs Only) for business purpose.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan document along with hypothecation agreement.

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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 accounts as NPA.

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3 OA-2146/2024

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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 14.03.2025.

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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-7 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

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sufficient to prove availment of credit facility as stated in the OA,

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creation of the security interest and the defaults committed in the

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4 OA-2146/2024

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above documents. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues 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 facility are

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availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view that OA can be allowed with a reduced interest of 12.00%(simple).

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In the result, OA.No.2146/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 25,32,345/- (Rupees Twenty Five Lakhs Thirty Two Thousand Three Hundred and Forty Five Only) with further interest @12.00% p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all

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the amount recovered and received during the pendency of the OA.

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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 balance

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amounts due under the loan accounts.

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5 OA-2146/2024

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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, 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 (Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in

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the Open Court, this the 28^th Day of January, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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6 OA-2146/2024

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Vijaya Ganesh Bhatt Gangavatika, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	14.09.2022	Application
A2	28.09.2022	Hypothecation
A3	28.09.2022	Guarantee agreement
A4	28.08.2024	Legal notice
A5	29.08.2024	Postal receipt
A6	02.09.2024	Certified accounts extract
A7	02.09.2024	Account closure summary

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/-

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ms Samskruthi Silk Sarees

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Samskruthi Silk Sarees

Case brief

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