Allowed

State Bank of India v. Saurav Kumar and Anr.

DRT24 Jun 2026OA/2257/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act filed by a bank for a recovery certificate. Defendants did not appear. The Court reduced the interest rate to 8% p.a. and allowed recovery of the principal plus interest against mortgaged property.

What did the court decide?

Recovery Certificate issued for Rs. 35,50,000 plus 8% p.a. simple interest against mortgaged property and other assets.

State Bank of India versus Saurav Kumar and Anr. — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 24^th Day of June, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.2257/2024

¶5

BETWEEN:

¶6

State Bank of India Shankarapuram, No.13/1, 3^rd Floor Bull Temple Road, Basavanagudi, Bengaluru-560004 Represented By Its Chief Manager

¶7

…APPLICANT

¶8

AND:

¶9

Mr. Saurav Kumar

¶10

S/o. Ram Ishwar Ray,

¶11

R/a No.1256, Vithyathil House, B/H Dandal, Residency British Biological Road, BPL Bus Stop, Arekere,Bengaluru South Bengaluru-560076

¶12

Also at: Ganj Par West Tola, Atmalagola, Patna, Bihar-803211

¶13

Also at:1^st F;Oor, 9/12, E-Block, Malviya Nagar, Shree Geetha Bhavan Mandir, New Delhi-110071

¶14

M/S Allam Infinite India Pvt Ltd. R/at: Gm Pearl, No.06, Btm Layout,

¶15

1^st Stage 1^st Phase, Bengaluru-560068 ...DEFENDANTS

¶16

OA 2257/2024

¶17

¶18

Counsel on record/appeared for:

¶19

Applicant : K M Sanath Kumar Defendants : Exparte

¶20

: Exparte

¶21

FINAL ORDER

¶22

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 for Rs.21,00,035/- (Rupees Twenty One Lakhs Thirty Five Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶23

It is the case of the applicant that the defendants are availed an house loan of Rs.32,50,000/-(Rupees Thirty Two Lakhs Fifty Thousand Only) to purchase residential flat.

¶24

It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan document along with Tripartite Agreement.

¶25

It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

¶26

In the above circumstances, the applicant approached this

¶27

OA 2257/2024

¶28

¶29

Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶30

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 22.08.2025.

¶31

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-12 and got the same marked in evidence.

¶32

Heard the Ld. Counsel for the Applicant and considered

¶33

the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶34

The following issues arise for consideration in this matter:

¶35

i) Whether the applicant had succeeded in proving the

¶36

OA claim as against the defendants?

¶37

ii) What order are to be passed?

¶38

Both these issues are gone into and decided together.

¶39

The case put forth by the applicant in the Application

¶40

remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found

¶41

OA 2257/2024

¶42

¶43

admissible and are sufficient to prove availment of credit facility

¶44

as stated in the OA, creation of mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶45

Hence in view of the finding arrived herein above, this

¶46

Tribunal find both these issues in favour of applicant and hence

¶47

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

¶48

Taking into consideration the facts that the credit facility

¶49

are availed by defendants for housing purpose and also that OA

¶50

claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the OA can be allowed with a reduced interest @8% p.a. (Simple).

¶51

In the result, OA.No.2257/2024, stands allowed,

¶52

i) The applicant is allowed to recovery an aggregate

¶53

sum of Rs. 35,50,000/-(Rupees Thirty Two Lakhs Fifty Thousand

¶54

Only) with further interest @8% p.a. (Simple),from the date of

¶55

filing OA till the realization, from the defendants jointly serverally and personally after giving credit to all the amount

¶56

OA 2257/2024

¶57

¶58

recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶59

(ii) If the sale proceeds are not sufficient, the defendants

¶60

jointly servrally and personally and their other assets are liable to be proceeded against for the balance amount.

¶61

iii) The applicant bank is allowed cost of the proceedings

¶62

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶63

iv) The Recovery Certificate to be drawn in terms of this

¶64

order and transferred to Recovery for execution.

¶65

v) Interim application pending, if any, stands disposed of

¶66

in terms of this final order.

¶67

Communicate a copy of the order to the parties concerned

¶68

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

¶69

of DRT (Procedure) Rules, 1993.

¶70

[Dictated to the Stenographer (ms), transcribed by him, corrected and signed and pronounced by

¶71

me in the Open Court, this the 24^th day of June, 2026].

¶72

PRESIDING OFFICER

Sd/(T. RAJESH)

OA 2257/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶78

AW-1: Rakesh Kumar S, Manager, of the Applicant Bank.

¶79

Exhibits on the part of the Applicant:

¶80

Exhibit	Date	Particulars of Documents
A1	03.12.2018	Loan application
A2	04.12.2018	Agreement of sale entered into between M/s. Gulam Mustafa Enterprises pvt.ltd, & defendant no.1 and 2
A3	04.12.2018	Construction agreement
A4	11.01.2019	Tripartite agreement entered into between defendant no,1 and 2 & applicant bank
A5	15.12.2018	Arrangement letter
A6	11.01.2019	Loan agreement for home loan granted to public
A7	11.01.2019	Agreement to mortgage
A8	11.01.2019	Affidavit
A9	11.01.2019	Annexure I
A10	11.01.2019	Deed of undertaking
A11	30.06.2023	Legal notice along with postal receipts and acknowledgements/returened covers
A12	09.02.2024	Computer output of statement of accounts
Witness	Examined fo	r the Defendants: -Nil -

¶81

List of Documents Exhibited for the Defendants: -Nil -

¶82

Sd/(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Saurav Kumar and Anr.

Case brief

What is this about?

What did the court decide?

State Bank of India v. Saurav Kumar and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Haja Majmudeen Abdul Razak

Union Bank of India versus M/s Pallavi Pharma

Ms Joysri Enterprises versus Indian Bank

Jammu and Kashmir Bank Limited versus Haji Mohammad Sultan Sofi

Ellaquai Dehati Bank versus Ghulam Rasool Mir

Keshav Prasad Choubey versus Shubham Housing Development Finance Company Limited