Allowed

State Bank of India v. Ningappa Lakkappa Ainapur Alias Karlatti

DRT27 Mar 2026OA/239/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a recovery certificate seeking an aggregate sum of Rs.26,10,248/- with reduced interest of 6% p.a. against a borrower who defaulted on agricultural and dairy loans.

What did the court decide?

Recovery Certificate to be drawn for Rs.26,10,248/- with 6% p.a. simple interest, recoverable personally or against schedule property.

State Bank of India versus Ningappa Lakkappa Ainapur Alias… — Specific Performance | 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 March, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.239/2025

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BETWEEN:

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State Bank of India Athani (00771) Branch, Belgaum District … APPLICANT

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AND:

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Sri. Ningappa Lakkappa Ainapur @ Karlatti S/o. Lakkappa Inapur Aged about 63 years R/o. Bakwad vilage, Athani Taluq, Belagaum District - 591305

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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 under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.26,10,248/- (Rupees Twenty Six Lakh Ten Thousand Two Hundred and Forty Eight only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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OA. No.239/2025

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It is the case of the applicant that, the defendant availed KCC1 facility of Rs.2,00,000/- for cultivation of crops; ATL facility of Rs.16,00,000/- for dealing in dairy products.

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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 and mortgage 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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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 09.07.2025. 7. 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 A21 and got the same marked in evidence.

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OA. No.239/2025

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

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OA. No.239/2025

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liable to be allowed.

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Taking into consideration the facts that the credit facilities

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were availed for agricultural purpose and also that OA 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 of 6.00% p.a.(simple).

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In the result, OA.No.239/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.26,10,248/- (Rupees Twenty Six Lakh Ten Thousand Two Hundred and Forty Eight only) with further interest of 6.00% p.a. (simple) from the date of filing OA till the realization from the 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 by proceeding against the schedule property. The schedule property to the OA be the schedule property 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 personally and his other assets are liable for all such amounts due

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OA. No.239/2025

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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

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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

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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 March 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: Smt. Jayanthi A, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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l		Date	Exhibit
S. No.	Description of Documents		Number

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OA. No.239/2025

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1	Sanction letter	-	A1
2	Hypothecation agreement	28.06.2012	A2
3	Mortgage deed	28.06.2012	A3
4	Application for loan	-	A4
5	Arrangement letter	-	A5
6	Hypothecation agreement	13.12.2022	A6
7	Mortgage deed	08.02.2023	A7
8	Application for loan	01.02.2023	A8
9	Arrangement letter	-	A9
10	Hypothecation agreement	09.02.2023	A10
11	Mortgage deed	08.02.2023	A11
12	Encumbrance certificate	09.02.2023	A12
13	Encumbrance certificate	09.02.2023	A13
14	Legal notice	08.02.2024	A14
15	Postal acknowledgement	-	A15
16	Certified accounts extract	16.09.2024	A16
17	Certified accounts extract	16.09.2024	A17
18	Certified accounts extract	16.09.2024	A18
19	Account closure summary	26.08.2024	A19
20	Account closure summary	26.08.2024	A20
21	Account closure summary	26.08.2024	A21

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Sd/(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ningappa Lakkappa Ainapur Alias Karlatti

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ningappa Lakkappa Ainapur Alias Karlatti

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

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