Allowed

State Bank of India v. S K Apparels Design and Management

DRT24 Feb 2026OA/2436/2024

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDB Act, the Debt Recovery Tribunal allowed the bank's claim for a recovery certificate. The court found the bank's evidence un-rebutted and sufficient to prove the loan dues, awarding recovery of the principal amount plus reduced simple interest.

What did the court decide?

OA allowed; Recovery Certificate issued for Rs.91,93,923/- plus 10% simple interest from filing date; hypothecated properties liable for recovery.

State Bank of India versus S K Apparels Design and… — 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.2436 of 2024

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State Bank of India, Stressed Assets Recovery Branch, J.C.Road, 3^rd Floor, Near Shivaji Theatre, Bangalore – 560 002. Represented by its Chief Manager. Sri Raviprakash.H.V.

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… Applicant.

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Vs.

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M/s.SK Apparels Design & Management, Represented by its Proprietor, Mrs.Nethravathi A.N., No.38, 1^st , 2^nd & 3^rd Floor, Kanakapura Main Road, Doddakallasandra, Annapurneshwari Industrial Area, Bengaluru – 560 062.

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Also at: M/s.SK Apparels Design & Management, Represented by its Proprietor, Mrs.Nethravathi A.N., TCH College, 1^st Floor, 29^th KT, Complex Chunchagatta Road, Subbanna Layout, Bengaluru – 560 062.

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Mrs.Nethravathi A.N., W/o.Vishwanath.K., No.36, Muneshwara Block, Near TCH College, Harinagar, Anjanapura, Bengaluru – 560 062.

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… Defendants.

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Counsel for Applicant : Ms.M.Anitha. 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 total sum of Rs.91,93,923/- together with further interest @11.80% p.a. from the date of filing of OA till the date of realisation together with costs from the defendants jointly and severally and by way of sale of hypothecated properties.

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The Applicant contends that the 1^st defendant through its proprietor, 2^nd defendant approached the applicant bank to avail Stand Up India Scheme Loan for Cash Credit of Rs.20,00,000/- and Term Loan of Rs.60,00,000/- and availed both the loans on 29.11.2022 by execution of necessary loan documents including Loan Cum Hypothecation Agreement. The 2^nd defendant who is the proprietor of 1^st defendant stood as guarantor for the loan availed by 1^st defendant and executed Guarantee Agreement dt.29.11.2022. The defendants have also hypothecated the properties described in schedule ‘B’ to the OA in favour of applicant for due repayment of the loan.

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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. The applicant bank had also issued legal notice dt.22.08.2024 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 26.09.2025.

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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, 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 Term Loan and Cash Credit Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 10% p.a. (simple).

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In view of the above

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i) OA No.2436 of 2024 stands allowed.

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ii) Applicant is permitted to recover a total sum of Rs.91,93,923/- (Rupees Ninety One Lakhs Ninety Three Thousands Nine Hundred and Twenty Three only) together with interest @10% p.a. (simple) from the date of filing of OA till the date of realization from the defendants jointly, severally and personally and their assets including the hypothecated properties are liable to be proceeded against for realization of dues after giving credit to all the amounts recovered and received during the pendency of the OA.

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

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v) 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 –Mr.Vivek Raina, Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Stand-Up-India Loan Application Form dt.04.11.2022. Ext.A2 - Letter of Arrangement dt.29.11.2022. Ext.A3 - Loan-cum-Hypothecation Agreement dt.29.11.2022. Ext.A4 - Guarantee Agreement dt.29.11.2022. Ext.A5 - Legal Notice dt.22.08.2024. Ext.A6 - Postal Receipt. Ext.A7 - Postal Track.

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Ext.A8 - Foreclosure Statement of Accounts. Ext.A9 - Foreclosure Statement of Accounts.

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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./-

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(T. RAJESH)

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PRESIDING OFFICER

State Bank of India v. S K Apparels Design and Management

Case brief

What is this about?

What did the court decide?

State Bank of India v. S K Apparels Design and Management

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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