Allowed

State Bank of India v. B. R. Shivkumar

DRT27 Mar 2026OA/2465/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application under Section 19 of the RDB Act, holding the defendant's claim un-rebutted and evidence uncontroverted. The court issued a Recovery Certificate for the due amount with interest reduced to 11% p.a. and permitted recovery from personal assets and schedule property.

What did the court decide?

Issuance of Recovery Certificate for Rs. 37,82,517/- with interest at 11% p.a. recoverable against defendant personally and schedule property.

State Bank of India versus B. R. Shivkumar — 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 27^th Day of March, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.2465/2024

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BETWEEN:

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State Bank of India Stressed Assets Recovery Branch No.11/9, 3^rd Floor, Near Old Shivaji Theater, J C Road Bangalore – 560002 Rep. by Chief Manager Mr. Govind L Ballal … APPLICANT

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AND:

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Sri. B. R. Shivkumar S/o. Sri. B. Rudrappa Aged about major, Proprietor M/s. Ranganatha Traders R/o. Suguru village, Holau Hobli, Shivamogga Taluk & District - 577216

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao 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.37,82,517/- (Rupees Thirty Seven Lakh Eighty Two Thousand

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OA. No.2465/2024

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Five Hundred Seventeen 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 Cash credit working capital facility of Rs.2,00,000/- and Bank Guarantee of Rs.2,00,000/- on 28.08.2003, which was enhanced later by time to time; EB-Guaranteed Emergency Credit Line Loan of Rs.4,76,000/- on 12.06.2020 and FITL of Rs.4,74,000/- on 16.07.2021.

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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 mortgage over the Schedule property.

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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.2465/2024

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 27.11.2025.

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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 A26 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

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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

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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

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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.2465/2024

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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 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.2465/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.37,82,517/- (Rupees Thirty Seven Lakh Eighty Two

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Thousand Five Hundred Seventeen only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization

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from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed

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the same to be recovered by proceeding against defendant personally and also by proceeding against the schedule property.

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OA. No.2465/2024

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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 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 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/(T. RAJESH) PRESIDING OFFICER

OA. No.2465/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Govind L Ballal, Chief 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	28.08.2003	Application form	A1
2	06.09.2003	Agreement for hypothecation & Guarantee	A2
3	06.09.2003	Demand Promissory Note	A3
4	06.09.2003	Sanction letter	A4
5	11.09.2003	Letter evidencing deposit of title deed for creating equitable mortgage	A5
6	15.07.2011	Agreement of loan-cum- hypothecation	A6
7	15.07.2011	Letter of arrangement	A7
	15.07.2011	Memorandum for recording
8		extension of mortgage by deposit of title deeds covering enhanced limit	A8
9	02.12.2013	Memorandum of deposit title deeds registered on 04.12.2013	A9
10	04.12.2013	Letter of arrangement	A10
11	04.12.2013	Agreement of loan-cum- hypothecation	A11

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OA. No.2465/2024

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12	27.04.2020	Letter of arrangement	A12
13	27.04.2020	Agreement of loan-cum- hypothecation	A13
14	28.03.2022	Letter of arrangement	A14
15	28.03.2022	Supplemental agreement of loan- cum-hypothecation	A15
16	28.03.2022	Memorandum of deposit title deeds	A16
17	12.06.2020	Letter of arrangement	A17
18	12.06.2020	Supplemental agreement of loan- cum-hypothecation	A18
19	19.10.2020	Memorandum for recording extension of mortgage	A19
20	-	Application for restructuring under resolution framework 2.0 and offer cum acceptance letter for restructuring	A20
21	16.07.2021	Letter of arrangement	A21
22	23.05.2024	Demand notice along with postal receipt	A22
23	-	One postal cover returned unserved	A23
24	-	Bank statement and final closure statement A/c. No.10624113592	A24
25	-	Bank statement and final closure statement A/c. No.39411821717	A25
26	-	Bank statement and final closure statement A/c.No.40241891673	A26

Sd/-

OA. No.2465/2024

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. B. R. Shivkumar

Case brief

What is this about?

What did the court decide?

State Bank of India v. B. R. Shivkumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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