Allowed

State Bank of India v. Mohd Anwar

DRT17 Apr 2026OA/264/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's Original Application for a recovery certificate. The defendants were in default on credit facilities. The court reduced interest to 10% p.a. and directed recovery jointly and severally from the defendants and schedule properties.

What did the court decide?

Recovery Certificate for Rs.46,98,585/- with 10% p.a. simple interest against the defendants jointly, severally, and their schedule properties.

State Bank of India versus Mohd Anwar — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 17^th Day of April, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA. No.264/2024

¶5

BETWEEN:

¶6

State Bank of India Stressed Assets Recovery Branch No.11/90, 3^rd Floor, Opp. To Trust Well Hospital J C Road, Bengaluru-560002 Rep. by its Chief Manager Sri. Raviprakash … APPLICANT

¶7

AND:

¶8

Mr. Mohammed Anwar Proprietor of M/s. Indoflex Rubber R/at: #No.47, Banaswadi Road, Opp. Mukunda Theater, Maruthi Seva Nagar, Bangalore – 560033

¶9

Also at:

¶10

No.34/B, Tooba Layout, Vidyasagar, Thanisandra Main Road, Dr. Shivarm Karanth Nagar Post, Bangalore – 560077

¶11

Mrs. Shahida Begam W/o. Mr. Mohammed Anwar

¶12

Both are 1 & 2 R/at: R/at: #9, G. Colony, Queens Road, Shivajinagar, Bangalore ...DEFENDANTS

¶13

OA. No.264/2024

¶14

¶15

Counsel on record/appeared for:

¶16

Applicant : Smt. Malini Vinay Defendants : Exparte

¶17

:FINAL ORDER:

¶18

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 defendants for Rs.46,98,585/- (Rupees Forty Six Lakh Ninety Eight Thousand Five Hundred and Eighty Five only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶19

It is the case of the applicant that, the defendants availed the following credit facilities:

¶20

a. CCL of Rs.20.00 lakhs on 22.03.2016 later enhanced to Rs.40.00 lakhs on 10.05.2019

¶21

b. Term loan of Rs.7.96 Lakhs on 16.06.2020.

¶22

It is also the case of the applicant that, in view of the above financed credit facilities, the defendants executed necessary loan documents. Apart from the creation of security interest by way of mortgage and hypothecation over the Schedule properties.

¶23

It is further contended that, despite availing the credit facilities, agreeing to service the loan amount promptly and

¶24

OA. No.264/2024

¶25

¶26

regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶27

In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the accounts.

¶28

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 25.04.2025.

¶29

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 A24 and got the same marked in evidence.

¶30

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.

¶31

The following issues arise for consideration in this matter:

¶32

i) Whether the applicant had succeeded in proving the OA

¶33

claim as against the defendants?

¶34

ii) What order are to be passed?

¶35

Both these issues are gone into and decided together.

¶36

The case put forth by the applicant in the Application

¶37

remains unrebutted as defendants remained exparte. The

¶38

OA. No.264/2024

¶39

¶40

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

¶41

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 defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶42

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.

¶43

Taking into consideration the facts that the credit facilities

¶44

were availed for business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view

¶45

of the OA can be allowed with a reduced interest of 10.00% p.a.(simple).

¶46

In the result, OA.No.264/2024 stands allowed,

¶47

i) The applicant is allowed to recovery an aggregate sum

¶48

of Rs.46,98,585/- (Rupees Forty Six Lakh Ninety Eight Thousand

¶49

Five Hundred and Eighty Five only) with further interest of 10.00%

¶50

OA. No.264/2024

¶51

¶52

p.a.(simple) from the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to

¶53

be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶54

ii) If the sale proceeds are not found sufficient to cover

¶55

the amount due and payable to the applicant bank, the defendants jointly, severally and personally and their other assets are liable

¶56

for all such amounts due under the loan accounts.

¶57

iii) The applicant bank is allowed cost of the proceeding

¶58

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

¶59

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

¶60

order and transferred to Recovery for execution.

¶61

v) Interim Application pending, if any, stands disposed of with this Final Order.

¶62

OA. No.264/2024

¶63

¶64

14. Communicate a copy of the order to the parties concerned

¶65

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

¶66

DRT (Procedure) Rules, 1993.

¶67

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 17^th Day of April 2026].

¶68

(T. RAJESH) PRESIDING OFFICER

¶69

ANNEXURES

¶70

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶71

AW-1: Sri. Syed Moha, Manager of the applicant bank.

¶72

Exhibits on the part of the Applicant:

¶73

Sl. No.	Description of Documents	Date	Exhibit Number
1	Letter of arrangement	22.03.2016	A1
2	Memorandum relating to deposit of title deeds	05.04.2016	A2
3	Agreement of loan cum hypothecation	12.04.2016	A3
4	Guarantee agreement	12.04.2016	A4
5	Letter of arrangement for renewal of the limit	09.04.2018	A5
6	Letter of confirmation for creation of mortgage by deposit of title deeds	09.04.2018	A6
7	Agreement of loan cum hypothecation	09.04.2018	A7
8	Guarantee agreement	09.04.2018	A8
9	Letter of arrangement	10.05.2019	A9
10	Supplemental agreement of loan	10.05.2019	A10

¶74

OA. No.264/2024

¶75

¶76

	Registered memorandum of	10.05.2019
11	confirming the extension of equitable mortgage		A11
12	Guarantee agreement	10.05.2019	A12
13	Letter of arrangement	22.04.2022	A13
14	Guarantee agreement	22.04.2022	A14
15	DP note	22.04.2022	A15
16	DP note take delivery letter	22.04.2022	A16
17	Letter of arrangement	16.06.2020	A17
18	Supplemental agreement of loan cum hypothecation	16.06.2020	A18
19	Registered memorandum confirming the extension of equitable mortgage	16.06.2020	A19
20	Guarantee agreement	16.06.2020	A20
21	Legal notice with original postal receipts	18.11.2023	A21 & A22
22	Statement of account along with certificate	-	A23 & A24

¶77

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Mohd Anwar

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mohd Anwar

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

All orders in this case

Similar cases

Hdfc Bank versus Milkha Singh

Jammu and Kashmir Bank Limited versus Mohd. Arif Khan

Punjab National Bank versus Mr. Satinder Singh

Smt Anniyamma versus Karnataka Bank Limited

Canara Bank versus Chandrappa

Canara Bank versus Sathish