Allowed

State Bank of India v. Chamundi Healthcare Solutions and Others

DRT30 Jun 2026OA/2653/2024

Case brief

AI extract

What is this about?

The Tribunals allowed the Original Application for issuance of a Recovery Certificate. The applicant proved the loan availed, security creation, and defaults as defendants appeared ex parte. The interest rate was reduced to 12% simple.

What did the court decide?

Recovery certificate to be drawn for Rs. 1,26,41,825/- with interest @6% p.a. (simple) from filing date, recoverable jointly and severally from respondents against schedule properties.

State Bank of India versus Chamundi Healthcare… — 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 30^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.2653/2024

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BETWEEN:

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State Bank of India Branches office at: JC Road, Near Shivaji Theatre, Bangalore – 560 002

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Represented by its Chief Manager Sri. Kiran S Mathad …APPLICANT

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AND:

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Chamundi Healthcare Solutions Represented by its Partners Having office at: #1374, Narayan Shastri road, Near More Mega Store, Devaraja Mohalla, Mysore – 570 001

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2. C M Manjunath

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S/o. Chamalapura Mahadevappa R/at: #10/A, 1^st main, 1^st Cross, Giridarshni Layout, Alanahally, Mysore – 570 028

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N Renuka Prasad S/o. N K Melahalli, R/at: 5, Kaveri Block-1, jockey Quarters Mysore – 570 011

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Sathyanarayana T A S/o. Thimmaiah Appajee R/at: #929, 2^nd main, 1^st cross, Vidyaranyapuram Mysore – 570 008

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OA-2653/2024

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Kumaraswamy P D S/o. Doddaveerachar R/at: #210, 1^st stage, 1^st phase, Kavyashree Nilaya, Gayathripuram, Mysore – 570 019

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Vinodkumar K S/o. Kempegowda R/at: #5, Kumbara Street, Kumbarakoppal, Mysore – 570 016

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Mohammed Anees S/o. Mohammed Aheel R/at: HIG/A, No. 9, K H. Ashwath Road, Near Akshay Bhandar, Kalyanagiri, 4^th stage, Udayagiri Mysore – 570 019

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Dayan J S/o. Joseph R/at: 10^th Ward, new extension, Kasaba Hobli, Karinanjanapura Village, Chamarajanagar Taluk and district

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Sagar Rajendrakumar S/o. Siddegowda R/at: #401, MIG Type D, Suryanagar, 1^st phase, KPTCL, Chandapura, Bangalore – 560 099

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Shreyas B S/o. Basavaraju R/at: #200, Naguvanahalli Village, Srirangapatana Taluk, Mandya – 571 438 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M Anitha Defendants : Ex parte

OA-2653/2024

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 1,26,41,825/- (Rupees One Crore Twenty-Six Lakhs Forty-One Thousand Eight Hundred and Twenty-Five Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants are availed a term loan of Rs. 1,65,00,000/- (Rupees One Crore Sixty-Five Lakhs only) for business purposes.

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It is also the case of the applicant that, in view of the above availed loan, the defendants executed the necessary loan document along with Hypothecation agreement.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts 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, entering appearance/filing vakalat, no written statement filed by the defendants. Hence, the defendants no. 4 to 6 and 10 placed ex parte on 24.10.2025. The Defendants no. 2, 3 & 7

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OA-2653/2024

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placed ex parte on 24.10.2025.

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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 A-1 to A-10 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 claim as against the defendants?

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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

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unrebutted as defendants remained ex parte. 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 facility as stated in the OA,

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the applicant is well within the limitation.

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OA-2653/2024

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this

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

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Taking into consideration the facts that the credit facility is

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

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that the OA can be allowed with a reduced interest of 12.00%

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(simple).

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In the result, OA.No.2653/2024 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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Rs 1,26,41,825/- (Rupees One Crore Twenty-Six Lakhs Forty-One Thousand Eight Hundred and Twenty-Five Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization,

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from the defendants jointly, severally and personally, after giving credit to all the amounts recovered and received during the pendency

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of the OA and allowed the same to be recovered by proceeding against the schedule properties. Properties schedule to the OA be the schedule to the recovery certificate.

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

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

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OA-2653/2024

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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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 order

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 30^th Day of June, 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 H P Paramesh, S/o. H P Parva Setty, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibits	date	DESCRIPTION
A1	21.03.2022	Laon application
A2	31.03.2022	Partnership letter
A3		Project profile

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OA-2653/2024

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A4	31.03.2022	Arrangement letter
A5	31.03.2023	Agreement of loan cum hypothecation
A6	31.03.2023	Guarantee agreement
A7	31.05.2024	Legal notice
A8		Postal receipts
A9	29.10.2024	Foreclosure
A10	29.10.2024	Statement of account
Witness	Examined	for the Defendants:	-Nil -
List of D	ocuments	Exhibited for the Defendants:	-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Chamundi Healthcare Solutions and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. Chamundi Healthcare Solutions and Others

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

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