Allowed

State Bank of India v. Sri Mallappa Siddappa Awati

DRT27 Aug 2026OA/2890/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by SBI for issuance of Recovery Certificate against the defendant. Considering agricultural purpose of loans, reduced interest to 6% simple. Defendant to recover amount from personal assets and scheduled properties.

What did the court decide?

Issuance of Recovery Certificate for Rs. 34,57,803/- with interest at 6% simple p.a. from date of filing, recoverable from defendant personally and against scheduled properties.

State Bank of India versus Sri Mallappa Siddappa… — 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 August, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.2890/2025

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BETWEEN:

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State Bank of India Branch office at: Sri Siddeswar Road, Athani

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Represented by its Manager Sridhar S …APPLICANT

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AND:

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Sri. Mallappa Siddappa Awati S/o. Sri. Siddappa Aged about 48 years R/at: Savadi Village, Athani Taluk, Belgaum district – 591 304 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : G N Satya Murthy Defendant : Ex parte

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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 seeking for issuance of Recovery Certificate against the defendant for Rs 34,57,803/- (Rupees Thirty-Four Lakhs Fifty-Seven Thousand Eight Hundred and Three Only) with further interest thereon from the date of filing the Application till realization.

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OA-2890/2025

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

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KCC loan of Rs. 5,00,000/- (Rupees Five Lakhs Only) for sugar Cane cultivation.

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ATL(1) of Rs. 5,00,000/- (Rupees Five Lakhs Only) for construction of farm house.

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ATL(2) of Rs. 8,00,000/- (Rupees Eight Lakhs Only) for land development.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed the necessary loan documents along with Deed of mortgage.

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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 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, service of summons on the defendant, he failed to appear, resulting the defendant being set ex parte on 09.04.2026.

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The applicant had let in evidence through AW-1, who filed Proof

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-21 and got the same marked in evidence.

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OA-2890/2025

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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

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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 remains unrebutted as defendant 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 facilities as stated in the OA, creation of the security interest and the defaults committed in the

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accounts. The liability of the defendant and the claim of the amount due are also proved by the above document. The claim of the applicant is well within the limitation.

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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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OA-2890/2025

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Taking into consideration the facts that the credit facilities is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.2890/2025 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs. 34,57,803/- (Rupees Thirty-Four Lakhs Fifty-Seven Thousand Eight Hundred and Three Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant personally, 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 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 amount due and payable to the applicant bank, the defendant personally and his assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA-2890/2025

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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 27^th Day of August, 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 Sarvesh B, S/o Basavaraj, Asst Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhib its	Date	Particulars
A1	12.07.2011	Application for loan
A2	12.07.2011	Sanction letter
A3	12.07.2011	Hypothecation agreement
A4	12.07.2011	Mortgage deed
A5	12.07.2011	Encumbrance certified
A6	09.11.2017	Application for loan
A7	09.11.2017	Sanction letter
A8	09.11.2017	Hypothecation agreement
A9	09.11.2017	Deed of mortgage

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OA-2890/2025

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A10	09.11.2017	Encumbrance certificate
A11	12.06.2018	Application for loan
A12	12.06.2018	Sanction letter
A13	12.06.2018	Hypothecation agreement
A14	12.06.2018	Mortgage deed
A15	17.02.2025	Legal notice
A16	15.02.2025	Certified accounts extract
A17	15.02.2025	Certified accounts extract
A18	15.02.2025	Certified accounts extract
A19	10.06.2025	Account closure summary
A20	10.06.2025	Account closure summary
A21	10.06.2025	Account closure summary

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Witness Examined for the Defendant:

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-Nil

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sri Mallappa Siddappa Awati

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sri Mallappa Siddappa Awati

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

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Case details

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