Allowed

State Bank of India v. Ms Dharma Pipes and Paints

DRT27 Aug 2026OA/36/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application under Section 19 of the RDB Act. Finding the defendant non-respondent, the Tribunal issued a Recovery Certificate for Rs. 34,57,264/- with 12% simple interest, permitting recovery from personal assets and hypothecated schedule.

What did the court decide?

Recovery Certificate issued for Rs. 34,57,264/- with 12% simple interest on personal assets and hypothecated schedule. Cost of proceedings allowed to applicant.

State Bank of India versus Ms Dharma Pipes and Paints — Banking and Recovery | 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

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OA.No.36/2025

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BETWEEN:

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State Bank of India B M Road, Channarayapatna Branch (40052) Hassan District. Represented by its Branch Manager Sri. Sridhar.

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…APPLICANT

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AND:

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M/S Dharma Pipes and Paints Represented by its Proprietor: Smt. Chandana G R W/o Dharmegowda C S Aged about 40 years, Office at: Khata No. 195, Mysore Road, Channarayapatana Town, Hassan -573116.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Mahalakshmi Vivek Defendants : 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 seeking issuance of Recovery Certificate against the defendants for Rs. 34,57,264/- (Rupees

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Thirty Four Lakh Fifty Seven Thousand Two Hundred Sixty Four 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 defendant is a sole Proprietorship concern availed the Cash Credit Loan credit facility of Rs. 30,00,000/- from the applicant bank.

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with Arrangement letter, Agreement of loan cum hypothecation, legal notice.

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It is further contended that, despite availing the credit facility, agreeing to service the loan account 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, entering appearance/filing vakalath, even though defendant filed written statement rejected resulting the defendants being set exparte on 25.03.2026.

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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

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Exhibits A-1 to A-7 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 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 exparte. 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, creation of hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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

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

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility was availed for business purpose and also that the 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 12.00% (simple).

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In the result, OA.No.36/2025, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 34,57,264/- (Rupees Thirty Four Lakh Fifty Seven Thousand Two Hundred Sixty Four Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization from the defendant personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the defendant personally and his assets including the schedule hypothecation. Schedule to the OA be the schedule to the recovery certificate.

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ii) 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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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of in terms

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of this final order.

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14. 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)

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Rules, 1993.

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[Dictated to the Stenographer (DV), 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)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Vivek Raina, Chief Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	22.02.2022	Application
A2	18.03.2022	Arrangement Letter
A3	18.03.2022	Agreement of Loan cum Hypothecation
A4	05.09.2024	Legal Notice
A5	--	Postal Acknowledgement
A6	18.10.2024	Certificate Accounts Extract A/c No. 7802
A7	18.10.2024	Account Closure Summary

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Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

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State Bank of India v. Ms Dharma Pipes and Paints

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Dharma Pipes and Paints

Case brief

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What did the court decide?

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