Allowed

State Bank of India v. Simero Trading Corporation

DRT29 May 2026OA/365/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application for issuance of a Recovery Certificate against defaulting borrowers. The debt was well within limitation, and the claim was proven via undisputed documentary evidence after defendants remained in ex parte.

What did the court decide?

Issuance of Recovery Certificate for Rs 70,26,594/- with further interest at 10% p.a. (simple) from filing date till realization.

State Bank of India versus Simero Trading… — 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 29^th Day of May, 2022

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.365/2022

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BETWEEN:

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State Bank of India, Bangalore City Branch, No.22, J.C Road, Bangalore-560 002. Represented by its Sri. Rajiv Kumar. …APPLICANT

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AND:

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1.M/S. Simero Trading Corporation A partnership Firm, No. 14/3, Doddkalasandra, Kankapura Road, Bangalore-560 062.

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Sri Bharath K Doshi No.29/2, Flat No. A404, Purva Belmont, kanakapura Road, Bangalore-560 077.

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Smt. Tejal B Doshi W/o Sri. Bharath K Doshi No. 29/2, Flat No. A404, Purva Belmont, Kankapura Road, Bangalore-560 077.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Lokesh Murthy. G and G. Srinivasan 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

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OA 365/2022

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of Recovery Certificate against the defendants for Rs. 70,26,594/- (Rupees Seventy Lakh Twenty six Thousand Five Hundred Ninety 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 No. 1 is the Proprietorship concern with defendant No. 2 as its Proprietor availed the Cash credit facility of Rs. 55,00,000/- from the applicant bank on 27.06.2018.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with copy of MSME Loan application, Copy of Partnership letter, Arrangement of Loan-Cum-Hypothecation, Guarantee Agreement.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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

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by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, summons the defendants, they failed to appear, resulting the defendants being set exparte on 14.05.2025.

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

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OA 365/2022

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Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-8 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 unrebutted as defendants 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 facilities as stated in the OA, creation of hypothecation and the defaults committed in the accounts. 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.

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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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OA 365/2022

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for working capital facility 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 10.00% (simple).

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In the result, OA.No.365/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 70,26,594/- (Rupees Seventy Lakh Twenty Six Thousand Five Hundred Ninety Four Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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 defendants jointly, severally & personally and their assets including the hypothecated assets. The 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

OA 365/2022

of this final order.

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 29^th Day of May, 2026].

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Sd/- (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: Govinda L Ballala, Chief Manager, State Bank of India

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	--	Original MSME Loan Application
A2	27.06.2018	Original Partnership letter
A3	28.06.2018	Original Letter of Agreement SME-1
A4	27.06.2018	Original Agreement Loan-Cum-Hypothecation- SME-2
A5	27.06.2018	Original Guarantee Agreement-SME-3
A-6 & A-7	16.04.2021	Original Revival Lette in SME-11, and Balance confirmation
A-8 & A-9	9.12.2021	Office copy of legal Notice and Original RPAD postal receipt

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OA 365/2022

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A-10	--	True Copy of Loan Account Statement
A9	--	Account Extract C.C A/c No. 40871754968

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

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

State Bank of India v. Simero Trading Corporation

Case brief

What is this about?

What did the court decide?

State Bank of India v. Simero Trading Corporation

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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