Allowed

State Bank of India v. Akshaya M Sand and Industries

DRT24 Jun 2026OA/446/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by State Bank of India for a recovery certificate against defendants, including legal heirs of a deceased borrower, for an outstanding loan sum of Rs. 4.84 crores, permitting reduced interest.

What did the court decide?

Recovery Certificate issued for Rs. 4,84,89,248/- with 6% p.a. interest from filing date till realization against the schedule property.

State Bank of India versus Akshaya M Sand and Industries — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.446/2023

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BETWEEN:

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State Bank of India Branch office at: JC road, Bangalore – 560 002

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Represented by its Chief Manager Smt. Daya S Naik …APPLICANT

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AND:

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M/s. Akshaya M Sands and Industries Prop: Shri Ravi Kumar S D Office at: 41/1, 42/3, Nugguhalli Village, Beerihundi Post, Yelwala Hobli, Mysore – 570 026 Also, at: No. 74/B, 4^th Cross, 6^th Main, Kanakadasa Nagar, Mysore – 570 026

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Smt. Parvathi W/o. Ravi Kumar S D Aged about 40 years R/at: No. 192, Shettinayakanahalli Village, Yelawala Hobli, Mysore – 570 026 Also Having At: No. 74/B, 4^th Cross, 6^th Main, Kanakadasa Nagar, Mysore – 570 026

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Sri. Puttaswamy (Deceased) Rep. by his legal heirs 3(a). Rakshitha Aged about 28 years

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3(b). Sushmitha Aged about 25 years

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R/at: 459, 23^rd Main, 15^th Cross, 2^nd Stage, JP Nagar, Mysore – 570 008

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2 OA-446/2023

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Shri Rangaswamy S/o. Chikkamallaiah Aged about 47 years

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R/at: No. 1930, 2^nd stage, Vallabhabai Patel Nagar, Tn Pura Road, Alanahalli, Mysore – 570 028 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : R & J Associates Defendants no.1, 2, 3(a & b) & 4 : Ex parte Defendant no.3 : Deceased

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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. 4,84,89,248/- (Rupees Four Crores Eighty-Four Lakhs Eighty-Nine Thousand Two Hundred and Forty-Eight 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 nos. 3(a & b) are the legal heirs of the deceased borrower. The Late Sri. Puttaswamy are availed the following credit facilities:

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Cash Credit Loan of Rs. 40,00,000/- (Rupees Forty Lakhs Only).

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Term Loan of Rs. 3,73,00,000/- (Rupees Three Crores SeventyThree Lakhs Only).

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FITL of Rs. 18,73,000/- (Rupees Eighteen Lakhs Seventy-Three Thousand Only).

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3 OA-446/2023

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The deceased borrower executed necessary loan document in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late Sri. Puttaswamy had also executed Registered Mortgage Deed dated 11.12.2018.

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It is further contended that, despite availing the credit facilities, 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, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 17.06.2026.

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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 Exhibits A-1 to A-11 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

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claim as against the defendants?

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ii) What order are to be passed?

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4 OA-446/2023

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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 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 find both these issues in favour of applicant and hence, this Tribunal is of 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 Business purpose and also that the OA claim is arrived at

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by calculating interest at the agreed rate, this Tribunal of the view

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that OA can be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.446/2023, stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 4,84,89,248/- (Rupees Four Crores Eighty-Four Lakhs Eighty-

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Nine Thousand Two Hundred and Forty-Eight Only) with further

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5 OA-446/2023

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interest @6.00 % p.a. (simple) from the date of filing OA till the realization, from the defendants no. 3(a & b) to the extent of their inheritance of any estate form the deceased borrower, Sri. Puttaswamy, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover the liability, the defendants no. 3(a & b) to the extent of their inherited form the deceased Sri. Puttaswamy is liable to the proceeds against for the balance amount.

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

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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6 OA-446/2023

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14. 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 24^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICE

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Govind L Ballal, S/o. Laxman Ballal, Chief Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	date	Particulars
A1	07.12.2018	Letter of arrangement
A2	16.03.2020	Letter of arrangement
A3	17.12.2018	Loan cum hypothecation agreement
A4	07.12.2018	Guarantee agreement
A5	11.12.2018	Deed of mortgage
A6	24.03.2021	Demandnoticeandacknowledgement dues
A7	-----	Statement of accounts (A/c no. 39234921416)
A8	-----	Statement of accounts (A/cno.39605795989)
A9	-----	Statement of accounts (A/c no. 38135080641)
A10	-----	Statement of accounts (A/cno.38157842244)
A11	-----	Banker’s certificate

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Witness Examined for the Defendants:

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-Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Akshaya M Sand and Industries

Case brief

What is this about?

What did the court decide?

State Bank of India v. Akshaya M Sand and Industries

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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