Allowed

State Bank of India v. Vishal Thapa

DRT27 Mar 2026OA/55/2022

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an Original Application filed by a bank seeking a Recovery Certificate against a borrower and a builder for housing loan defaults. The defendants ignored the summons. The issued Recovery Certificate includes principal and interest but declines prayer for future penal interest.

What did the court decide?

Issuance of Recovery Certificate for Rs.29,45,569/- with 7% simple interest from the date of filing. Recovery from property and jointly/severally from defendants.

State Bank of India versus Vishal Thapa — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 27^th Day of March, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.55/2022

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BETWEEN:

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State Bank of India, RACPC- Koramangala Branch, No.12, 3^rd Floor, 7^th main, 3^rd Block, Koramangala, Bengaluru-560034

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…APPLICANT

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AND:

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Mr. Vishal Thapa S/o. Sri. Dhruba Lok Thapa R/at: Flat No.104, K & T Rayal Fort Apartments Mangolia Enclave, E City Phase-1 Bengaluru- 560100

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M/s Landstrar Homes (Firm) Represented by its Managing Partner Mr. K. Uma Maheswara Reddy (As POA of the owners & Builder) Regd Office at: H.No-108, Sriram Spurti AECS Layout, Brookfields, Bengaluru- 560037 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : R.N.S.P. Achanta Defendants : Exparte

OA 55/2022

FINAL ORDER

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 Rs.29,45,569/- (Rupees twenty nine lakh forty five thousand five hundred sixty nine only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 is the borrower and defendant No.2 is the Builder. The defendant No.1 availed the Housing loan credit facilities of Rs.36,25,000/(Rupees thirty six lakh twenty five thousand only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with memorandum of agreement, agreement to mortgage and Tripartite agreement in favor of the applicant bank. Further, the defendants jointly entered into a Tripartite agreement on 04.04.2019.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting

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OA 55/2022

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in defaults 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 exparte on 22.03.2024.

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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-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 the 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

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OA claim as against the defendants?

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ii) What order are to be passed?

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OA 55/2022

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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

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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 and execution of tripartite agreement agreeing creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due

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is 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 finding arrived herein above, this 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

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are availed by defendant for Housing Purpose, this Tribunal in view of the rate of interest as claimed need not be reduced.

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However, as the OA Claim is arrived at by calculating interest at

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OA 55/2022

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the agreed rate and also by applying default interest, the prayer

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for monthly rest and future penal interest are declined.

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In the result, OA.No.55/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.29,45,569/- (Rupees twenty nine lakh forty five

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thousand five hundred sixty nine only) with further interest @7% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA

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and allowed the same to be recovered by proceedings against

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the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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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 receipt of the order.

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OA 55/2022

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 27^th day of March, 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: Vivek Raina, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	30.03.2019	Copy of arrangement letter subject to certain terms and conditions is issued by Applicant bank by D1 with application
A2	04.04.2019	Copy of memorandum of loan agreement for housing loan executed by D1
A3	04.04.2019	Agreement to mortgage executed by D1 over proposed purchase of flat described as Schedule Property from D2
A4	04.04.2019	Copy of Affidavit executed by D1
A5	04.04.2019	Copy of letter for disclosure to CIBIL executed by D1

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OA 55/2022

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A6	04.04.2019	Agreement of sale cum construction executed by D2 in favor of D1 and furnished to applicant
A7	04.04.2019	Tripartite Agreement executed by Defendants with applicant towards the undertaking agreed to ensure refund of loan amount, if the sale deed did not take place for any reason
A8		Copies of statement of account duly certified under the Bankers Books of Evidence Act, by the Applicant in respect of the Applicant’s total claim as debt due from defendants/ enclosed

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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)

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PRESIDING OFFICER

State Bank of India v. Vishal Thapa

Case brief

What is this about?

What did the court decide?

State Bank of India v. Vishal Thapa

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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