Allowed

State Bank of India v. Sayana Saseendran

DRT11 Sept 2026OA/563/2025

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed by State Bank of India for a recovery certificate against a Defendant home loan defaulter. The Defendant appeared via ex-parte order. The Court found the bank's evidence uncontroverted, admitted the credit facility and default, but modified the interest rate to 8% p.a. simple instead of the claim. A recovery certificate was issued enforceable against the schedule property and the defendant personally.

What did the court decide?

Recovery Certificate issued for Rs.86,97,794/- with interest at 8.00% p.a. (simple) from date of filing. Recovery enforceable against schedule property and Defendant personally.

State Bank of India versus Sayana Saseendran — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 11^th Day of September, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.563/2025

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BETWEEN:

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State Bank of India Having its branch at Ashoka Road Branch, Mysore, now rep. by its Chief Manager SARB at J C Road, Bangalore-560002

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… APPLICANT

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AND:

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Mrs. Sayana Saseendran D/o. A K Saseedaran Aged about 40 years R/at. Attuvppil house, PO Edathirinji, PO JNC Irinjalakuda, Thrissur Dist, Kerala – 680122

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Also at Block No.5, Room No.502 Bin Shabib Mall, Baghadad Street, Opp Mohre A1 Qusaisi City UAE Dubai-505004 Office at Medi Clinic City Hospital Health Care City, Opp. DHCC Metro Dubai, UAE 505004 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. K S Venkataramana Defendant : Exparte

OA. No.563/2025

:FINAL ORDER:

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.86,97,794/- (Rupees Eighty Six Lakh Ninety Seven Thousand Seven Hundred and Ninety Four only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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It is the case of the applicant that, the defendant availed home loan of Rs.89,21,000/- on 17.12.2022.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents. Apart from the creation of security interest by way of mortgage over the Schedule property.

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It is further contended that, despite availing the credit facility, 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 account 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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OA. No.563/2025

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Despite, service of summons on the defendant, they failed to appear, resulting the defendant being set exparte on 04.05.2026.

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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 A1 to A8 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

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as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The

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OA. No.563/2025

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liability of the defendant and the claim of the amount due are also

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proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility was availed for housing purpose and also that 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 8.00%

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p.a.(simple).

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In the result, OA.No.563/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.86,97,794/- (Rupees Eighty Six Lakh Ninety Seven Thousand

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Seven Hundred and Ninety Four only) with further interest of 8.00% p.a.(simple) from the date of filing OA till the realization

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from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed

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the same to be recovered by proceeding against defendant personally and also by proceeding against the schedule property.

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OA. No.563/2025

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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

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the amount due and payable to the applicant bank, the defendant personally and his other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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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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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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with 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 (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 11^th Day of September 2026].

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(T. RAJESH) PRESIDING OFFICER

OA. No.563/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Narasimhamurthy B, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl	Particulars	Exhibits
No.
1.	Copy of the home loan application	A1
2.	Copy of the arrangement letter	A2
3.	Copy of the memorandum of loan agreement for home loan dated 17.12.2022	A3
4.	Copy of the registered mortgage dated 17.12.2022	A4
5.	Copy of the demand notice dated 19.07.2024	A5
6.	Copies of the postal tracking/postal records	A6
7.	Copy of the newspaper publication	A7
8.	Copy of the statement of account	A8

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Sayana Saseendran

Case brief

What is this about?

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State Bank of India v. Sayana Saseendran

Case brief

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