Allowed

State Bank of India v. Ms R a Polybags

DRT27 Apr 2026OA/60/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for a recovery certificate against the defaulted borrower. The court confirmed the debt was proved uncontrovertedly due to the defendant's absence. The recovery certificate was granted with reduced simple interest at 11% per annum and permission to recover personal debts.

What did the court decide?

Recovery Certificate issued for Rs. 24,62,216 plus interest at 11% p.a. simple from filing date until realization, recoverable from schedule property and personally.

State Bank of India versus Ms R a Polybags — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of April, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA. No.60/2024

¶5

BETWEEN:

¶6

State Bank of India B M Road (40025) Branch, Channapatna

¶7

… APPLICANT

¶8

AND:

¶9

M/s. R A Polybags A Proprietary Concern, Rep. By its Proprietor Smt. Lakshmi Madhusudhan W/o. Madhusudhan K #2459, 4^th Cross, Kuvempu Nagar, Channapatna Taluq, Ramanagar District-562160

¶10

And also at:

¶11

R/o. #137, Lalaghatta Road, Channapatna Taluq, Ramanagar District – 562160

¶12

...DEFENDANT

¶13

Counsel on record/appeared for:

¶14

Applicant : Sri. G.N. Satyamurthy Defendant : Exparte

¶15

:FINAL ORDER:

¶16

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.24,62,216/- (Rupees Twenty Four Lakh Sixty Two Thousand Two

¶17

OA. No.60/2024

¶18

¶19

Hundred and Sixteen only) with further interest thereon from the date of filing the Application till realization from the Defendant.

¶20

It is the case of the applicant that, the defendant availed Term loan of Rs.7.30 lakh, aggregating to a limit of Rs.27.30 lakhs under CGTMSE Scheme for the purpose of business on 16.07.2016.

¶21

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

¶22

It is further contended that, despite availing the credit facilities, 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.

¶23

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.

¶24

Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 26.11.2025.

¶25

OA. No.60/2024

¶26

¶27

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 A11 and got the same marked in evidence.

¶28

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.

¶29

The following issues arise for consideration in this matter:

¶30

i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

¶31

ii) What order are to be passed?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the applicant in the Application remains unrebutted as defendant remained exparte. The evidence

¶34

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 security interest as claimed by the applicant bank and the defaults committed in the account. 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

¶35

OA. No.60/2024

¶36

¶37

within the limitation.

¶38

Hence in view of the above findings which cover both the

¶39

issues raised in this manner, this Tribunal is of the view that OA is

¶40

liable to be allowed.

¶41

Taking into consideration the facts that the credit facilities

¶42

were availed for business 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 11.00% p.a.(simple).

¶43

In the result, OA.No.60/2024 stands allowed,

¶44

i) The applicant is allowed to recovery an aggregate sum

¶45

of Rs.24,62,216/- (Rupees Twenty Four Lakh Sixty Two Thousand

¶46

Two Hundred and Sixteen only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the

¶47

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

¶48

be recovered by proceeding against defendant personally and also

¶49

by proceeding against the schedule . The schedule to the OA be the schedule to the Recovery Certificate.

¶50

OA. No.60/2024

¶51

¶52

ii) If the sale proceeds are not found sufficient to cover

¶53

the amount due and payable to the applicant bank, the defendant

¶54

personally and his other assets are liable for all such amounts due

¶55

under the loan account.

¶56

iii) The applicant bank is allowed cost of the proceeding

¶57

which applicant to file cost memo within 7 days from the date of receipt of the order.

¶58

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

¶59

order and transferred to Recovery for execution.

¶60

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

¶61

with this Final Order.

¶62

14. Communicate a copy of the order to the parties concerned

¶63

in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

¶64

DRT (Procedure) Rules, 1993.

¶65

[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of April 2026].

¶66

Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.60/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶71

AW-1: Sri. Vijaya Ganesh Bhat Gangavathi, Chief Manager of the applicant bank.

¶72

Exhibits on the part of the Applicant:

¶73

Sl. No.	Date	Description of Documents	Exhibit Number
1	16.07.2016	Arrangement letter	A1
2	16.07.2016	Hypothecation agreement	A2
3	19.11.2020	Arrangement letter	A3
4	29.06.2021	Arrangement letter	A4
5	13.10.2023	Legal notice	A5
6	05.10.2023	Certified Accounts Extract	A6
7	05.10.2023	Certified Accounts Extract	A7
8	05.10.2023	Certified Accounts Extract	A8
9	05.10.2023	Account Closure Summary	A9
10	05.10.2023	Account Closure summary	A10
11	05.10.2023	Account Closure Summary	A11

¶74

Sd/(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Ms R a Polybags

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms R a Polybags

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

Similar cases

Union Bank of India versus S S T Packaging Pvt. Ltd. and Ors.

Bank of India versus Ms Box Well Industries

Bank of Maharashtra versus Chandrashekhar Pundlik Jagtap

Bank of Baroda versus Anushka Jain Proprietor Ms Ur Choice

Canara Bank versus Mr R Markondaiah

State Bank of India versus Kavitha. N