Allowed

State Bank of India v. Giridharan.C

DRT31 Jul 2026OA/601/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by State Bank of India for a Recovery Certificate under Section 19 of the RDB Act. The court found the claim disputed by defendants, ex parte, evidenced by loan and mortgage documents. The recovery is granted at a reduced simple interest rate of 8% p.a. against the schedule property and other assets.

What did the court decide?

Issuance of Recovery Certificate for Rs. 37,50,222 plus interest at 8% p.a. (simple) until realization, executable against the schedule property and other assets.

State Bank of India versus Giridharan.C — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.601/2023

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BETWEEN:

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State Bank of India 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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Sri.Giridharan.C

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S/o.Uday P.Bhaskar R/o: 105, Lilies Block, Pavani Residency, Behind Food World, Yelahanka New Town, Bengaluru-560064.

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M/s.Vasundhara Builders (Partnership Firm & GPA Holder Rep Land Owners) Represented by Parnter-Mr.Anil.G.Manakame S/o.Ganapathi.M Office: No.286/A, 9^th Main, 7^th Cross, Hanumanthanagar, Bengaluru-560019. ...DEFENDANTS

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Counsel on record/appeared for:

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

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2 OA No.601/2023

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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 for seeking issuance of Recovery Certificate against the defendants for Rs.37,50,222/(Rupees Thirty-Seven Lakhs Fifty Thousand Two Hundred and Twenty-Two Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant No.1 availed a sum of Rs.40,00,000/- (Rupees Forty Lakhs Only) for purpose of Housing Loan, under agreement of sale executed by M/s. Vasundhara Builders (Partnership firm) represented by its partner as Defendant No.2.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants executed necessary loan documents under Tripartite agreement executed by Defendants, The Defendant No.2 has inter alia agreed to refund the whole amount received from parties in case of failure of delivery of possession of sale of the said Flat property to Defendant No.1. 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 defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan account as NPA.

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3 OA No.601/2023

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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 22.10.2025.

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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 A11 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 facility as stated in the OA, creation of security interest

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4 OA No.601/2023

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as claimed by the applicant bank and the defaults committed in the account. 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 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 12.

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availed for Housing Loan 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

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with a reduced interest of 8.00% p.a.(simple).

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In the result, OA.No.601/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of for Rs.37,50,222/- (Rupees Thirty-Seven Lakhs Fifty Thousand Two Hundred and Twenty-Two Only) along with current and future interest 8.00% p.a.(simple) till the date of realization, from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule

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property to the Recovery Certificate.

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

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amount due and payable to the applicant bank, the defendants and their

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other assets are liable for all such amounts due in loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which

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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

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transferred to Recovery for execution.

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

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this Final Order.

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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 (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July 2026].

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6 OA No.601/2023

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt.Anusuya Ravi Sekar, Chief Manager of the applicant bank.

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Sl. No.	Description of Documents	Date	Exhibit Number
1.	Copy of Arrangement letter subject to certain terms and conditions issued by Applicant’s RACPC Koramangala, Bangalore, and acknowledged by Defendant No.1	10.06.2022	A1
2.	Copy of Memorandum of Loan Agreement for Housing loan (granted to public) executed by Defendant No.1	20.06.2022	A2
3.	Copy of Agreement to mortgage executed by Defendant No.1 over proposed purchase of Flat described as Schedule property	20.06.2022	A3
4.	Copy of Affidavit furnished by Defendant No.1	20.06.2022	A4
5.	Copy of Deed of Undertaking and Annexure-1 for disclosure executed by Defendant No.1	20.06.2022	A5
6.	Copy of Agreement of Sale executed by and between the Defendants	07.05.2022	A6
7.	Copy of Tripartite Agreement executed by the Defendants with Applicant, undertaking to refund etc in case of failure of sale etc. with demand letter dated 20.06.2022 and NIL EC.	20.06.2022	A7
8.	Copy of title Investigation Report on Schedule property obtained by Applicant.	20.05.2022	A8
9.	Copy of CERSAI ID No.200062049229	07.06.2022	A9
10.	Copy of Legal notice got issued by the Applicant to the Defendants	11.01.2023	A10
11.	Copies of Statement/s of Account/s duly, certified under the Banker’s Books Evidence Act, by the Applicant in respect of the Applicant’s total claim as debt due from Defendants.		A11

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Sd/(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Giridharan.C

Case brief

What is this about?

What did the court decide?

State Bank of India v. Giridharan.C

Case brief

What is this about?

What did the court decide?

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