Allowed

State Bank of India v. Kavitha. N

DRT27 Apr 2026OA/61/2025

Case brief

AI extract

What is this about?

The DRT allowed the Original Application filed by a bank seeking issuance of a Recovery Certificate against a defaulting borrower. The court found the evidence of loan availability and default unrebutted and granted recovery of the principal amount plus reduced simple interest of 10% p.a.

What did the court decide?

Issuance of Recovery Certificate for Rs.25,00,490.64 plus interest at 10% p.a. (simple) with right to proceed against personal assets and schedule.

State Bank of India versus Kavitha. N — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 27^th Day of April, 2026

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Present: Sri. T. RAJESH

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Presiding Officer

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OA. No.61/2025

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BETWEEN:

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STATE BANK OF INDIA Branch Office at: Stressed Assets Recovery Branch, NO. 11/9, 3rd Floor, Near Old Shivaji Theater, JC Road Bangalore-560002 Represented by Chief Manager Mr. RAVIPRAKASH H.V. …

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… APPLICANT

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AND:

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Mrs. KAVITHA. N D/o. Nithyanandan. N and W/o. Ravi.D Aged about 41 years, Proprietrix of M/s. Lakshith General Stores, no.210, 'A' Block, Jnanaganga Badavane, Srinagar, Mysuru-570008. Also at: Resident of no. 4/174, 1st Cross, Janatha Badavane, 'B' Block, Jayanagara, Mysuru-570031.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Naveen Tao Defendant : Exparte

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:FINAL ORDER:

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The present Original Application in short (OA) has been filed

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OA. No.61/2025

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for Rs.25,00,490.64 (Rupees Twenty Five Lakh Four Hundred Ninety and Sixty Four Paisa only) with further interest thereon from the date of filing the Application till realization from the Defendant. 2. It is the case of the applicant that, the defendant availed Cash credit (CC) facility for Rs.20,00,000/- and Term loan of Rs.2,50,000/- for business purpose.

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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 hypothecation over the Schedule.

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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.61/2025

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Despite, service of summons on the defendant, he failed to appear, resulting the defendant being set exparte on 04.07.2025.

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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 A10 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 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 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.61/2025

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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 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 10.00%

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p.a.(simple).

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In the result, OA.No.61/2025 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum

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of Rs.25,00,490.64 (Rupees Twenty Five Lakh Four Hundred

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Ninety and Sixty Four Paisa only) with further interest of 10.00% p.a.(simple) from the date of filing OA till the realization from the

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defendant, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendant personally and also

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

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OA. No.61/2025

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the schedule 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

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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

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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 27^th Day of April 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

OA. No.61/2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Smt. Vijaya Ganavatikar, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit Number
1	23.01.2023	Application form for stand-up India Scheme loan	A1
2	09.02.2023	Agreement of loan-cum- hypothecation	A2
3	09.02.2023	Letter of arrangement	A3
4	18.07.2024	Two legal notices	A4
5	18.07.2024	Two postal receipts	A5
6	-	Two online postal tracking delivery confirmation	A6
7	-	Bank statement A/c. No.41680114371	A7
8	-	Bank statement A/c.No.41695281154	A8
9	-	Bank statement A/c.41680114371	A9
10	-	Final closure statement A/c.No. 41695281154	A10

OA. No.61/2025

Sd/-

(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Kavitha. N

Case brief

What is this about?

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State Bank of India v. Kavitha. N

Case brief

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