The Tribunal allowed the Original Application for issuance of a Recovery Certificate against a defaulting borrower, reducing the agreed interest to 11% p.a. simple interest.
Recovery Certificate for Rs. 50,29,353 with 11% p.a. simple interest; execution against person and schedule.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 22nd Day of May, 2026
Present: Sri. T. RAJESH
Presiding Officer
OA. No.638/2024
BETWEEN:
State Bank of India Branch office at Kunjibettu Branch, Lakshmi Ganesh Compound Udupi Manipal Road, Kunjibettu Post, Udupi – 576102, Rep. by its Branch Manager Smt. Sanchayita Sarkar …
… APPLICANT
AND:
M/s. Arras Food Industries Rep. by its Prop. Deepthi K Shetty 1st Floor, 10 3 71 4 Bhaktha Towers Kalsanka, Udupi District-576101
Also at: No.139/53, Shivalli Village Udupi-576104
Also at: Near Padigar, Mut, Gundibail, Kalasanka, Udupi
R/at.No.2-56, Thenkumane, Kanajar Post, Udupi-574102
...DEFENDANT
Counsel on record/appeared for:
Applicant : Sri. Nandish N J Defendant : Exparte
OA. No.638/2024
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:FINAL ORDER:
OA. No.638/2024
3
for the amount due in the account.
Both these issues are gone into and decided together.
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 facilities as stated in the OA, creation of security interest as claimed by the
OA. No.638/2024
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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 within the limitation.
p.a.(simple).
of Rs.50,29,353/- (Rupees Fifty Lakh Twenty Nine Thousand Three Hundred and Fifty Three only) with further interest of 11.00% p.a.(simple) from the date of filing OA till the realization from the 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
OA. No.638/2024
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by proceeding against the schedule. The schedule to the OA be
the schedule to the Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover
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 accounts.
iii) The applicant bank is allowed cost of the proceeding
which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of with this Final Order.
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 22nd Day of May 2026].
Sd/(T. RAJESH) PRESIDING OFFICER
OA. No.638/2024
6
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mr. Govind Ballal, Chief Manager of the applicant bank.
Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents | Exhibit Number |
|---|---|---|
| 1 | Loan application dt. Nil | A1 |
| 2 | Sanction confirmation dated 25.02.2022 | A2 |
| 3 | SME-2 Agreement cum Hypothecation dated 28.02.2022 executed by defendant |
A3 |
| 4 | Demand notice dated 18.11.2023 and seizer notice dated 26.12.2023 and returned covers 3 Nos’ |
A4 and A5 |
| 5 | Legal notice dated 20.01.2024 | A6 |
| 6 | Certified statement of account 2 Nos along with certificate |
A7 & A8 |
Sd/-
(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendant?
What order are to be passed?
3 provisions across 2 enactments
State Bank of India
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
