Allowed

State Bank of India v. Naseer Rayammarakkar Veetil

DRT11 Sept 2026OA/677/2025

Case brief

AI extract

What is this about?

The Tribunal considered an Original Application filed by State Bank of India for a Recovery Certificate. The defendant failed to appear, resulting in ex-parte proceedings. The Tribunal examined documentary evidence proving the availing of housing loans, creation of security interests, and subsequent default. Finding the claim admissible, sufficient, and non-barred by limitation, the Tribunal allowed the application and issued a Recovery Certificate with a modified interest rate of 8% p.a.

What did the court decide?

Recovery Certificate issued for Rs.2,14,36,657/- with interest @ 8% p.a. (simple) from OA date till realization, recoverable against schedule properties and other assets. Cost of proceedings awarded to Applicant.

State Bank of India versus Naseer Rayammarakkar… — Contract and Commercial Disputes | 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 Presiding Officer

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OA. No.677/2025

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BETWEEN:

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State Bank of India SARC Branch, No.11/90, 3^rd Floor, Near Old Shivaji Theater, J.C. Road, Bangalore-560002.

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…APPLICANT

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AND:

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Sri.Naseer Rayammarakkar Veetil

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S/o.Hamza,

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R/at: Rayammarakkar,

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Vetti House, Thirunellur, Mullassery, Thrissur, Kerala-680508

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Also at:

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BLDG, 1B/2, Flat No.413, 365-Al Goze INDL, Premise Number:365004979 Dubai, UAE.

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And:

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Daily CODL Electrochemical Work LLC 404, Travel Mark Building, Muraquarnt, Dubai, UAE.

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...DEFENDANT

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2 OA No.677/2025

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Counsel on record/appeared for:

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Applicant : GKM Associates Defendant : Exparte

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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 defendant for Rs.2,14,36,657/- (Rupees Two Crores Fourteen Lakhs Thirty-Six Thousand Six Hundred and Fifty-Seven Only) with further interest thereon from the date of filing the Application till realization from the Defendant

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The Defendant availed a sum of Rs.1,17,00,000/- (Rupees One Crore Seventeen Lakhs Only) for Housing Loan.

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The Defendant again availed a sum of Rs.1,04,80,000/- (Rupees One Crore Four Lakhs Eighty Thousand Only) for Housing Loan.

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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 properties.

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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.677/2025

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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 defendant, they failed to appear, resulting the defendant being set exparte on 05.05.2026.

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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 A16 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

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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.677/2025

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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 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 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 with a reduced interest of @ 8% p.a.(simple).

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In the result, OA.No.677/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.2,14,36,657/- (Rupees Two Crores Fourteen Lakhs Thirty-Six Thousand and Six Hundred Fifty-Seven Only) along with current and future interest @ 8% from the date of the OA till the date of realization, from the defendant, 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 properties. The schedule property to the OA be the schedule property to the Recovery Certificate.

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5 OA No.677/2025

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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 defendant and his

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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 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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15. 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 11^th Day of September 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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6 OA No.677/2025

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri.Narasimha Murthy.B, Chief Manager of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibits Number
1.	The Copy of the Application dated 07.03.2023	A1
2.	The Copy of the Application dated 07.03.2023	A2
3.	The copy of the Arrangement letter dated 31.03.2023 with respect to Home Loan of Rs.1,17,00,000/-	A3
4.	The Copy of the Memorandum of Loan Agreement dated 31.03.2023 with respect to Home Loan of Rs.1,17,00,000/-	A4
5.	The Copy of the Memorandum of Deposit of Title Deeds dated 01.04.2023 with respect to home loan of Rs.1,17,00,000/-	A5
6.	The Copy of the Arrangement letter dated 31.03.2023 with respect to Home Loan of Rs.01,04,80,000/-	A6
7.	The Copy of the Memorandum of Loan Agreement dated 31.03.2023 with respect to Home Loan of Rs.1,04,80,000/-	A7
8.	The Copy of the Memorandum of Deposit of Title Deeds dated 01.04.2023 with respect to home loan of Rs.1,04,80,000/-	A8
9.	The Copy of the Legal Notice dated 12.11.2024	A9
10.	The Copy of the Postal receipts	A10

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11.	The Ackn	copy of owledgemen	the Return t	cover	along	with	A11
12.	The No.4 Rs.1	copy of 1798239182 ,17,00,000.	the Stateme for lo 00	nt of an	A/c for amount	A/c of	A12
13.	The No.4 Rs.1	Copy of 1799493148 ,04,80,000.	the Stateme for the 00/-	nt of Loan	A/c for amount	A/c of	A13
14.	The No.4 Rs.1	Copy of 1798239182 ,17,00,000.	the Closure for the 00/-	State loan	ment for amount	A/c of	A14
15.	The No.4 Rs.1	Copy of 1799493148 ,04,80,000.	the Closure for the 00/-	State loan	ment for amount	A/c of	A15
16.	Certi Bank	ficate Under er’s Bank E	Section 2A (B vidence Act 198	) and 2 1.	(A) (C) o	f the	A16

State Bank of India v. Naseer Rayammarakkar Veetil

Case brief

What is this about?

What did the court decide?

State Bank of India v. Naseer Rayammarakkar Veetil

Case brief

What is this about?

What did the court decide?

What the court decided

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