Allowed

State Bank of India v. Kishan

DRT24 Jun 2026OA/814/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application under Section 19 RDB Act, 1993 filed by State Bank of India for issuance of a Recovery Certificate. The claim against deceased defendant abated; recovery proceedings to continue against surviving defendants to the extent of inheritance and schedule property.

What did the court decide?

Allowed issuance of Recovery Certificate for Rs. 26,89,558/- with interest at 6% p.a. (simple). Defendants liable to balance amount to extent of inheritance and schedule property.

State Bank of India versus Kishan — 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 24^th Day of June, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.814/2022

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BETWEEN:

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State Bank of India Branch office at: ARMB Branch, 2^nd Floor, A Block, BKG Complex, Mysore Bank Circle, Avenue Road, Bangalore – 560 009 …APPLICANT

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AND:

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Sri. Kishan S/o. Fathya Naik Aged about 51 years

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Sri. Ramulu S/o. Fathya Naik Aged about 62 years

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Sri. Fathya Naik - Deceased

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All are residing at: Kottapalli Village, Sitya Naik Thanda, Mudhol Taluk, Sedam Karnataka – 585 318 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : K S Venkataramana Defendants : Ex parte

OA-814/2022

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs 26,89,558/- (Rupees Twenty-Six Lakhs Eighty-Nine Thousand Five Hundred and Fifty-Eight Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendants no.1 & 2 are availed the credit facilities:

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Term loan of Rs. 6,00,000/- (Rupees Six Lakhs Only).

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Crop loan of Rs. 1,50,000/- (Rupees One Lakh Fifty Thousand Only).

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Crop loan of Rs. 2,10,000/- (Rupees Two Lakhs Ten Thousand Only).

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Crop loan of Rs. 98,000/- (Rupees Ninety-Eight Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents.

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It is further contended that, despite availing the credit facilities, 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 accounts 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-814/2022

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Despite, service of summons on the defendants, they failed to

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1. appear, resulting the defendants being set ex parte on 28.11.2025

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and the OA claimed against deceased defendant no.3, came to be dismissed as abated on 28.11.2025.

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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 A-1 to A-23 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 ex parte. 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 the security interest and the defaults committed in the

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OA-814/2022

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accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above document. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues are in favour of applicant and hence, this

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Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities is

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availed for Agricultural purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is the view

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that the OA can be allowed with a reduced interest of 6.00% (simple).

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In the result, OA.No.814/2022 stands allowed,

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The applicant is allowed to recover an aggregate sum of Rs.

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Rs 26,89,558/- (Rupees Twenty-Six Lakhs Eighty-Nine Thousand Five

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Hundred and Fifty-Eight Only) with further interest @6.00 % p.a. (simple) from the date of filing OA till the realization, from the defendants, to the extent of their inheritance of any estate form the deceased borrower, Sri. Fathya Naik, after giving credit to all the

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amounts recovered and received during the pendency of the OA

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allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

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OA-814/2022

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

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liability, the defendants 1 & 2 to the extent of their inherited form the

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deceased Sri. Fathya Naik is liable to the proceeds against for the

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balance amount.

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iii) The applicant bank is allowed cost of the proceedings 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 order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 24^th Day of June, 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1 Vinaya K, S/o. Rama Bhat K, Chief Manager, of Applicant Bank.

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OA-814/2022

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Exhibits on the part of the Applicant:

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Exhibits	Description and type of documents
A1	Copyof the sanction letter dated 28.02.2009
A2	Copy ofthehypothecationagreement dated28.02.2009
A3	Copy ofthe guarantee agreement dated28.02.2009
A4	Copyof the regmortgage deed dated 05.02.2009
A5	Copy ofthe agreementfor hypothecation loandated28.02.2009
A6	Copy oftheloanapplicationdated14.10.2011
A7	Copyof the sanction letter dated 14.10.2011
A8	Copy ofthe agreementfor hypothecationdated14.10.2011
A9	Copy oftheregmortgage deed dated22.09.2011
A10	Copy oftheloanapplicationdated 08.11.2012
A11	Copy ofthe sanction letterdated 08.11.2012
A12	Copy ofthe agreementfor hypothecationdated 08.11.2012
A13	Copy oftheregisteredmortgage deed dated 08.11.2012
A14	Copy oftheloanapplicationdated10.09.2013
A15	Copy ofthe sanction letterdated13.09.2013
A16	Copy ofthe agreementfor hypothecationdated13.09.2013
A17	O/c. ofthelegal notice25.03.2022
A18	Postal receipts
A19	Postalack/returned covers
A20	Copy ofthe statement ofaccount 62275315686
A21	Copy ofthe statement ofaccount 62092678997
A22	Copy ofthe statement ofaccount 62105376565
A23	Copy ofthe statement ofaccount 62204888505
Witness	Examined for the Defendants: -Nil -

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List of Documents Exhibited for the Defendants: -Nil -

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(T. RAJESH) PRESIDING OFFICE

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Sd/-

State Bank of India v. Kishan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Kishan

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

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Case details

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