Allowed

State Bank of India v. Skanada Motors and Others

DRT24 Jul 2026OA/837/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's Original Application for issuance of a Recovery Certificate against defendants who defaulted on credit facilities. Defendants remained ex parte. The court decreed recovery of principal, interest, and costs.

What did the court decide?

Recovery Certificate directed for recovery of Rs.4,06,09,341/- with simple interest at 8.15% p.a. from date of OA filing against defendants jointly and severally and via schedule property.

State Bank of India versus Skanada Motors and Others — Banking and Recovery | DRT (2026)

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THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.837/2025

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BETWEEN:

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State Bank of India Girinagar III Phase Branch, Now with SARB J.C. Road, Bangalore-560002

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…APPLICANT

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AND:

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Sri. Chandrashekar TB

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S/o. T.S. Basavaraj Proprietor of M/s.Skanda Motors At No.1036, Dr.Rajkumar Road,

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4^th Block, Rajajinagar,

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Bangalore-560010

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Also at

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R/at: 64, 4^th Cross, Mahalakshmi Layout, Further Extension, Bangalore-560086.

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Smt. Anitha W/o.Chandrashekar T b R/at:64, 4^th Cross, Mahalakshmi Layout, Further Extension Bangalore-560086. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri.K.S.Venkataramana Defendants : Exparte

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: 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 defendants for Rs.4,06,09,341/- (Rupees Four Crore Six Lakhs Nine Thousand Three Hundred and Forty-One Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendants availed Cash Credit Loan for their Business of Rs.200.00 Lakhs. The 1^st Defendant is the proprietor of M/s.Skanda Motors.

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The Defendants availed Cash Credit Loan to an extent of Rs.30,00,000/- (Rupees Thirty Lakhs Only)

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The Defendants have availed grant of Term Loan of Rs.60,00,000/(Rupees Sixty Lakhs Only)

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The Defendants have availed Cash Credit Loan of Rs.25,00,000/(Rupees Twenty-Five Lakhs Only) the Defendant No.2.is the guarantor to all the loans availed by the 1st Defendant.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendants No.1 and 2 are the owners of the scheduled property, and executed necessary loan documents including loan cum hypothecation guarantee Agreement, 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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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 19.11.2025.

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The applicant had let in evidence through AW-1, who filed the Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A25 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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a. Whether the applicant had succeeded in proving the OA claim as against the defendants?

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b. 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 Hypothecation in favour of 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 availed for working capital 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 as prayed with simple interest at 8.15% p.a.

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In the result, OA.No.837/2025 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of Rs.4,06,09,341/- (Rupees Four Crore Six Lakhs Nine Thousand Three Hundred and Forty-One Only) along with simple interest 8.15% p.a from

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10.01.2025 till the date of realization in full 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 properties to the Recovery Certificate.

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

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due and payable to the applicant bank, the respective defendants jointly, severally and personally and their other assets are liable for all such amounts due in respective 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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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim Application pending, if any, stands disposed of with this Final Order.

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17. 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 24^th Day of July 2026].

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Sd/(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Syed Mohammed Eliyas , 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	Exhibit Number
1.	Copy of the letter of arrangement dated 09.10.2020	A1
2.	Copy of the Agreement of loan cum Hypothecation dated 09.10.2020	A2
3.	Copy of the Guarantee Agreement dated 09.10.2020	A3
4.	Copy of the Regd Memorandum relating to deposit of Title deeds 29.10.2020 / 03.11.2020	A4
5.	Copy of the letter of arrangement dated 23.02.2021	A5
6.	Copy of the Supplemental Agreement of loan cum Hypothecation dated 23.02.2021	A6
7.	Copy of the Guarantee Agreement dated 23.02.2021	A7
8.	Copy of the Reg Ext. Mortgaged of deposit of title deeds dated 23.02.2021	A8

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9.	Copy of the Letter of arran 12.11.2021	gement	dated	A9
10.	Copy of the Guarantee Agre 12.11.2021	ement	dated	A10
11.	Copy of the Arrangement 29.11.2021	letter	dated	A11
12.	Copy of the Supplemental Hypothecation of agreement dat	loan ed 29.11	cum .2021	A12
13.	Copy of the Guarantee Agree 29.11.2021	ment	dated	A13
14.	Copy of the Regd MoDT dated 04.03.2022	29.11.2	021 /	A14
15.	Copy of the arrangement 05.04.2022	letter	dated	A15
16.	Copy of the supplemental Hypothecation dated 05.04.2022	loan	cum	A16
17.	Copy of the Guarantee Agre 05.04.2022	ement	dated	A17
18.	Copy of the Reg Ext of mortga 31.10.2022	ge deed	dated	A18
19.	Copy of the Arrangement 11.109.2023	letter	dated	A19
20.	Copy of the Guarantee Agre 11.10.2023	ement	dated	A20
21.	O/c of the legal notice dated 16.	01.2025		A21
22.	Original Postal Receipts and Retu	rned co	ver-D1	A22
23.	Copy of the statement of 39725777123	accou	nt of	A23
24.	Copy of the statement of 40606500418	accou	nt of	A24
25.	Copy of the statement of 40029212755	accou	nt of	A25

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

State Bank of India v. Skanada Motors and Others

Case brief

What is this about?

What did the court decide?

State Bank of India v. Skanada Motors and Others

Case brief

What is this about?

What did the court decide?

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