Allowed

Bank of Baroda v. Mr. Kola Santosh

DRT2 Nov 2023OA/175/2022

Case brief

AI extract

What is this about?

The tribunal allowed the bank's original application for recovery of a sum of Rs. 1,64,69,603/ mandated by 13 gold loans. The bank established liability through unchallenged documentary evidence and witness testimony, leading to a joint and several liability order against all four respondents.

What did the court decide?

The defendants are jointly and severally liable to pay Rs. 1,64,69,603/ with interest at 9% p.a. and costs. Recovery certificate to be issued.

Bank of Baroda versus Mr. Kola Santosh — Contract and Commercial Disputes | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 2ND DAY OF NOVEMBER' 2023

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PRESENT: SRI GUMMADI GoPIcHAND, PRESIDING oFFICER OA.No,175 ot 2022

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Between :

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Bank of Baroda, Boinpally branch, Secunderabad. Represented by its Chief Manager

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Applicant

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VERSUS

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Mr. Kola Santosh, s/o Mr. K. Ravi, aged 37 years, occ: employee, R/o plot no.61, opp: gurudwara, Manovikas naga r, Hasmathpet, Secunderabad.

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Sri Kola Ravi, Aged major, occ: self employed, R/o H.No.2-4-119, Sikh wadi, Karimnagar - 505 OO1.

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Smt Kola^pushpa, w/o Kola Ravi, aged major, occ: self employed, R/o H.No.2-4-119, Sikh wadi, Karimnagar - 505 OO1.

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Kumari Spandana, w/o Kola Santhosh, aged major, occ: household, [/o^{Ot91 no.61, opp Gurudwara,} Manovikas nagar, Hasmathpet, Secunderabad.

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ffi"u*ur,
02 il0l,mg

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loA.No.77sl2o22l

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Counsel for the Parties: For the Applicant For the Defendant No.1 Defendants no.2 to 4

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Sri Srinivas Ch ittu ru Sri T. Nagender Sri V. Pramod Kumar

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ORDER

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The Applicant Bank fired the present oA against Defendants for recovery of a total sum of Rs,1,64,69,6O3/_ (Rupees One Crore Sixty Four lakhs Sixty Eight thousand Six hundred and three only) with future interest @ B.90% p.a with monthly rests from date of application till the date of final realization.

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2' As per the averments in the apprication, the Appricant Bank states that the defendant No.1 is the employee of applicant bank and designated as credit Manager dearing with Retair Loan portforio more particurarry with gord roans. The defendant no.1 in discharge of his duties has fraudulenUy sanctioned gold loans in the names of defendants without the actual pledge of any gold to secure this loan. It is submitted that the defendants 1 to 4 have conspired to defraud the applicant bank had disbursed in all 13 gold loans.

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During interna I come to knowledge of

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r-Ji

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bank that 13 gold is not available.

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loA.No.LTs/2022)

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The applicant bank on 20.o5.2022 rodged a compraint with p.S Central Crime Station, Hyderabad and the complaint was registered as FIR No.93/2022 which is under investigation.

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On 30.10.2021, the defendants availed gold loan of Rs.93,000/-in the name of defendant no.Z in A/c. No.24730600003683and transferred the said amount ot A/c.No.37060100014015. Thereafter on 18.12.2021 the defendants availed gold loan of Rs,9,30,000/_ in the name of defendant no.2 and transferred the said amount to savings account of defendant no.2. Thereafter on 04.0L.2022 the defendants availed gold loan of Rs.10,90,000/- in the name of defendant no.2 and transferred the said amount to savings account of defendant no.2. Thereafter on 02.02.2022 the defendants availed gold loan of Rs.15,00,000/_ in the name of defendant no.3 and transferred the said amount to savings account of defendant no.3. Thereafter on 03.02.2022 the defendants availed gold loan of Rs.15,00,000/_ in the name of defendant no'3 and transferred the said amount to savings account of defendant no.3. Thereafter on L6.02.2022 the defendants availed gold loan of Rs.25.00 lakhs in the name of defendant no.4 and transferred the said amount to savings account of defendant no.4. Thereafter on 0 8.03.2022,+fret.teferiaB.03.202Z,.4.frE.teferi a a?il$..EVailed ri-ts .avaittrrt .,.\r.r gold r^=^ loan ^.of Rs.25,00,000/- in the n#r" or aofBnoant h\t""n rrancr6FF^.r +i.^

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loA.No.!7s/2ozzl

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said amount to savings account oF defendant no.3. on 10.03.2022 the defendants availed gold loan of Rs.25,00,000/_ in the name of defendant no.2 and transferred the said amount to savings account of defendant no.2. Thereafter on 10.3.2022 the defendants availed gold loan of Rs,20,00,000/- in the name of defendant no.4 and transferred the said amount to savings account of defendant no.4. It is submitted by Applicant bank that defendant no.1 has given a letter on 23.05.2022 admitting the fraud committed by him and availability of funds in his trading account with M/s. Angel Broking Private Limited.

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Inspite of demands made by Applicant, the defendants have not regularized the account, and the defendants did not come forward to repay the same. The total claim of Applicant against defendants is Rs.1,64,68,603/- (Rupees One Crore Sixty Four lakhs Sixty Eight thousand six hundred and three onry) with future interest @ B'90% p'a with monthry rests from date of apprication ti, the date of realization. Hence the OA.

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The Defendants No.1 to 4 filed written statements. It is denied by defendant no.1 that no fraud or forgery was committed while sanctioning the loans. Defendant no-1.,iS.i."..".d that he is the employee of applicant bank and wers of sa nctioning *,d 02 Hfil,lmn

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(oA. No.175l2022)

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any gold loans to customers and no powers to transfer the amounts. It is submitted that defendant No.1 was made a scape goat at the hands of higher authorities. It is denied that all the 13 loans were credited to the savings accounts of defendants no.2 to 4. It is further denied that defendant no'1 had transferred the amounts in savings accounts of defendants into M/s. Angel Broking Private ltd for investing in shares and securities. Hence prayed for dismissal of OA.

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3' The Applicant Bank in support of its claim, filed evidence affidavit duly sworn in by Sri Vijay Minj, chief Manager as AW.1 and through him marked 27 documents as Ex.A.1 to A.2L As against this, the defendants no'1 to 4 did not choose to adduce any evidence on their behalf in support of their contentions and arso did not choose to cross examine the AW.1 to controvert his Chief Evidence.

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4' Heard Appricant counser arguments and no arguments on beharf of defendants.

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I have perused the documents placed on record.

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Now, the points that arise for consideration a;e:

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, Fr tri
I,tilotl2ffi I
': ':' t*J ;'.i,t,
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' '.-" /'t:

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loA.No.LTs/20221

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i) whether the Appricant Bank has proved its craim as made in oA aga inst the defendants ?

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ii) To what relief ?

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point No.i):

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As per the documents filed by the Applicant Bank and also as per the admissions made by the defendants in the written statements, it is very crear that the defendants have avaired roan from the Applicant Bank, but faired to repay the amount. Ail the amounts paid by the defendants are crearry mentioned in the statement of account filed by Applicant Bank. The defendants have not placed any materiar documents to show their bonafides for estabrishing their contentions.

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AW.1 is not cross examined by the counsel for defendants. The defendants have not come forward to give evidence to substantiate that their riabirity is ress than the amount mentioned in the OA and no supporting documents filed for establishing that they have not availed gold loans. Under such circumstances, the evidence of AW.1 coupled with recitals Ex.A. 1 to A.21 stood unchallenged and unrebutted. The Applicant bank clearly established that the outunl:lli,u[9r,4oi1.tlv and severallv liable to pay the oA amount t" i6,(ph:'$a;Iffi "* $ t 0² ffxll^r0A 4J 6

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(oA.No.17sl2022)

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Point No.ii)

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B In the result, the present originar apprication is ailowed with costs as u nder:

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i) The Defendants 1 to 4 are jointry and severaly riabre to Appricant Bank a total sum Rs.1,64,6gr6o3/_ (Rupees One Crore Sixty Four rakhs Sixty Eight thousand six hundred and three onry) with future interest @ 8.90o/o p.a from date of application till the date of rea lization.

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ii) the Applicant Bank is arso entitred to proceed against the person and properties of defendants towards rearization of the debt due.

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iii) The Applicant Bank is entitled to the costs of the OA.

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iv) The Appricant shail fire a cost memo within two weeks from the date of receipt of order.

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open
court on-lDE ffiQllql Nov, 2023)
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(G. GOPTCHAND)
PRESIDING OFFICEROFFICER
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¶51

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(G. GOPTCHAND)
PRESIDING OFFICEROFFICER

Bank of Baroda v. Mr. Kola Santosh

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr. Kola Santosh

Case brief

What is this about?

What did the court decide?

What the court decided

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Parties & counsel

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