Allowed

Bank of Baroda v. Vijayakumar

DRT25 Jan 2024OA/29/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Bank of Baroda for recovery of a Term Loan of Rs.40 lakhs granted to two borrowers and guaranteed by two others, who defaulted on repayment leading to the classification of the account as an NPA.

What did the court decide?

Defendants allowed jointly and severally to pay Rs.39,67,445 plus interest @ 10.75% p.a.; bank at liberty to recover via sale of mortgaged property and personal assets.

Bank of Baroda versus Vijayakumar — Banking and Recovery | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of January, 2024

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Present: SMT. S. V. GOWRAMMA Hon’ble Presiding Officer

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OA. No.29/2022

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BETWEEN:

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Bank of Baroda Trinity Branch, M.G. Road, Represented by its Assistant General Manager Mrs. Roopa G

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… APPLICANT

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AND:.

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Mr. K.G. Vijaya Kumar S/o K.N. Gangadhar

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Mrs. Swapna V. W/o Mr. K.G. Vijayakumar, Both are No.141, 2^nd Floor, 9^th Ciorss, 1^st Block, Vidyaranyapura, Bangalore-560097. ... DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. Prakasha Hedge K Defendant No.1 to 4 : Exparte

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FINAL ORDER

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The present Original Application (OA) is filed on 08.12.2021 under section 19 of Recovery of Debts Due to Banks and Bankruptcy Act 1993 for recovery of a sum of Rs.39,67,445/- (Rupees thirty nine lakh sixty seven thousand four hundred and forty five only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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OA. No. 29/2022

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The application filed is within the period of limitation as prescribed under Section 24 Recovery of the Debts and Bankruptcy Act 1993 and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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Brief facts of the case:

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It is the case of the applicant bank where in the Defendant Nos.1 & 2 are borrowers and Defendant No.3 & 4 are Guarantors. The Defendants had approached the Applicant Bank seeking for Term Loan of Rs.40,00,000/- (Rupees forty lakh only) an loan application dated 25.02.2019. After considered the request of the Defendants the Applicant Bank sanctioned a Term Loan of Rs.40,00,000/- (Rupees forty lakh only) vide sanction letter dated 25.02.2019 along with interest @ 10.75% p.a. in Loan A/c No.133108451000079.

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3.1. The defendants executed necessary loan documents in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges, and Defendants executed Articles of Agreement dated 25.02.2019 and Memorandum of Deposit of Title Deed dated 12.02.2019 was registered as Doc.No.KCH-1-05574-2018-19, Book No.1, stored in C.D. No. KCHD 266399 dated 12.02.2019 before the office of the SubRegistrar, Kacharkanahallli and Defendant No.3 & 4 executed Guarantee Agreement dated 25.02.2019 in favour of the applicant bank.

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The Applicant Bank submits that the Defendants, after availing the said facilities, failed to repay the loan amount and committed default. The loan account of the Defendants had been classified as a Non Performing

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OA. No. 29/2022

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Asset (NPA) and the Applicant bank issue a Legal Notices dated 09.01.2021 calling upon the defendants to repay the entire outstanding loan amount. However, there was no positive response from the Defendants. Hence, this Original Application (OA) has been filed to recover the dues from the Defendants.

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After the filing of the OA, summons was sent to the Defendant No.4 through Registered Post with Acknowledgment Due the same is duly served on 19.08.2022 and Defendant Nos.1 to 3 was duly returned unserved with postal shara “No such person” & “Left”. Hence, summons through substitute service was taken and the Applicant Bank published on 23.12.2022 in two daily leading newspapers, “The New Indian Express” in English Newspaper and “Kannada Prabha” in Kannada Newspaper. Therefore, service held sufficient. When OA was taken up on 07.06.2023

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even after giving sufficient time, there was no appearance or representation from the Defendants; hence, Defendant Nos.1 to 4 were placed exparte on 07.06.2023.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sri. Ravindra S S/o Srinivas R, Chief Manager has filed Affidavit by way of evidence and same was considered as evidence of AW.1 and marked as Ex.A1, the list of Document came to be marked as Ex.A2 and documents came to be marked as Ex.A3 to A11. As the Defendants remained ex-parte, the OA

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OA. No. 29/2022

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claim remains unchallenged. There is no contra evidence available on

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record to repudiate the claim of the Applicant Bank.

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Having regard to the amount advanced, the interest applied, the

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conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled to a

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final order on the following terms:

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: O R D E R:

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants jointly and severally to pay an amount of Rs.39,67,445/- (Rupees thirty nine lakh sixty seven thousand four hundred and forty five only) together with current and future interest @ 10.75% p.a. as on 07.10.2021 from the date of OA application till the date of realization.

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(b) In the event of failure of the Defendant to pay the aforesaid amount,

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the bank is at liberty to recover the amount by sale of the schedule mentioned property in the OA;

order;

OA. No. 29/2022

(d) If the sale proceeds of the schedule mentioned properties are not

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sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) respectively to recover the balance dues as required under law;

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(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by the respective defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery

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Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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[Dictated to the (CS), transcribed by her, corrected and signed by me on this the 25^th Day of January 2024].

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PRESIDING OFFICER

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DRT-II, BENGALURU

Sd/-

OA. No. 29/2022

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Ravindra S S/o Srinivas R, Chief Manager of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant Evidence
A2	List of Documents.
A3	Copy of the Loan Application dated 25.02.2019
A4	Copy of the Sanction Letter dated 25.02.2019
A5	Articles of Agreement dated 25.02.2019
A6	Letter of Guarantee dated 25.02.2019
A7	Memorandum of Deposit of Title Deed dated 12.02.2019
A8	Copy of the Statement of A/c No. 133108451000079
A9	Legal Notice dated 09.11.2021
A10	Postal Receipts
A11	Returned RPAD Covers

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil -

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SCHEDULE PROPERTY

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(Owned by Defendant No.1).

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All that piece and parcel of Flat No.T-2, in the 3^rd Floor having BBMP katha vide PID No.96-49-54/9 having super built up are of 1590 sq.ft with an undivided share of 360 sq.ft. along with one covered car parking space in the basement constructed on property bearing No.2, Assessment No.84/1, Katha No.1785, Municipal No.54, Presently BBMP PID Katha No.96-49-54, Manjunatha Layout Main Road, situated at Cholanayakanahalli Village, Kasab Hobli, Bangalore North Taluk, Bangalore. Measuring East to West: 72 feet, North to South: 40 feet in

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OA. No. 29/2022

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all measuring 2880 sq.ft. and bounded on East by Private Property, West by 25 feet road, North by: Property No.3, 4 and 5 South by: Property No.1.

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Sd/-

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PRESIDING OFFICER

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DRT-II, BENGALURU

Bank of Baroda v. Vijayakumar

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Vijayakumar

Case brief

What is this about?

What did the court decide?

What the court decided

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