Allowed

Bank of Baroda v. Dinesh Kumar

DRT18 Dec 2024OA/319/2022

Case brief

AI extract

What is this about?

This Tribunal allowed an Original Application filed by Bank of Baroda to recover dues from two borrowers. The court directed joint and several payment of outstanding term loan amounts with interest and authorized the sale of schedule properties to realize dues.

What did the court decide?

Defendants to pay Rs.23,88,528.31 and Rs.20,16,607.91 with interest and authorities directed to sell schedule property.

Bank of Baroda versus Dinesh Kumar — DRT (2024) — LawSathi Research

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Fair order

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IN THE DEBTS RECOVERY TRIBUNAL-1 AT ERNAKULAM

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DATED THIS 18^th DAY OF DECEMBER, 2024

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PRESENT: Su. WILLYAHM, B.Sc., M.L. [DISTRICT JUDGE - Retd] PRESIDING OFFICER

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OA No.319/2022

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Between

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Bank of Baroda Fort Road Kannur Branch P. B. No.6, Block No.7 Sadhoo Building, Fort Road Kannur District – 670 001

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---Applicant

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And

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Dhaneesh Kumar V. S/o. Indira Varaprath Veedu Purachery, Ezhilode Post Cheruthazham Village Kunhimanagalam Kannur – 670 309

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Sreekutty P. V. W/o. Dhaneesh Kumar V. Varaprath Veedu Purachery, Ezhilode Post Cheruthazham Village Kunhimanagalam Kannur – 670 309

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---Defendants

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OA 319/2022

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This Original Application coming on 27.11.2024 for final hearing before me in the presence of Mr. M. Sunil, Advocate for Applicant Bank and Defendants having been set ex-parte and upon hearing the arguments of Counsel for the applicant Bank and upon perusing the materials on record and having stood over for consideration till this day, this Tribunal delivered the following:

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O R D E R

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This application has been filed on 20.04.2022 by the applicant bank to recover from the defendants 1 & 2, jointly and severally, a sum of Rs.23,88,528.31 being the amount due under the Term Loan account of Rs.20,00,000/- together with interest on the sum of Rs.23,86,228.03 @ 10% per annum with monthly rests from 13.04.2022 till the date of payment and a sum of Rs.20,16,607.91 being the amount due under the Term Loan account of Rs.17,00,000/- together with interest on the sum of Rs.20,15,093.65 @9.85% per annum with monthly rests from 13.04.2022 till the date of payment and by sale of OA schedule properties and with costs.

¶17

The defendants were duly served with substituted service of summons. But the defendants neither were represented in the proceedings nor did they file written statement. Hence the defendants were declared exparte on 11.10.2023.

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Mr. Anil Kumar P. A., Chief Manager and Power of Attorney holder of the Applicant Bank, as AW1 filed proof affidavit and got the documents marked as Exhs.A1 to A18 in support of its case.

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The brief averments of the application filed by the Applicant bank are as follows:-

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The defendants during January, 2018 approached the erstwhile Vijaya Bank for Term Loan facility of Rs.20,00,000/- for purchase of a Villa and the applicant bank sanctioned a Term Loan of Rs.20,00,000/- on 17.01.2018 on due execution of necessary security documents in its favour. The defendants agreed to pay the loan in 360 equated monthly installments of Rs.15,380/- each commencing from 28.02.2018. Further during March, 2018 the defendants again approached the erstwhile Vijaya Bank for Term Loan facility of Rs.17,00,000/- for completion and finishing of the Villa purchased by them and the applicant bank sanctioned a Term Loan of Rs.17,00,000/- on 29.03.2018 on due execution of necessary security documents in its favour. The defendants agreed to pay the ln in 360 equated monthly installments of Rs.13,080/- each commencing from 30.04.2018. The defendants 1 & 2 created equitable mortgage over their

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Page 2 of 8

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OA 319/2022

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properties more particularly described in the Schedules to the OA and executed memorandum evidencing deposit of title deeds. On 31.01.2019, the defendants acknowledged their liability in the Term Loan accounts of Rs.20,00,000/- and Rs.17,00,000/- respectively.

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In the meanwhile, the erstwhile Vijaya Bank was amalgamated with Bank of Baroda w.e.f. 01.04.2019 in accordance with a scheme of amalgamation published in the Gazette of India vide GSR No.2(E) dated 02.01.2019. As per the scheme of amalgamation and by operation of law all assets including actionable claims, mortgages, securities, guarantees etc. became vested with the applicant bank. Therefore, the OA is filed by the applicant bank for recovery of the amounts due from the defendants to the erstwhile Vijaya Bank.

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The defendants defaulted in repayment of the amounts due in spite of repeated requests for repayment of the dues. Since the defendants failed to pay the amounts due to the applicant bank, the applicant bank filed the present Original Application for realisation of the outstanding amounts.

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The applicant has failed to produce the English translated version of document No.8 as per Rule 3(2) of the Debts Recovery Tribunal (Procedure) Rules, 1993. This Tribunal is not in a position to read the contents of the document and understand the same. However, it appears that this document pertains to the OA schedule property.

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A perusal of the material records available on record and averments of the OA and proof affidavit along with Exhs.A1 to A15 filed by Mr. Anil Kumar P. A., Chief Manager and Power of Attorney holder of the applicant bank, shows that the defendants after having availed the credit facilities committed defaults in repayment of the outstanding dues.

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In the above circumstances, the case of the applicant bank regarding recovery of the sum of Rs.23,88,528.31 claimed as due under Term Loan account of Rs.20 Lakhs with interest pendentelite and post final order interest on the sum of Rs.23,86,228.03 @8% per annum and a sum of Rs.20,16,607.91 claimed as due under Term Loan account of Rs.17 Lakhs with interest pendentelite and post final order interest on the sum of Rs.20,15,093.65 @7.85% per annum from the defendants, is proved by the uncontroverted averments in the proof affidavit of AW1 along with Exts.A1 to A18.

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Therefore, this Original Application is allowed as against defendants and the defendants are directed to pay to the applicant bank, jointly and severally, as per the following lines :

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Page 3 of 8

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OA 319/2022

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“(i) A sum of Rs.23,88,528.31 (Rupees Twenty Three Lakhs Eighty Eight Thousand Five Hundred Twenty Eight and Paise Thirty One only) due under the Term Loan account of Rs.20 Lakhs with interest pendentelite and post final order interest on the sum of Rs.23,86,228.03 (Rupees Twenty Three Lakhs Eighty Six Thousand Two Hundred Twenty Eight and Paise Three only) @8% per annum from 13.04.2022 till the date of realisation; and

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(ii) A sum of Rs.20,16,607.91 (Rupees Twenty Lakhs Sixteen Thousand Six Hundred Seven and Paise Ninety One only) due under the Term Loan account of Rs.17 Lakhs with interest pendentelite and post final order interest on the sum of Rs.20,15,093.65 (Rupees Twenty Lakhs Fifteen Thousand Ninety Three and Paise Sixty Five only) @7.85% per annum from 13.04.2022 till the date of realisation.”

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On failure to pay the above said debts to the Applicant Bank, the Applicant Bank is directed to bring the OA schedule properties, for sale to realize its dues and its costs.

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The Registry is directed to prepare DRC in terms of this final order. The Applicant Bank shall file memo of costs within 10 days from the date of this order. Registry is directed to communicate the copy of this order to both parties as provided in Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993, as amended in 2003.

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Typed by PS, transcribed, corrected and pronounced by me in the open court on this the 18^th day of December, 2024.

(Su. WILLYAHM)

PRESIDING OFFICER

Page 4 of 8

OA 319/2022

SCHEDULE A

Item No.1

District	:	Kannur
Sub District	:	Alakode
Taluk	:	Thaliparamba
Village	:	Vellad
Amsom	:	Vellad
Desom	:	Naduvil
Panchayat	:	Alakode Ward 11 (Kavumkudi)
Right	:	Jenmom
Re. Sy. Block No.	:	66
Re. Sy. No.	:	292
Re. Sy. Sub-divisi	on	No. : 1143
Extent	:	.81 Ares

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DESCRIPTION

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All that is part and parcel of .81 Ares of property in Re. Sy. No.292/1143 in Block No.66 Vellad Village together with all improvements therein including the right of access and all other rights, easements etc. attached thereto and which is more particularly described as item No.1 in the Schedule to Sale Deed No.219/I/2018 of Alakode SRO.

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BOUNDARIES

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East	:	Villa No.7
South	:	Private Road
West	:	Item No.2 in Sale Deed No.219/I/2018
North	:	Villa No.9

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Item No.2

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District	: Kannur
Sub District	: Alakode

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Page 5 of 8

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OA 319/2022

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Taluk : Thaliparamba Village : Vellad Amsom : Vellad Desom : Naduvil Panchayat : Alakode Ward 11 (Kavumkudi) Right : Jenmom Re. Sy. Block No. : 66 Re. Sy. No. : 292 Re. Sy. Sub-division No. : 1144 Extent : 3.23 Ares

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DESCRIPTION

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All that is part and parcel of 3.23 Ares of property in Re. Sy. No.292/1144 in Block No.66 Vellad Village together with all improvements therein including the right of access and all other rights, easements etc. attached thereto and which is more particularly described as item No.2 in the Schedule to Sale Deed No.219/I/2018 of Alakode SRO.

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BOUNDARIES

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East	:	Item No.1 in Sale Deed No.219/I/2018
South	:	Private Road
West	:	Kallodi – Morani Panchayat Road
North	:	Villa No.9

(Su. WILLYAHM)

PRESIDING OFFICER

Page 6 of 8

OA 319/2022

LIST OF DOCUMENTS FILED BY THE APPLICANT BANK

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Sl. No.	Date	Description of document	Exhibits
1	17.01.2018	Sanction letter duly signed by the defendants	Ex.A-1
2	17.01.2018	Demand Promissory Note for Rs.20 Lakhs executed by defendants in favour of the applicant bank	Ex.A-2
3	17.01.2018	Articles of Agreement executed by defendants in favour of the applicant bank	Ex.A-3
4	28.03.2018	Sanction letter duly signed by the defendants	Ex.A-4
5	29.03.2018	Demand Promissory Note for Rs.17 Lakhs executed by defendants in favour of the applicant bank	Ex.A-5
6	29.03.2018	Articles of Agreement executed by defendants in favour of the applicant bank	Ex.A-6
7	29.03.2018	Letter of Repayment executed by defendants in favour of the applicant bank	Ex.A-7
8	19.01.2018	Sale Deed No.219/I/2018 of Alakode SRO	Ex.A-8
9	29.03.2018	Memorandum of deposit of title deed executed by defendants in favour of the applicant bank	Ex.A-9
10	31.01.2019	Letter of acknowledgment of debt of Term Loan of Rs.20 Lakhs executed by defendants in favour of the applicant bank	Ex.A-10
11	31.01.2019	Letter of acknowledgment of debt of Term Loan of Rs.17 Lakhs executed by defendants in favour of the applicant bank	Ex.A-11
12	26.07.2021	Demand notice issued to the defendants	Ex.A-12
13	----	Statement of account pertaining to the Term Loanaccount of Rs.20Lakhs	Ex.A-13
14	----	Statement showing different rate of interest applied in Term Loan account of Rs.20Lakhs	Ex.A-14
15	----	Statement of account pertaining to the Term Loan account of Rs.17 Lakhs	Ex.A-15

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Page 7 of 8

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OA 319/2022

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16	----	Statement showing different rat interest applied in Term Loan accou Rs.17 Lakhs	e of nt of	Ex.A-16
17	13.04.2022	Memorandum showing unapplied unserviced interest pertaining to Loanaccount of Rs.20Lakhs	and Term	Ex.A-17
18	20.04.2022	Memorandum showing unapplied unserviced interest pertaining to Loan account of Rs.17 Lakhs	and Term	Ex.A-18

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(Su. WILLYAHM) PRESIDING OFFICER

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Page 8 of 8

Bank of Baroda v. Dinesh Kumar

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Dinesh Kumar

Case brief

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