Allowed

Bank of Baroda v. Sh. Happy Kumar and Another

DRT24 Nov 2025OA/1028/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Bank of Baroda against two respondents for recovery of a home loan defaulting amount of approximately 36.79 Lakhs. The court granted a uniform simple interest rate of 8% per annum and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.36,79,118.92 with interest at 8% p.a.; Issue of Recovery Certificate; Right to attach/sell mortgaged or personal assets.

Bank of Baroda versus Sh. Happy Kumar and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1028/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.07.2025

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DATE OF DECISION: 24.11.2025

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Bank of Baroda, a Public Sector Banking and Financial Services Company having its Head office at Baroda Bhavan, R C Dutt Road, Alkapuri, Baroda - 390007 and a branch office among others at Clock Tower Branch, Ludhiana, 141008 through its Authorized Officer and duly Constituted Power of Attorney Holder Sh. Atul Kumar Dwivedi, presently posted as Sr. Manager at Clock Tower Branch, Ludhiana.

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……..Applicant

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Versus

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Sh. Happy Kumar S/o Sh. Bholla Ram

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1^st Address: House No.12573, Street No.1, Iqbal Nagar, Tajpur Road, Ludhiana-141008

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2^nd Address: House No. XXIX-1706/175, Street No.5, Preet Nagar, Chimni Road, Shimla Puri, Ludhiana-141004

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Smt. Ritu Devi W/o Sh. Happy Kumar

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1^st Address: House No.12573, Street No.1, Iqbal Nagar, Tajpur Road, Ludhiana-141008

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2^nd Address: House No. XXIX-1706/175, Street No.5, Preet Nagar, Chimni Road, Shimla Puri, Ludhiana-141004

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….……Defendants

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Advocates:

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Argued by Sh. Kaveesh, Advocate for the applicant

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Defendants already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act,1993, against the defendants for recovery of Rs.36,79,118.92p (Rupees Thirty Six Lacs Seventy Nine Thousand One Hundred Eighteen & Paise Ninety Two Only). The Original Application has been filed through Sh. Atul Kumar Dwived i, Branch Manager, o f the applicant, who is

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2 OA/1028/2025 BANK OF BARODA VS SH. HAPPY KUMAR AND ANOTHER

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competent to institute the Original Application vide General Power of Attorney dated 18.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendants had approached the applicant for the grant of Home Loan of Rs.34.15 Lacs vide Loan application form dated 20.01.2023, which is Annexure A2 to this OA. 3. The applicant sanctioned the Home Loan of Rs.34.15 Lacs vide Sanction letter dated 20.03.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants 4. Defendant no. 1 had mortgaged his immovable property i.e. Residential House no. XXIX-1706/175B measuring 124 sq. yards situated at Village Gill-2, Hadbast No.263, Locality known as Street no. 5, Preet Nagar, Shimlapuri, Tehsil and District Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no. 202122/103/1/7866 dated 29.10.2021. Declaration dated 05.04.2023 regarding mortgage is Annexure A8 to this OA; Letter of confirmation of mortgage dated 06.04.2023, which is Annexure A7 to this OA; CERSAI, which is Annexure A9 to this OA. Documents executed:- Loan agreement, Declaration cum undertaking cum authority, Letter of installment with acceleration clause, all dated 20.02.2023 , which are Annexures A4 to A6 to this OA; Loan reminder letter dated 01.11.2023, which is Annexure A10 to this OA; Demand Notice dated 30.12.2023 u/s 13(2) of SARFAESI Act, which is Annexure A11 to this OA; Sale Notice dated 11.11.2024 and 20.03.2025 along with newspaper publication, which is Annexure A12 to this OA; Interest certificate, which is Annexure A13 to this OA and Statement of account with certificate, which are Annexures A14 & A15 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.36,79,118.92p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA/1028/2025

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BANK OF BARODA VS SH. HAPPY KUMAR AND ANOTHER

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 19.11.2025.

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In support of the OA, affidavit of Sh. Atul Kumar Dwivedi, Branch Manager, Bank of Baroda, h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,79,118.92p (Rupees Thirty Six Lacs Seventy Nine Thousand One Hundred Eighteen & Paise Ninety Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.55%p.a. plus @2% penal interest from 15.06.2025 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest

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OA/1028/2025

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BANK OF BARODA VS SH. HAPPY KUMAR AND ANOTHER

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@08.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,79,118.92p (Rupees Thirty Six Lacs Seventy Nine Thousand One Hundred Eighteen & Paise Ninety Two Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of mortgaged property of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.12.2025.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 24.11.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. Sh. Happy Kumar and Another

Case brief

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Bank of Baroda v. Sh. Happy Kumar and Another

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