Allowed

Bank of Baroda v. Mr Irfan M

DRT28 Nov 2025OA/1080/2022

Case brief

AI extract

What is this about?

DRT-II, Bangalore allowed OA No.1080 of 2022 filed by Bank of Baroda for issuance of a Recovery Certificate. The court held the claim proved and un-rebutted, permitting recovery of principal Rs.76,49,866.07 plus interest at 6% p.a. and allowing enforcement against mortgaged property or other assets.

What did the court decide?

Recovery Certificate issued for Rs.76,49,866.07 plus 6% p.a. interest; recovery permitted from property and personal assets.

Bank of Baroda versus Mr Irfan M — Company and Corporate | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, BANGALORE

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Dated this 28^th Day of November, 2025

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PRESENT: SHRI T. RAJESH Hon’ble Presiding Officer

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O.A.No.1080 of 2022

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Bank of Baroda, Dayananda Sagar College of Eng. Branch, Shivage Malleshwara Hills, 91^st Main Road, 1^st Stage, Kumara Swamy Layout, Bengaluru – 560 078. Through its Branch Manager, Smt.Sudha Gopalakrishnan. … Applicant.

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Vs.

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Sri Irfan.M., S/o.Aslam, R/a. No.32, 1^st Cross, 1^st Main, New Gurupanpalya, Bengaluru – 560 029.

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Smt.Shaheen.N., W/o.Aslam, R/a. No.38, 3^rd Cross, New Kalasipalya, Bengaluru – 560 002. … Defendants. Counsel for Applicant : M/s.V.S.Associates. Defendants : Exparte. …… ORDER

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The Application is filed under Section 19 (1) of the Recovery of Debts

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And Bankruptcy Act, 1993 seeking for issuance of a Recovery

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Certificate for a sum of Rs.76,49,866.07 together with further interest @8.20% from 01.07.2022 till the date of realisation together with costs from the defendants jointly and severally and by way of sale of schedule mentioned property.

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The Applicant contends that the defendants approached the applicant for Home Loan of Rs.65,00,000/- and availed the same on 04.01.2020 by execution of necessary loan documents including Demand Promissory Note. The 1^st defendant has also created mortgage over the property described in the schedule to the OA and executed Memorandum of Deposit of Title Deeds on 10.01.2020 as security for the above said loan.

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It is also stated that the above facility was availed after execution of necessary loan documents by defendants obliging themselves to repay the amount promptly and regularly, without fail.

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The Applicant further contends that after availing the aforesaid facility, the defendants failed to regularize the said loan and hence the loan account of the defendants was declared as Non-Performing Asset on 31.03.2021. The applicant bank has also issued Demand Notice u/s.13(2) of SARFAESI Act dt.05.04.2021 to the defendants demanding repayment of the entire outstanding liabilities of defendants. Despite availing the credit facility by obliging to pay

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back the amount, the defendants failed in compliance of the same and all the efforts of the Applicant to make the defendants pay back the

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amount failed, forcing the Applicant to file this Application.

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Summons was taken out and as the defendants failed to enter appearance, they were set exparte on 13.11.2024.

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The Applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A7, got the same marked in evidence.

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Heard. The following issues arise for consideration in this matter:

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i) Whether the applicant succeeded in proving the OA claim as against the Defendants?

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ii)If so, to what extent?

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Both these issues are gone into and decided together.

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The Applicant’s evidence remains un-rebutted and hence proved. The documents produced by the Applicant are found to be admissible and are sufficient to prove the OA claim. Hence the Applicant is found to be entitled for the OA claim. The OA claim is made within limitation and there is no capitalization of penal interest.

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Even though the applicant had produced a letter dt.02.11.2020 and marked as Ext.A5 which reads as the “Notices to the defaulted housing loan borrower”, the contents of the letter does not relate to

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this Loan Account and relates to some other Vehicle Loan. Hence the

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same is not considered for deciding the matter.

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Since the OA claim is arrived at by calculating interest with default interest and that the facilities are availed in respect of Home Loan the pendent lite and future interest is awarded at simple rate that too at reduced rate of 6% p.a. (simple).

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In view of the above

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i) OA No.1080 of 2022 stands allowed.

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ii) Applicant is permitted to recover an amount of Rs.76,49,866.07 (Rupees Seventy Six Lakhs Forty Nine Thousands Eight Hundred Sixty Six and Paise Seven only) together with interest @6% p.a. (simple) from the date of filing of OA till the date of realization together with costs from the defendants jointly, severally and personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the schedule mentioned property. The schedule to the OA to be the schedule to the Recovery Certificate.

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iii) If the sale proceeds are not sufficient to clear the liability, then the Defendants are personally and their other assets are liable to be proceeded against for realization of respective dues.

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iv) A Recovery Certificate is to be drawn and issued to the Recovery Officer to enable recovery of the dues as per the above terms.

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v) Interim application pending, if any, stands disposed of in terms of this final order.

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vi) Applicant is allowed to realize cost of the proceeding for which cost memo is to be filed in 7 days’ time from the date of receipt of the copy of the order.

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, transcribed by him corrected and pronounced by me in the open Court on this the 28^th day of November, 2025)

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Sd./- (T. RAJESH) PRESIDING OFFICER

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Applicant Witness:

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AW1 –Mr.Devi Dayal, Chief Manager, Applicant Bank.

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Exhibits on the part of the Applicant:

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Ext.A1 - Sanction Letter dt.03.01.2020.

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Ext.A2 - Declaration dt.04.01.2020. Ext.A3 - Memorandum of Deposit of Title Deed dt.10.01.2020. Ext.A4 - Demand Promissory Note dt.04.01.2020. Ext.A5 - Letter dt.02.11.2020. Ext.A6 - SARFAESI Notice dt.05.04.2021. Ext.A8 - True Extract of Statement of Accounts pertaining to the Defendant’s Loan A/c.No.74370600000504.

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Witness Examined for the Defendants:

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NIL

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List of Documents Exhibited for the Defendants :

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NIL

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Sd./- (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Mr Irfan M

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr Irfan M

Case brief

What is this about?

What did the court decide?

What the court decided

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