Allowed

Bank of Baroda v. Success Nation

DRT29 Aug 2025OA/1171/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed a Recovery Certificate application filed by Bank of Baroda against a proprietorship firm and its proprietor. The defendants appeared ex parte. The court found the claim valid, reduced interest to 10% p.a., and ordered recovery of the principal plus interest jointly and severally.

What did the court decide?

Issuance of Recovery Certificate for Rs. 60,40,171.10 with further interest at 10% p.a. (simple) till realization, recoverable jointly, severally, and personally from defendants.

Bank of Baroda versus Success Nation — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 29^th Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1171/2023

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BETWEEN:

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Bank of Baroda Branch Office at Electronic City, Bengaluru

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…APPLICANT

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AND:

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M/s Success Nation

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2^nd Floor, AURA Building, Site No.20, Opp. Concorde Manhattan, NeeladriNagar, Electronic City, Phase-1, Bengaluru-560100

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Mrs. Tejaswi Reddy D/o. Srinivasarao R/at: No.2.297 Ramanjaneya Colony, Cheepurapalli, Vijayanagaram, Andhra Pradesh-535128

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Nagaraj Damodar Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been

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filed under section 19 of Recovery of Debts and Bankruptcy Act

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OA 1171-2023

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1993 seeking issuance of Recovery Certificate Rs.60,40,171.10 (Rupees sixty lakh forty thousand one hundred seventy one and paisa ten only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 a Proprietorship concern with defendant No.2 as its Proprietor had availed the following credit facilities from the applicant bank:-

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I. Over Draft Loan of a sum of Rs.35,00,000/- (Rupees Thirty Five Lakh Only),

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II. CCH Mudra loan limit of Rs. 10,00,000/- (Rupees Ten Lakh Only),

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III. FITL Loan limit of Rs.32,479/- /- (Rupees Thirty two thousand four hundred seventy nine Only)

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IV. FITL Loan Limit of Rs.1,61,792/- (Rupees One Lakh Sixty One Thousand Seven Hundred Ninety Two only)

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V. BGECL loan Facilities of Rs.2,00,800/- (Rupees two lakh eight hundred only) and

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VI. Personal Loan limit of Rs.2,00,000/- (Rupees two lakh only)

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It is also the case of the applicant that, in view of the above

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amount financed, the defendant executed necessary loan

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OA 1171-2023

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documents along with letter of undertaking, attestation memo, loan agreement Cum Instrument of hypothecation and sanction letter in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facilities, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendant being set exparte on 25.10.2024.

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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 A-1 to A-26 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered

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the contentions as taken in the OA in the light of documentary

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OA 1171-2023

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evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this

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Tribunal find both these issues in favour of applicant and hence

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OA 1171-2023

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this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendants for Business purpose and also that OA

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claim is arrived at by calculating interest at the agreed rate, this Tribunal, in view of the OA can be allowed with a reduced

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interest @10% p.a.(simple).

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In the result, OA.No.1171/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.60,40,171.10 (Rupees sixty lakh forty thousand one

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hundred seventy one and paisa ten only) with further interest @

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10% p.a. (Simple),

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from the date of filing OA till the realization, from the defendant personally after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceedings against the defendants jointly severally and personally and other assets of the defendants.

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ii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of

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receipt of the order.

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OA 1171-2023

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iii) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of August, 2025].

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Sd/ (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Beauty Singh, Branch Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	01.10.2019	Loan Application
A2	01.10.2019	Attestation Memo
A3	01.10.2019	Letter of Sole Proprietorship
A4	01.10.2019	D.P Note
A5	01.10.2019	Agreement -cum-instrument hypothecation/pledge	of
A6	01.10.2019	Statement of Assets and Liabilities individuals	for
A7	01.10.2019	Loan Application
A8	01.10.2019	Letter of Sole Proprietorship

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OA 1171-2023

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A9	01.10.2019	D.P. Note
A10	01.10.2019	Agreement cum instrument of hypothecation
A11	30.01.2021	Loan -cum hypothecation agreement in BGECL-1
A12	30.01.2021	Loan -Cum hypothecation agreement in BGECL-2
A13		Sanction Memo in Personal Loan
A14	31.05.2021	Attestation Memo
A15	31.05.2021	D.P Note
A16	31.05.2021	Letter of Undertaking with Negative lien clause
A17	31.05.2021	Declaration cum undertaking cum authority
A18	31.05.2021	Letter of Installment with Acceleration clause
A19		Statement of Account Extract in respect of A/c No.67600400000007
A20		Statement of Account Extract in respect of A/c No.67600500000020
A21		Statement of Account Extract in respect of A/c No.67600600000657
A22		Statement of Account Extract in respect of A/c No.67600600000667
A23		Statement of Account Extract in respect of A/c No.67600600001200
A24		Statement of Account Extract in respect of A/c No.67600600001202
A25		Statement of Account Extract in respect of A/c No.67600600001342
A26		Certificate U/s 2a(B) & A(C) of the Banker’s Book Evidence Act, 1891(as amended)

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

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Sd/ (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Success Nation

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Success Nation

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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