Allowed

Bank of Baroda v. Mr M Velu

DRT31 Oct 2025OA/1325/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Bank of Baroda against a borrower and guarantor for issuance of a recovery certificate. The defendant was absent, and the claim for the outstanding loan amount along with interest was proved by documentary evidence.

What did the court decide?

Recovery Certificate issued for Rs.48,08,400.62 plus 8.45% p.a. simple interest from filing date to realization, recoverable jointly and severally from defendants and via schedule property.

Bank of Baroda versus Mr M Velu — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 31^st Day of October, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1325/2023

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BETWEEN:

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Bank of Baroda Hosakote Branch JC Circle, K R Road Hoskote Bangalore Rural -562114

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…APPLICANT

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AND:

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Mr. M Velu

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S/o. Munirathnam R/at: No.202, 12^th cross, Puttanna Line, Ranasingh Pet, Bangalore Sout, Chikpete, Bangalore-560053

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Also at: Mr. M Velu, S/o. Munirathnam #2, 2^nd cross, 1^st cross, Manjunathanagar, Bangalore-560023

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Smt. Umamaheshwari W/o. M Velu R/at: No.202, 12^th cross, Puttanna Line, Ranasingh Pet, Bangalore Sout, Chikpete, Bangalore-560053

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Also at: Smt. Umamaheswari W/o. M Velu

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OA 1325/2023

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#2, 2^nd cross, 1^st cross, Manjunathanagar, Bangalore-560023

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : VS Associates Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs.48,08,400.62/- (Rupees forty eight lakh eight thousand four hundred and paisa sixty two 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. is the borrower with defendant No.2 as guarantor availed the Housing loan credit facilities of Rs.45,00,000/- (Rupees forty five lakh only) from the applicant bank.

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It is also the case of the applicant that, in view of the above amount financed, the defendant executed necessary loan documents along with general form of guarantee, declaration cum understanding, memorandum of deposit in favor of the

OA 1325/2023

applicant bank.

It is further contended that, the defendant despite availing the credit facility, 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 defendants being set exparte on 07.11.2024.

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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 A-1 to A-10 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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OA 1325/2023

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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

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OA claim as against the defendant?

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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 defendant 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, creation of mortgage 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

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

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OA 1325/2023

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Taking into consideration the facts that the credit facilities

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are availed by defendant for Housing Purpose and Cash credit purpose, this Tribunal in view of the rate of interest as claimed need not be reduced. However, as the OA Claim is arrived at by calculating interest at the agreed rate and also by applying

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default interest, the prayer for monthly rest and future penal interest are declined.

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In the result, OA.No.1325/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.48,08,400.62 (Rupees forty eight lakh eight thousand

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four hundred and paisa sixty two only) with further interest @8.45% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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jointly severally and personally after giving credit to all the amount recovered and received during the pendency of the OA

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and allowed the same to be recovered by proceedings against

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the schedule property. Properties schedule to the OA be the

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schedule to the recovery certificate.

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(ii) If the sale proceeds are not sufficient, the defendants

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OA 1325/2023

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jointly severally and personally and their other assets are liable

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to be proceeded against for the balance amount.

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iii) 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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iv) 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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v) 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 31^th day of October, 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: Smt. Alka Pandey, Senior Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Date	Particulars of Documents
Nos.
A1	27.09.2019	Undated loan application and sanction letter

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OA 1325/2023

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A2	27.09.2019	Loan agreement for individual loan housing loans
A3	27.09.2019	General form of guarantee
A4	27.09.2019	Letter of installment with acceleration clause
A5	27.09.2019	Declaration cum undertaking cum authority
A6	01.10.2019	Memorandum of deposit of title deed
A7	26.09.2019	Declaration in the matter of mortgage by deposit of title deed in respect of immovable’s (individuals properties)
A8	01.10.2019	Letter of confirmation of mortgage
A9	09.06.2023	Notice under SARFAESI Act Section 13 (2)
A10		True extract of statement of accounts pertaining to the defendants loan account No.67160600000634
A11		Certificate under Section 2A & 2A(c) of Banker’s Book of Evidence Act, 1891

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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)

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PRESIDING OFFICER

Bank of Baroda v. Mr M Velu

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr M Velu

Case brief

What is this about?

What did the court decide?

What the court decided

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