Allowed

Bank of Baroda v. Smt Vidyashri Srivasthav

DRT25 Sept 2025OA/1460/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for issuance of a Recovery Certificate against two defendants who defaulted on housing loans. The defendants were absent, and the uncontroverted evidence proved the loan default and calculated dues. The Tribunal awarded the principal amount with reduced interest at 8% p.a.

What did the court decide?

Issuance of Recovery Certificate for Rs. 25,43,421.10 plus further interest at 8% p.a. simple from date of application till realization.

Bank of Baroda versus Smt Vidyashri Srivasthav — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of September, 2025

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1460/2023

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BETWEEN:

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Bank of Baroda (E-Vijaya Bank), Interalia Branch office at Bus Stand Branch, Shimoga, Represented by its Chief Manager.

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…APPLICANT

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AND:

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Smt. Vidyashri Srivasthav, W/o. Ranjeeth Kumar, Aged about 30 years.

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Mr. Ranjeeth Kumar, S/o Deenanath Prasad, Aged about 42 years.

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Both are R/at “Sri Venkateshwara Nilaya” 1^st Cross, Ganapathi Layout, Vidyanagar, Shivamogga- 577202.

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Also at# C-13, Shugar Factory Quarters, Near Shaneshwara Temple, Shivamogga- 577202. ...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 filed under

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OA 1460/2023

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section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 25,43,421.10 (Rupees Twenty Five lakh Forty Three Thousand Four Hundred Twenty One and Paise Ten Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant No.1 & 2 availed the following loans from the applicant bank:-

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1^st Home Loan of Rs. 44,00,000/- (Rupees Forty Four lakh Only) for purchase of immovable property.

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2^nd home loan of Rs. 20,00,000/- (Rupees Twenty Lakh Only) on continuing security of schedule property.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents along with declaration cum undertakings cum authority and memorandum of deposit of title deeds.

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

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The applicant bank-initiated proceedings under SARFEASI Act and e-auctioned the secured asset mortgaged to the highest bidder for a sum of Rs. 50,05,000/- (Rupees Fifty Lakh Five Thousand Only) and issued sale

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OA 1460/2023

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certificate and got the same registered on 04.01.2023 in favour of Mrs. Anitha W/o S. Chandrappa. The sale proceeds were credited to the loan account of Defendant No.1 inspite of crediting the total sale proceeds the defendants are liable to pay the sum of Rs. 25,39,899/- (Rupees Twenty Five Lakh Thirty Nine Thousand Eight Hundred and Ninety Nine Only).

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In the above circumstances, the applicant approached this Tribunal

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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 05.02.2024.

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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-24 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 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

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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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OA 1460/2023

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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, 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 findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, 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 are

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availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 8.00% (simple).

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In the result, OA.No.1460/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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25,43,421.10 (Rupees Twenty Five lakh Forty Three Thousand Four Hundred Twenty One and Paise Ten Only) with further interest @8.00 %

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p.a.(simple) from the date of filing OA till the realization, from the

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OA 1460/2023

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defendants jointly, severally & personally, after giving credit to all the

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amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally & personally and their assets.

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ii) The applicant bank is allowed cost of the proceedings which

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applicant to file cost memo within 7 days from the date of receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 25^th day of September, 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:Dharmalingam K S/o Kannu, Branch Manager, of Applicant Bank.

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OA 1460/2023

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Loan application
A2	Retail lending application form dt: 21.10.2016
A3	Letter of sanction to the borrower 21.10.2016
A4	Loan agreement for individual/s (Housing loans dt: 21.10.2016
A5	Declaration cum undertakings cum authority dated 21.10.2016
A6	Letter of Authority for creation/ extension of mortgage dated 26.10.2016
A7	Declaration in the matter of mortgage by deposit of title deeds in respect of immovable dated 26.10.2016
A8	Memorandum of entry dated 26.10.2016
A9	Letter of confirmation of mortgage dated 7.10.2016
A10	Memorandum of deposit of title deeds dated 26.10.2016
A11	Retail lending application form dt: 21.10.2016
A12	Letter of sanction to the borrower dated 28.10.2016
A13	Loan agreement for individual/s (housing loans dt: 28.10.2016
A14	Declaration cum undertakings cum authority dated 28.10.2016
A15	Extension of mortgage by deposit of title deeds dated 25.11.2016
A16	Mortgage attendance dated 25.11.2014
A17	Letter of confirmation of mortgage dated 26.11.016
A18	Letter of authority for creation/ extension of mortgage dated 25.11.2016
A19	Letter of confirmation of mortgage dated 28.11.2016
A20	Registered sale certificate dt: 04.01.2023
A21	Notice dated 6.01.2023 along with returned RPAD covers
A22	Statement of account extract in respect of A/c No. 09240600002815
A23	Statement of account extract in respect of A/c No. 0924060002822
A24	Certificate U/s 2A(B) & A(c) of the bankers book evidence Act, 1891 (As amended)

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Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

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-Nil -

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-Nil -

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PRESIDING OFFICER

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Sd/- (T. RAJESH)

Bank of Baroda v. Smt Vidyashri Srivasthav

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Smt Vidyashri Srivasthav

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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