Allowed

Bank of Baroda v. M/S Highcity Infrastructures Pv Ltd. Rep by Its Directors Sri.R. Umashankar and Smt.H.Devika

DRT24 Apr 2025OA/1487/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed a recovery certificate application filed under Section 19 of the RDB Act 1993 against a private limited company and its directors. The court found the defendants were correct ex parte and granted recovery of the outstanding dues with simple interest.

What did the court decide?

Recovery Certificate allowed for Rs. 1,61,25,820/- with interest at 14.75% p.a. from filing date till realization; defendants' assets liable for recovery.

Bank of Baroda versus M/S Highcity Infrastructures… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 24^th Day of April, 2025

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1487/2022

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BETWEEN:

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Bank of Baroda, One of its Branch office at Banashankari Branch, No. 6 & 7, 80 feet Road, Opp. Srinivasanagar Bus Stop, BSK I Stage, Bangalore- 560 050, Represented by its Chief Manager And Authorised holder, Mrs. Meera S.N., W/o Mr. Ananthram M., Aged about 49 years.

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…APPLICANT

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AND:

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M/s. Highcity Infrastructures Pvt. Ltd, A company registered under Companies Act, Represented by its Directors, Mr. R. Umashankar & Mrs. H. Devika, Having its office at, No. 25, “Krishna” Wing-B, 1^st Floor, Puttanna Road, Basavanagudi, Bangalore- 560 004.

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Mr. R. Umashankar, Aged about 55 years, S/o Mr. P.G. Ravikumar, Director of M/s. Highcity Infrastructures Pvt. Ltd, Residing at No. 544, 4^th Main, 4^th Cross Road, Maruthi Layout, Bangalore- 560 062.

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OA 1487/2022

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Mrs. H. Devika, Aged about 59 years, Director of M/s. Highcity Infrastructures Pvt. Ltd, Residing at No. 544, 4^th Main, 4^th Cross Road, Maruthi Layout, Bangalore- 560 062. ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Raghavendra Rao Manvi 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 a Recovery Certificate against the defendants for Rs. 1,61,25,820/- (One Crore Sixty One Lakh Twenty Five Thousand Eight Hundred and Twenty Only) with further interest thereon from the date of filing the Application till realization. The defendant No.1, the borrower is a Private Ltd Company registered under Companies Act and represented by its Directors defendant Nos. 2 & 3.

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It is the case of the applicant that, the defendants availed Over draft facility of Rs. 60,00,000/- (Rupees Sixty lakh Only) and additional over draft facility of Rs. 40,00,000/- (Rupees Forty lakh Only) .

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OA 1487/2022

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It is also the case of the applicant that, in view of the above amount financed, the defendants had executed the following loan documents; Letter of continuing security, Composite Hypothecation Agreement, letter of undertaking, declaration cum undertaking cum authority and registered memorandum of deposit of title deeds in favour of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in compliance of the same, resulting in defaults in repayment and consequentially turning the loan account 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 12.07.2024.

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The applicant had let in evidence through AW-1, who filed

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OA 1487/2022

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Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-24 which are separately mentioned in the schedule appended to this order 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 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

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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 the availment of credit facilities as stated in the OA, creation of security interest as

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OA 1487/2022

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claimed by the applicant bank and the defaults committed in the

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accounts. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim

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of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, this Tribunal find both these issues in favour of applicant and hence this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facilities

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are availed by defendants is for commercial purpose, this Tribunal in view that interest as agreed upon can be allowed.

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However taking into consideration the fact that the OA claim is arrived at by calculating interest at the agreed rate and also by calculating default interest, the prayer for monthly rest and

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penal interest for future period is declined.

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In the result, OA.No.1487/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs. 1,61,25,820/- (One Crore Sixty One Lakh Twenty

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Five Thousand Eight Hundred and Twenty Only) with further

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OA 1487/2022

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interest @ 14.75% p.a.(simple) from the date of filing OA till the realization, from the defendants 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 schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover

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the amount due and payable to the applicant bank, the defendants jointly, severally & personally, thier assets are liable for all such amounts due under the loan accounts.

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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 receipt of the order.

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

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v) Interim Application pending, if any, are disposed of

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with 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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OA 1487/2022

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of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by

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me in the Open Court, this the 24^th Day of April, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Tushar Sharma S/o Arjun Sharma, Branch Manager, of

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Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant Evidence
A2	List of Documents.
A3	D.P Note dated 30.09.2013
A4	Letter of continuing security dated 30.09.2013
A5	Composite Hypothecation agreement dated 30.09.2013
A6	Letter of undertaking dated 30.09.2013
A7	Declaration-cum-undertaking-cum-Authority dated 30.09.2013
A8	General form of guarantee dated 30.09.2013
A9	Registered memorandum of deposit of title deeds dated 03.10.2013
A10	D.P.Note dated 26.03.2015
A11	Letter of continuing security dated 26.03.2015
A12	Supplemental composite agreement of hypothecation dated 26.03.2015
A13	Letter of undertaking dated 26.03.2015
A14	General undertaking dated 26.03.2015
A15	Declaration-cum-undertaking-cum-authority dated 26.03.2015

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OA 1487/2022

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A16	General form of guarantee dated 26.03.2015
A17	Registered extension of memorandum of deposit of title deeds dated 27.03.2015
A18	Acknowledgement of debt dated 24.08.2016
A19	Legal Notice dated 30.05.2022
A20	Postal receipts (3Nos)
A21	Unserved RPAD Cover
A22	Unserved RPAD Cover
A23	Unserved RPAD Cover
A24	Statement of A/c of OD facility A/c No. 2771/04/92

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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. M/S Highcity Infrastructures Pv Ltd. Rep by Its Directors Sri.R. Umashankar and Smt.H.Devika

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/S Highcity Infrastructures Pv Ltd. Rep by Its Directors Sri.R. Umashankar and Smt.H.Devika

Case brief

What is this about?

What did the court decide?

What the court decided

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