Allowed

Bank of Baroda v. Ms Smile Multi Cuisine Restaurant

DRT22 Aug 2025OA/171/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for issuance of a Recovery Certificate against the defendant proprietorship concerned for outstanding loans and dues totaling over Rs. 64 lakh, granting reduced interest and authorizing recovery from personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 64,25,807/- plus 12% simple p.a. interest; proceedings initiated against defendant personally and assets including hypothecated ones; costs allowed.

Bank of Baroda versus Ms Smile Multi Cuisine Restaurant — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 22^nd Day of August, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.171/2023

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BETWEEN:

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Bank of Baroda, Chief Manager, First Floor, Above Namdhari Shop, No. 127/A, 8^th Main, J.P. Nagar, 3^rd Phase, Bangalore- 560078.

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…APPLICANT

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AND:

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M/s. Smile Multi Cuisine Restaurant, No. 1365, 28^th Main, South End Road, Jayanagar 9^th Block, Bangalore-69 represented by its Proprietor B. Seetharam Setty.

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...DEFENDANT

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Counsel on record/appeared for:

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Applicant : T.N. Asha Defendant : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed

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under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendant for Rs. 64,25,807/- (Rupees Sixty Four Lakh Twenty Five Thousand Eight Hundred and Seven Only) with further interest thereon from the date of filing the Application till realization. The defendant is a

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OA 171/2023

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Proprietorship concern represented by its Proprietor B. Seetharam Setty.

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It is the case of the applicant that, the defendant availed CCH Loan of Rs. 50,00,000/- (Rupees Fifty Lakh Only), CC loan against hypothecation of stocks for a sum of Rs. 5,00,000/- (Rupees Five Lakh Only), BGECL loan of Rs. 5,00,000/- (Rupees Five Lakh Only), FITL loan of Rs. 3,01,700/- (Rupees Three Lakh One Thousand Seven Hundred Only) and Term loan of Rs. 3,95,000/- (Rupees Three Lakh Ninety Five Thousand Only).

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It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with modification deed, undertaking, letter of continuing security in favour of the applicant bank.

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The applicant bank vide memo dated 13.01.2023 states that the immovable property in the OA Schedule was added by oversight and by the Memo it states that it stands deleted.

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

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OA 171/2023

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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 defendant, they failed to appear, resulting the defendant being set exparte on 31.07.2024.

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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-3 to A-60 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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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA

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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

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evidences put forth by the applicant were found admissible and are

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OA 171/2023

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sufficient to prove availment of the credit facilities as stated in the

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OA, creation of hypothecation as claimed by the applicant bank and

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the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above

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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

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find both these issues in favour of applicant and hence, this Tribunal

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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 Business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 12.00% (simple).

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In the result, OA.No.171/2023, stands allowed,

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

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Rs. 64,25,807/- (Rupees Sixty Four Lakh Twenty Five Thousand Eight

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Hundred and Seven Only) with further interest @ 12.00 % p.a.(simple), from the date of filing OA till the realization from the defendant personally after giving credit to all the amount recovered

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and received during the pendency of the OA and allowed the same to

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be recovered by proceedings against the defendant personally and

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OA 171/2023

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also proceeding against their assets including hypothecated assets.

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Schedule of movable proprieties in the OA be the schedule to the recovery certificate.

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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 receipt of the order.

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

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and transferred to Recovery for execution.

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iv) Interim application pending, if any, are disposed of with this Final Order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) 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 22^nd Day of August, 2025].

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Sd/- (T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Harshitha B. Poonja W/o Mithun B. Poonja, Chief Manager, of Applicant Bank.

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OA 171/2023

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Particulars of Documents
A1	Applicant’s Evidence
A2	List of Documents
A3	Supplementary agreement
A4	Certificate of loan
A5	Sanction letter
A6	Supplementary agreement
A7	Renewal letter
A8	Restructure of loan
A9	Format for appraisal
A10	Modification deed
A11	Undertaking
A12	Letter of confirmation
A13	Sanction letter
A14	Letter of continuing security
A15	Ack of debt
A16	Statement of A/cs
A17	Upgrade of NPA A/c
A18	Letter by defendant
A19	DP Note
A20	Undertaking
A21	Loan agreement
A22	Declaration cum undertaking
A23	Sanction letter
A24	Restructure under MSME
A25	Modification deed
A26	Undertaking
A27	Letter of Ack of Debt
A28	Letter of Ack of Debt
A29	Statement of A/cs
A30	Upgrade information of NPA A/c
A31	Offer letter

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OA 171/2023

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A32	Acceptance of offer
A33	D.P Note
A34	Loan agreement
A35	Declaration cum undertaking
A36	Letter from defendant
A37	Letter of continuing security
A38	Undertaking letter
A39	App for restructuring
A40	Modification deed
A41	Undertaking
A42	Letter from bank
A43	Ack of debt
A44	Statement of A/cs
A45	Upgrade information of NPA A/c
A46	App for restructure
A47	Deed of FITL
A48	Modification deed
A49	Undertaking
A50	Letter from the bank
A51	Letter of Ack of Debt
A52	Statement of A/cs
A53	Upgrade of NPA A/c
A54	Modification deed
A55	Undertaking
A56	Letter from the bank
A57	Letter of Ack of Debt
A58	Statement of A/cs
A59	Upgrade of NPA A/c
A60	Certificate of Banking

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Witness Examined for the Defendant: -Nil -

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List of Documents Exhibited for the Defendant:

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Ms Smile Multi Cuisine Restaurant

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Ms Smile Multi Cuisine Restaurant

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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