Allowed

Bank of Baroda (Vijaya Bank) v. Bairaiah Since Dead by His Lrs and Others

DRT25 Sept 2025OA/436/2022

Case brief

AI extract

What is this about?

The Tribunal allowed a recovery application filed by Bank of Barroda against legal heirs and guarantors of a deceased borrower. The defendants did not appear. The Tribunal ordered issuance of a Recovery Certificate for Rs. 20,60,564.07 with reduced interest at 6% p.a. simple. Instructions were given to execute the certificate against joint assets and property.

What did the court decide?

Issuance of Recovery Certificate for Rs. 20,60,564.07 plus interest at 6% p.a. simple. Proceedings against respondents jointly, severally, and personally, including schedule property.

Bank of Baroda (Vijaya Bank) versus Bairaiah Since Dead by… — Execution and Attachment | 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

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Presiding Officer

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OA. No.436/2022

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BETWEEN:

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Bank of Baroda (E- Vijaya Bank) Having head office at Baroda Bhavan, R C Dutt Road, Alkapuri, Vadodara, Gujarath State And interalia Branch Office at Devaldakere, Hassan District, Rep. by its Branch Manager … APPLICANT

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AND:

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Smt. Shanthamma D/o. Bairaiah & W/o. Devaraju, Age: Major, R/at. Kowdalli Village, Anemahal Post, Sakleshpura Taluk, Hassan District – 573134

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Smt. Puttamma D/o. Bairaiah Age: Major, R/at. Hanbal Village, Sakaleshpura Taluk, Hassan District – 573165

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Mrs. Channamma W/o. Late Lingaiah, Aged about 63 years, R/at. Malali Village, Sakaleshpura Taluk, Hassan District – 573134

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OA. No. 436/2022

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Mr. Harish K.L., S/o. Lingaiah Aged about 34 years, R/at. Malali Village, Sakleshpura Taluk, Hassan District-573134

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The defendant No.1 to 4 are the LRs of Late Bairaiah

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All are R/at. Kyamanahalli Village, Hanbal Hobli, Sakleshpur Taluk, Hassan District – 573165

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Mr. Puttaraju S/o. Devaraju Age: Major, Kowdahalli Village, Aanemahal Post, Sakleshpur Taluk, Hassan District - 573134 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sri. 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 section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendants for Rs.20,60,564.07 (Rupees Twenty Lakh Sixty Thousand Five Hundred Sixty Four and Seven Paise only) with further interest thereon from the date of filing the Application till realization from

OA. No. 436/2022

the Defendants.

It is the case of the applicant that, after availing the loan Mr. Bairaiah expired leaving behind defendant Nos. 1 to 4 herein as his legal heirs. The said legal heirs, out of which defendant No.3 and 4 are also Joint guarantors of the loan and mortgagers of the schedule ‘B’ property herein. The deceased borrower Bairaiah had executed a GPA, appointed Mr. Puttaraj K D., i.e., the defendant No.5 herein as his power of attorney holder to act on his behalf and the defendant No.5 offered schedule ‘A’ property as security along with defendant Nos. 3 and 4.

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It is the case of the applicant that, the deceased borrower Bairaiah and defendant Nos.3 to 5 availed secured loan facility of Rs.4,75,000/- on 24.08.2006.

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It is also the case of the applicant that, in view of the above financed credit facilities, the deceased borrower and the defendant Nos.3 to 5 executed necessary loan documents apart from the creation of security interest by way of mortgage over the Schedule properties.

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OA. No. 436/2022

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

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 06.02.2025.

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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 A1 to A19 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the

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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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OA. No. 436/2022

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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, creation of security interest as claimed by the applicant bank and the defaults committed in the account. The liability of the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Taking into consideration the facts that the credit facilities

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was availed for agriculture purpose and also that 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 6.00% (simple).

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OA. No. 436/2022

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Hence in view of the above finding which cover both the

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issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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In the result, OA.No.436/2022 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.20,60,564.07 (Rupees Twenty Lakh Sixty Thousand Five Hundred Sixty Four and Seven Paise only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant No.3 to 5 and defendants Nos. 1 and 2 to the extent of their inheritance of any estate from the deceased borrower Late Bairaiah, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against defendants Nos.3 to 5 jointly, severally and personally and also by proceeding against the schedule property. The schedule property to the OA be the schedule property 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 No.3 to 5 jointly, severally, personally and their other assets are

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OA. No. 436/2022

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liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceeding

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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

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with this Final Order.

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15. 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 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), 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/-

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(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: G V R Phani Kumar, Branch Manager of the applicant bank.

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OA. No. 436/2022

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Exhibits on the part of the Applicant:

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Annexure	Particulars
A1	Loan application dated 01.08.2006
A2	Sanction letter dated 24.08.2006
A3	Loan agreement cum hypothecation deed dated 26.08.2006
A4	Memorandum dated 26.08.2006
A5	Letter of undertaking dated 26.08.2006
A6	Registered mortgage deed dated 26.07.2006 executed bydefendant No.1 and 2
A7	GPA and Registered mortgage deed dated 26.07.2006 executed bydefendant No.3 and 4
A8	Letter of Guarantee dated 26.08.2006
A9	Statement of assets and liabilityfor individual
A10	The copyRC book
A11	AOD dated 06.04.2009
A12	AOD dated 09.02.2012
A13	AOD dated 06.01.2015
A14	AOD dated 28.12.2017
A15	AOD dated 30.03.2019
A16	Notices dates: 28.04.2021 postal acknowledgments
A17	Legal notice dated 13.07.2021
A18	Statement of account of extract in respect of A/c.No.63960600000144
A19	Certificate of the Banker’s Book Evidence Act, 1891(As Amended)

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Sd/- (T. RAJESH) PRESIDING OFFICER

Bank of Baroda (Vijaya Bank) v. Bairaiah Since Dead by His Lrs and Others

Case brief

What is this about?

What did the court decide?

Bank of Baroda (Vijaya Bank) v. Bairaiah Since Dead by His Lrs and Others

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

Coram

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