Allowed

Bank of Baroda v. Krishnan

DRT23 Jun 2025TA/1167/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Bank of Baroda against two borrowers for outstanding loans. After part satisfaction via SARFAESI sale, the Court directed recovery of the balance amount with interest and made the conditional attachment absolute.

What did the court decide?

Allowed recovery of Rs. 39,87,028.11p with interest at 11% p.a., ordered sale of assets if due not paid, and made conditional attachment absolute.

Bank of Baroda versus Krishnan — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1167 of 2023

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23.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 23^rd day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1167 of 2023

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(Originally filed before DRT- II, Chennai as OA 289/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1167 of 2023)

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Bank of Baroda, Chennai Main Branch, J.C. House, New No. 70, Old No. 28, Rajaji Salai, Chennai – 600 026. Rep. by Chief Manager, Rosarb, No. 10, C.P. Ramasamy Road, Alwarpet, Chennai – 600 018

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.….Applicant

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-Vs-

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Mr. Krishnan Marimuthu,

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*S/o. Marimuthu,

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Now residing at G-1, Ground Floor,

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Lakshmi Homes, Plot No. 522,

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Arul Nagar, No. 12, Veerama Munivar Road, Urappakkam, Nandhivaram Village, Chengalpattu District.

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* (Amended vide order in IA No.1511/24 dated 27.02.2025)

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Mr. R. Gurunathan, S/o. Ramapalaniyappan, No.3/131, Mogappair West,

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Chennai – 600 037. ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. R. Kumararaja Defendants 1 & 2 were set ex-parte on 06.04.2022

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T.A. No. 1167 of 2023

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23.06.2025

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: - FINAL ORDER - :

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This Original Application is filed on 06.03.2020 by the Applicant Bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 & 2 jointly and severally for recovery of a total sum of Rs.39,87,028.11p (Rupees Thirty Nine Lakhs Eighty Seven Thousand and Twenty Eight and Eleven Paise only) as follows:

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(i) A sum of Rs.29,88,133.26p due in respect of Baroda Home

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Loan (Account No.05290600001426) together with further interest @ 11% p.a., with monthly rests from the date of Application till the date of realization in full;

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(j) (ii) A sum of Rs.9,98,894.85p due in respect of Baroda Auto Loan Limit (Account No.05290600001479) together with further interest @ 11% p.a., with monthly rests from the date of Application till the date of realization in full;

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for sale of scheduled mentioned immovable property and hypothecated movables and for costs of this Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned O.A No.289 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.289 of

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T.A. No. 1167 of 2023

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23.06.2025

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2020 stood transferred to this Tribunal and renumbered as TA No.1167 of 2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the applicant bank that the 1^st defendant applied for sanctioning of credit facilities with the Applicant's Chennai Main Branch by way of Term Loan under Baroda Home Loan for purchase of the Flat (Schedule A property).

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It is submitted by applicant bank that considering the said request, vide Letter of Sanction dated 24.05.2014, Applicant's Chennai Main Branch has sanctioned a Loan Limit of Rs.24,10,000/. The Letter of Sanction was communicated to the Defendants 1 and 2, who acknowledged the terms and conditions of the said sanction in writing under their signatures. The 1^st Defendant availed the said Baroda Home Loan as evident from the Statement of Accounts relating to the said loan.

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The Applicant submitted that to secure the said sanctioned limit, the Defendants 1 and 2 have executed the following security loan documents, viz.

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T.A. No. 1167 of 2023

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23.06.2025

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(a) A Loan Agreement for Individual/s (Housing Loan) executed by the 1^st Defendant on 24.05.2014 for a sum of Rs. 24,10,000/- in favour of the Applicant's Chennai Main Branch together with interest thereon at the rate of 0.00% over the present Base Rate of the Bank at 10.25% per annum with monthly rests.

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(b) a Letter of Instalment with Acceleration Clause executed by the 1^st Defendant on 24.05.2014 in favour of the Applicant's Chennai Main Branch agreeing to repay the said loan of Rs.24,10,000/- together with interest in 177 equal monthly instalment of payment at Rs.26,457/- commencing from 24.09.2014 and in the event of default of any one of the instalment or interest he also agreed to pay an additional interest of 2% per annum.

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(c) a General Form of Guarantee executed by the 2^nd Defendant on 24.05.2014 in favour of the Applicant's Chennai Main Branch duly guaranteeing the repayment of the said Baroda Home Loan availed/to be availed by the 1^st Defendant.

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(d) a Declaration cum Undertaking cum Authority executed by the Defendants 1 and 2 on 24.05.2014 in favour of the Applicant's Chennai Main Branch agreeing to abide by the terms and conditions there under

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T.A. No. 1167 of 2023

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23.06.2025

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(e) a Letter of Undertaking to create mortgage executed by the 1^st Defendant on 24.05.2014 in favour of the Applicant's Chennai Main Branch.

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The Applicant submits that the 1^st Defendant has executed a Letter of Acknowledgment of Debt on 07.03.2017 duly admitting and acknowledging the outstanding liabilities as on 06.03.2017. The General Form of Guarantee dated 24.05.2014 executed by the 2^nd Defendant shall be a continuing guarantee till the loan availed by the 1^st Defendant is fully liquidated and hence any Acknowledgment of Debt in writing by the 1^st Defendant is also binding on the 2^nd Defendant.

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It is submitted by the applicant bank that the 1^st defendant applied for sanctioning of credit facilities with the Applicant's Chennai Main Branch by way of Term Loan under Baroda Auto Loan for purchase of the Honda Mobilio VMT Car (Schedule B property).

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Applicant Bank submitted that considering the said request, vide Letter of Sanction dated 23.12.2014, the Applicant's Chennai Main Branch has sanctioned a Loan Limit of Rs 10,44,000/-. The Letter of Sanction was communicated to the Defendants 1 and 2 who acknowledged the terms and conditions of the said sanction in writing under their signatures. The

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1^st defendant availed the said Baroda Auto Loan as evident from the Statement of Accounts relating to the said loan.

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T.A. No. 1167 of 2023

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23.06.2025

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The Applicant submits that to secure the said sanctioned limit, the Defendants 1 and 2 have executed the following security loan documents, viz.

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(a) A Demand Promissory Note executed by the 1^st defendant on 29.01.2015 for a sum of Rs.10,44,000/ in favour of the Applicant's Chennai Main Branch promising to repay the said sum on demand either to the Applicant or its order together with interest thereon at the rate of 0.00% over the present Base Rate of the Bank at 10.25% per annum with monthly rests.

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(b) A Letter of Instalment with Acceleration Clause executed by the 1st defendant on 29.01.2015 in favour of the Applicant's Chennai Main Branch agreeing to repay the said loan of Rs.10,44,000/ together with interest in 84 equal monthly instalment of payment at Rs.17,467/- commencing from February 2015 and in the event of default of any one of the instalment or interest he also agreed to pay an additional interest of 2% per annum.

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(c) An Instrument of Hypothecation of Vehicle executed by the 1^st defendant in favour of the Applicant's Chennai Main Branch on 29.01.2015 by duly hypothecating the said vehicle.

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(d) An Irrevocable Power of Attorney executed by the 1^st

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T.A. No. 1167 of 2023

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23.06.2025

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defendant in favour of the Applicant's Chennai Main Branch on 29.01.2015.

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(e) A General Form of Guarantee executed by the 2^nd defendant on 29.01.2015 in favour of the Applicant's Chennai Main Branch duly guaranteeing the repayment of the said Baroda Auto Loan availed/to be availed by the 1^st defendant.

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(f) A Declaration cum Undertaking cum Authority executed by the defendants 1 and 2 on 29.01.2015 in favour of the Applicant's Chennai Main Branch agreeing to abide by the terms and conditions thereunder.

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(g) A Letter of Authority to make payment directly to the Dealers executed by the 1^st defendant on 29.01.2015 in favour of the Applicant's Chennai Main Branch and as such the Applicant has issued Banker's Cheque in favour of Dealer.

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The Applicant submits that the 1^st defendant has executed a Letter of Acknowledgment of Debt on 07.03.2017 duly admitting and acknowledging the outstanding liabilities as on 06.03.2017. The General Form of Guarantee dated 29.01.2015 executed by the 2^nd defendant shall be a continuing guarantee till the loan availed by the 1^st defendant is fully liquidated and hence any Acknowledgment of Debt in writing by the Defendant is also binding on the 2^nd defendant.

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T.A. No. 1167 of 2023

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23.06.2025

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It is submitted by the applicant bank that subsequent to availing of credit facilities, the 1^st defendant had failed to operate the loan account as agreed to and committed default. The 1^st defendant has not chosen to regularize the loan account inspite of several repeated demands made by the Applicant. Hence the Baroda Home Loan Account as well as the Baroda Auto Loan Account have been declared/Classified as NonPerforming Asset (NPA) on 30.09.2017 as per RBI guidelines.

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The Applicant submits that the defendants 1 and 2 have not come forward to regularize the loan account in spite of several repeated demands made by the Applicant's Chennai Main Branch. The Applicant's Authorized Officer finally issued a Demand Notice dated 03.10.2017 under Section 13(2) of the SARFAESI Act and called on the Defendants to settle the dues within 60 days, but they have failed. The Applicant's Authorized Officer again proceeded under the said Act by issuing Possession Notice dated 16.04.2018 under Section 13(4) and took symbolic possession of the Schedule A property. As defendants did not come forward to repay the dues, the present Original Application (OA) has been filed for recovery of amounts due from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 & 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘no such person’. Applicant Bank

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T.A. No. 1167 of 2023

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23.06.2025

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had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants were placed ex-parte on 06.04.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sh. R. Krishnan, Chief Manager, ROSARB of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-20 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.20,50,000/- by way of sale of Schedule A immovable property under SARFAESI Act on 24.06.2021. Accordingly, part satisfaction of sum of Rs.20,50,000/- is duly recorded vide order dated 27.08.2024.

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During the pendency of OA, applicant bank had moved IA No.1512/24 praying to direct the 1^st defendant to furnish security to the tune of claim made in OA (less Rs.20,50,000/- realised by way of

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T.A. No. 1167 of 2023

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23.06.2025

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SARFAESI Sale), failing which to pass an order of Attachment Before Judgment in respect of the IA schedule mentioned property belonging to first defendant. IA was allowed vide order dated 27.02.2025 and show cause notice was issued to 1^st defendant to show cause as to why he should not furnish security for the OA claim in sum of Rs.39,87,028.11p (less Rs.20,50,000/- realised by way of SARFAESI Sale), within 10 days from receipt of the order, failing which to attach the schedule mentioned immovable property to answer the OA claim. Meanwhile, conditional attachment of the schedule mentioned property was ordered to secure the dues of the applicant bank.

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With regard to the amount advanced, the interest applied the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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19. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 & 2 Rs.39,87,028.11p (Rupees Thirty Nine Lakhs Eighty

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Seven Thousand and Twenty Eight and Eleven Paise only) as follows:

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(i) A sum of Rs.29,88,133.26p due in respect of Baroda

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T.A. No. 1167 of 2023

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23.06.2025

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Home Loan (Account No.05290600001426) together with further interest @ 11% p.a., with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.9,98,894.85p due in respect of Baroda

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Auto Loan Limit (Account No.05290600001479) together with further interest @ 11% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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(b) The sum of Rs.20,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(d) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the OA schedule B mentioned hypotheca and immovable property morefully detailed in the IA No.1512/24 schedule.

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(e) Schedule B mentioned hypothca and immovable property mentioned in schedule to IA No.1512/24 shall be appended to this final order.

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(f) If the sale proceeds of the hypothecated assets and immovable properties are not sufficient to satisfy the dues as

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T.A. No. 1167 of 2023

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23.06.2025

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ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) to recover the balance dues as required under law for which the defendants to disclose to the Tribunal particulars of other properties or assets owned by the defendants;

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(g) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by defendants to the applicant bank.

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(h) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(i) Recovery Certificate shall be drawn up and issued to the

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Recovery Officer in terms of the final order.

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A copy of this order be communicated to the parties concerned.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 23^rd day of June, 2025)

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T.A. No. 1167 of 2023

23.06.2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. R. Krishnan, Chief Manager, ROSARB of the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	24.05.2014	Letter of sanction (Baroda Home Loan)	A-1
2.	24.05.2014	Loan Agreement for Individual Housing Loan for Rs. 24,10,000/- by D-1	A-2
3.	24.05.2014	Letter of Instalment with Acceleration Clause by D-1	A-3
4.	24.05.2014	General Form of Guarantee by D-2	A-4
5.	24.05.2014	Declaration cum Undertaking cum Authority by D-1 & D-2.	A-5
6.	24.05.2014	Letter of Undertaking by D-1	A-6
7.	07.03.2017	Letter of Acknowledgement of Debt by D-1 for Baroda Home Loan Account	A-7
8.	23.12.2014	Letter of Sanction (Baroda Auto Loan)	A-8
9.	29.01.2015	Demand Promissory Note for Rs. 10,44,000/-by D-1	A-9
10.	29.01.2015	Letter of Instalment with Acceleration Clause by D-1	A-10
11.	29.01.2015	Instrument of Hypothecation of Vehicle by D-1	A-11
12.	29.01.2015	Irrevocable Power of Attorney by D-1	A-12
13.	29.01.2015	General Form of Guarantee by D-2	A-13
14.	29.01.2015	Declaration cum Undertaking cum Authority by D1 & D2	A-14
15.	29.01.2015	Letter of Authority to make payment directly to the Dealer by D-1	A-15
16.	07.03.2017	Letter of Acknowledgement of Debt by D-1 for Baroda Auto Loan Account	A-16

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T.A. No. 1167 of 2023

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23.06.2025

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17.	14.07.2021	Registered Schedule auction pur / 2021 Authenticat	Sale Deed in A property in chaser Docume SRO, Guduv ed Online copy	respect of favour of nt No.8761 ancheri –	A-17
18.	27.03.2015	Certificate 55 AL 3044	of Registration (Xerox)	for car TN	A-18
19.		Statement Home Loan	of Accounts Account	of Baroda	A-19
20.		Statement Home Loan	of Accounts Account	of Baroda	A-20

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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:-SCHEDULE - B:-

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(Hypothecated Movable)

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TN 55 AL 3044 Honda Mobilio Diesel Vehicle LM Car as per

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Certificate of Registration issued by Assistant Registering Authority RTO, Pudukottai dated 27.03.2015 and Certificate valid from 27.03.2015 to 26.03.2029.

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:-SCHEDULE in IA No.1512/24:- (Immovable Property)

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Pudukottai District, Pudukottai Registration District, Karambakkudi Taluk, Karambakkudi Sub Registration District, Vandanviduthi Viallage.

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In Patta No. 161:

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New Survey No. 152/2 Punjai Ares (out of 0.23.5) Middle Portion 0.03.0 Ares with the following boundaries:

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T.A. No. 1167 of 2023

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23.06.2025

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East by : Remaining Property of Krishnan West by : Periyammal’s Punjai North by : Selvarani’s Punjai South by : Saroja’s Punjai

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New Survey No. 159/8 Punjai Ares (out of 0.82.5) North East Portion 0.05.50 Ares with the following boundaries:

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East by : Vari Poramboke West by : Periyammal’s Punjai North by : Remaining Property of Krishnan South by : Periyammal’s Punjai

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New Survey No. 147/2 Punjai Ares (out of 0.54.0) Middle Portion 0.05.50 Ares with the following boundaries:

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East by : Krishnan Suriyar Punjai West by : Varathu Vari North by : Periyammal’s Punjai South by : Krishnan Punjai

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Patta No. 1168:

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New Survey No. 152/7 Punjai Ares (out of 0.55.0) Western Portion 0.24.50 Ares with the following boundaries:

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East by : Krishnan Punjai West by : Punjai belonging to Arumugham Vandayar and Chellayya Vadayar

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North by : Muthusamy Servai’s Punjai South by : Marimuthu Vandayar Punjai

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T.A. No. 1167 of 2023

23.06.2025

Natham Patta No. 46:

New Survey No. 162/6 A Manai ares (out of 0.15.31) Square Meter 513, with the following boundaries:

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East by	:	Periyammal
West by	:	Cement Road
North by	:	Cement Road
South by	:	Marimuthu

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Within this portion, a Tarsu House measuring 1071 Sq.ft. Equivalent to 100 Sq. mt. bearing Door No. 316, Electric Service Connection No. 06156-002-214.

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New Survey	No.	162/6 B Punjai ares (out of 0.13.69) Square Meter 166,
with the foll	owin	g boundaries:
East by	:	Periyammal
West by	:	Cement Road
North by	:	Marimuthu
South by	:	Krishnan Suriyar

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As per Registered Settlement Deed dated 30.08.2023 above properties are valued at Rs. 15,73,400/- (Rupees Fifteen Lakhs Seventy Three Thousand Four Hundred only).

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Bank of Baroda v. Krishnan

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Krishnan

Case brief

What is this about?

What did the court decide?

What the court decided

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