Allowed

Bank of Baroda v. Sri Gowri Cashews

DRT31 Jul 2026OA/1078/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application seeking a Recovery Certificate from two corporate/individual defendants. Since respondents were absent, the Tribunal found the bank's evidence uncontroverted, awarded reduced interest at 10%, and directed recovery from properties and assets.

What did the court decide?

Recovery Certificate issued for Rs. 10.44 Cr with interest at 10% p.a., realizable from defendants' schedule properties and assets jointly, severally and personally.

Bank of Baroda versus Sri Gowri Cashews — Banking and Recovery | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1078/2023

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BETWEEN:

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Bank of Baroda Ardi Branch, Kundapura Taluk, Udupi-576212. Represented by its Branch Manager, Sappidi Chinni Babu.

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…APPLICANT

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AND:

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M/s Sri Gowri Cashews, Represented by its Propritor, K Mohandas Hegde, S/o Late K.S. Hegde Aged about 59 years, Office Adress at: 242/3, Mandi Moorkai, Shedimane Road, Shedimane, Karnataka-576245.

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Also at:

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No. K. H. 14670 Kudrubeedu, Shedimane, Kundapura Taluk, Udupi District, Karnataka-576212.

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Mr. Jayadeva Hegde, S/o Late K Sadananda Hegde, Aged about 61 years, Residing at: Survey No. 116/3, Shedimane Village,

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2 1078/2023

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Kudrubeedu, Shedimane, Kundapura Taluk, Udupi District, Karnataka-576212. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Rajitha T.O 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 Recovery Certificate against the defendants for Rs. 10,44,96,040.51/(Rupees Ten Crore Forty Four Lakh Ninety Six Thousand Forty and Paise Fifty One 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 defendants availed the following credit facilities from the applicant bank:-

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I. Baroda Covid Emergency Credit Line (BCECL) of a sum of Rs. 1,00,00,000/- (Rupees One Crore Only) on 24.06.2020.

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II. Working Capital Term Loan (WCTL) of sum of Rs. 5,05,00,000/(Rupees Five Crore Five Lakh Only) on 30.03.2021.

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III. Baroda Covid Emergency Credit Line (BCECL) of sum of Rs. 3,30,00,000/- (Rupees Three Crore Thirty Lakh Only) on 10.03.2022.

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IV. Cash Credit of sum of Rs. 1,65,00,000/- (Rupees One Crore Sixty Five Lakh Only) on 30.03.2022.

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3 1078/2023

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Loan Cum Hypothecation Agreement, General Form of Guarantee, Letter of Confirmation of mortgage.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account 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 account.

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 23.02.2026.

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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-38 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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4 1078/2023

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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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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 Mortgage and hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of 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 was

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availed for Business 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 10.00% (simple).

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In the result, OA.No.1078/2023, stands allowed,

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5 1078/2023

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

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10,44,96,040.51/- (Rupees Ten Crore Forty Four Lakh Ninety Six Thousand Forty and Paise Fifty One Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally and personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties 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 the

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

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iii) 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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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, 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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6 1078/2023

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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 (DV), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July, 2026].

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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: Boddepalli Harish, Branch Manager of the applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	24.06.2020	Sanction Letter
A2	24.06.2020	D.P. Note
A3	24.06.2020	Loan Cum Hypothecation Agreement
A4	24.06.2020	General Form of Guarantee
A5	24.06.2020	Letter of Confirmation of Mortgage
A6	24.06.2020	Extension of Mortgage by deposit of Title Deeds
A7	24.06.2020	Letter of Undertaking from Borrower
A8	24.06.2020	Memorandum of Entry
A9	17.07.2020	Instrument of Construction of Re- Memorandum of deposit of Title Deeds
A10	30.03.2021	Sanction Letter
A11	30.03.2021	D.P. Note
A12	30.03.2021	General Form of Guarantee
A13	30.03.2021	Letter of Confirmation by Guarantor
A14	30.03.2021	Modification Deed
A15	10.03.2022	Sanction Letter
A16	10.03.2022	D.P. Note

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7 1078/2023

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A17	10.03.2022	D.P. Note
A18	10.03.2022	Declaration cum Undertaking cum Authority
A19	10.03.2022	Composite Hypothecation Agreement
A20	10.03.2022	General Form of Guarantee
A21	10.03.2022	Memorandum of Entry
A22	10.03.2022	Letter of Confirmation of Mortgage
A23	10.03.2022	Declaration of Mortgage by Deposit of Title Deeds in Respect of Immovables
A24	10.03.2022	Letter of Undertaking Form Borrower
A25	18.03.2022	Second Extension of Mortgage by deposit of Title Deeds
A26	28.03.2022	Application Form
A27	30.03.2022	Sanction Letter
A28	30.03.2022	D.P. Note
A29	30.03.2022	Letter of Continuing Security
A30	30.03.2022	Declaration Cum Undertaking Cum Authority
A31	30.03.2022	General Form of Guarantee
A32	30.03.2022	Composite Hypothecation
A33	03.05.2023	Demand Notice and Acknowledgement Dues
A34	--	Statement of Account of A/c No. 81930600000718
A35	--	Statement of Account of A/c No. 81930600002041
A36	--	Statement of Account of A/c No. 81930600003161
A37	--	Statement of Account of A/c No. 81930600000016
A38	--	Banker’s Certificate

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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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Sd/- (T. RAJESH) PRESIDING OFFICER

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8 1078/2023

Bank of Baroda v. Sri Gowri Cashews

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Sri Gowri Cashews

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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