The DRT allowed the bank's Original Application for a Recovery Certificate against defaulting borrowers and guarantors in a term loan dispute, reducing interest to 8% p.a. and directing execution against schedule properties.
Recovery Certificate issued for Rs.32.15 lakh plus current and future interest @ 8% p.a., executable against schedule properties; costs allowed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 31th Day of July 2026
Present: Sri. T. RAJESH Presiding Officer
OA. No.1179/2023
BETWEEN:
Bank of Baroda Ramanagara, M.G. Road, Opp: Kannika Mahal, Ramanagara-562159
… APPLICANT
AND:
No.156/1118/01, 6th Cross,
Also At:
No.25/12/275, 5th Cross, Manjunatha Nagar, Jalamangala Road, Ramanagara-562159.
2 OA No.1179/2023
Counsel on record/appeared for:
Applicant : Mr.Prakash Hegde.K Defendant : Exparte
: FINAL ORDER:
3 OA No.1179/2023
Hundred Three and Paisa Forty-Four Only) with further interest thereon from the date of filing the Application till realization from the Defendants.
4 OA No.1179/2023
i) Whether the applicant had succeeded in proving the OA claim as against the defendants?
5 OA No.1179/2023
ii) What order are to be passed?
Both these issues are gone into and decided together.
Taking into consideration the facts that the credit facility was 14. availed for Term Loan 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 8.00% p.a.(simple).
6 OA No.1179/2023
i) The applicant is allowed to recover an aggregate sum
of Rs.32,15,903.44/- (Rupees Thirty-Two Lakhs Fifteen Thousand Nine Hundred Three and Paisa Forty-Four Only) in the following manner:
a) The Defendants No.1 to 6 are jointly and severally liable to pay a sum of Rs.20,95,671.49/- (Rupees Twenty Lakhs Ninety-Five Thousand Six Hundred Seventy-One and Forty-Nine Paisa Only) along with interest rate @ 8% p.a together with current and future interest from the date of the application till realization, due as Term Loan.
b) The Defendants No.1,2,5 and 6 jointly and severally liable to pay a sum of Rs.11,20,231.06/- (Rupees Eleven Lakhs Twenty Thousand Two Hundred Thirty One and Ninety Five Paisa only) along with interest rate @ 8% p.a together with current and future interest from the date of the application till realization, due as Term Loan, from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA if any, and allowed the same to be recovered by proceeding against the schedule properties. The schedule property to the OA be the schedule property to the Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants and their
other assets are liable for all such amounts due in loan accounts.
iii) The applicant bank is allowed cost of the proceeding which
applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order and
transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of with
this Final Order.
16. Communicate a copy of the order to the parties concerned in terms
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (GS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31st Day of July 2026].
8 OA No.1179/2023
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Sri. Jayadeep Kumar, Senior Branch Manager of the applicant bank.
Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents | Exhibit Number |
|---|---|---|
| 1. | Loan Application dated 9.10.2012 | A1 |
| 2. | Sanction Letter dated 11.10.2012 | A2 |
| 3. | Hypothecation Agreement dated 18.10.2012 | A3 |
| 4. | Articles of Agreement dated 18.10.2012 | A4 |
| 5. | Letter of Guarantee Dated 18.10.2012 | A5 |
| 6. | Memorandum of Deposit to Title Deed dated 12.10.2012 |
A6 |
| Statement of Accounts in Loan Account |
||
| 7. | No.118009041000083 migrated A/c No.67380600000556 |
A7 |
| 8. | Legal Notice dated 02.05.2023 | A8 |
| 9. | Postal Receipts | A9 |
Sd/(T. RAJESH) PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed?
3 provisions across 2 enactments
Bank of Baroda Ramanagara
M/s.Sun Creation and Others
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
