Allowed

Bank of Baroda v. Srikara Bojana

DRT10 Apr 2026OA/121/2023

Case brief

AI extract

What is this about?

The DT allowed the bank's application for recovery of outstanding dues from a proprietor concern and its guarantors. The court upheld the ex-parte proceedings, validated the security interests, and directed the sale of mortgaged property and other assets to satisfy the debt.

What did the court decide?

Recovery of Rs. 1,21,86,581.85p with further interest via sale of mortgaged immovable property and other assets of the defendants.

Bank of Baroda versus Srikara Bojana — Company and Corporate | DRT (2026)

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O.A. No. 121 of 2023

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10.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 10^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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ORIGINAL APPLICATION No. 121 of 2023

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Bank of Baroda Kolathur Branch

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Rep. by its Chief Manager No.198/2, Baba Nagar, 1^st Main Road, Srinivasa Nagar, Villivakkam, Chennai– 600 049. …Applicant

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-Vs-

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M/s. Srikara Bojana (Anna Viruksham) Prop. Mrs.Asha pillai

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No. 20, Rajaji Salai, Chennai -600001.

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Mrs.Asha Pillai, W/o. Manoj Narayanan Flat No-5, Seshadhri Apartments No. 48/14, R-Block, 6^th Main Road Anna Nagar, Chennai -600040.

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Mr.Manoj Narayanan

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Flat No-5, Seshadhri Apartments No. 48/14, R-Block, 6^th Main Road Anna Nagar, Chennai -600040. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S.Pandurangan

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Defendants 1 to 3 were set ex-parte on 07.12.2023

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: - FINAL ORDER- :

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This Original Application is filed on 30.01.2023 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,

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against the defendants 1 to 3, jointly and severally for recovery of

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a total sum of Rs.1,21,86,581.85p (Rupees Crore Twenty One Lakhs

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O.A. No. 121 of 2023

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Eight Six Thousand Five Hundred Eight One and Eight Five Paise

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only) due in respect of credit facilities as follows:

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(i) A sum of Rs.25,12,695/- due in respect of Overdraft Facility (A/c No. 19680400000280), repayable together with further interest @ 10.60% p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(ii) A sum of Rs. 63,05,372/- due in respect of Term loan (A/c No. 19680600007269), repayable together with further interest @ 10.60% p.a., with monthly rests from the date of filing the OA, till date of realization in full;

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(iii) A sum of Rs.44.85p due in respect of Term loan (A/c No.

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19680600007416) repayable together with further interest @ 8.25% p.a., with monthly rests from the date of filing the OA, till date of realization in full;

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(iv) A sum of Rs.14,00,464/- due in respect of BGECL (A/c No.

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19680600007467) repayable together with further interest @ 9.25% p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(v) A sum of Rs.19,68,338/- due in respect of BGECL-II (A/c No.19680600010246) repayable together with further interest @ 9.40% p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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for sale of schedule mentioned immovable property and for costs of

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O.A. No. 121 of 2023

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this OA.

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 is a Proprietary Concern viz; M/s. Srikara Bhojana, represented by the 2^nd defendant as its Proprietrix, who submitted a Loan application seeking Overdraft Facility of Rs.20 Lakhs and Term Loan of Rs.75 Lakhs.

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It is submitted by the applicant bank that considering the request of the 1^st defendant, the applicant bank had sanctioned Overdraft Facility of Rs.20 Lakhs to meet the Working Capital requirements and Term Loan of Rs.75 Lakhs for purchase of various machineries vide sanction letter dated 23.12.2019. The above facilities are admittedly secured inter alia by the personal guarantee of the 3^rd Defendant. The above limits are also secured by the hypothecation of Machineries, Stocks, Book Debts and receivables and by the equitable mortgage of the immovable property mentioned in the Schedule “B” to the OA belonging to the 2^nd Defendant. It is submitted that the above Overdraft limit shall carry interest 0.25% over BRLLR+SP i.e.8.65% p.a. with Monthly Rests. It is also submitted that the above Term Loan is shall carry the interest 0.25% Over BRLLR + SP i.e. 8.65% p.a. with monthly rests. It is also stipulated that the defendants are liable to pay additional interest @2% in case of failure to

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O.A. No. 121 of 2023

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conduct/operate the account in terms of sanction.

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The 1^st defendant availed the above limits after the Defendants executed the following Security Documents in order to evidence and secure the due repayment of the above limits:

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a. Letter of Sole Proprietorship dated24.12.2019.

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b. D.P. Note for Rs.20 Lakhs dated 24.12.2019.

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c. Letter of continuing security dated 24.12.2019.

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d. Letter of undertaking dated 24.12.2019.

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e. Power of Attorney in respect of book debts dated 24.12.2019.

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f. Composite Hypothecation Agreement dated 24.12.2019.

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g. Declaration cum undertaking cum authority dated 24.12.2019.

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h. Letter of Guarantee by D3 dated 24.12.2019.

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i. Declaration in the matter of mortgage by deposit of title deeds dated 24.12.2019 by D2

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j. D.P. Note for Rs.75 Lakhs dated 24.12.2019.

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k. Letter of Installments dated 24.12.2019.

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l. Composite Hypothecation Agreement dated 24.12.2019.

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m. Declaration cum undertaking cum authority dated 24.12.2019.

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It is further submitted that the 1^st defendant requested the applicant vide its Letter dated 20.04.2020 seeking Emergency Demand Loan under BCECL of Rs.2,00,000/- for Working Capital requirements from the Applicant Bank. The Applicant Bank considering the request of the 1^st defendant, sanctioned the Demand Loan under BCECL with a Limit of Rs.2,00,000/- to the defendant vide its Sanction Letter dated

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20.04.2020. The above Demand Loan limit is repayable in 18 Equated Monthly instalments of Rs.11,111.11/- after an initial moratorium period of 6 months and the above limit shall carry the interest @ BRLLR i.e. 7.25% p.a. with monthly rests. The above limit also secured by the existing securities of the 1st defendant. The 1st defendant availed the above limit after the Defendants executed the following Security Documents in order to evidence and secure the due repayment of the above limits.

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a) D.P. Note for Rs.2 Lakhs dated 20.04.2020.

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b) Letter of installments dated 20.04.2020.

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c) Loan cum hypothecation agreement dated 20.04.2020.

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d) Draft Undertaking dated 20.04.2020.

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e) Composite Hypothecation Agreement dated 20.04.2020.

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f) General form of guarantee by D3 dated 20.04.2020

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g) Declaration in the matter of mortgage by deposit of title deeds dated 20.04.2020 by D2.

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It is further submitted that at the request of the 1st defendant, the applicant has sanctioned the Additional Working Capital Term Loan under BGECLS with a Limit of Rs.18,56,000/-to the 1^st defendant vide its Sanction Letter dated 09.06.2020. The above Loan limit is repayable in 36 Equated Monthly Installments of Rs.51,555.55/- after moratorium period of 12 months and the above limit shall carry the interest @ BRLLR+1%7.85% p.a. with monthly rests. The above limit also secured by the existing securities of the 1st defendant.

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The 1st defendant availed the above limit after the Defendants executed the following Security Documents in order to evidence and secure the due payment of the above limits.

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a) D.P. Note for Rs.18.56 Lakhs dated 09.06.2020.

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b) Letter of installments dated 09.06.2020.

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c) Loan cum hypothecation agreement dated 09.06.2020. d) Declaration cum undertaking cum authority dated

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09.06.2020.

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e) General form of guarantee by D3 dated 09.06.2020

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f) Declaration in the matter of mortgage by deposit of title deeds dated 09.06.2020 by D3.

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It is further submitted that at the request of the 1st defendant, the applicant has sanctioned the Additional Working Capital Term Loan under BGECLS with a Limit of Rs.18,56,000/-to the 1^st defendant vide its Sanction Letter dated 24.08.2021. The above Loan limit is repayable in 48 Equated Monthly Installments of Rs.38,666.66and the last installment of Rs.38,666.98 after moratorium period of 24 months and the above limit shall carry the interest @ BRLLR+1%i.e.7.75% p.a. with monthly rests. The above limit also secured by the existing securities of the 1st defendant. It is submitted that the above limit was availed by the 1^st Defendant after execution of the following security documents by the defendants.

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a) D.P. Note for Rs.18.56 Lakhs dated 24.08.2021.

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b) Letter of installments dated 24.08.2021.

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c) Loan cum hypothecation agreement dated 24.08.2021. d) Letter of undertaking to create mortgage dated 24.08.2021.

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The credit facilities are secured by Hypothecation of Machineries, Stocks, Book Debts and receivables and other movables kept at No. 20, Rajaji Salai, Chennai -600001 or wherever they are found. There are no Stocks now since the business is closed at present.

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It is submitted that the 2^nd defendant has created a mortgage by way of deposit of Title Deeds including the Agreement for sale dated 30.11.2008, Construction Agreement dated 30.11.2008 and the Sale Deed dated 24.12.2008 bearing Doc. No. 4404/20108 over the Schedule mentioned property as a security with the applicant bank at Kolathur Branch, Chennai with intention to create a mortgage thereon. It is submitted that the 2nddefendant has executed a Registered Memorandum of Deposit of Title Deeds dated 24.12.2019bearing Doc. No.5759/2019 duly confirming the deposit of title deeds relating to Schedule property as a security in favour of the Applicant. It is also submitted that the 2^nd defendant has executed a Registered Extension of Memorandum of Deposit of Title Deeds dated 10.06.2020 bearing Doc. No.1531/2020 duly confirming the redeposit of title deeds relating to Schedule property as a security for extension mortgage in favour of the Applicant.

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It is submitted that subsequent to availing of aforesaid facilities, the operation of the above accounts were not regular despite several reminders including the reminder dated 16.08.2022. The 1^st defendant failed to operate the above accounts as per the terms of sanction. The

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defendants made false promises for regularising the account but failed to repay the dues. Several meetings held with the defendants did not yield any result. As the account was irregular despite several reminders, the applicant has declared the account as Non-Performing Asset (NPA) as on 02.09.2022 in terms of the guidelines of RBI. This however does not relieve the Defendants from their liability to pay interest by the defendants to the applicant. As the defendants did not make any repayments, the applicant by invoking the provisions of the SARFAESI Act, had issued a Demand Notice dated 07.10.2022 under Section 13(2) of the SARFAESI Act to the defendants through its Authorised Officer. The defendants have failed to repay the outstanding dues within 60 days of the receipt of the above notice. The defendants did not submit any reply/objections to the above demand notice. Further the Authorised Officer has issued possession notice dated 13.12.2022 to the defendants. The applicant bank has issued Legal Notice dated 26.10.2022 demanding the defendants to repay the dues, despite which the defendants did not come forward to repay the dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants

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After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, the summons addressed to D-1 returned as “No such person” and in respect of D-2 and D-3 it was returned as “Unclaimed”. No representation from Defendants. Applicant Bank had caused paper publication of the notice and filed proof

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thereof. When OA was taken up on 07.12.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 07.12.2023

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Heard the submissions of Applicant Bank and perused the record s.

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To prove the case of the Applicant Bank, Mr. Mohan Raja, Chief Manager 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-45 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-45 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 07.12.2023, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank.

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Hence, it can be concluded that applicant bank has proved its claim against defendants.

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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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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.1,21,86,581.85p (Rupees

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Crore Twenty One Lakhs Eight Six Thousand Five Hundred

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Eight One and Eight Five Paise only) due in respect of credit facilities as follows:

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(iii) A sum of Rs.44.85p due in respect of Term loan (A/c No. 19680600007416) repayable together with further

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interest @ 8.25% p.a., with monthly rests from the date of filing the OA, till date of realization in full;

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(iv) A sum of Rs.14,00,464/- due in respect of BGECL (A/c No. 19680600007467) repayable together with further interest @ 9.25% p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(b) 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 mentioned immovable property morefully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable property are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2^nd and 3^rd Defendants (both movable and immovable) to recover the balance dues as required under law for which the 2^nd and 3^rd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd and 3^rd Defendants.

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

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(g) Recovery Certificate shall be drawn up and issued to the 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 10^th day of April, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Mohan Raja, Chief Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	23.12.2019	Sanction Letter for Rs.95 Lakhs	A-1
2.	24.12.2019	Letter of Sole Proprietorship	A-2
3.	24.12.2019	D.P. Note for Over Draft Limit Rs.20 Lakhs	A-3
4.	24.12.2019	Letter of Continuing security	A-4
5.	24.12.2019	Letter of Undertaking	A-5
6.	24.12.2019	Power of attorney in respect of book debts	A-6
7.	24.12.2019	Composite Hypothecation Agreement	A-7
8.	24.12.2019	Declaration cum undertaking cum authority	A-8
9	24.12.2019	General form of Guarantee by D3	A-9
10	24.12.2019	Declaration in the matter of mortgage by deposit of title deeds by D2	A-10
11	24.12.2019	D.P. Note for Term Loan of Rs.75 Lakhs	A11
12	24.12.2019	Letter of instalment with acceleration	A12
13	24.12.2019	Composite Hypothecation Agreement	A13
14	24.12.2019	Declaration cum undertaking cum authority	A14
15	20.04.2020	Request letter of the defendants for sanction of COVID loan of Rs.2 Lakhs	A15
16	20.04.2020	Sanction Letter for Rs.2 Lakhs	A16
17	20.04.2020	D.P. Note for Rs.2 Lakhs	A17
18	20.04.2020	Letter of installment with acceleration	A18
19	20.04.2020	Loan cum hypothecation agreement	A19
20	20.04.2020	Draft Undertaking	A20
21	20.04.2020	Composite Hypothecation Agreement	A21
22	20.04.2020	General form of Guarantee by D3	A22
23	20.04.2020	Declaration in the matter of mortgage by deposit of title deeds by D2	A23
24	09.06.2020	Offer Letter for pre approved loan facility under BGECL of Rs.18.56 Lakhs along with Terms and conditions of sanction	A24
25	09.06.2020	D.P. Note for Rs.18.56 Lakhs	A25
26	09.06.2020	Letter of installment with acceleration	A26
27	09.06.2020	Loan cum hypothecation agreement	A27
28	09.06.2020	Declaration cum undertaking cum authority	A28
29	09.06.2020	General form of Guarantee by D3	A29
30	09.06.2020	Declaration in the matter of mortgage by deposit of title deeds by D231	A30
31	24.08.2021	Sanction letter of Rs.18.56 Lakhs for	A31

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		BGECLS
32	24.08.2021	D.P. Note for Rs.18.56 Lakhs	A32
33	24.08.2021	Letter of installment with acceleration	A33
34	24.08.2021	Loan cum hypothecation agreement	A34
35	24.08.2021	Letter of undertaking to create equitable mortgage (extension)	A35
36	30.11.2008	Agreement for Sale	A36
37	30.11.2008	Construction Agreement	A37
38	24.12.2008	Sale Deed Doc. No.4404/2008 in favour of D2 at SRO, Anna Nagar	A38
39	24.12.2019	Memorandum of deposit of title deeds Doc. No.5759/2019 by D2	A39
40	10.06.2020	Extension of Memorandum of deposit of title deeds Doc. No.1531/2020 by D2	A40
41	16.08.2022	Reminder	A41
42	07.10.2022	Demand Notice	A42
43	13.12.2022	Possession Notice	A43
44	26.10.2022	Legal Notice	A44
45	--	Statement of accounts	A45

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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 OF PROPERTY

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All that piece and parcel of land and residential Flat bearing Flat No.T-1, in Third Floor, rear side in the project of “Seshadhri” measuring an extent of 1450 sq. ft. together with 712.50 undivided share of land out of 5700 sq. Ft. comprised in S. No.80 part, Survey Field No.129, Block No.2, bearing Plot No.3888, Door No.R-14, New Door No.48, 6th Main Road, Aringnar Anna Nagar, Chennai 600 040 situated at Mullam Village, Egmore- NungambakkamTaluk, Chennai District and the land bounded on the:

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North by : Plot No.3887 South by : Plot No.3889 East by : Part of Plot Nos. 3881 and 3880 West by : 48 ft. 6th Main Road

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Flat bounded on the

North by : Open to sky South by : Open to sky East by : Open to sky West by : Staircase and flat no.T-2 (Third floor)

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Within the Registration District of Chennai- Central and Sub Registration District of Anna Nagar, morefully described in the Sale Deed dated 24.12.2008 bearing Doc. No.4404 of 2008 and the Property belonging to D2.

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

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Bank of Baroda v. Srikara Bojana

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Srikara Bojana

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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