Allowed

Bank of Baroda v. Madhu Mohan T

DRT6 Jan 2026OA/1449/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a Recovery Certificate against a defaulting borrower for a car loan. The court reduced the interest rate to 8% per annum simple interest and directed recovery from the defendant's assets including the hypothecated vehicle.

What did the court decide?

Recovery Certificate directed to be drawn for Rs. 38,66,146.28 plus further interest @8.00% p.a. (simple) from date of OA till realization, recoverable from defendant's personal assets and hypothecate

Bank of Baroda versus Madhu Mohan T — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 06^th Day of January, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer

¶4

OA.No.1449/2023

¶5

BETWEEN:

¶6

Bank of Baroda, Interalia one of its branch office At Santhepet, Mysuru City, Represented by its Chief Manager.

¶7

…APPLICANT

¶8

AND:

¶9

Mr. Madhu Mohan T, S/o Thangaraju, Aged about 28 years, No. 1428, KRS Road, Santhemalla, Hongahalli, Srirangapatna, Mandya- 570607. ...DEFENDANT

¶10

Counsel on record/appeared for:

¶11

Applicant : Nagaraj Damodar Defendant : Exparte

¶12

FINAL ORDER

¶13

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 defendant for Rs. 38,66,146.28 (Rupees Thirty Eight Lakh Sixty Six Thousand One Hundred Forty Six and Paise Twenty Eight Only) with further interest thereon from the date of filing the Application till realization.

¶14

It is the case of the applicant that the defendant availed Baroda Auto

¶15

OA 1449/2023

¶16

¶17

loan of Rs. 41,25,000/- (Rupees Forty One Lakh Twenty Five Thousand Only) for purchase of new Toyota-Fortuner Sigma4 car.

¶18

It is also the case of the applicant that, in view of the above availed loans, the defendant executed necessary loan documents along with letter of undertaking and instrument to hypothecation of vehicle.

¶19

It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendant failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

¶20

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

¶21

Despite, summons on the defendant, he failed to appear resulting the defendant being set exparte on 11.12.2024.

¶22

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-14 and got the same marked in evidence.

¶23

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.

¶24

The following issues arise for consideration in this matter:

¶25

OA 1449/2023

¶26

¶27

i) Whether the applicant had succeeded in proving the OA claim

¶28

as against the defendant?

¶29

ii) What order are to be passed?

¶30

Both these issues are gone into and decided together.

¶31

The case put forth by the applicant in the Application remains unrebutted as defendant 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 Hypothecation

¶32

and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

¶33

Hence in view of the findings arrived herein above, the Tribunal

¶34

find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

¶35

12. Taking into consideration the facts that the credit facilities are

¶36

availed for Vehicle purchasing 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 8.00% (simple).

¶37

OA 1449/2023

¶38

¶39

In the result, OA.No.1449/2023, stands allowed,

¶40

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

¶41

38,66,146.28 (Rupees Thirty Eight Lakh Sixty Six Thousand One Hundred Forty Six and Paise Twenty Eight Only) with further interest @8.00 % p.a.(simple) from the date of filing OA till the realization, from the defendant 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 the defendant personally and also proceeding against his assets including the hypothecated vehicle. Schedule to the OA be the schedule to the recovery certificate.

¶42

ii) The applicant bank is allowed cost of the proceedings which applicant to file cost memo within 7 days from the date of receipt of the order.

¶43

iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

¶44

iv) Interim application pending, if any, stands disposed of in terms of this final order.

¶45

Communicate a copy of the order to the parties concerned in terms

¶46

of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

OA 1449/2023

Rules, 1993.

[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the

¶51

Open Court, this the 06^th Day of January, 2026].

¶52

Sd/- (T. RAJESH)

¶53

PRESIDING OFFICER

¶54

ANNEXURES

¶55

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶56

AW-1: Naveen Chandra, Chief Manager, of Applicant Bank.

¶57

Exhibits on the part of the Applicant:

¶58

Exhibit Nos.	List of documents
A1	Loan application dated 08.03.2022
A2	Sanction letter dated 15.03.2022
A3	Attestation memo dated 15.03.2022
A4	D.P. Note dated 15.03.2022
A5	Instrument of hypothecation of vehicle dated 15.03.2022
A6	Declaration cum undertaking cum authority dated 15.03.2022
A7	Letter of under dated 15.03.2022
A8	Annexure to LDOC-20 (Instrument to Hypothecation of Vehicle) dated 19.03.2022
A9	The copy of RC
A10	Letter of installment with acceleration clause dated 15.03.2022
A11	Letter of authority to make payment directly to the dealers dated 15.03.2022
A12	Notice dated 12.12.2022 with postal acknowledgement
A13	Statement of account of extract in respect of 89430600002751
A14	Certificate U/s 2A (B) & A(C) of the Banker’s Book Evidence Act, 1981 (as amended)

¶59

Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

¶60

Sd/- (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Madhu Mohan T

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Madhu Mohan T

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

Case details

Similar cases

State Bank of India versus M/S v Mohammed Hussain and Sons Rep by Proprietor Sri.v. Abubnakar Siddiq

Karnataka Grameena Bank versus Smt.Mabubi

Karnataka Grameena Bank versus Sri.Myasara Gangappa

Canara Bank versus Riteway Packaging Private Limited Rep by Its Directors Smt. Dhanalakshmi and Sri.K.Subramani

Karnataka Gramin Bank versus Sri.G. N. Krishnappa

Canara Bank versus Moodalagirigowda