Allowed

Bank of Baroda v. Mr.Venkatarathnam

DRT29 May 2026OA/1545/2024

Case brief

AI extract

What is this about?

Dr allowed an original application by a bank seeking a recovery certificate for agricultural loans totaling over Rs.80 lakh. In the defendant's absence, the Tribunal found the evidence admissible and sufficient, granting relief with interest capped at 6% p.a.

What did the court decide?

Allowed recovery of Rs.80,80,609.52 plus interest at 6% p.a. (simple) until realization from the defendants jointly and severally.

Bank of Baroda versus Mr.Venkatarathnam — Banking and Recovery | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.1545/2024

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BETWEEN:

¶5

Bank of Baroda Kollegal Branch, B.No.11-1324, Peace Park Road, Kollegal-571440

¶6

…APPLICANT

¶7

AND:

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Mr. Venkataratham S/o. Late Sathyam R/at:7/1721, Ashraya Badavene Near Lions School, Kollegal Town, Kollegal-571440

¶9

Also at: Modahalli Village, Gundal am Road, Kamagere post, Kollegal Taluk

¶10

Mr. Ramchandra Rao S/o. Late Sathyam R/at:7/1721, Ashraya Badavene Near Lions School, Kollegal Town, Kollegal-571440

¶11

Also at: Modahalli Village, Gundal am Road, Kamagere post, Kollegal Taluk

¶12

Mr. Shreenivasa K S/o. Late Sathyam R/at:7/1721, Ashraya Badavene Near Lions School, Kollegal Town, Kollegal-571440

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Also at: Modahalli Village, Gundal am Road, Kamagere post, Kollegal Taluk ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Skanda Legal 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 for Rs.80,80,609.52 (Rupees eighty lakh eighty thousand six hundred nine and paisa fifty two only) with further interest thereon from the date of filing the Application till realization from the Defendants.

¶18

It is the case of the applicant that the defendants availed the following credit facilities from the applicant bank:I. Crop production Loan of a sum of Rs.36,60,000/- (Rupees thirty six lakh sixty thousand Only),

¶19

II. Tractor loan limit of Rs.8,00,000/- (Rupees Eight lakh Only),

¶20

III. Land Development Loan limit of Rs.23,00,000/- (Rupees twenty three Lakh

¶21

Only)

¶22

IV. Baroda Kisan Tatkal loan limit of Rs.3,00,000/- (Rupees three lakhs only).

¶23

It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with demand promissory note, simple mortgage deed and hypothecation agreement in favor of the applicant bank.

¶24

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

¶25

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.

¶26

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 03.03.2025.

¶27

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-53 and got the same marked in evidence.

¶28

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶29

The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendant?

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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 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 and mortgage as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

¶34

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

¶35

Taking into consideration the facts that the credit facilities are availed by defendants for agriculture produce purpose 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 @6% p.a. (Simple).

¶36

In the result, OA.No.1545/2024, stands allowed,

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

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Rs.80,80,609.52 (Rupees eighty lakh eighty thousand six hundred nine and paisa fifty two only) with further interest @6% p.a. (Simple),

¶39

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 proceedings against the schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

¶40

(ii) If the sale proceeds are not sufficient, the defendants jointly severally and personally and their other assets are liable to be proceeded against for the balance amount.

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iii) 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.

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

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1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 29^th day of May, 2026].

¶47

Sd/ (T. RAJESH) PRESIDING OFFICER

¶48

ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravishankar. D.K, Chief Manager, of Applicant Bank.

¶51

Exhibits on the part of the Applicant:

¶52

LIST OF DOCUMENTS

¶53

Sl No.	DATE	NATURE OF DOCUMENTS	EXHIBIT	PG. No.
	C	rop production loan -2019 40340	500004816
1.	04.06.2019	Loan Application form	A1	53-56
2.	03.06.2019	Sanction letter (Sanction of crop loan production)	A2	57-64
3.	04.06.2019	Demand promissory note to as sum of Rs.36,60,000/-	A3	65
4.	04.06.2019	Composite Hypothecation Agreement covering crop production loan	A4	66-76
5.	17.05.2019	Simple mortgage deed	A5	77-83

¶54

6.	04.06.2019	General form of Guarantee of 2^nd defendant	A6	84-91
7.	04.06.2019	Declaration cum undertaking cum	A7	92-98
		authority letter TRACTOR LOAN FACILITY -2	019
8.	06.06.2019	Loan Application Form	A8	99-102
9.	03.26.2019	Sanction Letter	A9	103-105
10.	11.6.2019	Demand Promissory Note	A10	106
11.	11.6.2019	Composite Hypothecation Agreement,	A11	107-116
12.	17.5.2019	Simple Mortgage Deed	A12	117-124
13.	11.6.2019	General Form of Guarantee of	A13	125-132
		Defendant.
14.	11.06.2019	Declaration cum Undertaking cum Authority letter.	A14	133-142
15.	19.03.2020	RC of Tractor KA 10 ΤΑ 0430	A15	143
		LAND DEVELOPMENT FACILITY	-2019
16.	10.07.2019	Loan Application Form.	A16	144-147
17.	10.07.2019	Sanction Letter.	A17	148-150
18.	10.07.2019	Demand Promissory Note	A18	151
19.	10.07.2019	Composite Hypothecation Agreement,	A19	152-163
20.	17.05.2019	Simple Mortgage Deed	A20	164-170
21.	10.07.2019	General Form of Guarantee of 3^rd Defendant.	A21	171-178

¶55

22.	10.07.2019	Declaration cum Undertaking cum Athit ltt	A22	179-191
		uory eer.
		BARODA KISAN TATKAL LOAN	- 2020
23.	10.6.2020	Application Agricultural Loans. Form for Credit-Term Loans	A23	192-195
24.	10.6.2020	Sanction Letter.	A24	196-197
25.	10.6.2020	Demand Promissory Note	A25	198
26	10.6.2020	Composite Hypothecation Agreement,	A26	199-208
27.	10.6.2020	Simple Mortgage Deed	A27	209-215
28.	12.05.2020	General Form of Guarantee of 3^rd defendant	A28	216-222
29.	10.6.2020	Declaration cum Undertaking cum	A29	223-231
		Authority letter. RECALL NOTICES
30	06.12.2022	Legal Notice to Mr.Sri Venkatarathnam for Rs.36,60,000/- bearing A/c no.40340600004816 (Crop Production Loan)	A38	241-242
31	21.01.2023	Legal Notice to Mr.Sri Venkatarathnam for Rs.7,88,800/- bearing A/c no. 40340600005193( Tractor Loan)	A39	243-244
32	21.01.2023	Legal Notice to Mr.Sri Venkatarathnam for Rs.23,00,000/-A/c bearing no.4034060005041 (Land Development Loan)	A40	245-246
33	21.01.2023	Legal Notice to Mr.Sri Venkatarathnam for Rs.3,00,000/- bearing A/c no.40340600006192 (Baroda Tatkal Loan)	A41	247-248

¶56

ACKNOWLEDGEMENT OF DEBTS

¶57

34	31.12.2021	Letter of Acknowledgment of Debt executed by Sri Venkatarathnam Rs.36,60,000/-for bearing A/c no.40340600004816 (Crop Production Loan)	A42	249
35	31.12.2021	Letter of Acknowledgment of Debt executed by Sri Venkatarathnam for Rs.7,88,800/- bearing A/c no.40340600005193( Tractor Loan)	A43	250-251
36	31.12.2021	Letter of Acknowledgment of Debt executed by Sri Venkatarathnam for Rs.23,00,000/- bearing A/c no.4034060005041( Land Development)	A44	252
37	31.12.2021	Letter of Acknowledgment of Debt executed by Sri Venkatarathnam for Rs.3,00,000/- bearing A/c no.40340600006192( Baroda Tatkal Loan) VOLUME - 2	A45	253-254
38	15.05.2023	Encumbrance certificate of Mr.Venkatarathnam the Survey No.592 for Survey No.593, Survey по.5943, no.552 A3 from 1.4.2018 to 9.5.2023.	A46	255-579
39	27.01.2023	Valuation Report schedule properties Mr. Venkatarathnam	A47	580-587
40	05.06.2023	Statement of Account of 40340500004816 Production loan) (Crop production loan)	A48	588-591
41	05.06.2023	Statement of Account of 40340600005193 (Tractor Loan)	A49	592-597
42	05.06.2023	Statement of Account of 40340600005041 (land Development Loan)	A50	598-602

¶58

43	05.06.2023	Statement of Account 40340600006192 (Baroda Kisan Tatkal Loan)	A51	603-606
44	14.07.2023	Memo of calculation of OA claim	A 52	607
45	14.07.2023	State of claim	A 53	608
46	14.07.2023	Certificate under Bankers Book of Evidence Act	A 54	609-611

¶59

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

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-Nil -

¶61

-Nil -

¶62

Sd/ (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Mr.Venkatarathnam

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Mr.Venkatarathnam

Case brief

What is this about?

What did the court decide?

What the court decided

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