Allowed

Bank of Baroda v. Aarifa Banu

DRT23 Jun 2026OA/185/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Bank of Baroda for recovery of an outstanding education loan of approximately Rs. 24.77 lakhs. The court rejected the ex-parte claim set aside defense and ordered the sale of mortgaged property to recover dues along with future interest and costs.

What did the court decide?

Allowed application for recovery of Rs. 24,77,362.30 plus interest @ 10.20% p.a.; ordered sale of mortgaged property for recovery; granted recovery certificate.

Bank of Baroda versus Aarifa Banu — Banking and Recovery | DRT (2026)

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O.A. No.185 of 2022

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23.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 23^rd day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.185 of 2022

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Bank of Baroda, Dharampuri Branch, 61-G, Santosh Complex, Pennagaram Road, Dharmapuri, Tamilnadu- 636701 Represented by its Branch Manager ….Applicant

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-Vs-

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Ms. Aarifa Banu, D/o G. Riyaz Basha, No.58, Panchayat Office Street, Pennagaram, Pennagaram TK 636810

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Mr. G. Riyaz Basha, S/o Gulam Mustafa, No.58, Panchayat Office Street, Pennagaram, Pennagaram TK 636810

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Mrs. A. Thusavin Banu, W/o G. Riyaz basha,

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No.58, Panchayat Office Street, Pennagaram, Pennagaram TK 636810 …..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 17.10.2022

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: - FINAL ORDER- :

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This Original Application is filed on 24.03.2022 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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O.A. No.185 of 2022

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23.06.2026

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a total sum of Rs.24,77,362.30p (Rupees Twenty Four Lakhs Seventy Seven Thousand Three Hundred and Sixty Two and Thirty Paise only) due in respect of Educational Loan (A/c No.05480600030410) repayable together with further interest @10.20% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this OA.

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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 defendants had approached the applicant bank for availing Education Loan for pursuing MBBS Degree course by the 1^st defendant at Al Ameen Medical College and Hospital, Bijapur and submitted a loan application dated 30.12.2018. The above loan is to be secured by the equitable mortgage over the immovable property belonging to the 3^rd defendant morefully described in schedule to the OA as a security for the due repayment of the above loan to be availed by the defendants.

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It is submitted that considering the request of the defendants, the applicant vide its letter dated 30.12.2015 has sanctioned the Educational Loan of Rs.16,12,000/- for pursuing MBBS degree course by the 1^st

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O.A. No.185 of 2022

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23.06.2026

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defendant, subject to the terms and conditions mentioned in the Sanction Letter. The above loan is repayable in 180 equated monthly instalments and repayment shall commence after completion of moratorium period of 12 months reckoned from the date of completion of the course. The above Education Loan facility shall carry interest @11.70% p.a. at the time of sanction with monthly rests. It is also stipulated that the defendants are liable to pay additional interest @2% in case of failure to conduct/ operate the account in terms of sanction. The defendants availed the above loan after the defendants executed the Articles of Agreement dated 31.12.2015 in order to evidence and secure the due payment of the above limit.

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It is submitted that the above limit is also collaterally secured by the equitable mortgage of the schedule property belonging to the 3^rd defendant. The 3^rd defendant had deposited the title deeds inter alia, the Gift Deed dated 12.06.1998 and Rectification of Gift Deed dated 23.11.2015 with the bank on 30.12.2015 at Dharmapuri with an intention to create a mortgage over the schedule property as a security. The 3^rd defendant executed Memorandum duly confirming the deposit of title deeds on 30.12.2015. The 3^rd defendant had also executed a registered Memorandum of Deposit of Title Deeds dated 31.12.2015 bearing Doc.No.4553/2015 at SRO, Pennagaram.

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It is further submitted that the 1^st defendant had completed her degree course but the defendants have failed to repay the dues in the account in terms of sanction. Despite follow up by the applicant bank, the

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O.A. No.185 of 2022

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defendants have failed and neglected to repay the dues.

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It is submitted that the repayment of the above account was not satisfactory despite several reminders and recall notice. The applicant also issued Legal Notice dated 08.03.2022 but there was no response. As the account was irregular, the applicant has declared the account as NonPerforming Asset (NPA) as on 07.03.2022. This however does not relieve the defendants from their liability to pay interest by the defendants to the applicant. The applicant, by invoking the provisions of the SARFAESI Act, through its Authorised Officer, had issued Demand Notice dated 09.03.2022 under Section 13(2) of the SARFAESI Act to the defendants, calling upon them to repay the dues within 60 days of the receipt of the above notice. As defendants did not come forward to repay the dues, 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, which was returned with remarks “Unclaimed” in respect of D-1 to D-3. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 17.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 17.10.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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O.A. No.185 of 2022

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23.06.2026

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To prove the case of the Applicant Bank, Sh. Dharmalingam, 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-13.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-13 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 17.10.2022 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

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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. 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.A. No.185 of 2022

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: O R D E R :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, for recovery of a total sum of Rs.24,77,362.30p (Rupees Twenty Four Lakhs Seventy Seven Thousand Three Hundred and Sixty Two and Thirty Paise only) due in respect of Educational Loan (A/c No.05480600030410) repayable together with further interest @10.20% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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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 schedule mentioned immovable property morefully detailed in the OA schedule.

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

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O.A. No.185 of 2022

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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 23^rd day of June, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Dharmalingam, 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.	30.12.2015	Loan application	A-1
2.	30.12.2015	Sanction letter	A-2
3.	30.12.2015	Articles of agreement	A-3
4.	12.06.1998	Gift deed bearing Doc.No.730/1998 in favour of 3^rddefendant	A-4

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O.A. No.185 of 2022

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5.	23.11.2015	Rectification of gift deed bearing Doc.No.4137/2015 in favour of the 3^rd defendant	A-5
6.	30.12.2015	Memorandum of deposit of title deeds	A-6
7.	31.12.2015	Regd. Memorandum of deposit of title deeds bearing Doc.No.4553/2015	A-7
8.	04.03.2022	Reminder	A-8
9.	29.06.2018	Acknowledgement of liability	A-9
10.	30.03.2019	Acknowledgement of liability	A-10
11.	08.03.2022	Legal notice	A-11
12.	09.03.2022	Demand notice	A-12
13.	-	Statement of account	A-13

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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 measuring an extent of 1565sq.ft comprised in Survey No.44/6D, Situated at ward no.9, Mazeeth koil street, Pennagaram village, Pennagaram taluk, Dharmapuri district and bounded on the

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North by: Chettiar remaining land

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South by: Chinnapallathur Madhu Gounder plot

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East by: 10 feet common road

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West by: Pandarinatha Chetty Road

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Admeasuring:

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East to west on the northern side: 30 feet

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East to west on the southern side: 28 ½ feet

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South to north on the eastern side: 54 feet

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South to north on the western side: 53 feet

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O.A. No.185 of 2022

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Lying within the Sub Registration District of Pennagaram and Registration District of Dharmapuri morefully described in the Gift Deed dated 12.06.1998 bearing Doc. No.730/1998 & Rectification Deed dated 23.11.2015 bearing Doc.No.4137/2015 in favour of 3^rd defendant.

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

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Uploaded on 23.06.2026 at 13:20 hours

Bank of Baroda v. Aarifa Banu

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Aarifa Banu

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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