Allowed

Bank of Baroda v. Bhargavi C R

DRT31 Jul 2026OA/1955/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Bank of Baroda for issuance of a Recovery Certificate against a defendant who defaulted on an auto loan. The defendant appeared exparte. The tribunal reduced the interest rate to 8% p.a. and ordered the bank to recover the principal with post-filing interest at 6% p.a.

What did the court decide?

Recovery of Rs. 20,24,062/- with 6% p.a. interest from filing date and subsequent execution against personal assets.

Bank of Baroda versus Bhargavi C R — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1955/2024

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BETWEEN:

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Bank of Baroda Branch office at City Market Bengaluru City Rep.by its Chief Manager … APPLICANT

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AND:

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Smt. Bhargavi C R W/o. Ranganath N Age: Major, No.51/3, Bhageerathi, 10th Main, 17^th Cross, Malleshwaram VTC, Near Bun World, Bengaluru-560003 ...DEFENDANT

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Counsel on record/appeared for:

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Applicant : Sri. Nagaraj Damodar Defendant : 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 for seeking issuance of Recovery Certificate against the defendant for Rs.20,24,062/- (Rupees Twenty Lakh Twenty Four Thousand and Sixty Two only) with further interest thereon from the date of filing the Application till realization from the Defendant.

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OA. No.1955/2024

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It is the case of the applicant that, the defendant availed the Baroda Auto loan of Rs.23,47,563/- for purchase of new TATA Harrier XZA+ Car.

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It is also the case of the applicant that, in view of the above financed credit facility, the defendant executed necessary loan documents.

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

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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.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 27.11.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A1 to A10 and got the same marked in evidence. 8. Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary

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OA. No.1955/2024

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evidence and proof affidavit.

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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

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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 security interest as claimed by the applicant bank and the defaults committed in the account. 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.

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Hence in view of the above findings which cover both the issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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OA. No.1955/2024

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Taking into consideration the facts that the credit facility

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was availed for vehicle purchase 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 of 8.00% p.a.(simple).

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In the result, OA.No.1955/2024 stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.20,24,062/- (Rupees Twenty Lakh Twenty Four Thousand and Sixty Two only) with further interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA.

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ii) In the event of failure of the defendant to pay the aforesaid amount, the bank is at liberty to proceed against the defendant personally and his other assets are liable for all such amounts due under the loan account.

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iii) The applicant bank is allowed cost of the proceeding

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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OA. No.1955/2024

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iv) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of

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with this Final Order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of

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DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 31^st Day of July 2026].

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri. Nagesha G, Chief Manager of the applicant bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit Number
1	Loan application dated 31.08.2021	A1
2	Sanction letter dated 03.09.2021	A2
3	D.P. Note dated 03.09.2021	A3
4	Instrument of Hypothecation of Vehicle dated 03.09.2021	A4
5	Declaration-cum-undertakings-cum-authority dated 03.09.2021	A5

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OA. No.1955/2024

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6	B Register Extract	A6
7	Letter of installment with acceleration clause dated 03.09.2021	A7
8	The copy of notice dated 12.12.2023 and returned RPAD covers	A8
9	Statement of account of extract	A9
10	Certificate U/s. 2A (B) & (C) of the Banker’s Book Evidence Act, 1891 (as Amended)	A10

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Bhargavi C R

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Bhargavi C R

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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