Allowed

Bank of Baroda v. Wonder Land Beauty and Events India Privaet Limited

DRT31 Jul 2026OA/1959/2024

Case brief

AI extract

What is this about?

The Tribunal, in an ex-parte proceeding, allowed an application under Section 19 of the RDB Act for issuance of a Recovery Certificate. The court held the bank's evidence regarding loan avowal, security interest, and defaults was uncontroverted and sufficient to prove the claim.

What did the court decide?

Recovery Certificate drawn for Rs. 42,67,158 plus 10% p.a. simple interest from filing date until realization, to be enforced against the defendants jointly and severally.

Bank of Baroda versus Wonder Land Beauty and… — 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^th Day of July 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA. No.1959/2024

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BETWEEN:

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Bank of Baroda Victoria Road, Bengaluru-560002.

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…APPLICANT

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AND:

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M/s. Wonderland Beauty and Events India

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Private Limited.

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Registered Office at Flat No. D1,

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Sapihagiri Residency, 1^st Floor, Bilkahalli, Bengaluru-560076 Represented by its Director,

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Mr.Anjan Nagaraj.

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Also at:

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No.3105, 1^st Floor, Balaji Orchid, 6^th ‘B’ Main, HAL 2^nd Stage, Indiranagar Doubt Road, Near Est. Hospital, Bengaluru-560038

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Mr.Anjan Nagaraj S/o.Nagaraj Kumar Ramu, R/at:No.8-J, Hasija Niasa, St.Michael School Road, Bengaluru-560027.

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Smt.Leelavathamma.K W/o.Govindappa R/at:No.8-J, Hasija Niasa, St.Michael School Road, Bengaluru-560027.

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...DEFENDANTS

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2 OA No.1959/2024

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Counsel on record/appeared for:

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Applicant : Sri. Nagaraj Damodar 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 for seeking issuance of Recovery Certificate against the defendants for Rs.42,67,158/(Rupees Forty-Two Lakhs Sixty-Seven Thousand One Hundred and FiftyEight Only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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The Defendant No.2 being the Director of Defendant No.1 availed a sum of Rs.39,80,000/- (Rupees Thirty-Nine Lakhs Eight Thousand Only) for purchase of immovable properties (Furniture Fixture and other Accessories) Defendant No.3 as personal Guarantor.

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The Defendants availed Rs.5,00,000/- (Rupees Five Lakhs Only) Defendant No.2 and 3 are the personal guarantee for the purpose of Working Capital.

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It is also the case of the applicant that, in view of the above financed credit facility. The Defendants also hypothecated against the schedule movables by executing necessary loan documents, Composite hypothecation Agreement, Demand Promissory Note in lieu of security for the above facility.

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3 OA No.1959/2024

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants 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 A22 and got the same marked in evidence.

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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.

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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

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as against the defendants?

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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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4 OA No.1959/2024

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The case put forth by the applicant in the Application remains unrebutted as defendants 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 facility 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 defendants 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

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raised in this manner, this Tribunal is of the view that OA is liable to be allowed.

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Taking into consideration the facts that the credit facility was

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availed for Business Loan 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

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with a reduced interest of 10.00% p.a.(simple).

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In the result, OA.No.1959/2024 stands allowed,

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i) The applicant is allowed to recover an aggregate to pay from

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Defendant Nos.1 to 3 jointly and severally a sum of Rs.42,67,158/- (Rupees

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Forty-Two Lakhs Sixty-Seven Thousand One Hundred and Fifty-Eight Only)

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5 OA No.1959/2024

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in MSME Term Loan Facility with further interest of 10% p.a.(simple) from

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the date of filing OA till the realization from the defendants, after giving credit to all the amounts recovered and received during the pendency of the OA if any.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the respective defendants jointly, severally and their other assets are liable for all such amounts due in respective loan accounts.

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iii) The applicant bank is allowed cost of the proceeding which

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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

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transferred to Recovery for execution.

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v) Interim Application pending, if any, stands disposed of with 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, 1993.

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

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Sd/(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: Smt. Deepa Muraleedaran, 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	A1
2.	Sanction letter dated 11.08.2022	A2
3.	D.P. Note dated 11.08.2022	A3
4.	Composite Hypothecation Agreement dated 11.08.2022	A4
5.	Declaration-cum-Undertaking-Cum Authority dated 11.08.2022	A5
6.	Letter of Continuing Security dated 11.08.2022	A6
7.	Draft of Undertaking dated 11.08.2022	A7
8.	Letter of Undertaking dated 11.08.2022	A8
9.	General Form of Guarantee dated 11.08.2022	A9
10.	Letter of Installment with Acceleration Clause dated 11.08.2022	A10
11.	Loan Application	A11
12.	Sanction letter dated 13.12.2022	A12
13.	D.P. Note dated 13.12.2022	A13
14.	Composite Hypothecation Agreement dated 13.12.2022	A14
15.	Declaration-Cum-Undertaking- Cum- Authority dated 13.12.2022	A15
16.	Letter of Continuing Security dt:13.12.2022	A16
17.	Letter of Undertaking dated 13.12.2022	A17

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7 OA No.1959/2024

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18.	General Form of Guarantee dated 11.08.2022	A18
19.	Legal Notice dated 30.05.2024 & Postal receipts and returned RPAD Covers	A19
20.	Statement of Account Extract in respect of A/c. No.74280600001991	A20
21.	Statement of Account Extract in respect of A/c. No.74280500000160	A21
22.	Certificate U/S 2a (B) & A (C) of the Banker’s Book Evidence Act, 1891 (As Amended)	A22

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Wonder Land Beauty and Events India Privaet Limited

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Wonder Land Beauty and Events India Privaet Limited

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

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Case details

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