Allowed

Bank of Maharashtra v. Florence Aron

DRT29 May 2026OA/1985/2024

Case brief

AI extract

What is this about?

Bank of Maharastra applied for a recovery certificate against two defendants for a housing loan default of Rs. 59,54,888. The Tribunal found the claim admissible and uncontroverted as defendants appeared ex parte. It allowed the OA with interest reduced to 8%.

What did the court decide?

Recovery Certificate drawn for Rs. 59,54,888 plus interest @ 8% p.a. from date of OA, recoverable from schedule property and personal assets.

Bank of Maharashtra versus Florence Aron — 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 29^th Day of May, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.1985/2024

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BETWEEN:

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Bank of Maharastra Head office at Lokmangal, 1501, Shivajinagar, Pune-411005.

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Branch Office at

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Asset Recovery Branch-Bengaluru #15, police Station Road, Basavanagudi, Bengaluru-560004 Represented by the Branch Head, Mr. Nishit Chandra.

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…APPLICANT

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AND:

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Mrs. Florance Aron, W/o Mr. S Harry Aron, Aged major, No. 195, 1^st Block, 2^nd Main, 2^nd Cross, HBR Layout 1^st Stage, Subhash Layout, Bengaluru-560043

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Also at No. 604, SMR Vinay Residency, Next to ASR Convention Hall, Banaswadi, Bengaluru-560043.

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Mr. S harry Aron S/o Stephen Shanmugam, Aged major, No. 195, 1^st Block, 2^nd Main, 2^nd Cross, HBR Layout 1^st Stage, Subhash Layout, Bengaluru-560043.

...DEFENDANTS

OA 1985/2024

Counsel on record/appeared for:

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Applicant : Divya Purandar & Shruthi B.S 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 against the defendants for Rs. 59,54,888/-(Rupees Fifty Nine Lakh Fifty Four Thousand Eight Hundred Eighty Eight Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that the defendants availed the Housing Loan credit facility of Rs. 45,00,000/- from the applicant bank.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents along with Loan application, copy of sanction communication, Housing Loan agreement, Demand Promissory Note., Power of attorney to mortgage.

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

OA 1985/2024

due in the account.

Despite, summons 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 A-1 to A-22 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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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 facilities as stated in the OA, creation of mortgage taken by the applicant and the defaults committed in the accounts. The

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OA 1985/2024

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liability of the defendants and the claim of the amount due are also proved

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by the above documents. The claim of the applicant is well within the limitation.

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

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

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Taking into consideration the facts that the credit facilities are availed for Housing 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).

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In the result, OA.No.1985/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 59,54,888/- (Rupees Fifty Nine Lakh Fifty Four Thousand Eight Hundred Eighty Eight Only) with further interest @8.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & 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 schedule property. Schedule Properties to the OA be the schedule to the recovery certificate.

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

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OA 1985/2024

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amount due and payable to the applicant bank, the defendants jointly,

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severally & personally and their assets are liable for the amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings 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 transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in terms

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of this final order.

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

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

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Rules, 1993.

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

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Sd/-

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(T. RAJESH) PRESIDING OFFICER

OA 1985/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Sri Sujit Halder, Senior Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Annexure	Date	List of Documents
A1	07.10.2016	Copy of Application request letter for making credit facility
A2	07.10.2016	Copy of Sanction Communication
A3	07.10.2016	Copy of the Demand Promissory note
A4	07.10.2016	Copy of Housing loan agreement
A5	07.10.2016	Copy of undertaking and power of attorney to mortgage
A6	07.10.2016	Copy of Mortgagors declaration for proposed equitable mortgage
A7	17.10.2016	Copy of Equitable mortgage by memorandum of deposit of Title deeds registered as Document No. BNS-1-9346-2016-17 registered in office of sub- registrar Banaswadi
A8	18.10.2016	Copy of letter confirming creation of Equitable mortgage
A9	07.10.2016	Copy of letter of Authority regarding debt SB Account for payment of EMI
A10	--	Copy of letter of undertaking regarding regulatory declarations
A11	--	Copy of letter for releasing Housing Loan through demand Draft
A12	14.10.2016	Copy of Receipt from bank for amount of loan releasing

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OA 1985/2024

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A13	24.10.2016	Copy of Receipt from bank for amount of loan releasing
A14	07.10.2016	Copy of Guarantee agreement by defendant No.2
A15	07.10.2016	Copy of letter of undertaking by defendant NO.2 regarding regulatory declarations
A16	05.10.2019	Copy of balance and security confirmation letter by defendants
A17	03.10.2022	Copy of balance and security confirmation letter by defendants
A18	12.07.2018	Copy of letter regarding revision in EMI payments upon upgradation
A19	17.10.2023	Copy of overdue notice
A20	13.02.2023	Copy of Demand Notice issued from Applicant Bank
A21	--	Copy of postal Acknowledgments in respect of demand notice
A22	--	Certified true copy of Extract of Account Statement in respect of CC Loan account bearing No. 60262305484

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Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –

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-Nil -

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Sd/- (T. RAJESH) PRESIDING OFFICER

Bank of Maharashtra v. Florence Aron

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Florence Aron

Case brief

What is this about?

What did the court decide?

What the court decided

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