Allowed

Bank of Baroda v. Laxmi Poojarthi and Another

DRT27 Apr 2026OA/2249/2025

Case brief

AI extract

What is this about?

In an ex parte proceedings under the RDB Act 1993, the Tribunal allowed the applicant bank's recovery application for dues of the deceased borrower's legal heirs. Noting the home loan purpose, the Tribunal awarded recovery of the principal sum with reduced simple interest at 8% per annum.

What did the court decide?

Recovery of Rs. 20,72,836.80 plus further simple interest at 8% per annum from the date of filing till realization from the respondents.

Bank of Baroda versus Laxmi Poojarthi and Another — Contract and Commercial Disputes | DRT (2026)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

¶2

Dated this 27^th Day of April, 2026

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.2249/2025

¶4

BETWEEN:

¶5

Bank of Baroda Head office at: Baroda Bhavan, RC Dutt Road, Alkapuri, Vadodara, Gujarath State Branch office Saibarkatte branch, Udupi district …APPLICANT

¶6

AND:

¶7

Mrs. Laxmi Poojarthi W/o. Late laxman Poojary Aged about 41 years

¶8

Miss. Chaitanya Poojary D/o. Late laxman Poojary Aged about 18 years

¶9

r/at: 1/76, Pathri Bacchu Poojary Mane, Bannady Post, Karadi Guddi Mane, Bannadi Post, Udupi Taluq, Udupi Taluk & District – 576 225 ...DEFENDANTS

¶10

Counsel on record/appeared for:

¶11

Applicant : Nithin Chandra M Defendants : Ex parte

OA-2249/2025

FINAL ORDER

The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking for issuance of Recovery Certificate against the defendants for Rs. 20,72,836.80/- (Rupees Twenty Lakhs Seventy-Two Thousand Eight Hundred Thirty-Six and Paisa Twenty Only) with further interest thereon from the date of filing the Application till realization.

¶16

It is the case of the applicant that, the defendants are the legal heirs of the deceased borrower. The Late borrower Sri. Lakshman Poojary availed the following credit facilities:

¶17

Home loan of Rs. 10,00,000/- (Rupees Ten Lakhs Only).

¶18

Home loan of Rs. 4,00,000/- (Rupees Four Lakhs Only).

¶19

The deceased borrower executed necessary loan document in favour of the applicant bank as security for the due repayment of the loans, interest, cost and charges. The Late borrower Sri. Lakshman Poojary had also executed deposit of title Deed dated 16.08.2018.

¶20

It is further contended that, despite availing the credit facilities, 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 accounts as NPA.

¶21

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.

¶22

OA-2249/2025

¶23

¶24

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 20.11.2025.

¶25

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-19 and got the same marked in evidence.

¶26

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.

¶27

The following issues arise for consideration in this matter:

¶28

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

¶29

ii) What order are to be passed?

¶30

Both these issues are gone into and decided together.

¶31

The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed.

¶32

The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, and the defaults committed in the accounts. The liability of

¶33

the defendants and the claim of the amount due is also proved by the above documents. The claim of the applicant is well within the

OA-2249/2025

limitation.

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

¶38

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

¶39

Taking into consideration the facts that the credit facilities are

¶40

availed for Housing purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 8.00% (simple).

¶41

In the result, OA.No.2249/2025, stands allowed,

¶42

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

¶43

Rs. 20,72,836.80/- (Rupees Twenty Lakhs Seventy-Two Thousand Eight Hundred Thirty-Six and Paisa Twenty Only) with further interest @8.00 % p.a.(simple) from the date of filing OA till the realization,

¶44

from the defendants, to the extent of their inheritance of any estate form the deceased borrower, Sri. Lakshman Poojary, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule property to the OA be the schedule property to the Recovery Certificate.

¶45

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

¶46

liability, the defendants to the extent of their inherited form the

¶47

OA-2249/2025

¶48

¶49

deceased Sri. Lakshman Poojary is liable to the proceeds against for

¶50

the balance amount.

¶51

iii) The applicant bank is allowed cost of the proceedings

¶52

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

¶53

receipt of the order.

¶54

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

¶55

and transferred to Recovery for execution.

¶56

v) Interim application pending, if any, are disposed of with this

¶57

Final Order.

¶58

Communicate a copy of the order to the parties concerned in

¶59

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

¶60

(Procedure) Rules, 1993.

¶61

[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of April, 2026].

¶62

Sd/-

¶63

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶64

AW-1: Manu S K, S/o. T Kumaresan, Senior Branch Manager, of

Applicant Bank.

OA-2249/2025

	Exhibits on the part of the Applicant:
Exhibit Nos.	Particulars of Documents
A1	True copy of said sanction order bearing ref.no. RL/2015/118500000099 dt. 11.12.2015
A2	True copy of the article of agreement dt. 17.12.2015
A3	True copy of said registered memorandum of deposit of title deeds DTED 14.12.2015
A4	True copy of the letter of repayment dt. 17.12.2015
A5 to A7	True copy of the letter of acknowledgement of debt dt. 04.09.2018, 15.03.2019 & 05.03.2022 in respect of term loan-1
A8	True copy of said sanction order bearing ref.no. RL/2018/118500000288 dt. 03.09.2018
A9	True copy of the article of agreement dt. 03.09.2018
A10	True copy of said registered memorandum of deposit of title deeds DTED 16.08.2018
A11 & A12	True copy of the letter of acknowledgement of debt dt. 15.03.2019 & 05.03.2022 in respect of term loan-2
A13	True copy of the death certificate dated 31.08.2019 issued from the office of the medical officer & sub registrar of births & deaths, district hospital, Udupi
A14	True copy of certificate of family tree dt. 05.02.2020 issued from the office of the deputy Tahasildhar, Kota Hobli, Brahmhawara taluk, Udupi district
A15 A15(a)	True copy of the legal notice/s dt. 21.12.2021 addressed to the last known addressed of defendant/s along with postal receipts (2 no’s) and returned
to A15(b	postal covers/duly served postal acknowledgement cards (…no’s) respectfully
A16	True copy of the demand notice dt. 23.01.2025
A17	Certified statement of account gives details of credits and debts in the said loan account. The certified true extract of the said statement of account of the term loan a/c no. 81960600001064 certified as per bankers’ books of evidence
A18	Certified statement of account gives details of credits and debts in the said loan account. The certified true extract of the said statement of account of the term loan a/c no. 81960600000965 certified as per bankers’ books of evidence
A19	Copy of calculation memo
W	itness Examined for the Defendants: -Nil -
L	ist of Documents Exhibited for the Defendants: -Nil -

¶69

Sd/- (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Laxmi Poojarthi and Another

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Laxmi Poojarthi and Another

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

Coram

Case details

Similar cases

Union Bank of India versus S S T Packaging Pvt. Ltd. and Ors.

Bank of India versus Ms Box Well Industries

Bank of Maharashtra versus Chandrashekhar Pundlik Jagtap

Bank of Baroda versus Anushka Jain Proprietor Ms Ur Choice

Canara Bank versus Mr R Markondaiah

State Bank of India versus Kavitha. N