Allowed

Bank of Baroda v. Asha M R

DRT28 Apr 2026OA/297/2025

Case brief

AI extract

What is this about?

Tribunal allowed an Original Application under Section 19 RDB Act for issuance of Recovery Certificate against defaulting borrowers. Bench found evidence uncontroverted, declared credit facilities availed and liability proved, and granted recovery of amounts with reduced interest at 9% p.a.

What did the court decide?

Issuance of Recovery Certificate for aggregate sum of Rs. 1,04,66,938/- with 9% p.a. simple interest; recovery from defendants jointly, severally and personally or against schedule property.

Bank of Baroda versus Asha M 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 28^th Day of April, 2026

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Present: Sri. T. RAJESH Presiding Officer OA.No.297/2025

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BETWEEN:

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Bank of Baroda Doddamagge Branch, Arakalagud Taluk, Hassan District – 573 142

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Represented by its Senior Branch Manager Smt. Anjali D …APPLICANT

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AND:

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Smt. Asha M R W/o. Kantharaja H C Aged about 35 years Haradanahalli Village, Saligrama Hobli, Krishnarajanagar Mysuru District – 5571 604

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2 . Sri. Kantharaja H C S/o. Sri. Chandregowda Aged about 39 years Haradanahalli Village, Saligrama Hobli, Krishnarajanagara, Mysuru District – 571 604 ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M S Vinayaka Defendants : Ex parte

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2 OA-297/2025

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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. 1,04,66,938/- (Rupees One Crore Four Lakhs Sixty-Six Thousand Nine Hundred and Thirty-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 are availed the following credit facilities:

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Warehouse receipts of Rs. 6,24,000/- (Rupees Six Lakhs Twenty-Four Thousand Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 6,24,000/- (Rupees Six Lakhs Twenty-Four Thousand Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 6,50,000/- (Rupees Six Lakhs Fifty Thousand Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 6,79,000/- (Rupees Six Lakhs Seventy-Nine Thousand Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 6,65,000/- (Rupees Six Lakhs SixtyFive Thousand Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 8,90,000/- (Rupees Eighty Lakhs Ninety Thousand Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 8,00,000/- (Rupees Eight Lakhs Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 11,46,000/- (Rupees Eleven Lakhs Forty-Six Thousand Only) for the purpose of working capital requirements for arecanut business.

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3 OA-297/2025

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Warehouse receipts of Rs. 10,00,000/- (Rupees Ten Lakhs Only) for the purpose of working capital requirements for arecanut business.

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Warehouse receipts of Rs. 8,00,000/- (Rupees Eight Lakhs Only) for the purpose of working capital requirements for arecanut business.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed the necessary loan documents.

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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.

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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 ex parte on 15.10.2025.

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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-89 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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4 OA-297/2025

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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 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 ex parte. 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,

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the

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Hence in view of the findings arrived herein above, the Tribunal 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 is availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view

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that OA can be allowed with a reduced interest of 09.00%(simple).

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5 OA-297/2025

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In the result, OA.No.297/2025 stands allowed,

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

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Rs. 1,04,66,938/- (Rupees One Crore Four Lakhs Sixty-Six Thousand Nine Hundred and Thirty-Eight Only) consisting of:

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a. Rs. 8,65,000/- (Rupees Eight Lakhs Sixty-Five Thousand Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendants.

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b. Rs. 8,35,000/- (Rupees Eight Lakhs Thirty-Five Thousand Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendants.

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c. Rs. 8,67,000/- (Rupees Eight Lakhs Sixty-Seven Thousand Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendants.

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d. Rs. 9,06,000/- (Rupees Nine Lakhs Six Thousand Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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e. Rs. 8,86,000/- (Rupees Eight Lakhs Eighty-Six Thousand Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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f. Rs. 11,89,938/- (Rupees Eleven Lakhs Eighty-Nine Thousand Nine

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Hundred and Thirty-Eight Only) with further interest @9.00%

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6 OA-297/2025

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p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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g. Rs. 10,63,100/- (Rupees Ten Lakhs Sixty-Three Thousand One Hundred Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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h. Rs. 15,11,400/- (Rupees Fifteen Lakhs Eleven Thousand Four Hundred Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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i. Rs. 12,90,400/- (Rupees Twelve Lakhs Ninety Thousand Four Hundred Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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j. Rs. 10,53,000/- (Rupees Ten Lakhs Fifty-Three Thousand Only) with further interest @9.00% p.a.(simple) from the date of filing OA till the realization, from the defendant no. 1.

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After giving credit to all the amounts recovered and received during

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the pendency of the OA and allowed the same to be recovered by proceeding against defendants jointly, severally and personally and also by proceeding against schedule property. Properties schedule to the OA be the schedule to the recovery certificate.

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7 OA-297/2025

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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 defendants

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jointly, severally and personally and their assets are liable for balance

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amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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

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and transferred to Recovery for execution.

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

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28^th Day of April, 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: Smt. S Divya, W/o. Sri. Madhan Kumar G C, Senior Branch Manager, of Applicant Bank.

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8 OA-297/2025

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Exhibits on the part of the Applicant:

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Exhibi ts	Date	Description of loan documents
A-1	13/01/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-2	18/01/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-3	18/01/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-4	18/01/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-5	18/01/2022	^{Demand Promissory Note executed by 1st defendant in} favour of applicant bank
A-6	18/01/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendant in favour of applicant bank
A-7	18/01/2022	Attestation Memo
A-8	14/01/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-9	19/01/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-10	19/01/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-11	19/01/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-12	19/01/2022	^{Demand Promissory Note executed by 1st defendant in} favourofapplicant bank
A-13	19/01/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendantin favourofapplicant bank
A-14	19/01/2022	Attestation Memo
A-15	19/01/2022	^{General Form of Guarantee executed by 2nd defendant in} favourofapplicant bank
A-16	24/01/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-17	29/01/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-18	29/01/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-19	29/01/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank

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9 OA-297/2025

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A-20	29/01/2022	^{Demand Promissory Note executed by 1st defendant in} favour of applicant bank
A-21	29/01/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendant in favour of applicant bank
A-22	29/01/2022	Attestation Memo
A-23	29/01/2022	^{General Form of Guarantee executed by 2nd defendant in} favourofapplicant bank
A-24	27/01/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-25	31/01/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-26	31/01/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-27	31/01/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant
A-28	31/01/2022	^{Demand Promissory Note executed by 1st defendant in} favour of applicant bank
A-29	31/01/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendantin favourofapplicant bank
A-30	31/01/2022	Attestation Memo
A-31	31/01/2022	^{General Form of Guarantee executed by 2nd defendant in} favourofapplicant bank
A-32	28/01/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-33	03/02/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-34	05/02/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-35	05/02/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-36	05/02/2022	^{Demand Promissory Note executed by 1st defendant in} favourofapplicant bank
A-37	05/02/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendantin favourofapplicant bank
A-38	05/02/2022	Attestation Memo
A-39	03/02/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-40	08/02/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-41	09/02/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank

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10 OA-297/2025

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A-42	09/02/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-43	09/02/2022	^{Demand Promissory Note executed by 1st defendant in} favourofapplicant bank
A-44	09/02/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendantin favourofapplicant bank
A-45	09/02/2022	Attestation Memo
A-46	10/02/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-47	15/02/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-48	15/02/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-49	15/02/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-50	15/02/2022	^{Demand Promissory Note executed by 1st defendant in} favourofapplicant bank
A-51	15/02/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendant in favour of applicant bank
A-52	15/02/2022	Attestation Memo
A-53	14/02/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-54	18/02/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-55	19/02/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-56	19/02/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-57	18/02/2022	^{Demand Promissory Note executed by 1st defendant in} favour of applicant bank
A-58	19/02/2022	Attestation Memo
A-59	17/02/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-60	25/02/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-61	25/02/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-62	25/02/2022	^{Letter of Pledge executed by 1st defendant in favour of} applicant bank
A-63	25/02/2022	^{Demand Promissory Note executed by 1st defendant in} favour of applicant bank

¶89

11 OA-297/2025

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A-64	25/02/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendant in favour of applicant bank
A-65	25/02/2022	Attestation Memo
A-66	10/03/2022	^{Loan application submitted by 1st defendant to applicant} bank
A-67	15/03/2022	Loan sanction letter issued byapplicant to 1^stdefendant
A-68	15/03/2022	^{Loan Agreement executed by 1st defendant in favour of} applicant bank
A-69	15/03/2022	^{Letter of Pledge executed by 1st defendant in} favour of applicant bank
A-70	15/03/2022	^{Demand Promissory Note executed by 1st defendant in} favour of applicant bank
A-71	15/03/2022	^{Declaration and Undertaking (Annexure D) executed by 1st} defendantin favourofapplicant bank
A-72	15/03/2022	Attestation Memo
A-73	11/07/2023	Demand Notice issued to the Defendant No.1
A-74	27/05/2024	Final Recall Notice issued to the Defendants
A-75	11/06/2024	^{Final Recall Notice issued to the Defendants with 2 postal} receipts
A-76	24/06/2024	^{Final Recall Notice issued to the Defendants with postal} receipts
A-77	22/10/2024	^{Final Recall Notice recalling the advances issued to the} defendant
A-78	06/11/2024	Legal Notice issued to the Defendants
A-79	------	Certified Copy of Statement of Loan Account No. 63970600003561
A-80	------	Certified Copy of Statement of Loan Account No. 63970600003565
A-81	------	Certified Copy of Statement of Loan Account No. 63970600003615
A-82	-------	Certified Copy of Statement of Loan Account No. 63970600003624
A-83	-------	Certified Copy of Statement of Loan Account No. 63970600003668
A-84	-------	Certified Copy of Statement of Loan Account No. 63970600003689

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12 OA-297/2025

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A-85	-------	Certified Copy of 63970600003718	Statement of	Loan Account No.
A-86	-------	Certified Copy of 63970600003740	Statement of	Loan Account No.
A-87	-------	Certified Copy of 63970600003777	Statement of	Loan Account No.
A-88	-------	Certified Copy of 63970600003891	Statement of	Loan Account No.
A-89	10/01/2025	Memo of Calculation	s of Loan Accou	nts of 1^stDefendant
Witnes	s Examined	for the Defendants	:	-Nil -
List of	Documents	Exhibited for the D	efendants:	-Nil -

¶93

Sd/-

Bank of Baroda v. Asha M R

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Asha M R

Case brief

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