Allowed

Bank of Baroda v. Green Kare Resources

DRT12 May 2026OA/311/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Bank of Baroda for recovery of dues of Rs.44,46,739 along with interest. The court validated the claim based on loan documents and ex-parte evidence, granting permission to recover the amount via sale of specified immovable properties.

What did the court decide?

Recovery of Rs.44,46,739 along with further interest and costs; liberty to recover by sale of specified immovable properties.

Bank of Baroda versus Green Kare Resources — Banking and Recovery | DRT (2026)

¶1

O.A. No.311 of 2024

¶2

12.05.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 12^th day of May, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No.311 of 2024

¶8

Bank of Baroda,

¶9

Nenmeli branch, No.8, Mammallapuram main road, Nenmeli village Village,

¶10

Chengalpet District. Pin - 603003 Represented by its Chief Manager ….Applicant

¶11

-Vs-

¶12

M/s Green Kare Resources, Represented by its proprietor Mr.K.Radhakrishnan No.15, Aravinder Street, Alwarthirunagar, Chennai- 600 087

¶13

Mr.K.Radhakrishnan, S/o Kannan Madha Nagar Main Road, Rajeshwari Avenue, Porur, Chennai- 600 116 …..Defendants

¶14

Counsels on record / appeared:

¶15

Counsel for Applicant : Sh. S. Vaidyanathan

¶16

Defendants 1 and 2 were set ex-parte on 09.01.2025

¶17

: - FINAL ORDER- :

¶18

This Original Application is filed on 15.03.2024 by the applicant bank

¶19

under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of

¶20

a total sum of Rs.44,46,739/- (Rupees Forty Four Lakhs Forty Six Thousand Seven Hundred and Thirty Nine Only) due in respect of

¶21

Uploaded on 12.05.2026 at 17:00 hours

¶22

O.A. No.311 of 2024

¶23

¶24

12.05.2026

¶25

Overdraft Account (A/c No. 69570400000264) and Term Loan

¶26

account (A/c No. 69570600004927) repayable together with further interest @ 10.75% p.a. and penal interest of 2% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this OA.

¶27

Brief Facts of the case:

¶28

The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

¶29

It is the case of the applicant bank that the 1^st defendant represented by the 2^nd defendant had applied to the bank for an Overdraft facility of Rs.25 Lakhs vide application dated 03.11.2020. Based on the application of the applicant bank had sanctioned an Overdraft Limit of Rs.25 Lakhs under PMMY Scheme vide sanction Letter dated 11.02.2021, the terms and conditions of which were acknowledged by the defendants.

¶30

It is the case of the applicant bank that the 1^st defendant represented by the 2^nd defendant executed the following documents on 11.02.2021 in acknowledgement of availing the overdraft facility which was to be repaid on demand with interest @10.45% per annum with monthly rests to be reset from time to time:

¶31

i. Demand Promissory Note for Rs.25lakhs

¶32

ii. Composite Hypothecation Agreement

¶33

Uploaded on 12.05.2026 at 17:00 hours

¶34

O.A. No.311 of 2024

¶35

¶36

12.05.2026

¶37

iii. Letter of Continuing Security

¶38

iv. Declarations cum Undertaking cum Authority

¶39

v. Letter of undertaking in respect of Book Debts.

¶40

The applicant bank submits that as per the terms and conditions of sanction, the defendants were to route all their transactions through their accounts with the bank and maintain sufficient stocks of goods to cover the limits sanctioned to them by the bank.

¶41

It is submitted that the 2^nd defendant had further deposited the original sale deed dated 22.10.2020 registered as Doc. No. 7822/2020 pertaining to the plot no.109 in Good will Nagar II in old Sy.No.370/2A1A/2 Patta Sy no.435/52A1A1A, Kayarambedu village, Chengalpet taluk, Chengalpattu district morefully described in schedule to the OA with intention to create security in favour of the bank and had executed Memorandum of deposit of title deeds dated 12.02.2021 registered as Doc no.1806/2021 with SRO, Jt.II, Chengalpet.

¶42

It is the further case of the applicant bank that the 2^nd defendant had further applied for a Term Loan of Rs.9.00 lakhs for the same business of food processing under CGTMSE scheme vide application dated 07.09.2021 and the same was sanctioned by the bank vide sanction letter dated 07.09.2021, the terms and conditions of which were acknowledged by the defendant.

¶43

The 2^nd defendant had executed the following documents dated 07.09.2021 in acknowledgement of availing the Term Loan facility which

¶44

Uploaded on 12.05.2026 at 17:00 hours

¶45

O.A. No.311 of 2024

¶46

12.05.2026

¶47

¶48

was to be repaid in 60 equal monthly instalments with interest @7.85%

¶49

per annum with monthly rests to be reset from time to time:

¶50

i. Demand Promissory Note for Rs.9.00 lakhs

¶51

ii. Instruction of hypothecation

¶52

iii. Letter of instalment with acceleration clause

¶53

iv. Declarations cum undertaking cum authority

¶54

v. Authority to make payment to dealer.

¶55

The applicant bank had sanctioned the Ad hoc limit of Rs.2.25 lakhs to the 1^st defendant for which the 2^nd defendant had executed Demand Promissory Note and Letter of Continuing Security dated 18.11.2021 for having availed the said limit.

¶56

The applicant submits that subsequent to availing of loan, the defendants have not carried on the business as per terms of sanction and have not maintained sufficient stock to cover the dues of the applicant bank and also diverted funds for other purposes. The defendants have since closed down their business fraudulently and sold the hypothecated stock without the knowledge of the applicant bank and hence there is no stock available from which the bank can recover their dues.

¶57

It is submitted by the applicant bank that since the defendants did not come forward to repay their dues despite repeated requests, the applicant bank was constrained to classify the account as Non-Performing Asset (NPA) as per RBI norms on 06.06.2022.

¶58

Uploaded on 12.05.2026 at 17:00 hours

¶59

O.A. No.311 of 2024

¶60

12.05.2026

¶61

¶62

The 2^nd defendant on behalf of 1^st defendant had executed letter of acknowledgement of debt dated 02.06.2022 in the overdraft account extending the validity of the loan security documents and accepting the liability in the loan account. The applicant has issued Recall Letter dated 07.06.2022 in the OD and Term Loan accounts.

¶63

It has come to the notice of the applicant bank that title documents in respect of the property purportedly mortgaged to the bank is fake and the defendants had created forged documents just for the purpose of creation of security and availing the loan. The sale deed document number 7822/2020 was cancelled as per proceedings of the District Registrar, Chengalpet in NO.3902/B3/2021 dated 10.01.2022 as it was a fabricated/ fake document. In the above circumstances, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶64

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with remarks “Unclaimed” in respect of D-1 and summons to D-2 returned with remarks “Address cannot be located”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 09.01.2025 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 09.01.2025.

¶65

Uploaded on 12.05.2026 at 17:00 hours

¶66

O.A. No.311 of 2024

¶67

12.05.2026

¶68

¶69

Heard the submissions of Applicant Bank and perused the

¶70

records.

¶71

To prove the case of the Applicant Bank, Mr. M.G. Pragassh, Chief Manager, Chengalpattu Branch of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-

¶72

1 and list of documents came to be marked as Ex A-1 to A-23.

¶73

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-23 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

¶74

The defendants were set ex-parte on 09.01.2025, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

¶75

With regard to the amount advanced, the interest applied the

¶76

Uploaded on 12.05.2026 at 17:00 hours

¶77

O.A. No.311 of 2024

¶78

12.05.2026

¶79

¶80

conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

¶81

: O R D E R :

¶82

19. The OA is allowed with costs,

¶83

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.44,46,739/- (Rupees Forty Four Lakhs Forty Six Thousand Seven Hundred and Thirty Nine Only) due in respect of Overdraft Account (A/c No. 69570400000264) and Term Loan account (A/c No. 69570600004927) repayable together with further interest @ 10.75% p.a. and penal interest of 2% p.a. with monthly rests from the date of Application till the date of realization in full, along with costs of this application.

¶84

(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the Schedule A and B mentioned immovable properties morefully detailed in the OA schedule.

¶85

¶86

(d) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the

¶87

Uploaded on 12.05.2026 at 17:00 hours

¶88

O.A. No.311 of 2024

¶89

¶90

12.05.2026

¶91

intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

¶92

(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

¶93

(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶94

A copy of this order be communicated to the parties concerned.

¶95

Sd/(S.V. GOWRAMMA)

¶96

PRESIDING OFFICER, DRT-III, CHENNAI

¶97

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 12^th day of May, 2026)

¶98

ANNEXURES

¶99

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶100

AW-1: Mr. M.G. Pragassh, Chief Manager, Chengalpattu Branch of the Applicant Bank.

¶101

Exhibits on the part of the Applicant:

¶102

Sl. No.	Date	Description of Documents	Exhibit No.
1.	03.11.2020	Application for overdraft facility	A-1
2.	11.02.2021	Sanction letter	A-2
3.	11.02.2021	Attestation memo	A-3
4.	11.02.2021	Demandpromissorynote for 25.00 lakhs	A-4
5.	11.02.2021	Declarations cum undertaking cum authority	A-5
6.	11.02.2021	Composite hypothecation agreement	A-6
7.	11.02.2021	Letter of continuingsecurity	A-7

¶103

Uploaded on 12.05.2026 at 17:00 hours

¶104

O.A. No.311 of 2024

¶105

¶106

12.05.2026

¶107

8.	12.02.2021	Memorandum of deposit of title deeds registered as Doc No.1806/2021	A-8
9.	22.10.2020	Sale deed executed by K.Mohan in favour of K.Radhakrishnan registered as Doc.no.7822/2020 with SRO, Jt.II, Chengalpet	A-9
10.	07.09.2021	Application for term loan under PMMY	A-10
11.	07.09.2021	Sanction letter	A-11
12.	07.09.2021	Attestation memo	A-12
13.	07.09.2021	D.P. Note for Rs.9.00lakhs	A-13
14.	07.09.2021	Instrument of hypothecation	A-14
15.	07.09.2021	Letter of instalments with acceleration clause	A-15
16.	07.09.2021	Declaration cum undertaking cum authority	A-16
17.	07.09.2021	Letter of authority to make payment to lender	A-17
18.	18.11.2021	D.P. Note for Rs.2.25lakhs	A-18
19.	18.11.2021	Letter of Continuingsecurity	A-19
20.	02.06.2022	Letter of acknowledgement of debt in OD accounts	A-20
21.	07.06.2022	Recall Notice	A-21
22.	10.01.2022	Proceedings of district registrar cancelling the sale deed and MOD	A-22
23.		Statement of OD account no.69570400000264 for the Period 11.02.2021 to 20.02.2021	A-23
24.		Statement of Term loan account no.69570600004927 for the Period 07.09.2021 to 20.02.2024	A-24

¶108

Witness Examined for the Defendants: -Nil-

¶109

List of Documents Exhibited for the Defendants: -Nil –

¶110

SCHEDULE OF PROPERTY

¶111

SCHEDULE-A

¶112

Agricultural land comprised in Sy.No.37 370/2A1AA/2 (part)

¶113

situated in No.50, Kayarambedu village, Chengalpet district, Chengalpet

¶114

Uploaded on 12.05.2026 at 17:00 hours

¶115

O.A. No.311 of 2024

¶116

¶117

12.05.2026

¶118

taluk, lying within the registration district of Chengalpet, JT-II and registration district of Chengalpet and measuring Ac.3.10.

¶119

SCHEDULE-B

¶120

All that piece and parcel of vacant land bearing housing site being a portion of the Schedule-A property bearing plot no.109, in “Good Will Nagar II” (Sanctioned in No.M.83-132-L.P.NO.96 by D.T.P.) comprised in old survey no.370/2A1A/2, Patta no.1195, as per patta new survey No.435/52A1A1A situate at No.50, Kayarambedu village, Chengalpet district, Chengalpet taluk, lying within the registration district of Chengalpet, JT-II and registration District of Chengalpet.

¶121

Bounded on the

¶122

North by: Plot No.108

¶123

South by: Plot No.110

¶124

East by: Vacant land

¶125

West by: 30 feet road

¶126

Measuring

¶127

East to west on the northern side: 60 feet East to west on the southern side: 60 feet

¶128

North to south on the eastern side: 30 feet North to south on the Western side: 30 feet

¶129

In all admeasuring 1800sq.ft or thereabouts

¶130

Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

¶131

Uploaded on 12.05.2026 at 17:00 hours

Bank of Baroda v. Green Kare Resources

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Green Kare Resources

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

M s Pmr Brick Works Rep by its Prop Mr S Mathivanan versus Indian Bank

State Bank of India versus Sheeba Esther

Vijaya Babu versus Union Bank of India

Yes Bank versus Kasthuri and Co.

Punjab National Bank versus Djeabalou

S Karthikeyani versus Idfc First Bank Ltd.