Allowed

Bank of Baroda v. Gowramma

DRT31 Jul 2026OA/477/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Bank of Baroda under Section 19 of the RDB Act. Finding the defendants exparte and evidence uncontroverted, it granted a Recovery Certificate with reduced interest of 6% p.a. for agricultural loans, permitting recovery from schedule property.

What did the court decide?

Recovery Certificate allowed for Rs. 29,99,007/- plus further interest at 6.00% per annum simple from filing date. Recovery from schedule property and personally from defendants.

Bank of Baroda versus Gowramma — Execution and Attachment | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 31^st Day of July, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.477/2023

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BETWEEN:

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Bank of Baroda Branch at Hassan, N.L.Circle, Krathika Arcade, Holenasepura Road, Hassan-573201. Represented by its Chief Manager, Sri. Athmaram. T.

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…APPLICANT

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AND:

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Smt. Gowramma, W/o Ramesh Gowda @ Rameshappa Hanike Village, Madihalli Hobli, Belur Taluk, Hassan District-573 201.

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Sri. H R Teertha Kumar S/o Ramesh Gowda @ Rameshappa Hanike Vilage, Madihalli Hobli, Belur Taluk, Hassan District-573201.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Ranjan Shetty Defendants : Exparte

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2 477/2023

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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. 29,99,007/- (Rupees Twenty Nine Lakh Ninety Nien Thousand Seven 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 following credit facilities from the applicant bank:-

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I. Land Development Loan of a sum of Rs. 15,00,000/- (Rupees Fifteen Lakh Only) on 26.12.2017.

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II. Crop Loan of sum of Rs. 6,00,000/- (Rupees Six Lakh Only) on 27.05.2004.

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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 Hypothecation Agreement, Demand Promissory Note, Simple Mortgage Deed, Legal Notice.

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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 due in the account.

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3 477/2023

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Despite, taking out summons the defendants failed to appear, resulting the defendants being set exparte on 26.11.2024.

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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-12 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 and Hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim

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of the amount due are also proved by the above documents. The claim

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of the applicant is well within the limitation.

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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 was availed for agricultural 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 6.00% (simple).

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In the result, OA.No.477/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 29,99,007/- (Rupees Twenty Nine Lakh Ninety Nine Thousand Seven Only) with further interest @6.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants Jointly, severally and 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 amount due and payable to the applicant bank, the defendants jointly, severally and 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

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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 31^st Day of July, 2026].

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Mouli Raj, Chief 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	04.12.2017	Copy of the Loan application pertaining to Crop loan
		and Land development loan -Total Rs. 21 lakhs
A2	26.12.2017	Acknowledged Copy of Loan sanction memo /
		Communication pertaining to Crop Loan and Land
		Development Loan Total Rs. 21 Lakhs

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A3	26.12.2017	Hypothecation Agreement executed by defendants pertaining to Land Development Loan
A4	26.12.2017	Hypothecation Agreement executed by defendants pertaining to Crop Loan
A5	26.12.2017	Demand Promissory Note executed by defendants pertaining to Crop Loan
A6	26.12.2017	Demand Promissory Note executed by defendants pertaining to Land Development Loan
A7	22.12.2017	Simple Mortgage Deed, registered as document No. BLU-1-03617-2017-18, CD No. BLUD143, book-1, in the office of Sub registrar Belur, executed by defendant No.1 in favour of the Bank
A8	16.07.2020	Debt Acknowledgement of Defendants pertaining to Land Development Loan
A9	16.07.2020	Debt Acknowledgement of Defendants pertaining to Crop Loan
A10	28.10.2022	Legal Notice addressed to Defendants with regards to repay the outstanding balance in loan accounts along with returned postal covers
A11	--	Statement of Account of A/c No. 30590500000237 and 30590500000763

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

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-Nil -

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-Nil –

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Sd/- (T. RAJESH) PRESIDING OFFICER

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7 477/2023

Bank of Baroda v. Gowramma

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Gowramma

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

All orders in this case

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