Allowed

Bank of Baroda v. Ms Cardiofit Fitness and Wellness

DRT30 Jan 2026OA/520/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Bank of Baroda seeking a Recovery Certificate. The claim for loan defaults by proprietary concerns was uncontroverted due to respondent absence. The court granted recovery with interest capped at 12% p.a.

What did the court decide?

Recovery Certificate issued for Rs.42,06,859.08 plus interest at 12% p.a. to be recovered from respondents jointly and severally including attachment of other assets.

Bank of Baroda versus Ms Cardiofit Fitness and… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

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Dated this 30^th Day of January, 2026

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Present: Sri. T. RAJESH Presiding Officer

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OA.No.520/2023

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BETWEEN:

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Bank of Baroda (Earlier Vijaya Bank) Branch office at: Oxford School Branch, No.40, 10^th Cross, J.P Nagar, 1^st Phase, Bangalore- 560078

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…APPLICANT

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AND:

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M/s Cardiofit Fitness and Wellness A Proprietorship concern, Office at: No.4, JC Industrial Estate, Yelachenahalli, Kanakapura Main Road, Bengaluru- 560062

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Mrs. Swetha K.P W/o. Mr. Srinivas Murthy Proprietor M/S Cardiofit Fitness and Wellness Office at: No.4, JC Industrial Estate, Yelachenahalli, Kanakapura Main Road, Bengaluru- 560062

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And Also at: Mrs. Swetha K.P W/o. Mr. Srinivas Murthy K Y R/at: No.S- 5 C Block, Himagiri Green Forest Apartment, J.P Nagar 7^th Phase, Bengaluru- 560078 ...DEFENDANTS

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OA 520-2023

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Counsel on record/appeared for:

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Applicant : M.V Kini & Co 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 for Rs.42,06,859.08 (Rupees forty two lakh six thousand eight hundred fifty nine and paisa eight only) with further interest thereon from the date of filing the Application till realization from the Defendants.

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It is the case of the applicant that the defendant No.1 is a Proprietorship Concern with defendant No.2 as its Proprietor availed the following credit facilities from the applicant bank:-

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I. Term Loan of a sum of Rs. 88,00,000/- (Rupees Eighty Eight Lakh Only) and

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II. Term loan limit of Rs.10,00,000/- (Rupees Ten lakh Only).

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It is also the case of the applicant that, in view of the above amount financed, the defendants executed necessary loan documents along with demand promissory note, loan agreement

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OA 520-2023

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and hypothecation agreement in favor of the applicant bank.

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It is further contended that, the defendants despite availing the credit facility, agreeing to service the loan account promptly and regularly, failed in complying the same, resulting in defaults 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 exparte on 13.08.2025.

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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-25 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 the proof affidavit.

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OA 520-2023

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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

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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 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 hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim as the amount due is also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the finding arrived herein above, this 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

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OA 520-2023

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are availed by defendants for Term Loan purpose and also that 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 @12% p.a.(Simple).

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In the result, OA.No.520/2023, stands allowed,

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i) The applicant is allowed to recovery an aggregate

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sum of Rs.42,06,859.08 (Rupees forty two lakh six thousand

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eight hundred fifty nine and paisa eight only) with further interest @12% p.a. (Simple),

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from the date of filing OA till the realization, from the defendants

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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 proceedings against the defendants jointly severally and personally including their other assets. Schedule to the OA be the schedule to the recovery certificate.

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ii) 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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OA 520-2023

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iii) The Recovery Certificate to be drawn in terms of this

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order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of

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in terms of this final order.

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Communicate a copy of the order to the parties concerned

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in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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[Dictated to the Stenographer (JV), transcribed by him, corrected and signed and pronounced by me in the Open Court, this the 30^th day of January, 2026].

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Sd/ (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: Devi Dayal, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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The documents are appended in this order.

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

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Sd/ (T. RAJESH) PRESIDING OFFICER

Bank of Baroda v. Ms Cardiofit Fitness and Wellness

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Ms Cardiofit Fitness and Wellness

Case brief

What is this about?

What did the court decide?

What the court decided

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