BANK OF BARODA vs SANTOSH on 8 May 2026

J U D G M E N T

This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover ₹11,94,737.69/- (Rupees Eleven Lakhs Ninety-Four Thousand Seven Hundred Thirty-Seven and paisa Sixty-Nine Only) with future interest @ 14.25% per annum with monthly rest thereon from the date of presentation of the Transferred Original Application i.e. 28.03.2014 till payment/realization and to enforce the hypothecated security. The details of the claim amount are as under: - Sr No Nature of Facili ty O/s. inclusiv e of Unapplied i nterest

Car L oan ₹11, 94, 737. 69/-

Total A m ou nt ₹11,94,737.69/-

It is undisputed fact in the matter that the Defendant nos.1 and 2 were duly served with the summons vide order-sheet dated 05.01.2015. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 10.02.2015.

Defendant no.1 is the principal borrower who approached the Applicant Bank and sought financial assistance by way of Car loan Facility. Pursuant to the loan application dated 06.06.2012 made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 07.06.2012 in sum of ₹11,00,000/- (Rupees Eleven Lakhs Only) payable in 60 EMIs of ₹24,748/- with interest at the rate of 2.00% above base rate per annum floating interest with monthly rests. On 09.06.2012, the Applicant disbursed entire loan of ₹11,00,000/- (Rupees Eleven Lakhs Only) by making direct payment to the Dealers, the Defendant no.2 by RTGS against the receipt dated 09.06.2012 and debited the loan amount to the loan account no.31610600000521. The details of the Sanction amount are as under: - S r No Da te of S a n c ti on A m ou n t RO I S e c u ri ty 1 . 0 7 . 0 6 . 20 1 2 ₹ 1 1 , 00 , 0 0 0 / - @ 2 . 0 0% a b o v e b a s e r a te p e r a n n u m f lo a t in g in te r e s t w i th mo n th ly r e s ts . H y p o th e c a tio n o f V e h ic le M a k e & M o d e l T O Y A T A , I NNO V A .

T ota l A m ou n t ₹ 1 1 ,0 0 ,0 0 0 / - - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.3 to 5.9 of the Transferred Original Application. Defendants hypothecated Vehicle Make & Model TOYATA, INNOVA to secure the loan.

The details of the documents executed by the Defendants are as under: - (A) Car Loan Application alongwith papers submitted therewith dated 06.06.2012; (B) Sanction Letter dated 07.06.2012; (C) Demand Promissory Note dated 09.06.2012 for an amount of ₹11,00,000/- (Rupees Eleven Lakhs Only); (D) Letter of Installment dated 09.06.2012; (E) Declaration-cum-Undertaking-cum-Authority dated 09.06.2012; (F) Letter of Undertaking dated 09.06.2012; (G) Instrument of Hypothecation of Vehicle dated 20.06.2012; (H) Irrevocable Power of Attorney dated 09.06.2012; (I) Receipt of ₹11,00,000/- issued by Avdhut Motors dated 09.06.2012.

After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 09.04.2013 as per RBI Guidelines. Therefore, on 13.07.2013, the applicant, called upon defendants to liquidate the outstanding in the sum of ₹1,48,221/- (Rupees One Lakhs Forty- Eight Thousand Two Hundred Twenty-One Only) within 15 days from receipt of this notice. Despite notice, defendant nos.1 to 3 failed and neglected to pay.

As on 28.03.2014, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹11,94,737.69/- (Rupees Eleven Lakhs Ninety-Four Thousand Seven Hundred Thirty-Seven and paisa Sixty-Nine Only) with future interest @ 14.25% per annum with monthly rest thereon. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Transferred Original Application which was presented on 28.03.2014.

The applicant has filed affidavit (exhibit-18) in lieu of examination in chief of Mr Jayaraman S, Chief Manager and list of documents (exhibit-19)

thereby adducing in evidence the documents at AW-1 to AW-23, which are admitted in evidence, read, recorded and exhibited.

Accordingly, in the Transferred Original Application was filed for the recovery of ₹11,94,737.69/- (Rupees Eleven Lakhs Ninety- Four Thousand Seven Hundred Thirty-Seven and paisa Sixty-Nine Only) with future interest @ 14.25% per annum with monthly rest thereon from the date of presentation of the Transferred Original Application i.e. 28.03.2014 till payment/realisation.

In the present T.O.A., the Applicant also states that cheque bearing no.019082 for an amount of ₹1,48,221/- dated 01.07.2013 drawn on Greater Bombay Co-operative Bank Ltd. issued by the defendant no.1 towards part payment of outstanding dues was dishonoured on presentation on 03.07.2013. Further, the dealer of the vehicle is not an authentic dealer and thus a Written Complaint was lodged against the defendant on 06.07.2013.

The Tribunal has scrutinised and examined the allegations contained in the Transferred Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

Upon careful scrutiny and the examination of the

Transferred Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

In view of the observations made hereinabove, Transferred Original Application filed by the applicant deserves to be allowed.

Hence, the following order:

ORDER

(A) The Transferred Original Application No.1807 of 2016 in Original Application No.516 of 2014 is allowed with costs. (B) Defendant nos.1 and 2 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹11,94,737.69/- (Rupees Eleven Lakhs Ninety-Four Thousand Seven Hundred Thirty-Seven and paisa Sixty-Nine Only) with future simple interest @ 12% per annum thereon from the date of presentation of the Transferred Original Application i.e. 28.03.2014 till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002 or any other amount paid by the borrowers after filing of this T.O.A. No.1807 of 2016. (C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated property, that is, Vehicle Make & Model TOYATA, INNOVA. (D) Defendant nos.1 and 2 are entitled to redeem the hypothecated property as per law failing which the applicant has right to proceed to sell the hypothecated property and recover dues as per law. (E) Issue Recovery Certificate. (F) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai