INDIAN OVERSEAS BANK vs MAA DURGA INDUSTRIES AND ORS on 19 September 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 07.02.2019 before DRT-III Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.19,19,168.25 (Rupees Nineteen lacs Nineteen thousand One hundred Sixty Eight & paisa Twenty Five only) as on 28.01.2019 along with interest *sd*

@11.00% per annum plus @2% penal interest with monthly rests from the date of filing of this application till its realization and costs.

2. The brief facts of the case are that at the request of defendant no.1 being partnership firm of defendant no.2 and 3 as partners/guarantors vide their loan application dated 06.02.2014 along with related documents, the applicant bank sanctioned Cash Credit facility of Rs.10,00,000/- (Rupees Ten lacs only) @12.00% interest per annum and Term Loan of Rs.24,00,000/- (Rupees Twenty Four lacs only) @12.25% interest per annum on 28.02.2014 against hypothecation of stocks & machinery etc. covered under CGTMSE scheme. The term loan was to be repayable in 60 EMI of Rs.53,700/- after a moratorium of 6 months. On the request of defendants, the account was reviewed on 30.12.2015 and 27.03.2017 by the applicant bank.

3. That in order to avail the credit facilities, the defendants executed Demand Promissory Notes, Form F-16, Form F-110A Letter of Hypothecation, Form F-378, Form F-110B Letter of Hypothecation, Form F-110E Letter of Hypothecation, Form F-110C Term Loan Agreement on 28.02.2014 and Guarantee Deeds dated 27.03.2017 as well as Renewal of Credit Sanction Advice dated 30.12.2015, Revival Letter dated 25.11.2016 in favour of applicant bank.

4. It has been submitted by the applicant bank that in order to secure the credit facilities, the defendants hypothecated the stocks and machinery purchased from term loan availed in favour of the applicant bank.

Sd/-

5. It has been submitted by the applicant bank that after availing the aforesaid credit facilities, the defendants failed to comply with the terms and conditions despite several requests and reminders. Ultimately, the applicant bank calling upon the defendants to pay the entire dues but the defendants neglected. The applicant bank classified the account as NPA on 29.09.2018 as per RBI guidelines and issued demand notice under Section 13(2) on 10.10.2018 for hypothecated stocks and machinery etc. but to no avail. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 29.04.2026, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Kanhaiya Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney Ex.PW1/1, Demand Promissory Note Ex.PW1/3 & PW1/4, Form F-16 DP Note Ex.PW1/5 & PW1/6, F-110A Letter of Hypothecation DP Note Ex.PW1/7, Form F-378 Ex.PW1/8, Form F-110B Ex.PW1/9, Form F-110E PW1/10, Form F-110C Ex.PW1/11, Credit Sanction Advice dated 30.12.2015 Ex.PW1/12, Credit Sanction Advice dated 27.03.2017 Ex.PW1/13, Guarantee Deed Ex.PW1/14, Revival Letters Ex.PW1/15 and PW1/16, Demand Notice Ex.PW1/17, Certified Statement of Accounts Ex.PW1/18 & PW1/19.

*Sd-*

8. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

9. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts

10. In the light of the above discussions, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30 days, a sum of Rs.19,19,168.25 (Rupees Nineteen lacs Nineteen thousand One hundred Sixty Eight & paisa Twenty Five only) as on 28.01.2019 along with pendentelite and future interest @13.00% per annum with monthly rest from the date of filing of this application till the date of realization, failing which the aforesaid amount shall be recovered from the sale of the hypothecated stocks and machinery purchased out of term loan availed. In case of default, the same shall be recovered from sale of the moveable and immovable properties of defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 18.11.2026.

Sd-

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

*= sd- 19/9/2026* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 19.09.2026