BANK OF BARODA vs M/S KEEMAYA INDUSTRIES on 7 February 2026

FINAL ORDER

This original application has been filed by the applicant bank on 12.02.2019 filed before DRT-III, Delhi & 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 Rs.23,11,350.97 (Rupees Twenty Three Lacs Eleven Thousand Three Hundred Fifty and paisa Ninety Seven only) as on 31.12.2018 together with pendentelite and future interest @contractual rate with monthly rests from 01.01.2019 till its realization along with costs. Further, the name of Dr. Amit Gupta has been substituted as authorized representative in place of Sh. Rajeev Kumar, erstwhile AR of the applicant bank.

2. The brief facts of the case are that at the request of defendant no.1 through its proprietor, the applicant bank sanctioned Cash Credit limit facility of Rs.22,00,000/- (Rupees Twenty Two Lacs only) as working capital for financing its project under CGTSME scheme on 19.11.2014 @12.75% rate of interest per annum with monthly rests against hypothecation of raw materials, goods, book debts, machinery/vehicles/crafts etc. and fixed assets of the defendant. The defendant no.2 stood as guarantor for the credit facility availed by defendant no.1.

3. That in order to avail the said loan facility, the defendant no.1 through its proprietor submitted loan application and executed Letter of Undertaking, General Undertaking, Letter of Continuing Security, Power of Attorney in respect of book debts, Attestation Memo and General Form of Guarantee by defendant no.2 with the applicant bank on 19.11.2014. Sc-

4. The Defendant no.1 also executed Acknowledgement of Debt dated 30.03.2017 acknowledging their liability towards the applicant bank.

5. It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants failed to maintain financial discipline and comply with the terms and conditions. The defendants failed and neglected to pay the dues towards the applicant bank. The applicant bank classified the account as NPA on 31.12.2018 as per RBI guidelines but defendants failed to regularize the account. 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 13.11.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

7. In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Sh. Rajeev Kumar, authorized representative of the applicant bank who has proved the documents as Copy of GPA/BR, Demand Loan Review Proposal, Hypothecation Agreement, Letter of Undertaking, General Undertaking, Declaration cum Undertaking cum Authority, Power of Attorney in respect of Book Debts, General Form of Guarantee and Attestation Memo, Letter of Acknowledgement of Debt, Statement of Account marked as Ex.AW-1/1 to Ex.AW-1/10.

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 to pay to the applicant bank, within a period of 30 days, jointly or severally, a sum of Rs.23,11,350.97 (Rupees Twenty Three Lacs Eleven Thousand Three Hundred Fifty and paisa Ninety Seven only) as on 31.12.2018 together with pendentelite and future interest @12.75% per annum with monthly rests from the date of filing of this application till the date of realization and costs failing which the aforesaid amount shall be recovered from sale of hypothecated stocks, plant & machinery including all existing and future current and fixed assets of defendant no.1. In case of shortfall, the same shall be recovered from the sale of movable and immovable personal properties of the 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 09.04.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABF A) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 07.02.2026