BANK OF MAHARASHTRA vs MOHD SHAHID AND ORS on 7 March 2026

FINAL ORDER

This original application has been filed by the applicant bank on 09.12.2019 before DRT-III, Delhi and then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (51 of 1993) against the defendants for recovery of Rs.24,90,923/- (Rupees Twenty Four Lacs Ninety Thousand Nine Hundred Twenty Three only) as on 18.11.2019 together with pendentelite and future interest @10.85% per annum with monthly rests plus @2% penal interest from the date of filing of this application till the date of realization and costs.

2. The brief facts of the case are that at the request of defendant no.1 as proprietor of M/s Sahar Enterprises vide loan application dated 22.08.2016 along with KYC documents i.e. Provisional Registration of Firm, Provisional Registration, Aadhar Card, PAN Card, Election ID Card and personal details, the applicant bank sanctioned Cash Credit limit for Rs.9,00,000/- (Rupees Nine lacs only) for working capital requirement on 22.08.2016 @11.65% per annum with monthly rests which was enhanced to Rs.20.00 lacs (Rupees Twenty lacs only) @11.00% interest per annum against hypothecation of stocks and book debts on 22.05.2017 and 12.06.2018. Further, the applicant bank allowed temporary overdraft facility for Rs.1,70,000/- for one week. The defendant no.2 stood as guarantor for all credit facilities except agricultural facilities sanctioned in favour of defendant no.1 by the applicant bank. 5d-

3. That in order to avail the loan facilities, the defendants no.1 submitted loan applications and executed Demand Promissory Notes, Letters of Authority for Adjustment of Deposit (New AX9), Deed of Hypothecation, Undertaking/ Confirmation, Guarantee, Letter of Proprietorship and Certificate of compliance etc. in favour of the applicant bank on 22.08.2016 & 22.05.2017.

4. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to comply with the terms and conditions and failed to pay the outstanding dues in time to the applicant bank. The applicant bank classified the account as NPA on 21.06.2019 and issued letter dated 02.07.2019 to the defendants as per RBI guidelines but they failed to regularize the account. Hence, the applicant bank has approached this Hon'ble Tribunal for recovery of their dues.

5. Notices of this O.A. were issued to the defendants and despite proper service the defendants have chosen to absent from the proceedings. As per order dated 22.01.2025, the defendants have been proceeded ex-parte as not appeared before the tribunal and failed to file written statement, evidence and affidavit of assets.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Jasveen Singh, authorized representative of the applicant bank who has proved the documents such as Board Resolution, Personal Information of defendants, Certificate of Provisional Registration of Firm, Aadhar Card, PAN Card, Election ID Card, Sanction cum Concurrence Letter, Application/Request Letter, Demand Promissory Note, Letter of Authority for adjustment of deposit, Letter of Proprietorship, Deed of Hypothecation, Undertaking/

Confirmation, Visit Report, Form RF-45, Certificate of Compliance of Terms and Conditions, Letters, Recall Notice, Statement of Account and Certificate under Section 2A of Banker's Book Evidence Act 1891 and Section 65B of Indian Evidence Act, Details of Interest Charged marked as Ex.AW- 1/1 to Ex.AW-1/33.

7. 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.

8. 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.

9. 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.24,90,923/- (Rupees Twenty Four Lacs Ninety Thousand Nine Hundred Twenty Three only) as on 18.11.2019 together with pendentelite and future interest ©12.85% per annum with monthly rests 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 hypothecated stocks and book debts, etc. In case of shortfall, the same shall be recovered from sale of movable and immovable property of the defendants. sd

(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 06.05.2026. (IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost. (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 07.03.2026