BANK OF BARODA vs LAVANYA COUTURE AND OTHERS on 18 April 2026

**FINAL ORDER**

This original application has been filed by the applicant before DRT II, Delhi on 28.06.2019 & transferred to DRT-I Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 read with Rule 8 of Debt Recovery Tribunal (Procedure) Rules 1993 against the defendants for recovery of Rs.57,79,955.31 (Rupees Fifty Seven Lacs Seventy Nine Thousand Nine Hundred Fifty Five & paisa Thirty One only) as on 18.06.2019 together with pendentelite and future interest @12.00% per annum with monthly rests plus @2% penal interest from 18.06.2019 till the date of realization and costs.

2. The brief facts of the case are that at the request of defendant no.1 through its partners in the business of manufacturing of all kind of ladies wears, the applicant bank sanctioned Cash Credit Hypothecation facility for a sum of Rs.24,00,000/- (Rupees Twenty Four Lacs only) as working capital @10.05% interest per annum on 05.07.2017 under Dena SME Scheme of the bank which was enhanced to Rs.50,00,000/- (Rupees Fifty Lacs only) @9.75% interest per annum on 29.01.2018 against hypothecation of stocks and book debts covered under CGTSME scheme.

3. That in order to avail the credit facility, the defendants executed Agreement of Hypothecation, Power of Attorney *Sd-* \_\_\_\_\_

(book debts), Undertaking, General Letter of Lien and Set Off for Borrowing Arrangement from borrowers, Letter of Continuity, Acknowledgement Letter of General Lien and set off from Guarantor, Letter of Guarantee, Demand Promissory Note, Acknowledgement of Debts, Consent Clause, Declaration etc. in favour of the applicant bank on 05.07.2017 and at the time of enhancement of limit on 29.01.2018.

4. It has been submitted by the applicant banks that after availing the credit facilities, the defendants miserably failed and neglected to pay the interest and failed to maintain financial discipline as per terms and conditions despite various notices and reminders. The applicant bank classified the account as NPA on 23.03.2019 as per RBI guidelines and issued demand notice on 18.06.2019 to clear the outstanding dues but the defendants failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its 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 21.12.2023, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Smt. Seema, authorized representative of the applicant who has proved the documents such as Power of Attorney, Trade Certificate, Sanction Letters, Agreements of Hypothecation, Power of Attorney (book debts), Undertakings, Declarations, Demand Promissory Notes, General Letters of Lien and Set off for borrowing arrangement *Sd-*

from borrowers, Consents Clause, Declarations, Letters of Guarantee, Letters of Continuity, Acknowledgement of Debts, Demand Notice, Statement of Account etc. marked as Page No.1 to 144.

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 to pay to the applicant bank within 30 days, jointly or severally, a sum of Rs.57,79,955.31 (Rupees Fifty Seven Lacs Seventy Nine Thousand Nine Hundred Fifty Five & paisa Thirty One only) as on 18.06.2019 together with pendentelite and future interest @12.00% per annum with monthly rests from 18.06.2019 till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, machinery and book debts etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(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 17.06.2026.

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

Sd- 21 18-4-2026

**(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 18.04.2026