BANK OF BARODA vs RAJESHVARI GUPTA on 16 May 2026

FINAL ORDER

This original application has been filed by the applicant bank on 19.05.2022 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.51,05,157.17 (Rupees Fifty One Lacs Five Thousand One Hundred Fifty Seven & paisa Seventeen only) as on 11.05.2022 along with pendentelite and future interest @11.15% in overdraft account and @8.65% interest per annum in credit facility under Covid Healthcare account with penal interest @2% penal interest with monthly rests till the date of realization along with costs.

2. The brief facts of the case are that on the request of the defendant no.1 being proprietress of defendant no.2 vide application under MSME category along with KYC documents, the applicant bank sanctioned Overdraft facility of Rs.40.00 lacs (Rupees Forty Lacs only) on 23.03.2021 @10.60% interest per annum for working capital requirements and Term Loan facility of Rs.8.00 lacs (Rupees Eight lacs only) under Covi Healthcare Scheme on 20.07.2021 @8.65% interest per annum to be repaid in EMIs of Rs.19,776/- w.e.f. 30.08.2022 against hypothecation of stock, book debts and plant & machinery. In case of default in repayment of interest or instalment, the defendant agreed to pay penal interest @2% over the agreed rate of interest.

3. In order to avail the credit facilities, the defendants submitted loan application and executed Sanction Letter, Attestation Memo, DP Note LDOC-1, Letter of Sole Proprietorship, Power of Attorney for Book Debts, Letter of Continuing Security, Letter of Undertaking, General Undertaking, Declaration cum Undertaking, Supplemental Composite Instrument of Hypothecation of Goods, Book Debts, Moveable Machinery & Vehicles and Letter of Installment with Acceleration clause on 23.03.2021 and 20.07.2021 with the applicant bank.

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 of sanction and failed to regularize the accounts with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 22.12.2021 and issued legal notice dated 09.03.2022 but defendants made no efforts to regularize the accounts. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

5. 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 11.08.2022, rights of defendants to file written statement within stipulated period as prescribed under RDB act were closed and proceeded ex-parte as not appeared before the tribunal and evidence and affidavit of assets have not been filed by the defendants.

6. Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 14.02.2022 was issued upon defendants to liquidate the outstanding liability but neglected. sd

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Brij Mohan Soni, authorized representative of the applicant bank, who has proved the documents such as Power of Attorney, Loan Application Form & Stocks Statement, KYC documents, Sanction Letters, Security Documents, Request Letter, Loan Application under Covi Healthcare Scheme, Term Loan Appraisal cum Sanction, Security Documents under Covi Healthcare Scheme, Demand Notice, Legal Notice, Statement of Accounts and NPA sheets, Certificate u/s 2A of Bankers' Books Evidence Act 1891 r/w 65B of Indian Evidence Act marked as Exhibit AW-1/11 to Exhibit AW-1/11.

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 approved.

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.51,05,157.17 (Rupees Fifty One Lacs Five Thousand One Hundred Fifty Seven & paisa Seventeen only) as on 11.05.2022 together with pendentelite and future interest @13.15% per annum from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and plant & machinery. In case of shortfall, the same shall be recovered from the sale of movable and immovable 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 15.07.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 16.05.2026