BANK OF INDIA vs MAULIKA GENERAL STORE AND ANR on 5 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 21.12.2020 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 a sum of Rs.23,90,295.35 (Rupees Twenty Three Lacs Ninety Thousand Two Hundred Ninety Five & paisa Thirty Five only) as on 30.11.2010 along with pendentelite and future interest @12.80% per annum with sl monthly rests plus penal interest @2% per annum over the agreed rate of interest from the filing of this application till the date of realization with costs.

2. The brief facts of the case are that on the request of the defendant no.1 through its proprietress being defendant no.2 vide application dated 05.06.2014, the applicant bank sanctioned Cash Credit facility of Rs.20,00,000/- (Rupees Twenty Lacs only) on 05.06.2014 under MSME scheme for Kiryana business @14.20% rate of interest per annum with monthly rests under MSME scheme against hypothecation of stocks and book debts etc. The defendant also agreed to pay penal interest @2% per annum in case of default in payment of interest.

3. In order to avail the credit facility, the defendants submitted loan application dated 05.06.2014 and executed Promissory Note Form L-434, Form L-516 Stamped Agreement, Form IFD-10 Hypothecation cum Loan Agreement, Form OD- 194 Deed of Guarantee on 13.06.2014 with the applicant bank.

4. The defendant executed Acknowledgement of Debt and Securities thereby acknowledging the debt (Form L-444C) on 13.05.2017 and 13.04.2020 towards the applicant bank.

5. The applicant bank on various inspections of defendants requested to clear the overdue amount in the account and also approached North District Legal Services Authority vide letter dated 04.02.2020 u/s 20(2) for settlement but defendants didn't turn up.

6. It has been submitted by the applicant bank that after availing the credit facility, the defendants failed to comply with 7r 5

the terms and conditions of sanction and failed to regularize the Cash Credit account with the applicant bank hence the applicant bank has approached this Tribunal for recovery of their dues.

7. 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 29.08.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Pal Singh Harminder, authorized representative of the applicant bank who has proved the documents such as Power of Attorney Ex.AW-1/1, Application Form for MSME Ex.AW-1/2, Sanction Letter Ex.AW- 1/3, Form L-434 Ex.AW-1/4, Form L-435 Ex.AW-1/5, Form L- 515 Agreement Ex.AW-1/6, IFD-10 Hypothecation cum Loan Agreement Ex.AW1/7, Deed of Guarantee Form OD-194 Ex.AW1/8, Acknowledgment of Debt and Securities Ex.AW-1/9, Inspection Reports Ex.AW1/10, NDLSA Notice Ex.AW1/11, Form L-444C dated 13.04.2020 Ex.AW-1/12, Statement of Account Ex.AW-1/13, Certificate of Accrued but Undebited Interest Ex.AW-1/14.

9. 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.

10. 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.

11. 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.23,90,295.35 (Rupees Twenty Three Lacs Ninety Thousand Two Hundred Ninety Five & paisa Thirty Five only) as on 30.11.2010 together with pendentelite and future interest @12.80% per annum with monthly rests 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 and book debts etc. 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 04.08.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. 5d- (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 05.06.2026