BANK OF BARODA vs Al Faiz on 15 June 2026

FINAL ORDER

This original application has been filed by the applicant bank before DRT-I, Chandigarh and then transferred to DRT-I Delhi on 19.11.2024 under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.25,43,328.77 (Rupees Twenty Four Lacs Forty Three Thousand Three Hundred Twenty Eight & paisa Seventy Seven only) as on 06.10.2024 along with pendentelite and future interest @11.75% per annum with monthly rests plus @2% penal interest from the date of filing of this application till its realization with costs.

2. The brief facts of the case are that on the request of the defendant vide loan application dated 30.02.2023 received thru KVIC Delhi East along with various documents, the applicant bank sanctioned Term Loan of Rs.14,25,000/- (Rupees Fourteen Lacs Twenty Five Thousand only) and Cash Credit facility of Rs.9,50,000/- (Rupees Nine Lacs Fifty Thousand only) on 30.12.2023 @11.75% interest per annum with monthly rests under PMEGP for purchasing machinery and working capital requirements against hypothecation of sewing machinery purchased out of bank finance including garments, clothes, fabrics etc. covered under CGTMSE scheme. The term loan was to be repaid in 60 EMIs of Rs.23,750/- from 31.07.2024.

3. That in order to avail the aforesaid loan facilities, the defendant submitted loan applications dated 30.12.2023 and executed Loan Agreement LDOC 144B dated 30.12.2023, Demand Promissory Notes LDOC3(b) for both limits, Letter of Sole Proprietorship, Letter of Installment with Acceleration Clause LDOC 57, Letter of Continuing Security LDOC7, Draft Undertaking Annexure-I, Letter of Authority LDOC-72, Power of Attorney all dated 06.02.2021 with the applicant bank.

4. It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and failed to deposit the installments and interest in the account with the applicant bank. Ultimately, the applicant bank classified the accounts as NPA on 27.05.2024 as per RBI guidelines and issued recall cum demand notice u/s 13(2) of SARFAESI Act dated 01.06.2024 but the defendants neglected the same and hence the applicant bank has approached this Tribunal for recovery of their dues.

5. Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 20.03.2026, the defendant has been proceeded ex-parte as not appeared before the Tribunal as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant.

6. In order to prove its case, the applicant bank has filed its documents through Sh.Manoj Kumar, authorized representative of the, applicant bank who has proved the documents such as Board Resolution, ID Card of AR, Loan Application, Form No.135, Self-Attested copy of Aadhar Card, PAN Card, Udhyam Registration Certificate, Rent Agreement, Self-Attested cop of GST Registration, Sanction Letter, Loan Agreement being LDOC 144B, Attestation Memo, Demand Promissory Notes, Letter of Sole Proprietorship, Letters of Installment LDOC-57, Letter of Continuing Security, Draft Undertaking, Letter of Authority, Power of Attorney of Book Debts, Invoice No.353, Invoice No.446, Letters for Overdue payment, Legal Notice, Three Letters dated 14.05.2024, Notice u/s 13(2) of SARFAESI Act, Upgrdation Information and Statement of Accounts, Certificate u/s Bankers' Book Evidence Act marked as Exhibit AW1/1 to Exhibit AW1/25.

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 approved.

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 defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.25,43,328.77 (Rupees Twenty Four Lacs Forty Three Thousand Three Hundred Twenty Eight & paisa Seventy Seven only) as on 06.10.2024 together with pendentelite and future interest @13.75% per annum with monthly rests from the date of filing of this application till the date of its realization and costs; failing which the amount shall be recovered from sale of hypothecated sewing machinery, current assets, clothes, garments, fabrics etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant. (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 17.08.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABH PRESIDING OFFICER DRT-I, DELHI (Dictated and and pronounced in open court) Dated: 15.06.2026