BANK OF BARODA vs M/S BHASIN TURNING AND PUNCHING WORKS on 15 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 15.01.2020 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.40,92,110.84 (Rupees Forty Lacs Ninety-Two Thousand One Hundred Ten & paisa Eighty-Four only) as on 30.11.2019 together with pendentelite and future interest @11.45% per annum from 30.11.2019 till its realization with costs.

2. The brief facts of the case are that at the request of defendant no.1 as proprietorship concern through its proprietor being defendant no.2, the applicant bank sanctioned Cash Credit limit of Rs.55,00,000/- (Rupees Fifty Five Lacs only) as working capital on 21.09.2016 @12.45% rate of interest and @2% penal interest in case of default in repayment of interest against hypothecation of stocks and book debts. Further, the defendant no.3 and 4 stood as guarantors for credit facility sanctioned in favour of defendant no.1 by the applicant bank.

3. That in order to avail the credit facility, the defendant no.2 as proprietor of defendant no.1 executed Sanction Letter, Loan Agreement cum Hypothecation Agreement, Letter of Permission for Access, Letter of Guarantee on 21.09.2016 in favour of the applicant bank.

4. That in order to secure the credit facility, defendant no.2 hypothecated the stock and book debt with the applicant bank. The defendant no.2 as proprietor of defendant no.1 acknowledge the liability on 16.05.2018 towards applicant bank. 5d-

5. It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants failed to honor its commitments and not maintain financial discipline and contravened breached the various terms and conditions of loan agreement and repay the overdue interest despite personal visits and reminder/notices. Ultimately, the account became sticky and the applicant bank classified the account as NPA on 31.05.2019 as per RBI guidelines, hence the applicant bank has approached this Tribunal for recovery of their dues.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002' dated 06.06.2019 issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank. Thereafter, applicant bank issued possession notice u/s 13(4) dated 23.09.2019 for taking possession of hypothecated stock of defendant no.1 but no progress made.

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 11.03.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have 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 Preety Pandey, authorized representative of the applicant bank who has proved the documents such as Loan Agreement cum Hypothecation Deed Ex AW-1/1, Letter of Permission for Access Ex.AW-1/2, Letters of Guarantees Ex.AW-1/3, Acknowledgement of Liability Ex.AW-1/4, Notices u/s 13(2) of SARFAESI Act Ex.AW-1/5 to Ex.AW-1/7, Possession Notice Ex AW-1/8, NPA Certificate Ex

AW-1/9, Statement of Loan Accounts Ex AW-1/10, Certificates under Bankers' Books Evidence Act Ex AW-1/11 and Power of Attorney Ex AW-1/12.

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 proved.

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.40,92,110.84 (Rupees Forty Lacs Ninety-Two Thousand One Hundred Ten & paisa Eighty-Four only) as on 30.11.2019 together with pendentelite and future interest @11.45% per annum from 01.12.2019 till the date of realization failing which the aforesaid amount shall be recovered from the sale of the 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.

(Ill) 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 SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 15.06.2026