BANK OF BARODA vs JUNO IMPEX AND ORS on 14 August 2026

FINAL ORDER

This original application has been filed by the applicant before DRT II, Delhi on 28.06.2019 and then 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.43,89,656.13 (Rupees Forty Three Lacs Eighty Nine Thousand Six Hundred Fifty Six & paisa Thirteen only) as on 17.06.2018 together with pendentelite and future interest @17.25% per annum with monthly rests plus 54/-46

@2% penal interest from 18.06.2018 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 sole proprietress vide loan application dated 09.05.2011, the applicant bank sanctioned Cash Credit Packing Credit facility for a sum of Rs.50,00,000/- (Rupees Fifty Lacs only) as working capital for running smooth business which was enhanced to Rs.90,00,000/- (Rupees Ninety Lacs only) on 13.10.2015 @17.25% interest per annum subject to change as per bank's guidelines against hypothecation of stocks, raw material, goods, receivable, plant & machinery and book debts.

3. That in order to avail the said credit facility, the defendants executed Agreement of Hypothecation (Goods, Book Debts and other movable assets to secure multiple facilities), Letter of Continuity, Foreign Bill form, Power of Attorney, Letter of Guarantee Letter of Confirmation of Guarantee, General Letter of General Lien and set off, Undertaking, Letter of Acknowledgement, Consent Clause, Demand Promissory Note and Declaration etc. on 18.05.2011 and 13.10.2015 in favour of the applicant bank.

4. It has been submitted by the applicant banks that after availing the credit facility, 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 01.08.2017 as per RBI guidelines and issued demand notice on 07.08.2017 to clear the outstanding dues but the

defendants neglected, hence, the applicant bank has approached this tribunal for recovery of its dues.

5. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 22.01.2018 was issued to the defendants for repayment of entire dues but defendants failed to pay the dues.

6. 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 20.12.2019, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Ms Mukulika Kushwaha, authorized representative of the applicant who has proved the documents such as , Power of Attorney, Agreements of Hypothecation (Goods, Book Debts & Other Movable Assets), Letters of Continuity, Foreign Bill Form, Power of Attorney (book debts), Letters of Guarantee, Agreements of Hypothecation (Book Debts & Other movable assets to secure multiple), General Letters of Lien and Set off, Undertakings, Letter of Acknowledgement, Demand Notice, Statement of Account etc. marked as Ex.AW-1/1 to Ex.AW-1/18(Colly).

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 proved.

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 30 days, jointly or severally, a sum of Rs.43,89,656.13 (Rupees Forty Three Lacs Eighty Nine Thousand Six Hundred Fifty Six & paisa Thirteen only) as on 17.06.20.18 together with pendentelite and future interest @17.25% per annum with monthly rests from 18.06.2018 till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, plant & 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. (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 13.10.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. Sc/ (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 14.08.2026