BANK OF BARODA vs M/S SK FARM AND ANOTHER on 22 July 2026

FINAL ORDER

1. Present Transfer Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.20,96,504.00 (Rupees Twenty Lacs Ninety Six Thousand Five Hundred and Four Only). The

Transfer Application has been filed through Sh. Atul Kumar Dwivedi, Chief Manager of the applicant, who is competent to institute the Transfer Application vide Power of Attorney dated 18.11.2016, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Working Capital Overdraft Limit of Rs.20,00,000.00.

3. The applicant sanctioned the Working Capital Overdraft Limit of Rs.20,00,000.00 vide Sanction Letter dated 20.05.2024, which is Annexure A2 to this TA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no.2.

4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated its stocks and book debts vide Loan Agreement, dated 20.05.2024, which is Annexure A5 to this TA. Documents executed: Attestation Memo, Demand Promissory Note, Undertaking for unconditional cancellation of Undrawan Commitments, Letter of Sole Proprietorship, Power of Attorney in respect of Book Debts Facility, Letter of Undertaking, Draft Undertaking, all dated 20.05.2024, which is Annexure A3, A4, A6 to A10 to this TA; Legal Notices dated 21.01.2026, 11.02.2026, along with postal receipts, which are Annexures A11 & A12 to this TA; Statement of Account along with certificates, which are Annexures A13 & A14 to this TA.

5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.20,96,504.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 20.07.2026.

7. In support of the TA, affidavit of Sh. Atul Kumar Dwivedi, Chief Manager, Bank of Baroda has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A14 to this TA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 approached applicant for availing of loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.20,96,504.00 (Rupees Twenty Lacs Ninety Six Thousand Five Hundred and Four Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of the amount.

10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.50%p.a. with penal interest 2%p.a. from 03.02.2026 till the realization.

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%p.a. in the loan account from the date of filing of the TA till realization of the amount ordered vide this final order. It is ordered accordingly.

11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.20,96,504.00 (Rupees Twenty Lacs Ninety Six Thousand Five Hundred and Four Only), along with interest, jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of TA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated stocks and book debts of defendant no. 1 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

12. Any other application pending stands disposed of.

13. Issue Recovery Certificate accordingly.

14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.08.2026.

15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 22.07.2026

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh