BANK OF BARODA vs Rishabh Apparels on 8 September 2026

1. Mr. Girish Kumar Prakash Chandra

S/o Prakash Chandra Jaawat

Proprietor M/s Rishab Apparels

No.16, North Wall Road, 2nd Floor

Off Basin Bridge Road

Chennai – 600 079

...Respondent / Defendant

2. The Sr. Branch Manager

LIC of India, City Branch Office IV

Division II, United India Building, II Floor Esplanade, Chennai – 600 104

….2nd respondent / Garnishee

Counsels on record / appeared:

Counsel for Petitioner : Sh. S. Vaidyanathan ORDER ON IA No.1611/2026

1. The applicant bank filed IA.No.1611/2026 a petition seeking a garnishee order directing the 2nd respondent to remit the amount due under the policy No.716774638 of the 1st respondent, to the account of the 1st respondent with the petitioner bank.

2. In the affidavit along with IA it is contended that the 1st respondent had availed a Cash Credit of Rs.50 lakhs against Hypothecation of Stock from the petitioner bank for the business of Readymade garment and clothes, but had not conducted the account as per the terms of sanction and had not maintained sufficient stock to cover the limits. The 1st respondent had since closed down his business and hence the account was classified as NPA on 10.05.2019. Though the petitioner / applicant bank made various efforts to recover the dues from the respondent, it has not met with any success and hence the petitioner had filed the above OA for recovery of a sum of Rs.51,65,044/-. However, there is no stock of Hypothecated goods or any security available in the account and consequently, the Applicant Bank is left without any security for recovery of its dues in the event the Original Application (OA) is allowed by the Tribunal.

3. It is further submitted by the applicant bank that it has now come to notice of the Petitioner that the 1st respondent / defendant has an LIC Policy No.716774638 with Life Insurance Corporation of India, C.B.O. IV, Division II, Chennai which is having a surrender value of Rs.1,96,156/- as on 25.07.2025 as per letter received from the 2nd respondent. This amount can be attached to set off the dues of the 1st respondent, failing which grave loss and severe monetary harm would be caused to the petitioner, who deals in public money and at least a part of the amount due from the 1st respondent would be recovered if the said amount payable by the 2nd respondent would be attached and appropriated to the loan account. No prejudice would be caused to the 1st respondent, as the amount due under the policy which is sought to be attached is only a fraction of the amount due from the defendant / 1st respondent in a sum of Rs.70 lakhs as on date with interest accrued in the account.

4. Hence the present I.A No.1611/2026 has been filed, to direct the 2nd respondent to remit the surrender value of the Policy No.716774638 along with any accrued surrender value till date of the order, for appropriation to the loan account of the 1st respondent.

Heard and perused the records.

5. It is manifest from the records the 1st respondent is the borrower, who had availed the credit facilities and are liable to pay a sum of Rs.51,65,044/-. It is evident that the loan is secured by hypothecation of all stocks such as clothes, dress materials, readymade shirts / pants etc., and book debts. Subsequent to availing of loan, the defendant had not conducted the account as per the terms of sanction and had not maintained sufficient stock to cover the limits. The 1st respondent had since closed down his business and hence the account was classified as NPA on 10.05.2019. However, there is no stock of Hypothecated goods or any security available in the account and consequently, the Applicant Bank is left without any security for recovery of its dues in the event the OA being allowed by the Tribunal.

6. It is submitted by the Applicant Bank that the 1st Respondent/Defendant is the holder of LIC Policy No. 716774638 with the Life Insurance Corporation of India, C.B.O. IV, Division II, Chennai, and that, as per the communication received from the 2nd Respondent, the said policy has a surrender value of Rs.1,96,156/- as on 25.07.2025. The Applicant Bank has further submitted that the 1st Respondent/Defendant is liable to pay a sum of approximately Rs.70,00,000/- as on date, together with further interest and other applicable charges, and that the Applicant Bank is otherwise left without adequate security for recovery of its dues.

7. The petitioner / applicant bank filed AOS of notice sent to respondents returnable by 08.09.2026. Notice to 1st respondent / defendant returned as ‘No such person’, while notice sent to 2nd respondent / Garnishee is duly served 25.08.2026, despite which there is no representation for the Garnishee.

8. Upon hearing the Ld. Counsel appearing for the Applicant Bank and upon perusing the pleadings, documents and material available on record, this Tribunal is satisfied that the Applicant Bank has made out a prima facie case for securing the amount payable under the LIC Policy held in the name of the 1st Respondent/Defendant, with the 2nd respondent, particularly in view of the fact that there is presently no stock of hypothecated goods or any other security available to the Applicant Bank for recovery of its dues.

9. Accordingly, IA.No.1611/2026 stands allowed and an order of conditional attachment of the LIC Policy No. 716774638 in the name of the

1st Respondent/Defendant or to any person claiming through or under the 1st Respondent/Defendant, to the extent of Rs.1,96,156/- (surrender value of the policy as on 25.07.2025) is hereby granted. Meanwhile, the 2nd Respondent/Garnishee, Life Insurance Corporation of India, C.B.O. IV, Division II, Chennai, is hereby directed not to make any payment, discharge, surrender value payment or other monetary benefit in respect of LIC Policy No. 716774638 to the 1st Respondent/Defendant or to any person claiming through or under the 1st Respondent/Defendant, to the extent of Rs.1,96,156/-, without the prior permission of this Tribunal and also to show cause why the order of the conditional attachment should not be made absolute.

10. Communicate this order to the concerned Garnishee and to file compliance report.

Sd/-

(S.V. GOWRAMMA)

PRESIDING OFFICER

DRT-III, CHENNAI

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 08th day of September, 2026)