BANK OF BARODA vs M/S ROAD RUNNER AND ANOTHER on 17 October 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.33,50,514.20 (Rupees Thirty Three Lac Fifty Thousand Five Hundred Fourteen and Paise Twenty Only). The Transfer Application has been filed through Sh. Rupesh Kumar, Senior Manager, of the applicant, who is competent to institute the Transfer Application vide Authority Letter dated 30.07.2026, 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 CC Limit of

Rs.15.00 lacs and Term Loan of Rs.20.00 lacs vide Loan Application dated 04.03.2025, which is Annexure A2 to this TA.

3. The applicant sanctioned the CC Limit of Rs.15.00 lacs and Term Loan of Rs.20.00 lacs vide Sanction Letter dated 26.03.2025, which is Annexure A3 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendant no. 1, through its proprietor defendant no. 2, hypothecated its stock and book debts vide Loan Agreement dated 26.03.2025, which is Annexure A4 to this TA; Documents executed: Power of Attorney dated 26.03.2025, which is Annexure A5 to this TA; Letter of Sole Proprietorship dated 26.03.2025, which is Annexure A6 to this TA; Undertaking dated 26.03.2025, which is Annexure A7 to this TA; Demand Notice dated 04.05.2026, which is Annexure A8 to this TA; Account Statement of the Cash Credit Limit, which is Annexure A9 to this TA; and Account Statement of the Term Loan, which is Annexure A10 to this TA.

5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.33,50,514.20 (Rupees Thirty Three Lac Fifty Thousand Five Hundred Fourteen and Paise Twenty Only), 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 12.10.2026.

7. In support of the TA, affidavit of Sh. Rupesh Kumar, Senior Manager, Bank of Baroda, has been filed.

8. Heard 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 had proved its case. It was further argued that OA is not barred by the limitation or any other law.

From the perusal of all the Annexures A1 to A10 to this TA, it is proved that the defendant no. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. The defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,50,514.20 (Rupees Thirty Three Lac Fifty Thousand Five Hundred Fourteen and Paise Twenty 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. The present application was filed by the applicant on 27.08.2026 and is not barred by Limitation as the loan documents were executed by defendants on 26.03.2025. Further, the present application is not barred by the Recovery of Debts and Bankruptcy Act 1993 or any other law.

10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @12.45% p.a. with monthly rests from 26.06.2026 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 loans 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 both the loan accounts 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 a total sum of Rs.33,50,514.20 (Rupees Thirty Three Lac Fifty Thousand Five Hundred

Fourteen and Paise Twenty Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in both the loan accounts 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 assets of the 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 30.10.2026

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: 17.10.2026

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