BANK OF BARODA vs M/S V K ENTERPRISES on 26 October 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 23.11.2019 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.21,66,757/- (Rupees Sd-

Twenty One Lacs Sixty Six Thousand Seven Hundred Fifty Seven only) as on 20.11.2019 along with pendentelite and future interest @11.95% per annum with monthly rests from 20.11.2019 till the date of its realization and costs.

2. The brief facts of the case are that on the request of the defendant no.2 being proprietorship of defendant no.1 vide loan application along with PAN Card, GST Form etc., the applicant bank sanctioned Cash Credit facility of Rs.20,00,000/- (Rupees Twenty Lacs only) on 21.09.2017 for working capital requirements under SME scheme @9.95% interest per annum with monthly rests against hypothecation of stock and book debts covered under CGTMSE scheme. In case of default in repayment of interest, the defendants agreed to pay @2% penal interest over the agreed rate of interest.

3. That in order to avail the credit facility, the defendant no.1 through defendant no.2 submitted loan application and executed Agreement of Hypothecation of Goods, Book Debts and other movable assets, Power of Attorney, General Letter of Lien & set-off for borrowing arrangement, Letter of Continuity, Declaration, Affidavit, Demand Promissory Note, Consent Clause and Letter of Acknowledgement of Debt on 21.09.2017 in favour of applicant bank.

4. That in order to secure the credit facility, the defendant no.2 as proprietor of defendant no.1 hypothecated the stocks and book debts towards the applicant bank.

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to comply with the terms and conditions of sanction and deposit the SD

interest in the account. The applicant bank issued legal demand notice dated 17.06.2019 to the defendants but neglected. The applicant bank classified the account as NPA on 24.09.2019 as per RBI guidelines and has now approached this Tribunal for recovery of their 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 29.09.2026, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Smt. Seema Kumari, authorized representative of the applicant bank who has proved the documents such as Power of Attorney of AR, Loan Application form, PAN Card, GST Certificate, Sanction Letter, Agreement of Hypothecation, Power of Attorney, General Letter of Lien & set-off, Letter of Continuity, Declaration, Undertaking, Demand Promissory Note, Consent Clause and Acknowledgement of Debt, Statement of Account, Demand Notice marked as page no.29 to 120.

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 approved.

9. The case filed by the applicant bank gone unrebuted and there is no question of disbelieving the case of the applicant Sd-

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 a period of 30 days, jointly or severally, a sum of Rs.21,66,757/- (Rupees Twenty One Lacs Sixty Six Thousand Seven Hundred Fifty Seven only) as on 20.11.2019 together with pendentelite and future interest @11.95% per annum from 20.11.2019 till the date of its realization and costs; failing which the amount shall be recovered from sale of 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.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 28.12.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

**(GOVIND BALLAE Sd - MA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 26.10.2026