Allowed

Bank of Baroda v. M/S Himachal Surgical and Allied Products Private Limited and Others

DRT20 Dec 2025OA/1224/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Bank of Baroda for recovery of Rs. 1.45 crore from M/s Himachal Surgical. The Tribunal ruled that a uniform simple interest of 8% p.a. is juster than the bank's claimed rates, ordered a Recovery Certificate, and directed issuance to the Recovery Officer.

What did the court decide?

Recovery of Rs. 1,45,16,770.82 with simple interest at 8% p.a.; issuance of Recovery Certificate; proceedings transferred to Recovery Officer.

Bank of Baroda versus M/S Himachal Surgical and Allied… — Insolvency and Bankruptcy | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1224/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.10.2024

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DATE OF DECISION: 20.12.2025

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Bank of Baroda, a body corporate with perpetual succession constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Registered Office at Mandvi at Baroda and one of its Branch at Mehta Tower, Opposite Hotel Venice, Dhangu Road, Pathankot-145001, Punjab through its Attorney Holder Sh. Ashok Kumar, Senior Manager.

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……..Applicant Versus

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1. M/s Himachal Surgical and Allied Products Pvt. Ltd., having its factory office at Plot no. 52-53, Industrial Area, Kandrori, District Kangra (H.P.) through its Directors Sh. Nikhil Mahajan and Sh. Chetan Verma (Defendant nos. 2 and 3 herein) 2^nd Address: C/o Akashdeep Sharma, G.T. Road, Chattroli, Jassur, Tehsil Nurpur, District Kangra-176201-(HP)

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Sh. Nikhil Mahajan S/o Sh. Ramesh Chander, M/s Himachal Surgical and Allied Products Pvt. Ltd., having its factory office at Plot no. 52-53, Industrial Area, Kandrori, District Kangra (H.P.) 2^nd Address: House No. B-16/30, Sunder Nagar, Opposite Adhirvad Palace, Dhangu Road, Tehsil Pathankot, Gurdaspur, Punjab-145001.

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Sh. Chetan Verma S/o Sh. Sh. Ravi Bhushan Verma, M/s Himachal Surgical and Allied Products Pvt. Ltd., having its factory office at Plot no. 52-53, Industrial Area, Kandrori, District Kangra (H.P.) 2^nd Address: Ward no. 17, Street no. A, Dhangu Road, Sunder Nagar, Pathankot, Punjab-145001.

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…….Defendants

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2 OA NO.1224/2024 BANK OF BARODA VS. M/S HIMACHAL SURGICAL AND ALLIED PRODUCTS PVT. LTD. AND OTHERS

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Advocates:

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Argued by Sh. C.S. Pasricha, Advocate for applicant (through VC) None for Defendant Nos. 1 and 2 Defendant no. 3 already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.1,45,16,770.82 (Rupees One Crore Forty Five Lacs Sixteen Thousand Seven Hundred Seventy and Paise Eighty Two Only). The Original Application has been filed through Sh. Ashok Kumar, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 09.02.2017, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 through its Directors Defendant nos. 2 and 3, approached the applicant for grant of Term Loan of Rs. 1.20 Crore and Cash Credit Limit of Rs. 20.00 Lacs vide request letter, which is Annexure A2 to this OA. Board Resolution dated 30.06.2022, which is Annexure A3 to this OA. Defendant nos. 2 and 3 also stood as guarantors. 3. The applicant sanctioned Cash Credit Limit of Rs.20.00 Lacs, Term Loan-I of Rs. 85.00 Lacs and Term Loan-II of Rs. 35.00 Lacs vide Sanction Letter, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its Directors defendant no. 2 & 3 hypothecated stock, book debts, plant and machinery, etc. vide composite deed of hypothecation agreement dated 15.07.2022, which is Annexure A21 to this OA. Defendant no. 1 through its Directors defendant no. 2 & 3 mortgaged land and building bearing Industrial Plot no. 52-53, measuring 1832 sq. mt., Hadbast no. 24, Industrial Area, Kandrori, Tehsil Indora, District Kangra, Himachal Pradesh through equitable

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3 OA NO.1224/2024 BANK OF BARODA VS. M/S HIMACHAL SURGICAL AND ALLIED PRODUCTS PVT. LTD. AND OTHERS

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mortgage vide mortgage deed bearing registration no. 871/22 dated 12.07.2022. Certificate of Registration of charge dated 20.10.2023, which is Annexure A26 to this OA.

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Documents executed : Attestation Memo, D.P. Notes, Letter of Installment with Acceleration Clause, Letter of Authority to make payment directly to supplier, Letter of Authority in Bank’s favour to disclose or Publish name of borrower in case of default of loan/advances, General undertaking, Draft undertaking, Letter of undertaking, Undertaking for unconditional cancellation of undrawn commitment, Credit Facility agreement, Letter of undertaking in respect of book debts, Undertaking not to withdraw deposit by the partners/directors etc. till advances is liquidated, Draft undertaking, Power of Attorney in respect of book debts facility, Declaration cum undertaking cum authority, Letter of Continuing security, General form of Guarantee, all dated 15.07.2022, which are Annexures A5 to A20, A22 to A24 to this OA; Notice dated 31.01.2024, u/s 13(2) of SARFAESI Act, which is Annexure A27 to this OA; Statement of accounts, which are Annexures A28 to A30 to this OA; Valuation report, which is Annexure A31 to this OA.

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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.1,45,16,770.82, 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 notices to appear before this Tribunal. Sh. Rohit Mahajan, Advocate appeared on behalf of defendant nos. 1 and 2 on 16.01.2025 and filed his Power of Attorney on their behalf. Since WS was not filed by defendant nos. 1 and 2, their opportunity to file WS was closed and defense was struck off on 01.10.2025. No one appeared on behalf of defendant no. 3 and he was proceeded ex-parte on 01.10.2025.

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4 OA NO.1224/2024 BANK OF BARODA VS. M/S HIMACHAL SURGICAL AND ALLIED PRODUCTS PVT. LTD. AND OTHERS

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In support of the OA, affidavit of Sh. Ashok Kumar, Senior Manager, Bank of Baroda h as been filed. 8. Heard arguments and perused record. No one appeared on behalf of defendant nos. 1 and 2 for arguments.. 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. From the perusal of all the Annexures A1 to A31 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, 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.1,45,16,770.82 (Rupees One Crore Forty Five Lacs Sixteen Thousand Seven Hundred Seventy and Paise Eighty Two Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @8.95% p.a. in CC account, @9.15%p.a. in Term Loan-I, @9.30%p.a. in Term Loan-II, including penal interest @2%p.a. and monthly rests in all Loan accounts from 07.10.2024 till the realization.

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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 mortgaged properties/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

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5 OA NO.1224/2024 BANK OF BARODA VS. M/S HIMACHAL SURGICAL AND ALLIED PRODUCTS PVT. LTD. AND OTHERS

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Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,45,16,770.82 (Rupees One Crore Forty Five Lacs Sixteen Thousand Seven Hundred Seventy and Paise Eighty Two Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants 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 08.01.2026. 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: 20.12.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. M/S Himachal Surgical and Allied Products Private Limited and Others

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Bank of Baroda v. M/S Himachal Surgical and Allied Products Private Limited and Others

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