Allowed

Bank of Baroda v. M/S Shaurya Enterprises and Others

DRT25 Apr 2025OA/1250/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application under RDDBFI Act, 1993 filed by Bank of Baroda for recovery of ₹89.96 lakh principal amount from defendants. The Tribunal reduced the claimed 14.75% interest to 8% simple interest on future rates.

What did the court decide?

Recovery certificate issued for Rs.89,96,741.49 plus simple interest @08.00%p.a.; parties directed to appear before Recovery Officer.

Bank of Baroda versus M/S Shaurya Enterprises and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1250/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.10.2023

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DATE OF DECISION: 25.04.2025

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Bank of Baroda, erstwhile Vijaya Bank a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act of 1970, having its Registered Office at Baroda Bhawan, R.C. Dutt Road, Alkapuri, Baroda- 390007 and having amongst other branches one such branch at SCO62-63, Bank Square, Sector 17-B, Chandigarh through its constituted Attorney Sh. Naresh Kumar.

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……..Applicant

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Versus

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M/s Shaurya Enterprises, a proprietorship concern having office at Shop No.20, 1^st Floor, Panchkula Road, Main Market Baltana, Zirakpur, Punjab through its proprietor Ms. Ritu Jain

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Ms. Ritu Jain proprietor M/s Shaurya Enterprises, R/o 20, Modern Enclave, Baltana, SAS Nagar, Mohali, Punjab

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Sh. Mahavir Parsad Jain S/o late Sh. Kapoor Chand Jain, R/o H. No.20, Modern Enclave, Baltana, SAS Nagar, Mohali, Punjab

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Sh. Adish Jain S/o Sh. Mahavir Jain, R/o H. No.20, Modern Enclave, Baltana, SAS Nagar, Mohali, Punjab

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………. Defendants

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Advocates:

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Present by Ms. Kanchan Sehgal, Advocate for the applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.89,96,741.49p (Rupees Eighty Nine Lacs Ninety Six Thousand

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2 OA NO.1250/2023

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BANK OF BARODA VS M/S SHAURYA ENTERPRISES AND OTHERS

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Seven Hundred Fourty One and Fourty Nine Paise Only). The Original Application has been filed through Sh. Naresh Kumar, Chief Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 14.11.2017, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of CC Limit of Rs.95.00 Lacs.

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The applicant sanctioned the CC Limit of Rs.95.00 Lacs vide Credit Sanction Intimation filed in compliance of the order dated 14.08.2024 vide diary No.6032 dated 21.04.2025 and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had Mortgaged his immovable property i.e. Shop No.20, measuring 34.40 Sq. Yards situated at Ekta Vihar, Baltana, Hadbast No.47, Zirakpur, SAS Nagar, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.4865 dated 15.09.2008 with its translation filed in compliance of the order dated 14.08.2024 vide diary No.6032 dated 21.04.2025

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Documents executed:- Notification dated 02.01.2019, which is Annexure A1 to this OA; Composite Hypothecation Agreement, Declaration Sum Undertaking, D.P. Note, Letter of Sole Proprietorship, Letter of Installment, Letter of Authority to make payment Directly to the dealers, General Form of Guarantee, Letter of Confirmation of Mortgage, Declaration of Deposit of Title Deeds all dated 11.03.2020, which are Annexures A3 to A9, A11 and A12 to this OA; Memorandum of Entry dated 12.03.2020, which is Annexure A10 to this OA; Valuation Report dated 18.074.2022, which is Annexure A13 to this OA; CERSAI Report dated 06.07.2021, which is Annexure A14 to this OA; Acknowledgement of Debt dated 27.06.2022, which is Annexure A15 to this OA; Notices u/s 13(2) dated 01.10.2022 with postal receipt, which are Annexures A16 to A19 to this OA; Possession Notice dated 20.12.2022 with postal receipts, which is

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3 OA NO.1250/2023

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BANK OF BARODA VS M/S SHAURYA ENTERPRISES AND OTHERS

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Annexures A20 and A21 to this OA and Statement of account with Certificate, which is Annexure A22 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.89,96,741.49p, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 10.07.2024.

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In support of the OA, affidavit Sh. Naresh Kumar, Chief Manager has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel 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 A22 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.89,96,741.49p (Rupees Eighty Nine Lacs Ninety Six Thousand Seven Hundred Fourty One and Fourty Nine Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest

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4 OA NO.1250/2023

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BANK OF BARODA VS M/S SHAURYA ENTERPRISES AND OTHERS

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@12.75%p.a. plus penal interest @2.00%p.a. with monthly rests from 28.09.2023 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 property, 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 uniform simple interest @08.00%p.a. in the loan account 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.89,96,741.49p (Rupees Eighty Nine Lacs Ninety Six Thousand Seven Hundred Fourty One and Fourty Nine Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.05.2025.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also

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5 OA NO.1250/2023

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BANK OF BARODA VS M/S SHAURYA ENTERPRISES AND OTHERS

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uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 25.04.2025

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

Bank of Baroda v. M/S Shaurya Enterprises and Others

Case brief

What is this about?

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Bank of Baroda v. M/S Shaurya Enterprises and Others

Case brief

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What did the court decide?

What the court decided

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