Allowed

Bank of Baroda v. Hopstop Private Limited

DRT11 Nov 2025OA/2099/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Bank of Baroda for a Recovery Certificate. The court accepted the bank's evidence of overdraft and credit card defaults as undisputed due to the respondents' ex parte status, awarding a reduced interest rate of 10%. The bank was granted the cost of proceedings.

What did the court decide?

Recovery Certificate issued for Rs. 2,39,86,688.92 plus 10% simple interest from the date of filing; costs awarded to applicant.

Bank of Baroda versus Hopstop Private Limited — Company and Corporate | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 11^th Day of November, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.2099/2024

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BETWEEN:

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M/s. Bank of Baroda, Residency Road Branch, No.2, Janardhan Rower, Residency Road, 560 025.

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…APPLICANT

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AND:

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M/s. Hopstop Pvt. Ltd, No. 2322, Sector 1, 27^th Main, 17^th Cross, HSR Layout, Bangalore- 560 102, Represented by its Directors- D No. 2 & 3,

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Mr. Ankur Khatri, Director & personal guarantor, A-608, Prestige St. Jogn’s Wood, Tavarkere Main Road, Bangalore- 560 029.

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Also at:

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a. No. 17, Ground Floor, Canning Lane, Delhi- 110 001.

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b. 6/6/41, Jan Morcha Lane, Mohalla Bazaar, Faizabad, Ayodhya, Uttar Pradesh-224 001.

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c. Plot No. 188/7, house No. S18/2-A-65, Flat No. I, III Floor, Gurukripa Building, Nadesar, Dehat Amanat, Sadar, Varanasi- 221 002.

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Ms. Aditi Khatri, Director & personal Guarantor, A-608, Prestige St. John’s Wood, Tavarkere Main Road,

OA 2099/2024

Bangalore- 560 029.

Also at:

a. No. 17, Ground Floor, Canning Lane, Delhi- 110 001.

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b. 6/6/41, Jan Morcha Lane, Mohalla Bazaar, Faizabad, Ayodhya, Uttar Pradesh- 224 001.

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C. Plot No. 188/7, House No. S18/2-A-65, Flat No. I, III Floor, Gurukripa Building, Nadesar, Dehat Amanat, Sadar, Varanasi- 221 002. ...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : M/s. Skanda Legal Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 2,39,86,688.92 (Rupees Two Crore Thirty Nine Lakh Eighty Six Thousand Six Hundred Eighty Eight and Paise Ninety Two Only) with further interest thereon from the date of filing the Application till realization. The 1^st defendant is a private limited company represented by its directors defendant No. 2 & 3.

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It is the case of the applicant that the defendants availed overdraft facility of Rs. 1.00 crores and working capital cash credit of Rs. 3.00 crores

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It is also the case of the applicant that, in view of the above availed

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OA 2099/2024

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loans, the defendant executed necessary loan documents along with composite hypothecation agreement, letter of continuing security and demand promissory note.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the balance amount due in the account.

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Despite, summons on the defendants, they failed to appear resulting the defendants being set exparte on 02.07.2025.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-42 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim

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as against the defendants?

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OA 2099/2024

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of Hypothecation and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can

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be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.2099/2024, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs.

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2,39,86,688.92 (Rupees Two Crore Thirty Nine Lakh Eighty Six Thousand

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OA 2099/2024

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Six Hundred Eighty Eight and Paise Ninety Two Only) with further interest

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@10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally & personally and also proceeding against their assets including the schedule assets. Schedule to the OA be the schedule to the recovery certificate.

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ii) The applicant bank is allowed cost of the proceedings which

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applicant to file cost memo within 7 days from the date of receipt of the order.

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iii) The Recovery Certificate to be drawn in terms of this order and transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of in terms

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of this final order.

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Communicate a copy of the order to the parties concerned in terms

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of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)

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Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 11^th Day of November, 2025].

Sd/- (T. RAJESH)

OA 2099/2024

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Viswanathan S/o Balasubramanian, Chief Manager, of Applicant

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Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	List of documents
A1	16.10.2020	Certificate of Incorporation of M/s. Hopstop Pvt. Ltd
		Rs. 1.00 Crore Overdraft- 2021
A2	20.12.2021	Loan application form for MSEs of Rs. 1.00 Crore for overdraft facilities
A3	30.12.2021	Composite hypothecation agreement
A4	30.12.2021	Demand promissory note for Rs. 1.00 crore
A5	30.12.2021	Letter of continuing security
A6	30.12.2021	General form of guarantee
A7	30.12.2021	Letter of undertaking in respect of book debts
A8	30.12.2021	Declaration cum undertakings cum authority
A9	30.12.2021	An undertaking not to withdraw deposit by the partners till the advances is liquidated
A10	30.12.2021	General undertaking
A11	30.12.2021	Letter of authority to Disclose or publish name of borrower
A12	30.12.2021	Undertaking-cum-declaration
A13	30.12.2021	Letter depositing fixed deposit receipts
A14	30.12.2021	Power of attorney in respect of book debts facility
A15	19.09.2022	Loan application form for MSEs of Rs. 3.00 crore for overdraft facilities
A16	30.12.2022	Sanction of credit facilities
A17	30.12.2022	Board resolution for availing and securing credit facilities
A18	30.12.2022	Composite hypothecation agreement
A19	30.12.2022	Supplemental composite hypothecation
A20	30.12.2022	Demand promissory note
A21	30.12.2022	Letter of continuing security
A22	30.12.2022	Letter of guarantee
A23	30.12.2022	Letter of undertaking in respect of book-debts
A24	14.11.2022	Declaration cum undertaking cum authority agreement
A25	--	Letter of depositing fixed/ short deposit receipt
A26	30.12.2022	Term deposit receipt of Rs. 3,00,000.00/-

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OA 2099/2024

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A27	30.12.2022	Term deposit receipt of Rs. 17,00,000.00/-
A28	30.12.2022	Letter of undertaking not to withdraw deposit by the partners/ directors etc. till the advance is liquidated
A29	30.12.2022	General undertaking- cash credit (Hyp. Of stocks & Books- debts) facility with a limit of Rs. 3.00 crore
A30	30.12.2022	Letter of authority in the bank’s favour to disclose or publish the name of the borrower in case of default of loan/ advances
A31	30.12.2022	Power of attorney in respect of book-debts
A32	12.07.2023	E-mail a copy of the letter of NPA status of the credit facility of M/s. hopstop Pvt. Ltd. By the applicant bank
A33	29.09.2023	Letter of applicant bank to M.s, Hopstop Pvt. Ltd on charging of penal interest @2% for non-compliance of asanctioned terms
A34	20.12.2023	Letter by the applicant bank to M/s. Hopstop Pvt. Ltd over non-compliance with the sanctioned terms and conditions-security perfection
A35	17.01.2024	Letter by the applicant bank to M/s. Hopstop Pvt. Ltd for adjustment of the credit facility
A36	29.03.2024	Copy of E-mail advising that the account would turn Non performing asset on 30.03.2024
A37	03.04.2024	Recall notice to M/s. Hopstop Pvt. Ltd and its directords/ guarantors
A38	--	Letter of the bank seeking to reduce limit from the sanctioned limit of Rs. 3.00 crores to the original limit of Rs/ 1.00 crore
A39	04.06.2024	Demand notice issued by the legal counsel of the applicant bank
A40	06.07.2024	Notice after appropriation of term deposits
A41	30.12.2021	CERSAI reports
A42	18.07.2024	Loan account statement: 739404000247

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Witness Examined for the Defendant: List of Documents Exhibited for the Defendant:

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Bank of Baroda v. Hopstop Private Limited

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Hopstop Private Limited

Case brief

What is this about?

What did the court decide?

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