Allowed

Bank of Baroda v. M/S Perfect Paving and Another

DRT21 Nov 2025OA/223/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Bank of Baroda against M/s Perfect Paving and its proprietor for recovery of outstanding dues of Rs. 49.45 lacs. The court disposed of the ex-parte application by directing recovery from hypothecated assets.

What did the court decide?

Allowed application. Directed recovery of Rs. 49.45 lacs with 8% p.a. interest. Issued Recovery Certificate. Authorized sale of hypothecated assets.

Bank of Baroda versus M/S Perfect Paving and Another — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.223/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.02.2025

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DATE OF DECISION: 21.11.2025

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Bank of Baroda, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Manadvi, Baroda and one of its branch at Patiala Road, SCO 16, Near Gurudwara Singh Sabha, Zirakpur, SAS Nagar, Mohali through its Attorney Holder Ms. Nivedita Sharma, Chief Manager.

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……..Applicant

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Versus

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M/s Perfect Paving, Plot at Khasra No. 442, Khata No. 194/138, Village Jhungiyan, Kharar, SAS Nagar, Mohali, Punjab through its Proprietor Sh. Suresh Kumar Aggarwal.

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Sh. Suresh Kumar Aggarwal S/o Sh. Radhey Sham, Proprietor, M/s Perfect Paving, Plot at Khasra No. 442, Khata No. 194/138, Village Jhungiyan, Kharar, SAS Nagar, Mohali, Punjab,

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2^nd Address: House No. 56 C, 2^nd Floor, Block C, Spangle Heights, Dhakoli, Zirakpur, SAS Nagar, Mohali.

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3^rd Address: House No. 94P, Street No. 3, VTC, Firozepur Cantt.,

Firozepur, Punjab

………Defendants

Advocates:

Present: Sh. Vishal Ahuja, Advocate for Applicant Defendants 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. 49,45,527.43p (Rupees Forty Nine Lacs Forty Five Thousand Five Hundred Twenty Seven and Paise Forty Three Only). The Original Application has been filed through Ms. Nivedita Sharma, Chief Manager, of the applicant, who is

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2 OA NO.223/2025 BANK OF BARODA VS M/S PERFECT PAVING AND ANOTHER

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competent to institute the Original Application vide Power of attorney dated 17.09.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant No. 1 through its proprietor defendant No.2 had approached the applicant for grant of Cash Credit Facility for a sum of Rs. 20.00 Lacs and Term Loan for a sum of Rs. 20.00 Lacs vide Application dated 23.12.2022, which is Annexure A2 to this OA.

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The applicant sanctioned CC Limit of Rs. 20.00 Lacs and Term Loan of Rs. 18.50 Lacs vide Sanction, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 through its proprietor defendant no.2 hypothecated stocks, raw material, finished goods, tiles, etc., books debts, plant and machinery, etc. vide Instrument of Hypothecation of Moveable Machinery and Composite Hypothecation Agreement, both dated 31.12.2022, which are Annexures A18 and A20 to this OA.

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Documents executed: - Attestation Memo, Demand Promissory Note, Declaration cum undertaking cum authority, General Undertaking, Letter of Sole Proprietorship, Draft Undertaking, Power of Attorney in respect of Book-Debts Facility, Loan Agreement, Letter of Installment all, dated 31.12.2022 , which are Annexures A4 to A17, A19 and A21 to this OA; Legal notice dated 17.09.2024, which is Annexure A22 to this OA and Statement of accounts and Interest Statements, which are Annexures A23 to A26 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.49,45,527.43p, which is recoverable and the defendants were served recall notice but defendants 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 17.11.2025.

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3 OA NO.223/2025 BANK OF BARODA VS M/S PERFECT PAVING AND ANOTHER

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In support of the OA, affidavit of Ms. Nivedita Sharma, Chief Manager, bank of Baroda, has been filed.

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Heard ex-parte 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 A26 to this OA, it is proved that the defendants approached applicant for availing of the loan 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. 49,45,527.43p (Rupees Forty Nine Lacs Forty Five Thousand Five Hundred Twenty Seven and Paise Forty Three 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.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has interest @12.40%p.a. with 2% penal interest in CC Limit & interest @11.95%p.a. with 2% penal interest in Term Loan, from 19.10.2024 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 property/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 uniform simple interest @08.00%p.a. in both 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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4 OA NO.223/2025 BANK OF BARODA VS M/S PERFECT PAVING AND ANOTHER

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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.49,45,527.43p (Rupees Forty Nine Lacs Forty Five Thousand Five Hundred Twenty Seven and Paise Forty Three Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 assets 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 03.12.2025 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: 21.11.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. M/S Perfect Paving and Another

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Bank of Baroda v. M/S Perfect Paving and Another

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