Allowed

Bank of Baroda v. M/S Sri Ganga Traders and Others

DRT27 May 2025OA/224/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Bank of Baroda's original application against M/s Sri Ganga Traders and others for recovery of Rs.1,33,28,620.01. The court declared defendants jointly and severally liable and fixed interest at 8% per annum.

What did the court decide?

Recovery of Rs.1,33,28,620.01 plus 8% simple interest ordered. Recovery Certificate issued; enforcement allowed via sale of assets.

Bank of Baroda versus M/S Sri Ganga Traders and Others — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.224/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.09.2023

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DATE OF DECISION: 27.05.2025

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Bank of Baroda, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. V of 1970, and a successor to Vijaya Bank under section 9 of Banking Companies(Acquisition and Transfer of Undertakings) Acts, of 1970 and 1980, by the virtue of Gazette Notification dated 2.01.2019 passed by the central government and having Corporate Center at Plot No.C26, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051 and interalia, a Branch at Nabha City Circular Road, Near City Heart Hotel, Tehsil Nabha, District Patiala, Punjab-147201, through its Chief Manager.

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……..Applicant

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Versus

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M/s Sri Ganga Traders, a partnership firm of defendant no.2 and 3 having its principal place of business at SCO 2/L, MC Market, Opposite PNB Main Branch, Old High Court Road, Tehsil Nabha, District Patiala, Punjab-147201, through any of its partners, defendant nos.2 and 3

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Sh. Ashwani Kumar Vashista S/o Sh. Ramesh Kumar Vashista R/o 342/343, Dashmesh Colony, Tehsil Nabha, District Patiala, Punjab 147201

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Sh. Nitin Kumar Vashista S/o Sh. Ramesh Kumar Vashista R/o 342/343, Dashmesh Colony, Tehsil Nabha, District Patiala, Punjab 147201

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Sh. Ramesh Kumar Vashista S/o Sh. Pritam Chand, R/o 342/343, Dashmesh Colony, Tehsil Nabha, District Patiala, Punjab 147201

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Smt. Sumeera Vashista S/o Sh. Nitin Vashista R/o 342/343, Dashmesh Colony, Tehsil Nabha, District Patiala, Punjab 147201

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2 OA NO.224/2024 BANK OF BARODA VS SRI GANGA TRADERS AND OTHERS

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Smt. Anita Rani W/o Sh. Ashwani Vashista R/o 342/343, Dashmesh

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Colony, Tehsil Nabha, District Patiala, Punjab 147201

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………Defendants

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Advocates:

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Argued by Sh. Samrat Ahuja, Advocate for the applicant ( through VC ) Present Ms. Sidhi Bansal, Advocate for defendant no.1 None for defendants nos.2 to 6

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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.1,33,28,620.01p (Rupees One Crore Thirty Three Lacs Twenty Eight Thousand Four Hundred and Ninety Nine only). The Original Application has been filed through Sh. Sachin Garg, Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 21.07.2018, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant for the grant of Cash Credit Limit of Rs.60.00 Lacs and further for its enhancement upto Rs.85.00 Lacs vide Loan application dated 11.04.2017, which is Annexure A15 to this OA; Thereafter defendant from time to time approached the applicant for various credit facilities i.e. Term Loan I of Rs.15.00, EGCL Term Loan of Rs.15.00 Lacs and WC Term Loan of Rs.5.80 Lacs vide offer Letter dated 25.06.2021 and 31.03.2021, Loan Applications dated 25.06.2016 and 10.08.2017, which are Annexures A32 & A43 to this OA 3. The applicant sanctioned the Cash Credit Limit of Rs.60.00 Lacs vide sanction Letter dated 09.02.2016, which is Annexure A6 to this OA and further for its enhancement upto Rs.85.00 Lacs vide sanction letter dated 23.05.2017, which is Annexure A16 to this OA. Thereafter defendant from time to time approached the applicant for various credit facilities i.e. Term Loan I of Rs.15.00, EGCL Term Loan

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3 OA NO.224/2024

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BANK OF BARODA VS SRI GANGA TRADERS AND OTHERS

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of Rs.15.00 Lacs and WC Term Loan of Rs.5.80 Lacs vide Sanction Letters dated 29.08.2020, 25.06.2021, Acceptance of Offer Letter dated 28.06.2021, which are Annexures A24(colly), A33, A35 & A44 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated its movable properties i.e. Plot measuring 0K-10½M(317.77 Sq. Yards) situated at Dashmesh Colony, Nabha, District Patiala, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.3479 dated 31.12.2013 with its translation, which is Annexure A5 to this OA

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Documents executed:- Gazette Notification dated 02.01.2019, which is Annexure A1 to this OA; Partnership Deed dated 19.01.2004, which is Annexure A3 to this OA; Letter of Partnership dated 27.02.2020, which is Annexure A4 to this OA; Loan Agreement cum Hypothecation deed, Deed of Guarantee, Partner Liability Letter, Letter Confirming Deposit of Title Deed dated 09.02.2016, which are Annexures A7, A8(colly), A12 and A13 to this OA; Non Encumbrance Certificate dated 20.03.2017, which is Annexure A9 to this OA; Letter to Sub Registrar for creation of charge dated 22.05.2017, which is Annexure A10 to this OA; Affidavit dated 22.05.2017, which is Annexure A11 to this OA Letter Confirming acknowledgement of Debt dated 27.02.2020, which is Annexure A14 to this OA; Loan Agreement cum Hypothecation deed, Deed of Guarantee, Partner Liability Letter dated 23.05.2017, which are Annexures A17, A18, an d A19 to this OA; Demand Promissory Note, Letter of Continuing Security both dated 27.02.2020, which are Annexures A20 and A21 to this OA; Letter by defendant no.1 to applicant dated 30.11.2018, which is Annexure A22 to this OA; Legal Notice dated 25.10.2021 with postal receipts, which is Annexure A23 to this OA; Demand Promissory Note, Supplemental Composite Agreement, Letter of Installment, Declaration Cum Undertaking, Letter of Guarantee, Extension of Mortgage by deposit of Title Deed all dated

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4 OA NO.224/2024 BANK OF BARODA VS SRI GANGA TRADERS AND OTHERS

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29.08.2020, which are Annexures A25 to A30 to this OA; Acknowledgement of debt dated 21.01.2023, which is Annexure A31 to this OA; Observation of Sanctioning Authority dated 28.06.2021, which is Annexure A34 to this OA; Demand Promissory Note, Letter of Installment, Undertaking, Letter of Guarantee, Extension of Mortgage by deposit of Title Deed all dated 25.06.2021, which are Annexures A36 to A40 to this OA; Acknowledgement of debt dated 04.09.2021, which is Annexure A41 to this OA; Legal Notice dated 25.10.2021, which is Annexure A42 to this OA; Undertaking, Extension of Mortgage by deposit of Title Deed dated 25.06.2021, which are Annexures A45 and A46 to this OA; Modification Deed dated 31.03.2021, which is Annexure A47 to this OA; Acknowledgement of debt dated 04.09.2021, which is Annexure A48 to this OA; Legal Notice dated 25.10.2021, which is Annexure A49 to this OA; Recall Notice dated 27.02.2022, which is Annexure A50 to this OA; Demand Notices under Section 13 (2) of the SARFAESI act, 2002 dated 10.08.2022 with Postal Receipts, which is Annexure A51 to this OA; Possession Notice dated 19.01.2023, which is Annexure A52 to this OA; Publication of Possession Notice dated 24.01.2023, which is Annexure A53 to this OA; Sale Notice dated 20.05.2023, which is Annexure A54 to this OA; Publication of Sale Notice dated 21.05.2023, which is Annexure A55 to this OA and Statements of accounts along with Memorandum of Interest and Bankers Certificate, which are Annexures A56 to A63 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.1,33,28,620.01p, 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. Ms. Tannu Sidhu, Advocate appeared on behalf of defendants

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5 OA NO.224/2024 BANK OF BARODA VS SRI GANGA TRADERS AND OTHERS

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and filed her Power of Attorney but did not filed WS within stipulated period. Therefore, opportunity to file WS by defendants was closed and their defense was struck of on 22.05.2025. Thereafter Ms. Sidhi Bansal, Advocate appeared on behalf of defendant no.1 and filed her memo of appearance on 26.05.2025.

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In support of the OA, affidavit of Sh. Sachin Garg, Manager, Bank of Baroda has been filed.

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Heard arguments of Ld. counsel for applicant. Ld. counsel for defendant no.1 appeared has not advanced any argument. None appeared for defendant no.2 to 6. Perused record. 9. It was argued by learned counsel through video conferencing 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 A63 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, all the 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.1,33,28,620.01p (Rupees One Crore Thirty Three Lacs Twenty Eight Thousand Four Hundred and Ninety Nine only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @14.30%p.a. from 27.08.2023 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

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6 OA NO.224/2024

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BANK OF BARODA VS SRI GANGA TRADERS AND OTHERS

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of the defendants, quantum of loan 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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,33,28,620.01p (Rupees One Crore Thirty Three Lacs Twenty Eight Thousand Four Hundred and Ninety Nine 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.06.2025. 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.

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Pronounced by me in the open Tribunal .

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Dated: 27.05.2025

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

Bank of Baroda v. M/S Sri Ganga Traders and Others

Case brief

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Bank of Baroda v. M/S Sri Ganga Traders and Others

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