Allowed

Bank of Baroda (Vijaya Bank) v. M/S Jakhar Flour Mills

DRT6 Sept 2025OA/287/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act to recover outstanding dues of Rs.29 lacs plus interest. The court appointed a sale of hypothecated assets and directed the issuance of a Recovery Certificate.

What did the court decide?

Allowance of recovery application for Rs.29,15,358.57 with interest; issuance of Recovery Certificate; direction to recover dues through sale of hypothecated assets.

Bank of Baroda (Vijaya Bank) versus M/S Jakhar… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 287/2024 Date of Institution: 07.02.2024 Date of Decision: 06.09.2025

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Bank of Baroda (erstwhile Vijaya Bank) having its branches all over India and a branch at Hanumangar Road, Abohar, District Fazilka, Punjab.

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……..Applicant

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Vs.

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M/s Jakhar Flour Mills, a sole proprietorship concern situated at VPO Panjkosi, Killianwali Road, Tehsil Abohar and District Fazilka, Punjab through its proprietor Smt. Jyoti wife of Sh. Surya Prakash Jakhar.

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Smt. Jyoti wife of Sh. Surya Prakash Jakhar resident of VPO Panjkosi, Killianwali Road, Tehsil Abohar and District Fazilka, Punjab.

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……….Defendants

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Advocates

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Ms. Lovedeep Kaur proxy counsel for Sh. Pankaj Beri, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 05.12.2024 .

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OA for the Recovery of Rs.29,15,358.57p with interest from 07.02.2024.

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ORDER

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Bank of Baroda has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.29,15,358.57p with interest against M/s Jakhar Flour Mills and another (defendants).

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Bank’s case is that on 25.10.2017, it had granted a C.C. Limit under Credit Guarantee Fund Scheme for Stand Up India Loans (CGFSIL) of Rs.25.00 Lacs and a Term Loan of Rs.8.00 Lacs to defendant No.1 through its proprietor i.e. defendant No.2 for Business purpose. The above

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mentioned loan facilities were modified/revised by the bank which is as follows:

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Nature of facilities (Existing) Revised
Cash Credit (Rs.25.00 Lacs) Cash Credit of Rs.15.00 Lacs
Term Loan of Rs.10.00 Lacs
Term Loan (Rs.8.00 Lacs) Term Loan of Rs.8.00 Lacs
To secure the loans, Defendant No.2 on behalf of defendant No.1 had
hypothecated his stocks and book debts (fully detailed in para No.3A of
the application). The loans were chargeable to interest @11.50% p.a. in
C.C. Limit and @11.70% p.a. in Term Loan Account (both the facilities) with monthly rests. On 31.01.2024, a sum of Rs.29,15,358.57p was due from the defendants. The defendants had duly acknowledged their liability towards the debt on 15.03.2019 & 11.03.2022. Despite repeated requests, defendants did not make the repayment. Hence, this application.
3. On 04.03.2024, summonses were sent to the defendants by
registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 05.12.2024, they were proceeded_ex parte_.
4. In order to prove its case, the Bank has placed on record the
affidavit of Sh. Sahil Mittal, Authorized Officer along with the loan and security documents and marked them as Exhibit A-1 to A-16.
5. I have perused the evidence on the record. I am of the considered
view that the Bank has proved its case that it had advanced the loans under various schemes and on 31.01.2024, a sum of Rs.29,15,358.57p was due.
6. Accordingly, the application of the bank for the recovery of
Rs.29,15,358.57p (Rupees Twenty Nine Lacs Fifteen Thousand Three
Hundred Fifty Eight and Paise Fifty Seven Only) i.e. Rs.1683096.71p with interest @11.50% p.a. in C.C. Limit and Rs.3,41,299/- @11.70% p.a.

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and Rs.8,90,962.86p with interest @11.50% p.a. in Term Loan Accounts with monthly rests (all the facilities) from 07.02.2024, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated stocks and book debts fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 15.10.2025, who is directed to distribute the sale proceeds of the hypothecated stocks and book debts as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 06.09.2025 Presiding Officer DRT-1, Chandigarh

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MANOJ KALRA

Bank of Baroda (Vijaya Bank) v. M/S Jakhar Flour Mills

Case brief

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Bank of Baroda (Vijaya Bank) v. M/S Jakhar Flour Mills

Case brief

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