Allowed

Bank of Baroda v. M/S Kakkar Fashion

DRT6 Aug 2025OA/657/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of dues totaling approximately Rs.42.7 lakhs. Directed defendants to pay the principal, interest, and costs within 30 days, with provisions for recovery from hypothecated assets and properties.

What did the court decide?

Directed defendants to pay Rs.42,69,794.83 with interest and costs within 30 days; recovery certificate to be issued for enforcement against assets.

Bank of Baroda versus M/S Kakkar Fashion — Execution and Attachment | DRT (2025)

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O.A. No. 657 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No.657 of 2023

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Bank of Baroda 9-6093, Main road Gandhi Nagar Delhi-110031 Applicant

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Versus

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M/s Kakkar Fashion Proprietor of Mr. Kunal Garg IX/1635, Near Police Station Main road, Gandhi Nagar East Delhi, Delhi-110031

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Also at:

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X-57/1-A, First floor, Pratap Gali Gandhi Nagar, East Delhi, Delhi-110031

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Mr. Kunal Garg S/o Mr. Narottam Lal Garg

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Proprietor of M/s Kakkar Fashion H.No.108, Gali no.4, Shankar Nagar Krishna Nagar, East Delhi, Delhi-110051

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Also at:

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H.No. 152/A-3, West Azad Nagar, Krishna Nagar, East Delhi Delhi-110051

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Also at:

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Kaka Saheb Shinde ka Bada, Jankganj Lashkar, Gwalior Madhya Pradesh-474001

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Defendants

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Present: Ms. Geetanjali Sharma, Counsel for the applicant bank

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se/

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0.A. No. 657 of 2023

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Date of Institution: 04.08.2023

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Date of Pronouncement:06.08.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 04.08.2023 before DRT-I, Delhi through its authorized representative under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.42,69,794.83/- (Rupees Forty Two Lacs Sixty Nine Thousand Seven Hundred Ninety Four and Paisa Eighty Three only) along with interest @10.80% per annum with monthly rests along with penal interest @2% per annum from the date of filing this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendants vide loan application dated 05.10.2021, the applicant bank sanctioned a Cash Credit Facility of Rs.40,00,000/- (Rupees Forty Lacs only) @8.60% floating rate of interest per annum on 29.10.2021 for working capital requirements against hypothecation of stocks and book debts. Defendants also agreed to pay penal interest @2% per annum in case of default or delay.

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In order to avail the aforesaid loan facilities, the defendants have submitted loan application and executed various loan documents such as Letter of Proprietorship, D.P. Note, Letter of Continuing Security, Power of Attorney in respect of Book debts Facility, Letter of Undertaking in respect of book debts, Letter of Authority in bank's favour to disclose or publish name of borrower in case of default of

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501-

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O.A. No. 657 of 2023

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loan/advances, Composite Hypothecation Agreement, General undertaking, Declaration cum undertaking cum Authority in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and failed to regularize the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 11.05.2023 as per RBI guidelines but the defendants neglected the same. Therefore, Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 25.05.2023 was issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank but the defendants did not clear the dues. Further, the applicant bank sent a legal notice dated 16.06.2023 but the defendants neglected that as well and hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings. As per order dated 10.02.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Mr. Ghanshyam Verma, authorized representative of the applicant bank who has proved the documents Power of Attorney, Loan application, Photocopy of Aadhar and PAN card, Sanction letter, Letter of

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0.A. No. 657 of 2023

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Proprietorship, D.P. Note, Letter of Continuing Security, Power of Attorney in respect of Book debts Facility, Letter of Undertaking in respect of book debts, Letter of Authority in bank's favour to disclose or publish name of borrower in case of default of loan/advances, Composite Hypothecation Agreement, General undertaking, Declaration cum undertaking cum Authority, NPA sheet, Notice under Section 13(2), Legal notice dated 16.06.2023, Statement of account, Certificate u/s 2A(b) and 2A(c) of Banker's Books Evidence Act as Ex.AW-1/1 to Ex.AW-1/9.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.42,69,794.83/- (Rupees Forty Two Lacs Sixty Nine Thousand Seven Hundred Ninety Four and Paisa Eighty Three only) along with interest @10.80% per annum with monthly

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O.A. No. 657 of 2023

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rests along with penal interest @2% per annum from the date of filing this application till the date of realization along with costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, etc.

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In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 13.10.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BA LLABil SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 06.08.2025