Allowed

Bank of Baroda v. Messers Gori Khand Confectionery and Another

DRT22 Jul 2025OA/729/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Bank of Baroda for recovery of Rs.24.99 lakhs from a confectionery proprietor. The Tribunal issued a recovery certificate, declared liability jointly and severally, adjusted interest to 8% p.a., and directed attachment/sale of assets if dues remain unsatisfied.

What did the court decide?

Recovery Certificate issued; Respondents liable to pay Rs.24,99,757.28 with costs and future simple interest @8% p.a.; Applicant entitled to recover via sale of assets.

Bank of Baroda versus Messers Gori Khand Confectionery… — Insolvency and Bankruptcy | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.729/2025

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 05.06.2025

¶5

DATE OF DECISION: 22.07.2025

¶6

Bank of Baroda, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970, having its Head Officer at Baroda Bhavan, R.C. Dutt Road, Alkapuri Baroda - 390007, Gujarat, and amongst others the branch in Chandigarh Road, Ludhiana, through its Chief Manager Sh. Ashok Kumar Ranwat.

¶7

……..Applicant Bank

¶8

Versus

¶9

M/s Gori Khand Confectionery, 5615, Street No.9, Guru Arjan Dev Nagar, Near Samrala Chowk, Ludhiana- 141008, Punjab through its Proprietor Rahul Goyal.

¶10

Sh. Rahul Goyal S/o Jai Bhagwan, Proprietor of M/s Gori Khand Confectionery, 5615, Street No.9, Guru Arjun Dev Nagar, Near Samrala Chowk, Ludhiana- 141008, Punjab.

¶11

………. Defendants

¶12

Advocates:

¶13

Argued by Sh. J. S Sehgal, Advocate proxy for Sh. Sumeet Sehgal Advocate for the applicant

¶14

Defendants are ex parte

¶15

FINAL ORDER

¶16

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.24,99,757.28 (Rupees Twenty Four Lacs Ninety Nine Thousand Seven Hundred Fifty Seven and Paise Twenty Eight Only). The Original Application has been filed through Sh. Ashok Kumar Ranwat, Chief Manager of the applicant, who is competent to

¶17

2 OA NO.729/2025 BANK OF BARODA VS. M/S GORI KHAND CONFECTIONERY AND ANOTHER

¶18

institute the Original Application vide Board Resolution of the Bank dated 14.11.2017, which is Annexure A1 to this OA.

¶19

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 CC Limit of Rs.25.00 Lacs under CGTMSE vide Application Form, dated 24.02.2023, which is Annexure A2 to this OA.

¶20

The applicant sanctioned CC Limit of Rs.25.00 Lacs, vide Sanction Letter dated 28.02.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had hypothecated his movable assets i.e. Hypothecation of Stocks and Book Debts, Plant and Machinery, etc. both present and future, vide Composite Hypothecation Agreement LDOC 17(B) dated 28.02.2023, which is Annexure A4 to this OA. Documents executed:- D.P Note for Proprietorship Firm LDOC 3(b), Letter of Continuing Security LDOC 7, Letter of Sole-Proprietorship LDOC 38, Letter of Undertaking (In respect of Book-Debts), Power of Attorney (In respect of Book-Debts Facility), Declaration-cum-Undertaking-cumAuthority, Draft Undertaking and Undertaking for unconditional cancellation of undrawn Commitments, all dated 28.02.2023, which are Annexures A5 to A12 to this OA; Notice dated 21.10.2024 and 06.12.2024 which is Annexure A13 to A14 to this OA; Statement of Account which is Annexure A15 to this OA.

¶21

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.24,99,757.28, 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.

¶22

3 OA NO.729/2025 BANK OF BARODA VS. M/S GORI KHAND CONFECTIONERY AND ANOTHER

¶23

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.07.2025. 7. In support of the OA, affidavit of Sh. Ashok Kumar Ranwat, Chief Manager, Bank of Baroda h as been filed. 8. Heard ex-parte arguments and perused record.

¶24

It was argued by learned proxy 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 A15 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,99,757.28 (Rupees Twenty Four Lacs Ninety Nine Thousand Seven Hundred Fifty Seven and Paise Twenty Eight Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.60% p.a. with monthly rests plus 2%p.a. penal interest from 01.01.2025 till the realization.

¶25

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 hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising

¶26

4 OA NO.729/2025 BANK OF BARODA VS. M/S GORI KHAND CONFECTIONERY AND ANOTHER

¶27

the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶28

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,99,757.28 (Rupees Twenty Four Lacs Ninety Nine Thousand Seven Hundred Fifty Seven and Paise Twenty Eight Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 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.

¶29

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶30

Parties to appear before Learned Recovery Officer of this Tribunal on 27.08.2025

¶31

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: 22.07.2025

¶32

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

Bank of Baroda v. Messers Gori Khand Confectionery and Another

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Messers Gori Khand Confectionery and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab Gramin Bank versus Sh. Vir Singh Since Deceased through Lrs

Icici Bank Limited versus Sh. Anil Kumar Khatana and Another

Indian Overseas Bank versus Sh. Gurbachan Singh and Another

Canara Bank versus Sh. Deepak Kumar and Another

Jagdeep Singh and Another versus Tata Capital Finance Ltd.

Anita Marwaha and Another versus Tata Capital Housing Finance Limited