Allowed

Bank of Baroda v. Messrs Gurleen International and Another

DRT24 Jul 2025OA/767/2023

Case brief

AI extract

What is this about?

This judgment allows an original application under the RDB Act for recovery of a bank loan. The Tribunal imposed a uniform simple interest rate of 8% per annum on the outstanding sum and directed issuance of a Recovery Certificate, reserving execution proceedings if dues remain unsatisfied.

What did the court decide?

The defendants are liable to pay Rs.2,93,07,208.57 with costs and simple interest at 8% p.a.; Recovery Certificate issued.

Bank of Baroda versus Messrs Gurleen International and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.767/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.05.2023

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DATE OF DECISION: 24.07.2025

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Bank of Baroda, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970, having its Registered Head Officer at Baroda Bhawan, R.C. Dutt Road, Alkapuri Baroda 390007, Gujrat, and having amongst other branches one such branch at Clock Tower, District Ludhiana through its Constituted Attorney Sh. Jagroop Singh.

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……..Applicant Bank

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Versus

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M/S Gurleen International, C-82, Phase-V, Focal Point Ludhiana, Punjab- 141010.

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Smt. Rupinder Kaur W/o Sh. Gurcharan Singh, Proprietor M/S Gurleen International, R/o Ramgarh Road Sahnewal, Opposite H.P. Gas Godown, Ludhiana, Punjab-141012

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2^nd Address: Smt. Rupinder Kaur W/o Sh. Gurcharan Singh Proprietor M/S Gurleen International R/o Kohara Road, Sahnewal Kalan, Gurudwara Bhagat Namdev Colony, Ludhiana, Punjab141012

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3^rd Address: Smt. Rupinder Kaur W/o Sh. Gurcharan Singh Proprietor M/S Gurleen International, R/o House No. 436-C, Urban Estate, Phase-1, Jamalpur, Ludhiana

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………. Defendants

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Advocates:

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Argued by Ms. Kanchan Sehgal, Advocate for the applicant (through

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VC)

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Defendants are ex parte

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OA/767/2023 BANK OF BARODA VS MESSRS GURLEEN INTERNATIONAL AND ANOTHER

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.2,93,07,208.57P (Rupees Two Crore Ninety Three Lacs Seven Thousand Two Hundred Eight and Fifty Seven Paisa Only). The Original Application has been filed through Sh. Jagroop Singh, Constituted Attorney of the applicant, who is competent to institute the Original Application vide and Power of Attorney dated 20.09.2017, which is Annexure A2 to this OA.

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The brief facts of the OA are that the Defendant 1 through its proprietor Defendant 2 had approached the applicant for grant of CC Limit of Rs.150 Lacs. Later, defendants approached the applicant for enhancement this limit to Rs.200 Lacs. Thereafter, the defendants approached the applicant for Demand Loan of Rs. 20 Lacs under Baroda Covid Emergency Credit Limit (BGECL) and again approach the applicant for Additional Working Capital Term Loan of Rs. 39.70 Lacs Under Baroda Covid Emergency Credit Limit (BGECL) vide application dated 20.06.2020, which is Annexure A31 to this OA. Thereafter, the applicant sent an offer letter to defendants for Pre-Approved Loan facility of Rs. 20.00 Lacs under BOB Guaranteed Emergency Credit Line Scheme vide offer letter dated 23.12.2021, which is Annexure A40 to this OA which was accepted by defendants vide acceptance letter dated 23.12.2021, which is Annexure A41 to this OA.

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The applicant sanctioned CC Limit of Rs.150 Lacs vide sanction letter dated 06.06.2016, which is Annexure A3 to this OA. Thereafter, the applicant enhanced the CC Limit to Rs. 200 Lacs vide sanction letter dated 11.08.2017, which is Annexure A13 to this OA. Thereafter, the applicant sanctioned Demand Loan of Rs. 20 Lacs under Baroda Covid Emergency Credit Limit (BGECL) vide sanction letter dated 22.04.2020, which is Annexure A24 to this OA. Thereafter, applicant sanctioned

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3 OA/767/2023 BANK OF BARODA VS MESSRS GURLEEN INTERNATIONAL AND ANOTHER

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Additional Working Capital Term Loan of Rs. 39.70 Lacs Under Baroda Covid Emergency Credit Limit (BGECL) vide sanction letter dated 0.06.2020, which is Annexure A32 to this OA and later, again sanctioned Loan of Rs. 20.00 Lacs under BOB Guaranteed Emergency Credit Line Scheme. The terms and conditions were duly accepted by the defendants.

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Defendant no. 2 had mortgaged her immovable properties i.e. Industrial Land and Building measuring 3Kanals 13-1/2 Marlas, situated at Village and Tehsil Sahnewal Kalan, Hadbast no. 227 District Ludhiana vide equitable mortgage of Title Deed bearing v asika No.5195 dated 21.03.2012, along with its translation filed on 21.03.2025 vide diary no. 4336 in compliance to order dated 09.12.2024.

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Documents executed:- Notification dated 02.01.2019, which is Annexure A1 to this OA; Agreement of Hypothecation, Letter of Continuity, Specific Undertaking, General Undertaking, D.P. Note, Power of Attorney, General Letter of Lien and set off borrowing arrangement from borrower, all dated 06.06.2016, which are Annexures A4 to A10 to this OA; CERSAI Registration dated 20.07.2016, which is Annexure A11 to this OA; declaration with regard to mortgage, dated 06.06.2016, which is Annexure A12 to this OA; Agreement of Hypothecation, Letter of Continuity, Specific Undertaking, General Undertaking, Power of Attorney, Undertaking cum Declaration, General Letter of Lien and set off borrowing arrangement from borrower, Consent letter for CIBIL Information, extension of equitable mortgage all Dated 30.06.2017, which are Annexures A14 to A22 to this OA; Memorandum of entry for extension of existing mortgage, dated 29.07.2017 which is Annexure A23 to this OA; D.P Note, Letter of Sole Proprietorship, Letter of Installment with acceleration clause, Loan cum Hypothecation Agreement, Extension of Mortgage, by deposit of title deed, Letter of confirmation of creation Extension of Mortgage dated 22.04.2020,

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4 OA/767/2023 BANK OF BARODA VS MESSRS GURLEEN INTERNATIONAL AND ANOTHER

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which are Annexures A25 and A30 to this OA; D.P Note, Letter of Sole Proprietorship, Letter of Installment with acceleration clause, Loan cum Hypothecation, Extension of Mortgage by deposit of Title Deed , Letter of confirmation of creation/Extension of Mortgage, Undertaking Letter from Borrowers, all dated 20.06.2020, which are Annexures A33 to A39 to this OA; D.P Note, Letter of Sole Proprietorship, Letter of Installment with acceleration clause, Loan cum Hypothecation, Extension of Mortgage, all dated 23.12.2021 which are Annexures A42 to A46 to this OA; Letter of confirmation of mortgage, dated 29.12.2021, which is Annexure A47 to this OA; Valuation Report, dated 10.11.2022, which is Annexure A48 to this OA; Jamabandi for the along with its translation which is Annexure A49 to this OA; Acknowledgment of debt dated 02.02.2019 and 22.03.2021, which are Annexures A50 and A51 to this OA; Notice to borrower under section 13(2), dated 13.06.2022, which is Annexure A52 to this OA; Possession Notice dated 25.08.2022, which is Annexure A53 to this OA; Account Statements, which are Annexures A54 to A57 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.2,93,07,208.57P, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.11.2024. 7. In support of the OA, affidavit of Sh. Jagroop Singh, Constituted Attorney, Bank of Baroda h as been filed. 8. Heard ex-parte arguments and perused record.

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5 OA/767/2023 BANK OF BARODA VS MESSRS GURLEEN INTERNATIONAL AND ANOTHER

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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 A57 to this OA, it is proved that the defendants approached applicant for availing of the loans 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.2,93,07,208.57P (Rupees Two Crore Ninety Three Lacs Seven Thousand Two Hundred Eight and Fifty Seven Paisa 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest: i) @11.00% p.a. in CC Limit with monthly rests with 2%p.a. penal interest from 30.04.2023 till the realization.

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ii) @9.35% p.a. in BGECL with monthly rests with 2%p.a. penal interest from 30.04.2023 till the realization. iii) @9.35% p.a. in AWCTL with monthly rests with 2%p.a. penal interest from 30.04.2023 till the realization. iv) @10.00% p.a. in BGECL with monthly rests with 2%p.a. penal interest from 30.04.2023 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 of the defendants, quantum of loans and prevalent market rates of interest

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6 OA/767/2023 BANK OF BARODA VS MESSRS GURLEEN INTERNATIONAL AND ANOTHER

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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 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.2,93,07,208.57P (Rupees Two Crore Ninety Three Lacs Seven Thousand Two Hundred Eight and Fifty Seven Paisa Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in 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 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 29.08.2025.

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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 .

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Dated: 24.07.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. Messrs Gurleen International and Another

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Messrs Gurleen International and Another

Case brief

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What did the court decide?

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