Allowed

Bank of Baroda v. M/S Shri Shyam Fabrics

DRT17 Dec 2025TA/454/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Bank of Baroda for recovery of a loan of approximately Rs. 1.19 crore from respondent 1, a sole proprietorship, and respondent 2, its proprietor. The court directed immediate payment with interest and authorized recovery from hypothecated stocks and mortgaged properties, noting that a pending appeal by the recovery officer should not dela

What did the court decide?

Directed respondents to pay Rs. 1,19,66,932.42 with interest within 30 days; authorized recovery from hypothecated assets, mortgaged property, and other assets upon default; issued Recovery Certificat

Bank of Baroda versus M/S Shri Shyam Fabrics — Company and Corporate | DRT (2025)

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Before SUSHIL KUltlAR^{RASTOGI, Presiding Officer} Debts RecoverY Tribunal-Il,^Delhi

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TA No.454 OF2024 BANK OF BARODA^{VS M/S SHRI SHYAI'I FABRICS& ORS}

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Reserved on : 18.11.2025 Pronounced on =^L7.L2.2O25

Bank of Baroda

-Applicant bank

Vs.

M/s Shri Shyam^Fabrics

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ShriSandeeP Goswami

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Defendants

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Present: Shri Biswajit Kumar^{Patra, Counselappears} for applicant bank.

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Defendants are exparte,^{since, 25.08.2023.}

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FINAL ORDER

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This original application has been^{filed by the} applicant bank, on 05.07.2018^{through Mr. Sunil} Sharma, Principal Officer of the^{applicant ban( under} Section 19 ofthe RDB^{Act, 1993 againstthe defendants} for recovery of a sum of^{Rs.1,19,66,932.42along with} future interest from 01.07.2018 @4'650lo^abovebase rate of the applicant bank^{compounded monthly plus} 2o/o penal interest^per annum^{with simple interestin the} cash credit account from^{date of filing of this O.A. till} the realization in full.

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The brief facts of^{the case are that at the request} of the defendant^{no.1 is} a^{sole proprietorship concern} with defendant no.z being^{the proprietor, the applicant} bank sanctioned a Cash Credit^{Facilityof Rs.98Lacs,} vide sanction letter dated 31.03.2015.^{The defendants} ---{ ("\

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TANO.454of2024²

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executd atl^{necessaryloaning documents on} 30.03.2015.^{The defendants has hypothecated by way} of first and^{exclusivechargeall the stocks of raw} material, semi-finished^{and finished goods, stores and} spares, both^{present and future, bookdebts'} outstanding,^{money receivable, claimsand bills etc''} more^{pafticularly described in the said agreementin} favour of the^{applicantbank as a securityfor the} repayment of^{the cash creditfacility' The defendant} no.2 had^{also executed his personal guarantee for the} abovementioned^{facilities and had mortgagedhis} proPefi, viz., Property^{Located at A-90, First Floor of} Khasra No.238^{(admeasuring297'28 sq' mtrs) of} Sector-7,^{THA Rampuri Residential Colony, Village} ChikamberPur,^{Pargana-Loni,} Tehsil & DistGhaziabad,^{Uttar Pradesh-201001} asa collateral security upon^{depositof title deed, vidememorandum} of entry dated^30.03.2015.

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It is^{further submitted that the defendants} enjoyed and^{utilized the Loan facility, but failed to} maintain^{the financial discipline and failed to repay the} due amounts'^{The applicant bank requested the} defendants^{to regularize the loan accountby visits and} letters, but^{there was no response from the} defendants,^{hence the account was classified as NPA in} 30.06.2017.^{Therefore, the applicant bank served a} demand^{notice dated tg.O7 .2017 to the defendantsbut} faited to^{recover the same. Thus, the present O'A'ff'A'} is^{preferred by the applicant bank to recover its dues'}

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D..

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TANO.454of2024³

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Orl notice by^{this Tribunal, defendants failed} to put appearance^{at all, despite service' Accordingly,} the defendants^{were proceededagainst exparte on} 25.08.2023.

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The applicant^{bank has flled documents as} Annexure A-1^{to Annexure A-18 which havegone} unchallenged^{and un-rebutted. Hen@,the case of the} applicant bank^{standsfully established against the} defendants^{with respectto nonpaymentof outstanding} amount.

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,ffter^{perusing the records, this Tribunalis of the} view that the^{applicant bank has provedits case} beyond^{reasonabledoubts' The documentsfiled by the} applicant^{bank not rebutted by the defendants by not} placing any evidence^{and there is no question of} disbelieving^{the documentsfiled by the applicant bank} based upon^{the written/printed documents'}

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In the light^{of the above discussions, the presentT'A'} deserves to^{be allowed.}

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ORDER

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I hereby^{allow this T.A. of the ApplicantBank and} direct the^{defendant nos. 1 and 2 to pay jointly and} severally to^{the applicant bank within 30 days from} today, a sum^{of Rs.1,19,66,932'42along with cost'} expenses^{and interest @ 4.650lo above base rate of the} applicant^{bank, from the date of flling of this O'A' which} has become^{T.A till the date of realization'}

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In^{case of failure to deposit the above amount} within the^{stipulate(-period, the same shall be} qI-

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TANO.454of2024⁴

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recovered^{from the sale hypothecatedassetsand} the sale of^{the mortgaged property i'e', Property} Located at^{A-90, First Floor of KhasraNo'238} (admeasuring^{297.28 sq. mtrs) of Sector-7' THA} Rampuri^{ResidentialColony, Village Chikamberpur'} Pargana-^{Loni, Tehsil& Dist- Ghaziabad,UttarPradesh-} 201001. In^{case of short fall, the sameshall be} recovered^{from the sale of personal movableand} immovable^{assets of the defendant nos' 1 and 2'}

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Recovery^{Certificatebe issuedforthwithand be} sent to Recovery^{Officer, Debts Recovery Tribunal-Il'} Delhi.

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The^{registryof this Tribunal is hereby directedto} issue free^{copy of the order and send the same to both} the^parties.

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Parties^{are directedto appear before the Ld'} Recovery^{Officer,DRT-II, Delhiont7'02'2026' Pending} IAs, if anY,^{standdisPosed of.}

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File be consigned^{to records}

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3"\

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Date : 17.L2.2025^{(SUSHILKUMAR RASTOGI)} PRESIDING OFFICER DRT-II, Delhi

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This^{judgement has been signed, dated and} pronounced in oPen coutt'

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l.A.\

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Date : t7.L2.2025

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(SUSHIL KUMAR RASTOGI) PRESIDING^OFFICER DRT-II, Delhi

Bank of Baroda v. M/S Shri Shyam Fabrics

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Bank of Baroda v. M/S Shri Shyam Fabrics

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