Allowed

Bank of Baroda v. Shiv Krishna Enterprises

DRT6 Jun 2026OA/116/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Bank of Baroda against two respondents for recovery of outstanding loan dues of approximately Rs. 1 crore. The application was adjudicated ex-parte as respondents failed to appear. The recovery certificate was issued for execution by the Debt Recovery Officer.

What did the court decide?

A sum of Rs.1,00,36,042.75 along with interest @13.05% p.a. with quarterly rests and costs to be paid within 30 days; recovery in case of shortfall from hypothecated stock, movable, and immovable prop

Bank of Baroda versus Shiv Krishna Enterprises — Contract and Commercial Disputes | DRT (2026)

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O.A. No. 116 of 2025

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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.116 of 2025

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Bank of Baroda

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Netaji Subhash Place Branch 1st Floor, Aggarwal Metro Heights Tower Pitampura, Delhi-110034

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Applicant

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Versus

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M/s Shiv Krishna Enterprises Proprietor Sh.Raj Kumar Sharma 882/1, Ground Floor, Gali No.3, Near Royal Enfield Service Centre Rithala, North West Delhi-110034

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Also at:

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M/s Shiv Krishna Enterprises B-/61, Sector-11, North West Rohini Delhi-110085

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Sh.Raj Kumar Sharma s/o Garib Dass Sharma Proprietor of M/s Shiv Krishna Enterprises Ground Floor, 495/1, Near Metro Pillar No.513-514 Mundka, West Delhi-110041 Defendants

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Present: Ms.Geetanjali Sharma, Counsel for applicant bank

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Date of Reserve: 20.05.2026

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Date of Pronouncement: 06.06.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 11.02.2025 under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.1,00,36,042.75 (Rupees One Crore Thirty Six Thousand Forty Two & paisa Seventy Five only) as on 31.01.2025 along with @11.05% pendentelite and

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O.A. No. 116 of 2025

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future interest per annum plus @2% penal interest till the date of its realization with costs.

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The brief facts of the case are that defendant no.1 through its proprietor being defendant no.2 vide their loan application request along with Form 135, Various Registrations together with KYC documents dated 20.05.2023 etc. in the business of manufacturing of clothes, the applicant bank sanctioned Cash Credit facility of Rs.95,00,000/- (Rupees Ninety Five Lacs only) for working capital requirement @11.05% interest per annum on 08.06.2023 against hypothecation of stock and book debts covered under CGTMSE scheme. In case of default in repayment of interest or installments, the defendants agreed to pay penal interest @2% over the agreed rate on outstanding amount.

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That in order to avail the credit facility, the defendant no.1 through its proprietor defendant no.2 submitted loan application with PAN Card & Voter Card etc. and executed Letter of Sole Proprietorship, Demand Promissory Note, Declaration cum Undertaking cum Authority, Loan Agreement, Letter of Continuity, Composite Hypothecation Agreement, Letter of Undertaking for Book Debts, Undertaking not to Withdraw Deposit till advance is liquidated and Power of Attorney dated 08.06.2023 in favour of the applicant bank.

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That in order to secure the loan facilities, the defendant no.2 hypothecated the stocks and book debts of defendant no.1 towards 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

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O.A. No. 116 of 2025

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route their transactions through the account due to which became irregular. The applicant bank classified the accounts as NPA on 28.12.2024 as per RBI guidelines and issued legal notice on 07.01.2025 but no response from the defendants, 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 of proper service, the defendants have chosen to absent from the proceedings. As per order dated 18.03.2026, 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 Shri Achin Agarwal, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Various Registration and KYC documents, Sanction Letter, Demand Promissory Note, Letter of Sole Proprietorship, Declaration cum Undertaking cum Authority, Loan Agreement, Letter of Continuing Security, Composite Hypothecation Agreement, Letter of Undertaking, Undertaking not to withdraw Deposit, Power of Attorney, Legal Notice, Postal Receipts, Statement of Account, Unapplied Interest & Unserved Interest and Certificates u/s 2A(b) & 2A(c) of Bankers' Books Evidence Act 1891 r/w Section 63 of Bhartiya Sakshya Adhiniyam marked as Ex.AW1/1 to Ex.AW1/7.

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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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O.A. No. 116 of 2025

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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.1,00,36,042.75 (Rupees One Crore Thirty Six Thousand Forty Two , & paisa Seventy Five only) as on 31.01.2025 together with interest @13.05% per annum with quarterly rests from 31.01.2025 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock and book debts etc. 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 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 05.08.2026.

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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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5d^—

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Date: 06.06.2026

Bank of Baroda v. Shiv Krishna Enterprises

Case brief

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Bank of Baroda v. Shiv Krishna Enterprises

Case brief

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