Allowed

Bank of India v. Vigyan Book

DRT29 May 2026OA/123/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Bank of India for recovery of rupees 24,81,395.75 plus interest against M/s Vigyan Books proprietor. The tribunal proceeded ex-parte due to the defendants' absence and directed the issuance of a recovery certificate.

What did the court decide?

Direct the defendants to pay Rs.24,81,395.75 with interest at 11.85% p.a. within 30 days; issue recovery certificate.

Bank of India versus Vigyan Book — Banking and Recovery | DRT (2026)

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O.A. No.123 of 2024

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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. 123 of 2024

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Bank of India

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Jain Mahavir Bhawan Chandni Chowk, Delhi-110006 Applicant

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Versus

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M/s Vigyan Books Proprietor: Smt. Arpita Sinha A-82/F-2, First Floor Dilshad Colony, Delhi-110095

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2 Smt. Arpita Sinha A-82/F-2, First Floor Dilshad Colony, Delhi-110095 Defendants

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Present: Ms Asmita Kumar, Counsel for the applicant bank

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Date of Reserve: 13.05.2026

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Date of Pronouncement: 29.05.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 22.02.2024 through Shri Suman Kumar, authorized representative of the applicant bank 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.24,81,395.75 (Rupees Twenty Four Lacs Eighty One Thousand Three Hundred Ninety Five and paisa Seventy Five only) as on 16.02.2024 along with pendentelite and future

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5d-

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O.A. No.123 of 2024

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interest @11.85% per annum with monthly rest from 16.02.2024 till the date of realization and costs.

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The brief facts of the case are that at the request of defendants vide their loan application dated 25.01.2017, the applicant bank sanctioned Cash Credit facility of Rs.18,00,000/(Rupees Eighteen Lacs only) and Term Loan facility of Rs.25,000/- (Rupees Twenty Five Thousand only) @10.80% interest rate per annum on 31.01.2017 under "India Scheme Loan" covered under CGFSIL for the purpose of augmenting business against hypothecation of stocks and book debts. The applicant bank renewed the limit vide sanction letter dated 19.02.2020 and sanctioned an additional limit of Rs.1,80,000/@7.95% rate of interest under COVID CESS 2020 scheme to be repaid in 18 EMIs. In case of default in repayment of interest or installments, the defendants agreed to pay @2% penal interest over the agreed rate of interest.

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That in order to avail the credit facilities, the defendants executed Sanction Letters, Demand Promissory Note (Form L- 434), Promissory Note (Form L-435), Letter of Declaration (Form L-515), Agreement (Form L-516), Hypothecation cum Loan Agreement on 31.01.2017 and 04.07.2020.

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The defendants acknowledged the debt towards applicant bank and executed acknowledgement on Form No. L-444C on 23.01.2020 and 08.12.2022.

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It has been submitted by the applicant bank that after availing the loan facilities, the defendants not maintain financial discipline and miserably failed to adhere to the terms and conditions and neglected to repay the outstanding dues and

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O.A. No.123 of 2024

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interest in the account in time to the applicant bank. The applicant bank classified the account of defendants as NPA on 05.03.2022 as per RBI guidelines and issued demand notice under Section 13(2) of SARFAESI Act 2002 dated 15.07.2022 for Rs.24,41,530.88 to pay outstanding dues to the applicant bank but defendants paid no heed, 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 12.12.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor filed written statement, evidence and affidavit of assets.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Suman Kumar, authorized representative of the applicant bank who has exhibited the documents such as copy of Power of Attorney of AR, Loan Application, Sanction Letter dated 31.01.2017, Demand Promissory Note, Promissory Note, Declaration, Agreement, Hypothecation-cum-Loan Agreement, Acknowledgement Letters, Sanction Letter dated 24.06.2020, Loan Agreement, Demand Notice with Postal receipts, Consolidated Statement of Accounts, Calculation Sheet, Recovery Amount Letter, Certified Statement of All Accounts marked as Ex.AW1/1 to Ex.AW1/18.

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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 proved.

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O.A. No.123 of 2024

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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 within a period of 30 days, jointly or severally, a sum of Rs.24,81,395.75 (Rupees Twenty Four Lacs Eighty One Thousand Three Hundred Ninety Five and paisa Seventy Five only) as on 16.02.2024 together with pendentelite and future interest @11.85% per annum with monthly rest from 16.02.2024 till the date of its realization, failing which the aforesaid amount shall be recovered from the sale of the hypothecated stocks etc. In case of default, 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 28.07.2026.

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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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(GOVIND BALLABWT1ARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 29.05.2026

Bank of India v. Vigyan Book

Case brief

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Bank of India v. Vigyan Book

Case brief

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