Allowed

Bank of Baroda v. M/S Ritik Parshant Fashion and Another

DRT8 May 2026OA/153/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Bank of Baroda against proprietors of Ritik Parshant Fashion for recovery of a loan debtor of Rs. 27,29,164.00. The court granted simple interest at 8% p.a. and directed issuance of a recovery certificate.

What did the court decide?

Recovery of the principal amount, costs, and future simple interest at 8% p.a. from the sale of hypothecated assets or personal assets if necessary.

Bank of Baroda versus M/S Ritik Parshant Fashion… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.153/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.01.2026

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DATE OF DECISION: 08.05.2026

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Bank of Baroda, a body corporate, constituted under the Banking Company (Acquisition and Transfer of Undertakings) Act 1980, having its Head Office at Mandvi, Baroda, carrying on its business of banking throughout India and inter alia, one of its branch at Pakhowal Road, District Ludhiana, through its Authorized Officer and duly Constituted Power of Attorney Holder Sh. Palvinder Singh, presently posted at Gurdev Nagar Branch of the Applicant.

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……..Applicant

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Versus

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M/s. Ritik Parshant Fashion, B-32-1943, New Kuldeep Nagar, Basti Jodhewal, Ludhiana-141008, Punjab, through its Proprietor Sh. Rajesh Tiwari S/o Sh. Rama Naresh Tiwari.

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Sh. Rajesh Tiwari S/o Sh. Rama Naresh Tiwari, Proprietor of M/s. Ritik Parshant Fashion R/o 405/2, Street No.3, New Janta Nagar, Kuldeep Nagar, Jodhewal, Ludhiana-141007.

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….……Defendants

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Advocates:

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Argued by Sh. Bhavya Sagar, Advocate for the applicant

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None for Defendants (already ex-parte vide order dated 04.05.2026)

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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.27,29,164.00 (Rupees Twenty Seven Lacs Twenty Nine Thousand One Hundred and Sixty Four Only). The Original Application has been filed through Sh. Palvinder Singh, Chief Manager o f the applicant, who is competent to institute the Original

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2 OA/153/2026 BANK OF BARODA VS M/S RITIK PARSHANT FASHION AND ANOTHER

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Application vide General Power of Attorney dated 10.01.2001, which is Annexure A1 to this OA.

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The brief facts of the OA that the Defendant no.1, through its proprietor defendant no.2, approached the applicant for grant of OD Limit of Rs.10.00 Lacs under Pradhan Mantri Mudra Yojana vide Loan Application dated 06.01.2022, which is Annexure A2 to this OA. Thereafter, the Defendants approached the applicant for enhancement of OD Limit of Rs.10.00 Lacs to Rs.25.00 Lacs vide Loan Application dated 22.05.2023, which is Annexure A10 to this OA.

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The applicant sanctioned the OD Limit of Rs.10.00 Lacs vide Sanction Letter dated 06.01.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhancement of OD Limit of Rs.10.00 Lacs to Rs.25.00 Lacs vide Sanction Letter dated 22.05.2023, which is Annexure A11 to this OA.

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Defendants hypothecated their Stocks and Book Debts vide Composite Hypothecation Agreement dated 06.01.2022, which is Annexure A8 to this OA; Composite Hypothecation Agreement dated 22.05.2023, which is Annexure A17 to this OA.

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Documents executed:- Attestation Memo, D.P. Note for Sole Proprietorship Firm, Letter of Continuing Security, Declaration Cum Undertakings Cum Authority, all dated 06.01.2022, which are Annexures A4 to A7 to this OA; Letter of Proprietor dated 06.01.2022, which is Annexure A9 to this OA; D.P. Note, Letter of Sole Proprietor, Letter of Undertaking, Declaration Cum Undertaking Cum Authority, Letter of Continuity Security, all dated 22.05.2023, which are Annexures A12 to A16 to this OA; Power of Attorney, Loan Agreement, Undertaking not to withdraw Deposits, all dated 22.05.2023, which are Annexures A18 to A20 to this OA; Letter of Acknowledgement of Debt dated 14.10.2024, which is Annexure A21 to this OA; Loan Recall Notice dated 01.03.2025, which is Annexure A22 to this OA; Legal Notice dated 24.11.2025, which is Annexure A23 to this OA; Statement of Account with certificate, which are Annexures A24 & A25 to this OA.

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3 OA/153/2026 BANK OF BARODA VS M/S RITIK PARSHANT FASHION AND ANOTHER

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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.27,29,164.00, 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.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 04.05.2026.

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In support of the OA, affidavit of Sh. Palvinder Singh, Chief Manager, Bank of Baroda, h as been filed. 8. Heard ex-parte arguments and perused record

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A25 to this OA, it is proved that the defendants approached applicant for availing of the loan 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 Rs.27,29,164.00 (Rupees Twenty Seven Lacs Twenty Nine Thousand One Hundred and Sixty Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.35% p.a. plus @2% penal interest, with monthly rests from 31.12.2025 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

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4 OA/153/2026 BANK OF BARODA VS M/S RITIK PARSHANT FASHION AND ANOTHER

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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 the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant 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.

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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.27,29,164.00 (Rupees Twenty Seven Lacs Twenty Nine Thousand One Hundred and Sixty Four 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 applicant 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 01.06.2026

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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: 08.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Bank of Baroda v. M/S Ritik Parshant Fashion and Another

Case brief

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Bank of Baroda v. M/S Ritik Parshant Fashion and Another

Case brief

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