Allowed

Bank of Baroda v. Ms Shri Balaji Casting

DRT16 Jan 2026OA/1645/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application for recovery of Rs. 41.31 lakh outstanding from a proprietorship firm and its proprietor, directing issuance of a recovery certificate.

What did the court decide?

The defendants declared jointly and severally liable to pay Rs. 41,31,220.14/- with interest; recovery directed from hypothecated assets and personal property; Recovery Certificate issued; costs award

Bank of Baroda versus Ms Shri Balaji Casting — Contract and Commercial Disputes | DRT (2026)

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“ORIGINALAPPLICATION” No. 1645 OF 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1645 OF 2024

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DATE OF DELIVERY OF ORDER 16.01.2026

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BANK OF BARODA , a banking company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at R.C. Dutt Road, Alkapuri, Vadodara and its branch offices throughout India along with a Branch known as Akeda Dungar Branch, Jaipur 302013 (Rajasthan) through its Chief Manager Mr. Lalit Kumar Sunthwal.

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…..Applicant Bank…..

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VERSUS

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1. M/S Shri Balaji Casting through Prop. Mr. Sharwan Lal Sharma s/o Mr. Nathu Ram Sharma, having its registered office at 28, Shyam Vihar, Near Milan Cinema, Road No.14, V.K.I Area, Jaipur -302013.

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2. Mr. Sharwan Lal Sharma s/o Mr. Nathu Ram Sharma, R/O Baleshro Ki Dhani, Village Anantpura, Tehsil Chomu, Distt Jaipur-303704.

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……Defendants…..

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Counsel for the Applicant Bank Ms. Mamta Pareek Defendants Ex parte

OA No. 1645 OF 2024

JUDGMENT

This Original Application was filed by the applicant bank on 16.10.2024 for recovery of outstanding amount of Rs. 41,31,220.14/- from the Defendants.

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As per the pleadings, Defendant No. 1 is a Proprietorship Concern and Defendant No. 2 is its proprietor, who availed the credit facilities sanctioned by the Applicant Bank in the name of Defendant No.1.

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It is submitted that Defendant No.1 through its prop. approached the Applicant Bank for grant of Cash Credit facility of Rs.25.00 Lakh for working capital requirement under CGTMSE Scheme and submitted with the Applicant Bank Loan Application.

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It is submitted that upon considering all the requisite material provided by the Defendants and carrying out the necessary inquiries, Applicant Bank duly acceded to the request made by Defendant No.1 and sanctioned the Cash Credit facility of Rs.25.00 Lakh for working capital requirement under CGTMSE Scheme on the terms and conditions as mentioned in the Letter of Sanction dated 12.03.2013.

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It is submitted that in Consideration of the terms and conditions of sanction and in consideration of Applicant Bank having sanctioned the Cash Credit facility of Rs.25.00 Lakh under CGTMSE Scheme in favour of Defendant no. 1 and with a view to secure re-payment of dues, if any arising thereunder, along with payment of interest, cost, etc., the Defendant No.2 as prop. as well as in his personal capacity

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OA No. 1645 OF 2024

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duly executed, signed and delivered loan documents to Applicant Bank.

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It is submitted that Defendant No.1 & 2 as primary security duly hypothecated the whole of goods i.e. the stocks, both present and future and including but without prejudice to the generality of the foregoing words, all stocks of raw materials, work-in- process, semi-finished goods .and finished goods and stores etc. whatsoever and where so ever situate and/or in transit whether now belonging to or that may at any time during the continuance of this security belong to the Borrower on that may be held by any party anywhere to the order and disposition of the Borrower ; all the present and future book-debts, outstanding, monies receivable, claims bill, contracts, engagements and security which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the Borrower in the course of its business by any person, Company, Company or body corporate or by the Government of India or any State Government or Indian Railway or any Government Department or Office or any Municipal or local or Public or Semi-Government body or authority’ whatsoever including those relating to the assets leased out and/or given on hire purchase basis ; All the tangible movable, inter-alia, plant & machinery & MFA, vehicles together with spares, tools and accessories and other movables, both. present and. future, furniture, fixtures and fittings and office equipment whether installed or not and whether lying loose or in cases which are now lying or stores

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OA No. 1645 OF 2024

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in or about or shall be brought into or be stored or be in or upon or about the Defendant No.1 premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Borrower (including those on lease or hire-purchase) relating or pertaining to the Borrower’s works at Jaipur which are more particularly described in First Schedule of the aforesaid Composite Hypothecation Agreement.

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It is submitted that upon the request of the Defendant the Applicant Bank reviewed the existing cash credit limit and sanctioned enhanced cash credit limit of Rs.40.00 Lakh on the terms and conditions as mentioned in the Letter of Sanction dated 18.01.2018.

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It is submitted that in Consideration of the terms and conditions of sanction and in consideration of Applicant Bank having sanctioned the Cash Credit facility of Rs.40.00 Lakh under CGTMSE Scheme in favour of Defendant no. 1 and with a view to secure re-payment of dues, if any arising thereunder, along with payment of interest, cost, etc., the Defendant No.2 as well as in his personal capacity duly executed, signed and delivered following loan documents to Applicant Bank.

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It is submitted that upon the request of the Defendant No.1, the Applicant Bank reviewed the existing C.C Limit to Rs.30 Lakh and sanctioned Term Loan of Rs.8.00 Lakh. under BGECL Scheme on the terms and conditions as mentioned in the Letter of Sanction dated 14 07.2020.

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OA No. 1645 OF 2024

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10.It is submitted that in consideration of the terms and conditions of sanction and in consideration of Applicant Bank having sanctioned the Term Loan of Rs.8.00 Lakh under BGECL Scheme in favour of Defendant no. 1 and with a view to secure re-payment of dues, if any arising thereunder, along with payment of interest, cost, etc., the Defendant No. 2 as prop. as well as in his personal capacity duly executed, signed and delivered loan documents to Applicant Bank.

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11.It is submitted that upon the request of the Defendant No.1, the Applicant Bank restructured the existing credit facility as per RBI guidelines and sanctioned Working Capital Term Loan of Rs.10.00 Lakh.

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12.It is submitted that upon execution of the aforesaid loan documents by the Defendants, the Applicant Bank allowed the Defendants to avail the aforesaid sanctioned facility as it is evident from perusal of the statement of account being submitted along with the captioned Original Application.

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13.It is submitted that the Defendants failed to maintain the financial discipline in the Accounts therefore, their accounts were classified as NPA on 13-11-2023 in accordance with the RBI Guidelines. Consequent to classification of the account as NPA on 13-11-2023, the Applicant Bank through its Counsel sent legal notice dated 17.08.2024 to the Defendants and called upon the Defendants to make payment of the entire amount along with interest, failing which the Applicant Bank shall be constrained to take appropriate legal

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OA No. 1645 OF 2024

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steps before the courts of law. Despite the issuance of notices, the dues have not been paid till date, so the Applicant Bank is bound to take recourse to legal action against the Defendant No. 1 & 2.

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14.It is submitted that repayment of the aforesaid outstanding amount is duly secured by a valid and subsisting hypothecation of the movables as mentioned in aforesaid paras in detail. Applicant Bank has thus, become entitled to enforce and realize the said securities and for sale by and under the orders and directions. of this Hon’ble Tribunal. Said hypothecated movables are at the sole and absolute control of Defendants and there is every likely hood of the same being disposed off or dealt with in a manner detrimental to the rights and interest of Applicant Bank. In case, Defendants succeed in doing so, Applicant Bank is likely to suffer irreparable loss, harm and injury. Applicant Bank is entitled to dispose of the above said movables of Defendants to recover the debt as determined by this Hon'ble Tribunal, against the Defendants.

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It is submitted that ag security created by Defendants in favour of Applicant Bank regarding hypothecation of the movables as mentioned in aforesaid paras is not sufficient to recover the entire amount as due and outstanding to Applicant Bank therefore, it is incumbent that pending hearing the other immovable property belonging to the Defendants may kindly be ordered to be attached before judgment.

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OA No. 1645 OF 2024

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Summons were issued to the Defendants on 23.12.2024. Counsel for the Applicant Bank has filed proof of dasti summons along with affidavit of service dated 05.02.2025. Despite service none appeared on behalf of defendants, therefore, they were proceeded ex-parte vide order dated 30.04.2025.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit of Shri Lalit Kumar Sunthwal coupled with the recitals in the documents, viz Exhibit A/1 to A/54 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 1645 OF 2024 is allowed declaring that: -

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 41,31,220.14/- (Rupees Forty One Lac Thirty One Thousand Two Hundred Twenty and Fourteen Paisa only) with pendente lite and future interest @ 10% (simple) till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets i.e. plant & machinery, finished goods, semi finished goods, all stock, book debts, receivables, current assets etc. as

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OA No. 1645 OF 2024

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well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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20.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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21.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 24.02.2026 .

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22.Prepare Recovery Certificate accordingly.

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23.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 16.01.2026 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 1645 OF 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1645 OF 2024

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DATE OF DELIVERY OF ORDER 16.01.2026

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

2. Mr. Sharwan Lal Sharma s/o Mr. Nathu Ram Sharma, R/O Baleshro Ki Dhani, Village Anantpura, Tehsil Chomu, Distt Jaipur-303704.

……Defendants…..

OA No. 1645 OF 2024

Recovery Certificate for Rs. 41,31,220.14/-

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In terms of final order dated 16.01.2026 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 41,31,220.14/- (Rupees Forty One Lac Thirty One Thousand Two Hundred Twenty and Fourteen Paisa only) with pendente lite and future interest @ 10% (simple) till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets i.e. plant & machinery, finished goods, semi finished goods, all stock, book debts, receivables, current assets etc. as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 24.02.2026 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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OA No. 1645 OF 2024

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This Certificate has been issued under my signatures and seal of the Tribunal on this 16.01.2026 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 1645 OF 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1645 OF 2024

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DATE OF DELIVERY OF ORDER 16.01.2026

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

2. Mr. Sharwan Lal Sharma s/o Mr. Nathu Ram Sharma, R/O Baleshro Ki Dhani, Village Anantpura, Tehsil Chomu, Distt Jaipur-303704.

……Defendants…..

OA No. 1645 OF 2024

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	44,005.00
2	Process Fee (Inc. Publication)	51.92
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	45,306.92

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1645 OF 2024

16.01.2026

Counsel: Ms. Mamta Pareek, Counsel for Applicant Bank Defendants are ex-parte

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 1645 OF 2024

16.01.2026

Counsel:

Ms. Mamta Pareek, Counsel for Applicant Bank Defendants are ex-parte

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The Tribunal vide order dated 16.01.2026 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 16.01.2026 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

Bank of Baroda v. Ms Shri Balaji Casting

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Ms Shri Balaji Casting

Case brief

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What the court decided

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