Allowed

Bank of Baroda v. M/S Panisha

DRT17 Jan 2026OA/238/2024

Case brief

AI extract

What is this about?

TPP allowed Bank of Baroda's original application for recovery of Rs. 37 Lakhs from a proprietorship firm and its proprietor upon classification as NPA. The prospect, declaring joint and several liability, authorized recovery through sale of hypothecated and other assets, and directed issuance of a recovery certificate.

What did the court decide?

Debt of Rs. 37,02,809.10 with interest allowed; Recovery Certificate issued for recovery from hypothecated and personal assets; costs awarded to applicant.

Bank of Baroda versus M/S Panisha — Banking and Recovery | DRT (2026)

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“ORIGINALAPPLICATION” No. 238 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. 238 OF 2024

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DATE OF DELIVERY OF ORDER 17.01.2026

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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 Dutta Road, Alkapuri, Vadodara and its branch offices throughout India along with a Branch known as Marudhar Industrial Area Branch, Jodhpur-342005 (Rajasthan) through its Astt. General Manager Mr. J.P. Meena.

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…..Applicant Bank…..

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VERSUS

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1. M/S Panisha In , a proprietorship firm having its registered office at Plot No.13, Opposite Cazari Main Gate, Light Industrial Arca, Jodhpur.

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2. Mr. Pankaj Bhati s/o Mr. Prakash Bhati r/o Plot No.13, Opposite Cazari Main Gate, Light Industrial Arca, Jodhpur.

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……Defendants…..

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

OA No. 238 of 2024

JUDGMENT

This Original Application was filed by the applicant bank on 23.01.2024 for recovery of outstanding amount of Rs. 37,02,809.10/- from the Defendants.

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As per the pleadings, the Defendant No. 1 is a Proprietorship Concern and the Defendant No. 2 is its Proprietor, who has availed credit facility from the Applicant Bank.

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It is submitted that the Defendant No. 2 for his Proprietorship Concern Defendant No.1 approached the Applicant Bank for grant of Cash Credit facility of Rs. 20 Lakh for working capital requirement under CGTMSE and submitted with the Applicant Bank Loan Application dated 06.05.2013.

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It is submitted that upon considering all the requisite material provided by Defendants and carrying out the necessary inquiries, Applicant Bank duly acceded to the request made by Defendants and sanctioned the Cash Credit facility of Rs.20 Lakh for working capital requirement under CGTMSE Scheme on the terms and conditions as mentioned in the Letter of Sanction dated 16.05.2013.

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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.20 Lakh for working capital requirement 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

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OA No. 238 of 2024

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Proprietor of the Defendant No. 1 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 through Defendant No. 2, the Applicant Bank reviewed the existing credit facility with increase in limit to Rs.30 lakh on the terms and conditions as mentioned in the Letter of Sanction dated 07.06.2017.

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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 aforesaid credit facility in favour of Defendant no. 1 and with a view to secure re-payment of dues, if any arising thereunder, alongwith payment of interest, cost, etc., the Defendant No. 2 as Proprietor of the Defendant No. 1 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 after availing the said Credit Facility, Defendant No. 2 for his Proprietorship Concern Defendant No.1 approached the Applicant Bank for grant of Additional Working Capital Term Loan of Rs.6.00 Lakh under BGECL Scheme in addition to the already existing Credit facilities.

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It is submitted that upon considering all the requisite material provided by Defendants and carrying out the necessary inquiries, Applicant Bank duly acceded to the request made by Defendants and sanctioned Term Loan of Rs.6.00 Lakh under BGECL Scheme in addition to the already existing

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OA No. 238 of 2024

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Credit facilities on the terms and conditions as mentioned in the Letter of Sanction dated 27.01.2021.

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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 aforesaid credit facility in favour of Defendant no. 1 and with a view to secure re-payment of dues, if any arising thereunder, alongwith payment of interest, cost, etc., the Defendant No. 2 as Proprietor of the Defendant No. 1 as well as in his personal capacity duly executed, signed and delivered following loan documents to Applicant Bank.

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11.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 is evident from perusal of the statement of account being submitted alongwith the captioned Original Application.

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12.It is submitted that the Defendants failed to maintain financial discipline in the said accounts as a consequence of which the borrowal accounts of Defendant No. 1 were classified as Non Performing Asset (NPA) on 29.04.2023 in accordance with directions and guidelines of Reserve Bank of India and demand notice dated 05.05.2023 U/s 13(2) of SARFAESI Act,2002 was served on the Defendants for enforcement of Security Interest in respect of movable assets relating to which the security interest was created in favour of the Applicant Bank. The office copy of Demand Notice dated 05.05.2023 sent by the Applicant Bank to the

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OA No. 238 of 2024

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Defendants is being filed. Another Notice dt.25.10.2023 was sent to the Defendant requesting him to make payment of the dues, failing which the Applicant Bank is likely to proceed against the Defendant before DRT. 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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13.It is submitted that in the aforesaid facts and circumstances, the Applicant Bank has been constrained to file the subject Original Application before this Hon'ble Tribunal for recovery of debt against the Defendants. Certified copy of statement of Account of the Defendant No. 1 bearing A/c No 18720500000124 as prepared under Bankers Books Evidence Act alongwith uncharged interest is Exhibit A-37. As per this statement of account, a sum of RS. 32,66,946.50/- is due and outstanding against the Defendants inclusive of interest alongwith expenses, etc. incurred up to 21/10/2023. Certified copy of statement of Account of the Defendant No. 1 bearing A/c No 18720600002887 as prepared under Banker’s Books Evidence Act alongwith uncharged interest is Exhibit A-38. As per this statement of account, a sum of RS.4,35,862.60/is due and outstanding against the Defendants inclusive of interest alongwith expenses, etc. incurred upto 21/10/2023. Thus, as per Exhibit A-37 & 38, in all a sum of Rs. 37,02,809.10/- is due and outstanding from the Defendants inclusive of interest along with expenses, etc. incurred up to 21/10/2023.

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OA No. 238 of 2024

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14.It is submitted that in view of the aforesaid the Defendants jointly and severally under obligation to make payment of the dues owed by them qua the Applicant Bank aggregating to Rs. 37,02,809.10/-.

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15.It is submitted that the credit facilities granted by the Applicant Bank to Defendant No. 1 & 2 from time to time has been linked with, inter-alia, Bank’s base rate and due to change in the same, the effective rate of interest used to go under a change. Since the record of the change in rate of interest is kept in the computer system in which the accounts are maintained, the relevant statements relating to the interest rate at which interest were applied in the respective accounts is being filed.

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16.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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OA No. 238 of 2024

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17.It is submitted That as 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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18.It is submitted that for preferring the present Original Application, cause of action arose in favour of Applicant Bank upon request having been made by Defendants for grant of financial assistance and upon sanction of financial assistance by the Applicant Bank in favour of Defendants and upon execution of relevant loan documents by Defendants in favour of Applicant Bank. Cause of action thereafter, arose in favour of Applicant Bank when despite repeated reminders, Defendants failed to rectify the irregularities in the account and the account of the Defendant was classified as NPA, since then, cause of action is arising every day and will continue to arise till actual realization of entire dues and outstanding amount alongwith interest and other incidental charges and expenses etc., by the Applicant Bank from Defendants. Financial Assistance was sanctioned and allowed to Defendants by Applicant Bank within the territorial jurisdiction of this Hon'ble Tribunal and is repayable within the same. Hence, cause of action has wholly arisen within the territorial jurisdiction of this Hon'ble Tribunal. Thus, Hon'ble Tribunal has complete

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OA No. 238 of 2024

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jurisdiction to entertain and decide upon the subject matter of present Original Application.

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19.It is submitted that the amount of claim under the present Original Application has been availed and utilized by Defendants which has been duly admitted by Defendants by executing relevant loan documents and by depositing some amount from time-to-time. Law of limitation bars no part of the claim made by Applicant Bank in the present Original Application as this Original Application is being filed within the prescribed period of limitation as per the provisions of law.

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It is submitted that the Defendant No.1& 2 being the borrower carries out its business in Rajasthan and also reside in state of Rajasthan, various loan documents and agreements were executed by the Defendants at MIA Branch, Jodhpur of the applicant Bank and in view of the administrative and operational exigencies for better monitoring of the accounts falling under NPA classification, which is also in the State of Rajasthan hence, the cause of action has arisen within the jurisdiction of this Hon’ble Tribunal. It is also submitted that keeping in view the amount claimed by the applicant Bank this Hon'ble Tribunal has got pecuniary jurisdiction also to entertain, try and decide the present application of the applicant Bank.

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It is submitted that the defendants acknowledged their liability towards the said loan accounts by executing Letter of Acknowledgement dated 07.12.2015, 06.06.2017,

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OA No. 238 of 2024

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29.07.2019, 02.07.2022. Since the defendant failed to maintain financial discipline so the said accounts were turned NPA on 29.04.2023.

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Summons were issued to the Defendants on 15.03.2024. Counsel for the Applicant Bank filed proof of dasti through Bank Officer along with affidavit of service dated 11.03.2025. Despite service none appeared, therefore, they were proceeded ex-parte vide order dated 09.10.2025.

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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 J. P. Meena coupled with the recitals in the documents, viz Exhibit A/1 to A/41 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. 238 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. 37,02,809.10/- (Rupees Thirty Seven Lac Two Thousand Eight Hundred Nine and Ten 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., stock, plant & machinery and all other current assets

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OA No. 238 of 2024

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

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27.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 25.02.2026 .

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28.Prepare Recovery Certificate accordingly.

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29.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. 17.01.2026 .

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

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OA No. 238 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. 238 OF 2024

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DATE OF DELIVERY OF ORDER 17.01.2026

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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

1. M/S Panisha In , a proprietorship firm having its registered office at Plot No.13, Opposite Cazari Main Gate, Light Industrial Arca, Jodhpur.

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2. Mr. Pankaj Bhati s/o Mr. Prakash Bhati r/o Plot No.13, Opposite Cazari Main Gate, Light Industrial Arca, Jodhpur.

……Defendants…..

OA No. 238 of 2024

Recovery Certificate for Rs. 37,02,809.10/-

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In terms of final order dated 17.01.2026 passed by this Tribunal in the above mentioned case, it is ordered that: -

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 37,02,809.10/- (Rupees Thirty Seven Lac Two Thousand Eight Hundred Nine and Ten 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., stock, plant & machinery and all other current assets 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 25.02.2026 .

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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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This Certificate has been issued under my signatures and seal of the Tribunal on this 17.01.2026 .

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

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OA No. 238 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶103

PRESENT- SHRI VIMAL GUPTA

¶104

PRESIDING OFFICER

¶105

O.A. NO. 238 OF 2024

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DATE OF DELIVERY OF ORDER 17.01.2026

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/S Panisha In , a proprietorship firm having its registered office at Plot No.13, Opposite Cazari Main Gate, Light Industrial Arca, Jodhpur.

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2. Mr. Pankaj Bhati s/o Mr. Prakash Bhati r/o Plot No.13, Opposite Cazari Main Gate, Light Industrial Arca, Jodhpur.

……Defendants…..

OA No. 238 of 2024

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	40,005.00
2	Process Fee (Inc. Publication)	84.96
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	41,339.96

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(Vimal Gupta)

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Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 238 of 2024

17.01.2026

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. 238 of 2024

17.01.2026

Counsel:

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

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The Tribunal vide order dated 17.01.2026 , 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 17.01.2026 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. M/S Panisha

Case brief

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Bank of Baroda v. M/S Panisha

Case brief

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