Allowed

Bank of Baroda v. M/S Madhav International and Others

DRT24 Apr 2026OA/242/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's request for a recovery certificate against three respondents for an outstanding loan of Rs. 1.4 crore. The court fixed a uniform simple interest rate of 8% p.a. on the principal sum from the date of filing.

What did the court decide?

Recovery certificate issued for Rs. 1.40 crore plus costs and simple interest at 8% p.a.; parties directed to appear before Recovery Officer.

Bank of Baroda versus M/S Madhav International and… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.242/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.01.2025

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DATE OF DECISION: 24.04.2026

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Bank of Baroda (Erstwhile Dena Bank), a Public Sector Banking and Financial Services Company having its Head office at Suraj Plaza 1, Sayajigunj, Baroda- 390005 and a Branch Office among others at MSME Branch located near Cheema Chowk, Ludhiana, Punjab through its Authorized Officer to whom the applicant bank given the authority vide Board Resolution dated 14.11.2017, Holder Sh. Rajesh Kamboj presently posted as Chief Manager cum Branch Head at MSME Branch located near Cheema Chowk, Ludhiana, Punjab

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……..Applicant

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Versus

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M/S Madhav International through its Proprietor, Mrs. Kavita Gupta, Registered Office at D-30, Madhav International Phase 7, Focal Point, Near Cute Products Focal Point, Ludhiana, Punjab141014

¶10

Mrs. Kavita, R/o House no. 52, Mahavir Nagar, Opposite MBD Mall, Ferozpur Road, Ludhiana, Punjab- 141012

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Mr. Mukesh Gupta, R/o House no. 52, Mahavir Nagar, Opposite MBD Mall, Ferozpur Road, Ludhiana, Punjab- 141012

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…….Defendants

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Advocates:

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Argued by Sh. Kaveesh, Advocate for applicant (through VC) None for defendants (already ex-parte vide order dated 21.04.2026)

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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,

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2 OA/242/2025 BANK OF BARODA VS. M/S MADHAV INTERNATIONAL AND OTHERS

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against the defendants for recovery of Rs. 1,40,73,425.00 (Rupees One Crore Forty Lacs Seventy Three Thousand Four Hundred Twenty Five Only). The Original Application has been filed through Sh. Rajesh Kamboj , Chief Manager cum Branch Head o f the applicant, who is competent to institute the Original Application vide Board Resolution dated 30.03.2019, which is Annexure A1 to this OA.

¶19

The brief facts of the OA are that the defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CCH Limit of Rs. 97.00 Lacs and Term Loan of Rs. 1.00 Lac.

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The applicant sanctioned CCH Limit of Rs. 97.00 Lacs and Term Loan of Rs. 1.00 Lac vide Credit Sanction Intimation dated 09.01.2018, which is Annexure A1/B to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor.

¶21

Defendant no. 2 mortgaged her immovable property i.e. Plot measuring 250 Sq. Yards situated at Mehar Singh Colony, Tehsil and District Ludhiana, Punjab vide Letter of Confirmation of Mortgage dated 24.06.2020 and Extension of Mortgage of Title Deed dated 23.06.2020, Deposit of Title Deed and Extension of Mortgage of Title Deed, both dated 25.01.2022, which are Annexure A8, A9, A13 and A14 to this OA.

¶22

Documents executed: RBI Press Release of Amalgamation dated 15.11.2027, which is Annexure A1/A to this OA; Composite Hypothecation Agreement and General Undertaking, both dated 10.01.2018, which are Annexure A2 and A4 to this OA; DP Note and Letter of Continuity, both dated 28.03.2019, which are Annexure A3 and A7 to this OA;, General Power of Guarantee and Declaration cum Undertaking, both dated 23.06.2020, which are Annexure A5 and A6 to this OA; Acceptance Letter dated 24.01.2022, which is Annexure

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A10 to this OA; Loan cum Hypothecation, which is Annexure A11 to

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3 OA/242/2025 BANK OF BARODA VS. M/S MADHAV INTERNATIONAL AND OTHERS

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this OA; Declaration cum Undertaking cum Authority and General Power of Guarantee, both dated 25.01.2022, which are Annexure A12 and A15 to this OA; Acknowledgment of Debt dated 01.10.2020, which is Annexure A16 to this OA; Demand Notice dated 12.01.2024, which is Annexure A17 to this OA; Interest Certificate and Bankers certificate, which are Annexure A18 and A19 to this OA.

¶26

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 1,40,73,425.00 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.

¶27

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 21.04.2026.

¶28

In support of the OA, affidavit of Sh. Rajesh Kamboj, Chief Manager cum Branch Head, Bank of Baroda, has been filed.

¶29

Heard ex-parte arguments and perused record.

¶30

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

¶31

From the perusal of all the Annexure A1 to A19 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a

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4 OA/242/2025 BANK OF BARODA VS. M/S MADHAV INTERNATIONAL AND OTHERS

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sum of Rs. 1,40,73,425.00 (Rupees One Crore Forty Lacs Seventy Three Thousand Four Hundred Twenty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

¶34

In so far as pendente lite and future rate of interest is concerned, the applicant in Notice to Borrower u/s 13 (2), SARFAESI Act, 2002 has claimed interest @15.60% p.a. in CCH Limit Account and @9.25% p.a. in Term Loan Account with monthly rests from 12.01.2024 till the realization.

¶35

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 instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loans 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 uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶36

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,40,73,425.00 (Rupees One Crore Forty Lacs Seventy Three Thousand Four Hundred Twenty Five Only) jointly and severally with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amounts. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged property of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the

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5 OA/242/2025 BANK OF BARODA VS. M/S MADHAV INTERNATIONAL AND OTHERS

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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.

¶40

Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.05.2026.

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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.

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Pronounced by me in the open Tribunal. Dated: 24.04.2026

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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 Madhav International and Others

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. M/S Madhav International and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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