Allowed

Bank of Baroda v. Late Sh. Vinod Kumar Sharma through His Legal Heirs and Others

DRT29 Jan 2026OA/249/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the application filed by Bank of Baroda against loan defaulters. It directed the recovery of the outstanding principal and awarded a uniform simple interest rate of 8% p.a. from the date of the application till realization.

What did the court decide?

The defendants are liable to pay Rs. 40,44,114.43 along with simple interest at 8% p.a. from the date of the OA. A Recovery Certificate was issued.

Bank of Baroda versus Late Sh. Vinod Kumar Sharma through… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.249/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.01.2024

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DATE OF DECISION: 29.01.2026

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Bank of Baroda, erstwhile Vijaya Bank, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970, having its Registered Head Office at Baroda Bhawan, R.C Dutt Road, Alkapuri Baroda 390007, Gujrat and its Branch Offices throughout India including Branch at Kurali, SAS Nagar Punjab & Regional Office Stressed Assets Recovery Branch (ROSARB) at 3^rd Floor, SCO 62-63, Sector 17-B, Chandigarh represented through Sh. Hitesh Sehgal, Chief Manager being Principal Officer and duly constituted attorney of the applicant.

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……..Applicant

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Versus

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Sh. Vinod Kumar Sharma S/o Sh. Prem Kumar Sagar Sharma

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(Since Deceased) through his legal heirs

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A. Smt. Sonia Sharma (wife)

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B. Ms. Deepanshi Sharma (daughter)

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C. Mr. Shivam Sharma (son)

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All residents of Siswan Road, Dosarna, Kurali, SAS Nagar Mohali, 140103

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Smt. Sonia Sharma W/o Sh. Vinod Kumar Sharma, Resident of Siswan Road, Dosarna, Kurali, SAS Nagar Mohali, 140103. 2^nd address: #171, Royal Plaza, Ward No.9, Kurali, District SAS Nagar Mohali-140103

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M/S D.P. Collection, through its proprietor Sh. Vinod Kumar

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Sharma

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Address: Chandigarh Road, Near Tanveer Hotel Kurali, SAS Nagar, Punjab -140103

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OA/249/2024 BANK OF BARODA VS. VINOD KUMAR THROUGH HIS LEGAL HEIRS AND OTHERS

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Ms. Deepanshi Sharma D/o Sh. Vinod Kumar Sharma, RO #171, Royal Plaza, ward no.9, Kurali, District SAS Nagar Mohali140103.

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….……Defendants

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Advocates:

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Ms. Kanchan Sehgal, Advocate for Applicant

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None for defendant nos. 1 to 3

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Ms. Parveen Kumari, Advocate proxy for Sh. Amit Kumar Jain, Advocate for Defendant no. 4

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.40,44,114.43 (Rupees Forty Lacs Forty Four Thousand One Hundred Fourteen & Paise Forty Three Only). The Original Application has been filed through Sh. Hitesh Sehgal Chief Manager, of the applicant, who is competent to institute the Original Application vide Authorization letter dated 14.11.2017, which is Annexure A2 to this OA.

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The brief facts of the OA are the defendant no. 1 (since deceased) and the defendant no. 2 approached the applicant for grant of Housing Loan of Rs.25.00 Lacs vide loan application dated 23.11.2017, which is Annexure A3 to this OA. Thereafter, the defendant no. 1 (since deceased) and the defendant no. 2 approached the applicant for relief under framework for COVID-19 related stress vide application dated 22.12.2020, which is Annexure A18 to this OA. Thereafter, defendant no. 3 through its proprietor defendant no.1 (since deceased) approached the applicant for grant of Cash Credit Limit of Rs.8.00 Lacs vide loan application dated 30.12.2019, which is Annexure A20 to this OA. Thereafter, defendant no. 3 through its

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OA/249/2024 BANK OF BARODA VS. VINOD KUMAR THROUGH HIS LEGAL HEIRS AND OTHERS

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proprietor defendant no.1 (since deceased) approached the applicant for grant of Term Loan of Rs.1,12,800.00 under GECL. Acceptance of offer for preapproved GECL dated 10.08.2020, which is Annexure A29 to this OA. Defendant nos. 2 and 4 stood as guarantors in the loan accounts of defendant no. 3.

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The applicant sanctioned Housing Loan of Rs.19.80 Lacs vide sanction letter dated 21.12.2017, which is Annexure A4 to this OA and sanctioned Top-Up Loan of Rs.2.00 Lacs vide sanction letter dated 21.12.2017, which is Annexure A5 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Funded Interest Term Loan (FITL) vide sanction letter dated 22.12.2020, which is Annexure A19 to this OA. Thereafter, applicant sanctioned Cash Credit Limit of Rs.8.00 Lacs to defendant no. 3 (proprietorship firm of defendant no. 1, since deceased) vide sanction letter dated 06.01.2020, which is Annexure A21 to this OA. Thereafter, applicant sanctioned Term Loan of Rs.1,12,800.00 under GECL to defendant no. 3 (proprietorship firm of defendant no. 1, since deceased) vide sanction letter dated 10.08.2020, which is Annexure A30 to this OA.

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Defendant no.1 (since deceased) mortgaged his immovable property i.e. Residential House No. 171, (Area 150 Sq. Yards) Royal Plaza, Ward no.9, Kurali, Tehsil Kharar, District SAS Nagar, Mohali, Punjab vide through equitable mortgage of sale deed bearing vasika no. 9092 dated 22.12.2017. Sale Deed along with its translation filed on 02.12.2025 vide diary no. 19796 in compliance to order dated 06.11.2025 Memorandum of mortgage dated 22.12.2017, which is Annexure A13 to this OA; Enclosure of list of title document, which is Annexure A14 to this OA; Valuation report dated 24.10.2020, which is Annexure

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OA/249/2024 BANK OF BARODA VS. VINOD KUMAR THROUGH HIS LEGAL HEIRS AND OTHERS

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A15 to this OA; Legal scrutiny report dated 11.12.2017, which is Annexure A16 to this OA; CERSAI Report dated 28.12.2017, which is Annexure A17 to this OA.

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Defendant no. 3 through its proprietor defendant no. 1 (since deceased) hypothecated stock in trade vide composite hypothecation agreement dated 06.01.2020, which is Annexure A25 to this OA; CERSAI report dated 07.01.2020, which is Annexure A28 to this OA. Documents executed: Notification dated 02.01.2019, which is Annexure A1 to this OA; DP Notes, Articles of agreements, Letter of repayment, Letter of Lien, Letter of repayment, all dated 21.12.2017, which are Annexures A6 to A12 to this OA; Letter of sole proprietorship, DP note, letter of authority, Declaration cum undertaking authority letter, General undertaking, all dated 06.01.2020, which are Annexures A22, A23, A25 to A27 to this OA; DP Note, Loan cum hypothecation agreement , declaration cum undertaking cum authority, undertaking letter the borrower, letter of installment, general form of guarantee all dated 10.08.2020,which are Annexures A31 to A36 to this OA; Letter of Acknowledgement of debts dated 18.03.2020 & 22.12.2021, which are Annexures A37 to A39 to this OA; SARFAESI Notice u/s 13(2) dated 04.08.2021, which is Annexure A40 to this OA and Statements of accounts and closure statement sheet of the cash credit along with certificate of banker’s books evidence, which are Annexures A41 to A45 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.40,44,114.43, 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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OA/249/2024 BANK OF BARODA VS. VINOD KUMAR THROUGH HIS LEGAL HEIRS AND OTHERS

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The defendants were served notices to appear before this Tribunal. Sh. Sanjay Sagar, Advocate proxy for Sh. Amit Kumar, Advocate appeared on behalf of defendants on 15.06.2024. Power of Attorney of Sh. Amit Kumar Jain and Ms. Preeti, Advocates was filed on behalf of defendants on 21.09.2024. Since, no WS was filed by defendant nos. 1 to 3, their opportunity to file WS was closed and their defense was struck off vide order dated 20.01.2025. WS filed on behalf of defendant no. 4 was not filed within stipulated period, therefore the same was taken on record vide order dated 20.01.2025 subject to payment of cost of Rs. 4,000/-. However, the said cost was not deposited by defendant no. 4, therefore, WS filed by defendant no. 4 was not taken on record and her defense was struck off vide order dated 03.11.2025.

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In support of the OA, an affidavit of Sh. Hitesh Sehgal, Chief Manager, Bank of Baroda, has been filed.

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Heard arguments and perused record. No one appeared on behalf of defendant nos. 1 to 3 for arguments.

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No arguments were advance by learned proxy counsel for defendant no. 4. It was argued by learned counsel that in view of the documentary evidence brought on record, the applicant had proved its case. From the perusal of all the Annexures A1 to A45 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 bank is entitled to recover a sum of Rs.40,44,114.43 (Rupees Forty Lacs Forty Four

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OA/249/2024 BANK OF BARODA VS. VINOD KUMAR THROUGH HIS LEGAL HEIRS AND OTHERS

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Thousand One Hundred Fourteen & Paise Forty Three 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.20%p.a. with 2% penal interest and monthly rests in Housing loan, interest @9.35%p.a. with 2% penal interest and monthly rests in Top-Up Loan, interest @9.8%p.a. with 2% penal interest and monthly rests in CC Limit, interest @9.25 %p.a. with 2% penal interest and monthly rests in GECL, and interest @10.10%p.a. with 2% penal interest and monthly rests in FITL, from 25.01.2023 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 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 all 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.

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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.40,44,114.43 (Rupees Forty Lacs Forty Four Thousand One Hundred Fourteen & Paise Forty Three Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover

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OA/249/2024 BANK OF BARODA VS. VINOD KUMAR THROUGH HIS LEGAL HEIRS AND OTHERS

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aforesaid amount from the sale of mortgaged properties/hypothecated assets of 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 11.02.2026.

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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 .

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Dated: 29.01.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. Late Sh. Vinod Kumar Sharma through His Legal Heirs and Others

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Late Sh. Vinod Kumar Sharma through His Legal Heirs and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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