Allowed

Bank of Baroda v. M/s Max Solutions

DRT19 May 2026OA/281/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank of Baroda's original application for recovery of dues against M/s Max Solutions and guarantors ex parte. The court vindicated the claim for principal and directed issuance of recovery certificate and future enforcement against secured and personal assets with adjusted interest rates.

What did the court decide?

Declaration for recovery of Rs. 21,84,350.68 with simple interest at 7.50% p.a.; directed to issue Recovery Certificate and enforce claim.

Bank of Baroda versus M/s Max Solutions — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.281/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.03.2025

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DATE OF DECISION: 19.05.2026

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Bank of Baroda, a body corporate constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 with its Head Office at Mandavi, Baroda(Earlier known as Vijaya Bank) and carrying on its business of Banking and having Branches at different places including Near Arista Hotel, Chandigarh Road, Sunny Enclave, Kharar Branch through Sh. Dev Kishan Kayastha, Authorized Officer/Attorney Holder of the Applicant.

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……..Applicant

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Versus

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M/s Max Solutions through its proprietor Sh. Preet Kamal Singh, Flat No. 993, Gillco Heights, Gillco Valley, Sector-127, Kharar, Tehsil Kharar, District Mohali.

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Sh. Preet Kamal Singh S/o Sh. Amarjit Singh, R/o Flat No. 993, Gillco Heights, Gillco Valley, Sector-127, Kharar, Tehsil Kharar, District Mohali.

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Smt. Jaspinder Kaur W/o Sh. Preet Kamal Singh, R/o House No. E10/68, Gali No. 1, Sat Kartar Nagar, Chheharta, Amritsar – 143105.

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……..Defendants

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Advocates:

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Argued by Sh. Rajeev Bhardwaj, Advocate for the applicant

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None for Defendants (Already ex-parte vide order dated 15.05.2026).

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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.21,84,350.68 (Rupees Twenty One Lacs Eighty Four Thousand Three Hundred Fifty and Paise

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2 OA/281/2025 BANK OF BARODA VS M/S MAX SOLUTIONS AND OTHERS

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Sixty Eighty Only). The Original Application has been filed through Sh. Dev Kishan Kayastha, Authorized Officer/Attorney Holder o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.02.2014, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Overdraft Limit of Rs.13,80,000.00 vide Application Form for V- Entrepreneur dated 24.07.2018, which is Annexure A2 to this OA.

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The applicant sanctioned the Overdraft Limit of Rs.13,72,000.00 vide Sanction Letter dated 24.08.2018, which is Annexure A3 to this OA. Thereafter, renewed the Overdraft Limit of Rs.13,72,000.00 and Sanctioned Additional Working Capital Term Loan of Rs.1,00,000.00 vide Letter of Sanction dated 28.07.2020, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendant no.1 through its proprietor defendant no. 2. Defendant no. 3 stood as guarantor.

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Defendant No. 2 mortgaged his immovable property i.e., Flat No. E-804, 8^th Floor, Emerging Heights-1, Tower-E, Village Santemajra, Hadbast No. 186, Tehsil Kharar, District Mohali as per Jamabandi for the year 2018-2019, by way of deposit of Original Sale Deed Vasika No. 3940, Book No. 1 dated 28.07.2017, which is Annexure A21 to this OA;

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Documents executed: Loan Agreement cum Hypothecation Deed for priority/non-priority sector advances, Letter of Guarantee, Demand Promissory Note, Memorandum of Title Deed Deposit, Affidavit, all dated 24.08.2018, which are Annexures A4 to A8 to this OA; Loan cum Hypothecation Agreement, Demand Promissory Note, Letter of Continuing Security, Declarations cum undertaking cum authority, General form Guarantee, Letter of sole proprietorship, Letter of installment with acceleration clause, Memorandum of Entries, all dated 29.07.2020, which are Annexures A10 to A17 to this OA; Declaration dated 24.01.2020, which is Annexure A18 to this OA;

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3 OA/281/2025 BANK OF BARODA VS M/S MAX SOLUTIONS AND OTHERS

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Extension of mortgage by deposit of Title Deeds, Letter of authority for creation/extension of Mortgage, Acknowledgement of Debt, all dated 29.07.2020, which are Annexures A19, A20 & A22 to this OA; Notices U/s 13(2) dated 17.06.2022, along with postal receipts, which are Annexures A23 to A26 to this OA; Acknowledgement of Debt dated 29.07.2020, which is Annexure A27 to this OA; Letter of Acknowledgement of Debt dated 02.06.2022, which is Annexure A28 to this OA; Statement of Accounts along with certificate, which are Annexures A29 to A31 to this OA. 5. 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.21,84,350.68, 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. 6. 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 15.05.2026. 7. In support of the OA, affidavit of Sh. Dev Kishan Kayastha, Authorized Officer, Bank of Baroda, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A31 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no.2 approached applicant for availing of the loan facilities, which were granted to them, defendant no.3 stood as guarantor 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, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of

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OA/281/2025 BANK OF BARODA VS M/S MAX SOLUTIONS AND OTHERS

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Rs.21,84,350.68 (Rupees Twenty One Lacs Eighty Four Thousand Three Hundred Fifty and Paise Sixty Eighty 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 @11.40%p.a. with monthly rests with penal interest @2.00% in Overdraft Account and interest @7.50%p.a. with penal interest @2.00% in Term Loan Account from 14.01.2025 to 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 hypothecated assets/mortgaged property, 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 uniform simple interest @07.50% 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.

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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.21,84,350.68 (Rupees Twenty One Lacs Eighty Four Thousand Three Hundred Fifty and Paise Sixty Eighty Only), jointly and severally, with costs, current and future simple interest @07.50% p.a. in both 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 aforesaid amount from the sale of immovable property of the defendant no.2 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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OA/281/2025

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BANK OF BARODA VS M/S MAX SOLUTIONS AND OTHERS

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12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated 19.05.2026

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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 Max Solutions

Case brief

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Bank of Baroda v. M/s Max Solutions

Case brief

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