Allowed

Bank of India v. Salasar Garments

DRT27 Jan 2026OA/312/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application for recovery of dues. The Tribunal held the applicant bank's case was unrebutted due to the respondent's absence and directed payment of the principal sum along with interest and costs within 30 days.

What did the court decide?

Recovery certificate issued for Rs. 34,74,065.38 plus interest at 11.25% p.a. to be recovered within 30 days, failing which from sale of assets.

Bank of India versus Salasar Garments — Banking and Recovery | DRT (2026)

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O.A. No. 312 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No.312 of 2023

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Bank of India

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12a/32, WEA Saraswati Marg Karol Bagh, New Delhi-110005

Applicant

Versus

M/s Salasar Garments

Proprietor Mr. Manish Gupta s/o Sh.Jugal Gupta 8774/9, Mittal Chamber Karol Bagh, New Delhi-110005

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Also at:

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M/s Salasar Garments

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Proprietor Mr. Manish Gupta s/o Sh. Jugal Gupta WZ-4991 Upper Ground Floor

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Gali No.4, Ramgarh Colony

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Ramesh Nagar, New Delhi-110015

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Also at:

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M/s Salasar Garments

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Proprietor Mr. Manish Gupta s/o Sh. Jugal Gupta C-1/1, Mansarovar Garden

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Ramesh Nagar, New Delhi-110015

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Also at:

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M/s Salasar Garments Proprietor Mr. Manish Gupta s/o Sh. Jugal Gupta V-39/24, DLF Phase 3 Gurgaon, Haryana-122002

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Defendant

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Present: Shri S.V. Tyagi, Counsel for the applicant bank

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Date of Reserve: 05.01.2026

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Date of Pronouncement: 27.01.2026

O.A. No. 312 of 2023

FINAL ORDER

This original application has been filed by the applicant bank on 27.03.2023 through Sh.P.K.S.Chandel, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.34,74,065.38 (Rupees Thirty Four Lacs Seventy Four Thousand Sixty Five and paisa Thirty Eight only) along with pendentelite and future interest @9.35% in Cash Credit account and @9.25% in the GECL account with monthly rests plus @2% penal interest from the date of filing of this application till the date of realization alongwith costs.

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The brief facts of the case are that on the request of the defendant, the applicant bank sanctioned Cash Credit facility for a sum of Rs.20.00 lacs (Rupees Twenty lacs only) @12.75% interest per annum on 12.08.2013 which was enhanced to Rs.30.00 lacs (Rupees Thirty lacs only) @12.95% interest per annum on 01.07.2015 against hypothecation of stocks and book debts. Further, the. applicant bank sanctioned Credit facility for Rs.6.00 lacs (Rupees Six lacs only) @7.85% interest per annum under Star GECL scheme on 24.06.2020.

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That in order to avail the credit facilities, the defendant submitted loan applications and executed Demand Promissory Note, Loan Bearer Letter, Multipurpose Documents, Hypothecation cum Loan Agreement, Undertaking/Declaration, Letter of declaration, Undertaking & Authority, Declaration of Proprietorship Letter, Supplemental Loan cum Hypothecation Agreement, Stamped RBLR and Credit Facility Agreement with the applicant bank on 12.08.2013, 01.07.2015 & 24.06.2020.

O.A. No. 312 of 2023

The defendant executed Acknowledgement of Debt and Securities thereby acknowledging the debt towards the applicant bank on 01.07.2015, 03.02.2018, and 21.01.2021.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and failed to regularize the accounts with the applicant bank. The applicant bank issued a letter dated 17.02.2022 requesting the defendant to submit financial documents for review of the account but defendant neglected. Ultimately, the applicant bank classified the account as NPA on 29.01.2023 as per RBI guidelines and issued legal demand notice dated 16.03.2023 but no response, hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 13.02.2023 was issued to the defendant by applicant bank calling upon them to pay the entire outstanding dues.

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 03.11.2025, the defendant has been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri P.K.S. Chandel, authorized representative of the applicant bank who has proved the

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O.A. No. 312 of 2023

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documents such as Power of Attorney, Sanction Letters, Demand Promissory Notes, Loan Bearer Letters, Multipurpose Documents, Hypothecation cum Loan Agreements, Undertakings/Declarations, Declaration of Proprietorship, Acknowledgements of Debt and Security, Credit Facility Agreements, RBLR, Letters, Notice u/s 13(2) of SARFAESI Act alongwith original Postal Receipts, Statement of Accounts marked as Ex.AW-1/1 to Ex.AW-1/34.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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10.^{The case filed by the applicant bank gone unrebutted and} there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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11.^{In the light of the above discussions, the Original} Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank, within a period of 30 days, a sum of Rs.34,74,065.38 (Rupees Thirty Four Lacs Seventy Four Thousand Sixty Five and paisa Thirty Eight only) together with pendentelite and future interest @11.25% per annum with monthly rests from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and machinery etc. In case of shortfall, the same shall

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O.A. No. 312 of 2023

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be recovered from the sale of movable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 01.04.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 27.01.2026

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Bank of India v. Salasar Garments

Case brief

What is this about?

What did the court decide?

Bank of India v. Salasar Garments

Case brief

What is this about?

What did the court decide?

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