Bank of Baroda versus L M Fashion

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“ORIGINALAPPLICATION” No. 430 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 430 OF 2025

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DATE OF DELIVERY OF ORDER 19.01.2026

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BANK OF BARODA , A Banking Company and a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having Head Office at Bank of Baroda, Baroda Corporate Center, Plot No. C-26, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051, & one of its Branch Office is at Bank of Baroda, Power House Branch, KE 5-6 Kabir Marg, Bani Park Jaipur-302006.

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…..Applicant Bank…..

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VERSUS

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1. M/s L.M. Fashion , through Proprietor Mr. Sikandar Yadav, having its Principal place of Business at Plot No. L 22, JDA Colony, Bad ki Dhani, Main Sikarpura Road, Govindpura, Sanganer, Jaipur, Rajasthan- 302029.

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Also At:-

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Khasra No. 1105, Master ki Dhani, Sikarpura, Sanganer, Jaipur, Rajasthan- 302029.

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2. Mr. Sikandar Yadav S/o Mishri Yadav R/o Plot No. L 22, JDA Colony, Bad ki Dhani, Main Sikarpura Road, Govindpura, Sanganer, Jaipur, Rajasthan- 302029.

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……Defendants…..

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Counsel for the Applicant Bank Ms. Anubha Singh Counsel for the Defendants Sh. Manoj Premchandani

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

JUDGMENT

This Original Application was filed by the applicant bank on 05.02.2025 for recovery of outstanding amount of Rs. 97,35,873.47/- from the Defendants.

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As per the pleadings, M/s L.M. Fashion, through Proprietor Mr. Sikandar Yadav had made an application dated 16.01.2024 for grant of Baroda Cash Credit and Term Loan before the Applicant Bank.

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It is submitted that after due consideration of the loan application of the Borrower and due diligence the Applicant Bank sanctioned Baroda Cash Credit and Term Loan Facility of Rs. 20,00,000 and Rs. 75,00,000 respectively to the Borrower vide Sanction Letter dated 24.01.2024. The same was accepted by the Borrower on 24.01.2024.

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It is submitted that with a view to secure the due repayment of the outstanding amount under the credit facilities along with all cost, expenses and charges granted by the Applicant Bank to Defendant No.1 Firm of which Defendant No. 2 is Proprietor, Mr. Sikandar Yadav S/o Mr. Mishri Yadav i.e. Defendant No.2, on 24.01.2024 created equitable mortgage in favour of the Applicant Bank in respect of the residential immovable property situated at L-22, at Govindpura JDA scheme, Village Govindpura, Sanganer, Rajasthan belonging Tehsil Jaipur, 302029.

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The said equitable mortgage was created by Defendant No.2 by delivering the afore stated title deeds to Mr. Dinesh Kumar Sharma the then Chief Manager of the Applicant

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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Bank in presence of Mr. Gaurav Kumar Meena the then officer of the Applicant Bank with a view to create security interest thereon in connection of repayment of credit facilities granted by the Applicant Bank to Defendant No. l. The Copy of said Memorandum of Deposit of Title Deeds along with attendance sheet dated 24.01.2024 prepared in connection with creation of the equitable mortgage by Defendant No.2 in favour of the Applicant Bank, Declaration in the matter of mortgage by deposit of Title Deeds in respect of Immovable and letter of confirmation of mortgage along with affidavit from mortgagor are annexed herewith.

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It is submitted that after execution of the loan documents, the Loan Facilities were disbursed to the Borrower, the Borrower started availing the aforesaid loan facilities. It is relevant to mention here that all the aforesaid documents have been executed by the Borrower before the Applicant Bank.

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It is submitted that the Borrower started availing the above Credit Facility on a regular basis as stated above w.e.f. 24.01.2024 which is better described and accounted for in the statement of accounts kept in the regular course of business by the Applicant Bank, showing all the transactions w.e.f. 24.01.2024.

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It is submitted that the Applicant Bank sent a Demand Notice under section 13(2) of Securitization and Reconstruction of Financial Assets and Enforcement of

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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Security Interest Act, 2002 dated 28.11.2024 to the Defendants demanding to repay the outstanding loan amount and interest in full within 60 days of receiving the said Demand Notice. However, till date the outstanding loan amount has not been deposited by the Defendants. Thereafter, the Applicant Bank sent a Recall Notice dated 22.01.2025 to the Defendants recalling the entire loan facility sanctioned to the Defendants. However, till date the outstanding loan amount has not been deposited by the Defendant.

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It is submitted that, the account of Borrower bearing Account No. 01140500000193 and bearing Account No. 01130600004319 became Non- Performing Assets on 22.11.2024. The Applicant Bank has given various verbal reminders and letters to the Defendant to make the repayment of the aforesaid outstanding amount, but the Defendant had always paid deaf ear to the genuine demand of the outstanding amount due of the Applicant Bank and the Defendant has not paid the outstanding amount of the Applicant Bank.

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10.It is submitted that amount of Rs. 97,35,873.47/- as on 11.01.2025 is due against the Borrower in the Baroda Cash Credit Facility bearing Account No. 01140500000193 and Term Laon Facility bearing Account No. 01130600004319 which the Applicant Bank is entitled to recover from the Defendants along with interest from 12.01.2025 till the actual realization. A certified copy of the Credit Facility statement

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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of accounts along with the Certificate of Bankers Books of Evidence Act is attached here with.

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11.It is pertinent to mention that the Borrower has wrongfully removed the plant and machinery from the place of business which is evident from the inspection report prepared by the bank officials after inspecting the premises of the Borrower on 06.11.2024. It is also pertinent to mention that the Applicant Bank has informed the police authorize about the illegal act of the Borrower. Copy of inspection report dated 06.11.2024 and complaint is attached herewith.

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12.It is pertinent to mention here that the Applicant Bank has deposited the entire amount in the account of the Borrower after the sanction of loan facility. The Applicant Bank has also reversed the uncharged interest for the accounting purpose which the Applicant Bank is entitled to recover, which is also evident from the perusal of the statement of accounts attached in the aforementioned paras.

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13.It is submitted that the rates of interest were revised from time to time as per the policy of the Applicant Bank and agreement with the Borrower and interest was charged in the aforesaid Credit Facilities accordingly. The Applicant Bank is entitled to recover the rate of interest over the aforesaid outstanding amount which may change time to time up to the final realization as per the agreed terms between the Applicant Bank and the Defendant.

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14.It is submitted that all the Defendants are jointly and severally, co- extensively and individually liable, to pay the

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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aggregate amount of Rs. 97,35,873.47/- as on 11.01.2025 to the Applicant Bank along with all costs, charges, interest and expenses etc., of this application and future costs and expenses and pendente lite and future interest. The Applicant Bank is entitled to recover, interest at the contractual rate in Baroda Cash Credit Facility bearing Account No. 01140500000193 and Term Laon Facility bearing Account No. 011306000043 19 per annum with monthly rest from 12.01.2025 till the actual and final realization, subject to applicable base rate which is being changed from time to time upon the outstanding amounts mentioned in the respective accounts, as the liability of the Defendants had arisen during the course of business by the Applicant Bank.

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Summons were issued to the Defendants on 03.04.2025 through court commissioner and the said court commissioner filed his report dated 02.07.2025. Shri Manoj Premchandani undertook to file Vakalatnama on behalf of the Defendants, but reply has not been filed by the defendant.

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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 Dinesh Kumar Sharma coupled with the recitals in the documents, viz Exhibit A/1 to A/20 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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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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In the result, this O.A. No. 430 of 2025 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. 97,35,873.47/- (Rupees Ninety Seven Lac Thirty Five Thousand Eight Hundred Seventy Three and Forty Seven Paisa Only) with pendente lite and future interest @ 10% (simple) from 12.01.2025 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. hypothecation on stocks and book debts of the firm, plant & machinery and equitable mortgaged property situated House L-22, at Govindpura, Govindpura JDA Scheme, Village Govindpura, Sanganer, Rajasthan belonging Tehsil Jaipur, 302029 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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19.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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20.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 26.02.2026 .

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21.Prepare Recovery Certificate accordingly.

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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22.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. 19.01.2026 .

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

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 430 OF 2025

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DATE OF DELIVERY OF ORDER 19.01.2026

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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)

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BANK OF BARODA , A Banking Company and a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having Head Office at Bank of Baroda, Baroda Corporate Center, Plot No. C-26, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051, & one of its Branch Office is at Bank of Baroda, Power House Branch, KE 5-6 Kabir Marg, Bani Park Jaipur-302006.

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…..Applicant Bank…..

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VERSUS

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1. M/s L.M. Fashion , through Proprietor Mr. Sikandar Yadav, having its Principal place of Business at Plot No. L 22, JDA Colony, Bad ki Dhani, Main Sikarpura Road, Govindpura, Sanganer, Jaipur, Rajasthan- 302029.

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Also At:-

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Khasra No. 1105, Master ki Dhani, Sikarpura, Sanganer, Jaipur, Rajasthan- 302029.

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2. Mr. Sikandar Yadav S/o Mishri Yadav R/o Plot No. L 22, JDA Colony, Bad ki Dhani, Main Sikarpura Road, Govindpura, Sanganer, Jaipur, Rajasthan- 302029.

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……Defendants…..

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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Recovery Certificate for Rs. 97,35,873.47/-

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In terms of final order dated 19.01.2026 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 97,35,873.47/- (Rupees Ninety Seven Lac Thirty Five Thousand Eight Hundred Seventy Three and Forty Seven Paisa Only) with pendente lite and future interest @ 10% (simple) from 12.01.2025 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. hypothecation on stocks and book debts of the firm, plant & machinery and equitable mortgaged property situated House L-22, at Govindpura, Govindpura JDA Scheme, Village Govindpura, Sanganer, Rajasthan belonging Tehsil Jaipur, 302029 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 26.02.2026 .

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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

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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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 19.01.2026 .

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

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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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. 430 OF 2025

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DATE OF DELIVERY OF ORDER 19.01.2026

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SCHEDULE TO RECOVERY CERTIFICATE

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MEMO OF COST

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BANK OF BARODA , A Banking Company and a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having Head Office at Bank of Baroda, Baroda Corporate Center, Plot No. C-26, Block G, Bandra Kurla Complex, Bandra (East), Mumbai 400051, & one of its Branch Office is at Bank of Baroda, Power House Branch, KE 5-6 Kabir Marg, Bani Park Jaipur-302006.

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…..Applicant Bank…..

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VERSUS

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1. M/s L.M. Fashion , through Proprietor Mr. Sikandar Yadav, having its Principal place of Business at Plot No. L 22, JDA Colony, Bad ki Dhani, Main Sikarpura Road, Govindpura, Sanganer, Jaipur, Rajasthan- 302029.

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Also At:-

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Khasra No. 1105, Master ki Dhani, Sikarpura, Sanganer, Jaipur, Rajasthan- 302029.

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2. Mr. Sikandar Yadav S/o Mishri Yadav R/o Plot No. L 22, JDA Colony, Bad ki Dhani, Main Sikarpura Road, Govindpura, Sanganer, Jaipur, Rajasthan- 302029.

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……Defendants…..

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	1,00,005.00
2	Process Fee (Inc. Publication)	35.40
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	10,000.00
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	1,11,290.40

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

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

19.01.2026

Counsel:

Ms. Anubha Singh, Counsel for Applicant Bank Shri Manoj Premchandani, Counsel for the Defendants

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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

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Order signed and uploaded on 21.01.2026.

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OA No. 430 of 2025

19.01.2026

Counsel:

Ms. Anubha Singh, Counsel for Applicant Bank Shri Manoj Premchandani, Counsel for the Defendants

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The Tribunal vide order dated 19.01.2026 , 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 19.01.2026 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

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Order signed and uploaded on 21.01.2026.

Bank of Baroda v. L M Fashion

Case brief

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Bank of Baroda v. L M Fashion

Case brief

What is this about?

What did the court decide?

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