Allowed

Bank of Baroda v. the Fitness Factory

DRT22 May 2026OA/57/2025

Case brief

AI extract

What is this about?

The tribunal allowed an original application filed by Bank of Baroda for recovery of a term loan defaulting by M/s The Fitness Factory. The court proceeded ex-parte against the non-appearing defendants and issued a recovery certificate directing repayment within 30 days.

What did the court decide?

Direct the defendants to pay Rs. 23,95,651.06 with interest and costs; issue a recovery certificate; recover from sale of hypothecated machineries and other assets.

Bank of Baroda versus the Fitness Factory — Banking and Recovery | DRT (2026)

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O.A.. No.57 of 2025

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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. 57 of 2025

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Bank of Baroda 8718, Desh Bandhu Gupta Marg Ram Nagar, Paharganj, New Delhi-110055

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Applicant

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Versus

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M/s The Fitness Factory Proprietor Sh.Ashish Kumar G-1, 1/5, Sector-5, Rajender Nagar Sahibabad, Ghaziabad, UP-201005

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Sh.Ashish Kumar Proprietor of M/s The Fitness Factory R/o 707/42, Gali No.14, Bheem Dairy Maujpur, Delhi-110053 Defendants

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Present: Ms Geetanjali Sharma, Counsel for applicant bank

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Date of Reserve: 06.05.2026

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Date of Pronouncement: 22.05.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 23.12.2024 through Sh.Pankaj Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of Rs.23,95,651.06 (Rupees Twenty Three Lacs Ninety Five Thousand Six Hundred Fifty One and paisa Six only) as on 18.12.2024 along with pendentelite and future interest @10.95% per annum along

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O.A. No.57 of 2025

with penal interest @2% with monthly rests till the date of its realization along with costs.

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The brief facts of the case are that at the request of defendant no.1 through its proprietor being defendant no.2 vide loan application dated 08.02.2023 together with Form 125 with GST Registration Certificate, Udhyam Registration Certificate, Aadhar Card & PAN Card, the applicant bank sanctioned Term Loan facility for a sum of Rs.29,39,000/(Rupees Twenty Nine Lacs Thirty Nine Thousand only) @10.90% floating rate of interest and @2% penal interest in case of default in repayment of instalments on 22.03.2023 for capital expenditure in order to purchase machinery / equipment etc. against hypothecation of machinery covered under CGTMSE facility.

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That in order to avail the term loan facility, the defendant no.1 through its proprietor defendant no.2 submitted loan application and executed Demand Promissory Note, Letter of Sole Proprietorship, Letter of Instalment with acceleration clause, Letter of Authority, Letter of Undertaking, Power of Attorney, General Undertaking, Declaration cum Undertaking, General Form of Guarantee and Composite Hypothecation Agreement on 22.03.2023 in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing credit facility, the defendants miserably failed to repay the interest / installment and maintain financial discipline as per terms and conditions despite various requests and reminders. The applicant bank classified the account as NPA on 25.09.2024 as per extant RBI guidelines and issued legal notice dated 03.12.2024 but defendants did not bother to pay any

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O.A. No.57 of 2025

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amount in the account, hence, the applicant bank has approached this tribunal for recovery of its dues from the defendants.

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Notices of this O.A. were issued to the defendants and despite proper service through publication in newspapers, the defendants have chosen to absent from the proceedings. As per order dated 18.02.2026, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Pankaj Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Loan Application with relevant documents, Various security documents, Legal Notice with Postal Receipts etc., Statement of Account with unapplied interest and un-serviced interest, Certificate u/s 2A(b) and 2A(c) of Banker's Books Evidence Act 1891 r/w Section 63 of Bhartiya Sakshya Adhiniyam marked as Exhibit AW-1/1 to Exhibit AW-1/7.

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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 proved.

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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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sa,

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O.A. No.57 of 2025

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In the light of the above discussions and documents on record, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, a sum of Rs.23,95,651.06 (Rupees Twenty Three Lacs Ninety Five Thousand Six Hundred Fifty One and paisa Six only) as on 18.12.2024 along with pendentelite and future interest @12.95% per annum with monthly rests from 18.12.2024 till the date of realization along with costs, failing which the aforesaid amount shall be recovered from sale of hypothecated Machineries and Equipments etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the defendants.

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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 21.07.2026.

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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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$67"(

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

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(Dictated and pronounced in open court) Dated: 22.05.2026

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Bank of Baroda v. the Fitness Factory

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. the Fitness Factory

Case brief

What is this about?

What did the court decide?

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