Allowed

Bank of Baroda v. M/S Honey Garments and Another

DRT28 Aug 2026OA/58/2025

Case brief

AI extract

What is this about?

In an ex-parte order, the Tribunal allowed the applicant bank's application for recovery of debt. The court verified the loan agreement, hypothecation, and default, granting a recovery certificate for the principal amount plus 8% p.a. simple interest.

What did the court decide?

Recovery Certificate issued for Rs.22,62,451.16 plus 8% p.a. simple interest from filing date till realization.

Bank of Baroda versus M/S Honey Garments and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 58/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.01.2025

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DATE OF DECISION: 28.08.2026

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Bank of Baroda, a body corporate, constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Mandvi, Baroda and one of its Branch, situated at Clock Tower Branch, Ludhiana, Punjab, through its constituted Attorney Sh. Atul Kumar Dwivedi, Chief Manager, Bank of Baroda, Ludhiana, who is also the principal officer of the applicant bank.

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……..Applicant

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Versus

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M/s Honey Garments through its Sole Proprietor Sh. Harish Kumar S/o Sh. Bhagat Ram, Shop No. 1, Street No. 5, New Subhash Nagar, Ludhiana-141122.

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2^nd Address – Shop No. 326, Gurudwara Akalgarh, Chaura Bazar, Ludhiana.

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Sh. Harish Kumar S/o Sh. Bhagat Ram, Sole Proprietor M/s Honey Garments, Shop No. 1, Street No. 5, New Subhash Nagar, Ludhiana-141122.

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2^nd Address – House No. 13982, Ramesh Nagar, Tibba Road, Ludhiana.

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3^rd Address – House No. 16/17 D, Delta City, Rania, Ludhiana141122.

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…….Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 24.08.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under

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Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against

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OA/58/2025 BANK OF BARODA VS. M/S HONEY GARMENTS AND ANOTHER

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the defendants for recovery of Rs.22,62,451.16 (Rupees Twenty Two Lac Sixty Two Thousand Four Hundred Fifty One and Paise Sixteen Only). The Original Application has been filed through Sh. Atul Kumar Dwivedi, Chief Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney of Sh. Atul Kumar Dwivedi, Chief Manager, Bank of Baroda, 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 sanction of CC Limit of Rs.20,00,000.00 vide Loan Application dated 01.08.2022, which is Annexure A2 to this OA.

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The applicant sanctioned the CC Limit of Rs.20,00,000.00 vide Sanction Letter dated 08.08.2022, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1, through its proprietor defendant no.2, hypothecated its stock and book debts vide Composite Deed of Hypothecation dated 08.08.2022, which is Annexure A7 to this OA; Documents executed: D.P. Note dated 08.08.2022, which is Annexure A4 to this OA; Letter of Sole-Proprietorship dated 08.08.2022, which is Annexure A5 to this OA; Letter of Continuing Security dated 08.08.2022, which is Annexure A6 to this OA; Declaration-cum-Undertaking-cum-Authority dated 08.08.2022, which is Annexure A8 to this OA; Letter of Undertaking dated 08.08.2022, which is Annexure A9 to this OA; Draft Undertaking dated 08.08.2022, which is Annexure A10 to this OA; Notice under Section 13(2) of the SARFAESI Act dated 01.12.2023 along with postal receipts, which are Annexures A11 to A13 to this OA; Certified Statement of Account, which is Annexure A14 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.22,62,451.16 (Rupees Twenty Two Lac Sixty Two Thousand Four Hundred Fifty One and Paise Sixteen Only), which is recoverable and the defendants were served recall notices but they did not repay

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3 OA/58/2025

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BANK OF BARODA VS. M/S HONEY GARMENTS AND ANOTHER

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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 24.08.2026. 7. In support of the OA, affidavit of Sh. Atul Kumar Dwivedi, Chief Manager, Bank of Baroda , has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendant no.1, through its proprietor defendant no.2, approached the applicant for availing of the loan facility, which was granted to them. Defendants 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,62,451.16 (Rupees Twenty Two Lac Sixty Two Thousand Four Hundred Fifty One and Paise Sixteen 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.65% p.a. plus 2.00% p.a. penal interest with monthly rests from 13.12.2024 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, undertaking of the defendants, quantum of loan and prevalent market rates of interest

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OA/58/2025

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BANK OF BARODA VS. M/S HONEY GARMENTS AND ANOTHER

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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 simple interest @08.00% p.a. in the loan account from the date of filing of the OA till realization of the amount, ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.22,62,451.16 (Rupees Twenty Two Lac Sixty Two Thousand Four Hundred Fifty One and Paise Sixteen Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 hypothecated assets of the defendant no.1 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2026 15. 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. Pronounced by me in the open Tribunal . Dated: 28.08.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. M/S Honey Garments and Another

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Bank of Baroda v. M/S Honey Garments and Another

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