Allowed

Bank of Baroda v. M/S Sahib Knitwear and Others

DRT20 Apr 2026OA/64/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the original application filed by Bank of Baroda against five respondents (borrowers and guarantors) for recovery of Rs. 46,45,104.00 as defendants were proceeded ex-parte. The court declared the defendants jointly and severally liable for the principal and future simple interest. The proceedings were ex-parte.

What did the court decide?

Recovery of Rs. 46,45,104.00 jointly and severally from all defendants, with future simple interest @ 6.85% p.a. from the date of filing of the OA till realization.

Bank of Baroda versus M/S Sahib Knitwear and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.64/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.08.2022

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DATE OF DECISION: 20.04.2026

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Bank of Baroda (erstwhile Vijaya Bank), a Public Sector Banking and Financial Service Company having its Head Office at Baroda Bhavan, R.C. Dutt Road, Alkapuri, Baroda- 390007 and a Branch Office among others at Clock Tower, Ludhiana- 141008 through its Authorized Officer and duly Constituted Power of Attorney Holder, Sh. Jagroop Singh presently posted as Chief Manager cum Branch Head at Clock Tower Branch, Ludhiana.

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……..Applicant

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Versus

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M/S Sahib Knitwear, (through its Proprietor Sh. Jatinder Singh), #E-10/1306, Basant Vihar Extension, Noorwala Road, Ludhiana, Punjab

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2^nd Address: Inder Vihar Colony, Street no. 6, Near Kali Mata Noor Mahal Road, Ludhiana, Punjab- 141001

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Sh. Jatinder Singh, S/o Sh. Sohan Singh, Proprietor of M/S Sahib Knitwear, R/o Inder Vihar Colony, Street no. 6, Near Kali Mata Noor Mahal Road, Ludhiana, Punjab- 141001

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Ms. Amarjit Kaur, D/o Sh. Chaman Lal, R/o Rozni Masjid, Quilla Mohalla, Daresi Road, Ludhiana, Punjab

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Sh. Parderp Kumar, S/o Sh. Ram Rattan, R/o Shop no. 22, Anand Market, Kalyan Nagar, Circular Road, Ludhiana, Punjab

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Sh. Charanjeet, S/o Sh. Gulzari Lal, R/o H. no. 94, Wada Bazar, Basti Sheikh Basti, Jallandhar

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….……Defendants

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Advocates:

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Argued by Sh. Kaveesh, Advocate proxy for Sh. S.K. Dhir, Advocate for applicant

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None for defendants (already ex-parte vide order dated 13.04.2026)

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2 OA NO.64/2023 BANK OF BARODA VS. M/S SAHIB KNITWEAR AND OTHERS

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 46,45,104.00 (Rupees Forty Six Lacs Forty Five Thousand One Hundred Four only). The Original Application has been filed through Sh. Jagroop Singh, Chief Manager cum Branch Head of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.09.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for the grant of Term Loan of Rs. 18.00 Lacs vide Loan Application Form dated 15.07.2017, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for the grant of CC Limit of Rs. 3.00 Lacs vide Loan Application Form dated 12.02.2018, which is Annexure A7 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 again approached the applicant for the grant of BGECLS Facility of Rs. 3.30 Lacs vide Request dated 11.05.2020, Offer Letter dated 15.06.2020 and Letter of Acceptance dated 18.07.2020, which is Annexure A16 to this OA.

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The applicant sanctioned the Term Loan of Rs. 18.00 Lacs vide Credit Sanction Intimation dated 04.08.2017, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor. Thereafter, the applicant bank sanctioned the CC Limit of Rs. 3.00 Lacs vide Credit Sanction Intimation dated 17.02.2018, which is Annexure A8 to this OA. Defendant nos. 3 to 5 stood as guarantors. Thereafter, the applicant bank sanctioned the BGECLS Facility of Rs. 3.30 Lacs vide Sanction Letter dated 20.07.2020, which is Annexure A17 to this OA. 4. Defendant no. 2 mortgaged his immovable property i.e. Land measuring 223 Sq. Yards situated at Village Sanewal Kalan- 1, Tehsil Sanewal, Ludhiana, Punjab vide Extension of Mortgage by Deposit of Title Deed along with Letter of Confirmation of Mortgage dated

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3 OA NO.64/2023

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BANK OF BARODA VS. M/S SAHIB KNITWEAR AND OTHERS

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20.07.2020, which is Annexure A18 (Colly) to this OA and Jamabandi, which is Annexure A24 to this OA. Documents executed : Loan Agreements cum Hypothecation Deeds dated 05.08.2017, 17.02.2018 and 20.07.2020, which are Annexure A4, A11 and A19 to this OA; Letter of Guarantee dated 05.08.2017, which is Annexure A5 to this OA; Memorandum dated 20.09.2017, which is Annexure A6 to this OA; Letter of Access dated 17.02.2018, which is Annexure A9 to this OA; Letter of Guarantee dated 17.02.2021, which is Annexure A10 to this OA; Proprietorship Letters dated 17.02.2018 and 20.07.2020, which are Annexure A12 and A21 to this OA; Letter by defendant to applicant, which is Annexure A13 to this OA; Letter to defendant no. 1 by applicant dated 07.11.2019, which is Annexure A14 to this OA; Letter dated 28.02.2020, which is Annexure A15 to this OA; D.P. Note, Letter of Installment and General Form of Guarantee, all dated 20.07.2020, which are Annexure A20, A22 and A23 to this OA; Letter of Acknowledgment of Debt dated 14.03.2019 and 19.03.2019, which is Annexure A25 to this OA; Demand Notice dated 08.10.2021, which is Annexure A26 to this OA and Statement of Accounts with certificates, which are Annexure A27 to A29 to this OA.

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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. 46,45,104.00, which is recoverable and the defendants were served recall notice 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. Sh. Karan Dev Ray, Advocate filed his Memo of Appearance on behalf of defendants. He was directed to file his Power of Attorney but no Power of Attorney was filed and none appeared on behalf of defendants. Therefore defendants were proceeded ex-parte on 13.04.2026. 7. In support of the OA, affidavit of Sh. Jagroop Singh, Chief Manager cum Branch Head, Bank of Baroda, h as been filed. 8. Heard ex-parte arguments and perused record.

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4 OA NO.64/2023

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BANK OF BARODA VS. M/S SAHIB KNITWEAR AND OTHERS

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It was argued by learned proxy counsel for applicant 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 Annexure A1 to Annexure A29 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans 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 Rs. 46,45,104.00 i.e. amount of Rs. 42,99,365.89 from defendant nos. 1 to 3 and amount of Rs. 3,45,738.92 from defendant nos. 1 to 5, 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 in Notice to Borrower u/s 13 (2), SARFAESI Act, 2002 has claimed interest @9.10% p.a. in Account no. 01030400000256, @11.20% p.a. in Account no. 01030600001405 and @6.85% p.a. in Account no. 01030600001421 with monthly rests from 18.06.2021 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 mortgaged property/hypothecated assets, undertaking of the defendants, quantum of loans 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 @06.85%p.a. in all 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

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5 OA NO.64/2023

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BANK OF BARODA VS. M/S SAHIB KNITWEAR AND OTHERS

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Rs.46,45,104.00 (Rupees Forty Six Lacs Forty Five Thousand One Hundred Four only) i.e. amount of Rs. 42,99,365.89 (Rupees Forty Two Lacs Ninety Nine Thousand Three Hundred Sixty Five and Paise Eighty Nine Only) from defendant nos. 1 to 3 and amount of Rs. 3,45,738.92 (Rupees Three Lacs Forty Five Thousand Seven Hundred Thirty Eight and Paise Ninety Two Only) from defendant nos. 1 to 5, jointly and severally with costs, current and future simple interest @06.85%p.a. in all 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 mortgaged property/hypothecated assets of the defendants 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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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 11.05.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 20.04.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of Baroda v. M/S Sahib Knitwear and Others

Case brief

What is this about?

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Bank of Baroda v. M/S Sahib Knitwear and Others

Case brief

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What did the court decide?

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