Allowed

Bank of Baroda v. Shine Packaging

DRT20 Jun 2026OA/814/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for recovery of dues totaling Rs. 28,03,021.65 plus interest. The defendants, who were absent, were directed to pay the amount or face recovery from their assets. A recovery certificate was issued.

What did the court decide?

The defendants directed to pay Rs. 28,03,021.65 along with interest @14.00% p.a. within 30 days; failure leads to recovery from assets. Recovery certificate to be issued.

Bank of Baroda versus Shine Packaging — Banking and Recovery | DRT (2026)

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O.A. No. 814 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.814 of 2023

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Bank of Baroda

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(e-Dena Bank)

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ROSARB, East Delhi, 8718,

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First Floor, Desh Bandhu Gupta Marg

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Ram Nagar, Paharganj, New Delhi-110055 �Applicant

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Versus

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M/s Shine Packaging Through its Proprietor Sh. Rajiv Goel 487/1, First Floor, R Block,

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Near Telephone Exchange, Dilshad Garden Delhi-110095

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Also at:

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M/s Shine Packaging A-149, Sector-4, DSIIDC Bawana Industrial Area, Bawana, Delhi-110039

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Sh. Rajeev Goel s/o Radhey Shyam Goel D-115, Near Community Hall Anand Vihar, Delhi-110092

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All at:

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Sh. Rajeev Goel s/o Radhey Shyam Goel B-24/F-2, Dilshad Garden, Near Dilshad Public School Jhilmil, East Delhi-110095

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Also at:

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Sh. Rajeev Goel s/o Radhey Shyam Goel Raj Plastics, 313/71, Anand Nagar Inder Lok, Delhi-110035

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Sh.Aditya Gupta s/o Lalit Gupta R/o F-301, Bhagyawan Apartments Mayur Vihar Phase-I, Delhi

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O.A. No. 814 of 2023

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Also at: Sh.Aditya Gupta s/o Lalit Gupta 1288, Bagichi Genda Mal, Behind Novelty Cinema, Delhi-110006 Defendants

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Present: Ms. Geetanjali Sharma, Counsel for applicant bank

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Date of Reserve: 29.05.2026

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Date of Pronouncement: 20.06.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 28.08.2023 through Shri Pradeep Sharma, 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 a sum of Rs.28,03,021.65 (Rupees Twenty Eight Lacs Three Thousand Twenty One only) as on 25.08.2023 along with interest ©14.75% in Cash Credit account and ©13.75% in Term Loan account per annum with quarterly rests plus @2% penal interest from 25.08.2023 till the date of its realization with costs.

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The brief facts of the case are that on the request of defendant no.1 through its proprietor being defendant no.2 i.e. Shri Rajeev Goel vide loan application and PAN Card, engaged in the manufacturing business of plastic packaging material, the applicant bank sanctioned Cash Credit Hypothecation facility of Rs.22,00,000/- (Rupees Twenty-Two Lacs only) as working capital and Term Loan of Rs.2,90,000/- (Rupees Two Lacs Ninety Thousand only) @12.25% interest subject to change as per bank's guidelines to be repaid in 24 EMIs of Rs.12,083/- for purchase of machinery on 29.02.2016 against hypothecation of stocks, book debts and mortgage of property

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5d -

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O.A. No. 814 of 2023

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owned by defendant no.2. The Term Loan was not disbursed as per request of defendant no.2. In addition, on the request of defendant no.1, the applicant bank sanctioned FITL of Rs.62,297/- on 30.06.2020 and Covid FITL of Rs.63,000/- on 06.08.2020 due to Covid-19 pandemic. The defendant no.3 stood as guarantor for the credit facilities sanctioned in favour of defendant no.1.

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That in order to avail the credit facilities, the defendant no.2 as proprietor of defendant no.1 as well as defendant no.3 as guarantor executed Agreement of Hypothecation, General Undertaking, Specific Undertaking, Letter of Guarantee, Letter of Confirmation of Guarantee, DP Note, Declaration in respect of pending Court cases of Banks, Letter of General Lien and Set off, Letter of Guarantee, Letter of Continuity, Undertakings and Power of Attorney with applicant bank on 29.02.2016.

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That in order to secure the credit facilities, the defendant no.2 created extension of existing mortgage of the property and executed Declaration and Memorandum of Entry on 17.03.2016 of resideritial Flat No.UG-2, Upper Ground Floor, Plot No.811, Shalimar Garden Extension-I, Sahibabad, Ghaziabad, UP with the applicant bank.

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It has been submitted by the applicant bank that after availing the credit facilities, the defendant no.1 failed to comply with the terms and conditions of sanction and operations and conduct in the account became irregular despite repeated requests/ reminders /follow up etc. Ultimately, the applicant bank classified all the accounts as NPA on 31.03.2021 as per RBI guidelines and issued a notice u/s 13(2) dated 30.09.2021 under SARFAESI Act but defendants neglected and did not

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O.A. No. 814 of 2023

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deposit any amount to clear the bank's dues, hence the applicant bank has approached this Tribunal for recovery of their dues.

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It has been submitted that the applicant bank took physical possession of mortgaged property under Section 13(4) of SARFAESI Act, Applicant bank auctioned the property for Rs.26,34,000/- and issued Sale certificate dated 16.09.2022 and appropriated the sale proceeds in the account.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 12.02.2025, the defendants have 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 defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Pradeep Sharma, authorized representative of the applicant bank who has proved the documents such as Amalgamation Scheme of Dena Bank & Bank of Baroda, Power of Attorney, Loan Application Form with copy of PAN Card, Sanction Letter, Various Security Loan Documents, Loan Documents, NPA Sheet, Demand Notice under SARFAESI Act with Postal Receipts, Statement of Accounts and UPGACC, Certificate under Section 2A(b) and 2A(c) of Banker's Books Evidence Act r/w Section 65B of Indian Evidence Act marked as Exhibit AW1/1 to Exhibit AW1/10.

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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. so! -

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so! -

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O.A. No. 814 of 2023

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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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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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aliow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.28,03,021.65 (Rupees Twenty Eight Lacs Three Thousand Twenty One only) as on 25.08.2023 along with interest @14.00% per annum with quarterly rests from 25.08.2023 till the date of its realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts etc. In case of default, the same shall be recovered from the sale of movable and immovable properties 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 19.08.2026.

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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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5cl-

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

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(Dictated and pronounced in open court) Date: 20.06.2026

Bank of Baroda v. Shine Packaging

Case brief

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Bank of Baroda v. Shine Packaging

Case brief

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