Allowed

Bank of India v. Ms T S Garments

DRT27 Aug 2026OA/849/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal-I, Delhi allowed an original application filed by Bank of India for recovery of dues (Rs.55 lacs) from borrowers and guarantors who failed to repay credit facilities, directing recovery from sale of hypothecated assets.

What did the court decide?

Directed defendants to pay Rs.55,20,356.67 plus interest at 13.35% p.a. and costs within 30 days, recoverable from sale of hypothecated assets or other properties.

Bank of India versus Ms T S Garments — Banking and Recovery | DRT (2026)

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O.A. No. 849 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.849 of 2023
Bank of India
A-45/46, Laxmi Nagar, Near Madhuban Chowk,
Vikas Marg, Delhi-110092	Applicant
Versus
1.M/s T.S.Garments Through its proprietor Sh.Bali Ram Singh I
Plot No.31, FIE First Floor, Patparganj Industrial Area, Delhi-110092
2. Sh.Bali Ram Singh
Prorietor of M/s T.S.Garments Plot No.31, FIE First Floor, Patparganj Industrial Area, Delhi-11009
Also at: Sh.Bali Ram Singh
177, Second Floor, Saini Enclave Delhi-110091	Defendants

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Present: Sh.A.K.Shukla, Counsel for the applicant bank

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Date o Reserve: 17.08.2026 Date of Pronouncement: 27.08.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 19.10.2023 through Sh.Devendra Kumar Shivgan, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of Rs.55,20,356.67 (Rupees Fifty Five

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O.A. No. 849 of 2023

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lacs Twenty Thousand Three Hundred Fifty S x & paisa Sixty Seven only) as on 06.10.2023 along with pendentelite and future interest per annum @13.35% from 06.10.2023 till the date of its realization along with costs.

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The brief facts of the case are that on the request of defendant no.1 as proprietorship concern of defendant no.2 engaged in manufacturing and trading of designer, ethnic and readymade garments, the applicant sanctioned Cash Credit facility of Rs.7,50,000/- (Rupees Seven lacs Fifty thousand only) on 20,04.2007 which was enhanced from time to time and finally to Rs.32,00,000/- (Rupees Thirty Two lacs only) @14.00% interest per annum on 08.06.2012 for working capital requirements. Further, the applicant bank sanctioned Term Loan of Rs.9,00,000/- on 08.08.2008 @13.75% interest per annum to be repaid in 36 EMIs of Rs.37,800/- for plant & machinery. On the request of defendants, the applicant bank sanctioned vehicle loan of Rs.5,72,000/- @7.70% interest per annum to be repaid in 84 EMIs of Rs.8,831/- for purchase of Baleno Delta Car, Cess 2020 loan facility of Rs.3,20,000/(Rupees Three lacs Twenty Thousand only) @6.85% interest to be repaid in 24 EMIs of Rs.23,000/- on 25.06.2020, GECL 1.0 loan of Rs.6,48,000/- (Rupees Six lacs Forty Eight thousand only) @7.85% interest per annum to be repaid in 36 EMIs of Rs.20,262/- per annum and GECL EXTN. Loan of Rs.3,24,000/(Rupees Three lacs Twenty Four thousand only) @7.90% interest per annum on 26.05.2022 to be repaid in 36 EMIs of Rs.10,042/-. These credit facilities were sanctioned against hypothecation of stocks, book debts and vehicle etc. covered under CGTMSE scheme.

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O.A. No. 849 of 2023

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In order to avail the aforesaid credit facilities, defendants executed Sanction Letters, Renewal Letters, Memorandum of Sanctions, Form CBD-22, Form L-516, Letters of Declaration, Undertaking and Authority, Reduction in Working Capital, Proposal Form for Advances to Micro & Small enterprises, Document No.L-434, L-440, L-435, L-515, L-516, L-512, RBLR Agreements, Promissory Notes, Undertaking Agreements, Unconditional & Irrevocable Undertaking for CESS scheme, Supplemental Loan cum Hypothecation cum Agreements, Undertakings and other documents etc. on different dates for various credit facilities towards the applicant bank.

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The defendants acknowledged the debt towards the applicant bank and executed Acknowledgement of Debt and Security Agreement on 25.06.2020 and 22.04.2022.

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That in order to secure the repayment of vehicle loan facility, the defendants hypothecated the stocks and Book debts kept at the business premises and Baleno Delta car in favour of applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid credit facilities, the defendants failed to maintain financial discipline and miserably failed to adhere the sanction terms and conditions despite of several requests, resulting the accounts became out of order due to non deposit of interest and instalments. Ultimately, the applicant bank declared all the accounts as NPA on 25.08.2022 as per RBI guidelines but defendants could not regularize the accounts, hence the applicant bank has approached this tribunal for recovery of their dues

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O.A. No. 849 of 2023

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 30.082022 was issued to the defendants for repayment of entire dues but defendants failed to pay the dues. The applicant bank issued legal notice dated 25.09.2023 to the defendants for clearing the dues of Rs.47,02,004.03 plus interest within 15 days but no response.

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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 20.03.2026, 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 iled 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.Devendra Kumar Shivgan, authorized representative of the applicant bank who has proved the documents such as General Power of Attorney, Various Sanction Letters for different credit limits, Requests of Review with Enhancement of Credit Facilities, Forms CBD-22, Documents L-516, Letters of Declaration, Undertakings and Authority, Memorandums of Approvals, Reduction in Working Capital, Proposal Forms for Advances to MSME, Acknowledgements of Debt and Security Agreement, Document No.L-434, L-440, L-435, L-515, L-5161 L-512, Declaration / Undertaking, RBLR Agreement, Promissory Notes, Undertaking Agreement, Unconditional and Irrevocable Undertakings for CESS 2020, Supplemental Loan cum Hypothecation cum Agreements, Demand Notice under Section 13(2), Certified Statements of Accounts, Statement of Uncharged interest, Certificate under Section 2A(B) of Bankers'

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O.A. No. 849 of 2023

Book Evidence Act, Legal Notice dated 25.09.2023 along with Postal Receipts marked as Exhibit PW-1/1 to Exhibit PW-1/68.

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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.

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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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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.55,20,356.67 (Rupees Fifty Five lacs Twenty Thousand Three Hundred Fifty Six & paisa Sixty Seven only) as on 06.10.2023 together with pendentelite and future interest @13.35% per annum from 06.10.2023 till the date of its realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks/goods, book debts, plant & machinery lying at business premises and Beleno Delta Car etc. In case of shortfall, 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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O.A. No. 849 of 2023

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 26.10.2026.

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(IV) Copies of final order as well as Recovery C rtificate be sent to all concerned free of cost.

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

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(Dictated and pronounced in open court) Dated: 27.08.2026

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Bank of India v. Ms T S Garments

Case brief

What is this about?

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Bank of India v. Ms T S Garments

Case brief

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