Allowed

Bank of Baroda v. Prem Bakers

DRT5 Jun 2026OA/90/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application section under the RDBFI Act for recovery of loan dues of approximately Rs. 40.24 lakhs. The court issued a recovery certificate and directed the recovery of the principal, interest, and costs from hypothecated assets or the defendants' properties.

What did the court decide?

Recovery certificate issued to recover Rs. 40,24,263.77 plus interest and costs from hypothecated assets or property sale within 30 days.

Bank of Baroda versus Prem Bakers — Banking and Recovery | DRT (2026)

¶1

O.A. No. 90 of 2025

¶2

Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

O.A. No.90 of 2025

¶5

Bank of Baroda

¶6

ROSARB, 8718, First Floor, Desh Bandhu Gupta Marg Ram Nagar, Paharganj, New Delhi-110055 Applicant

¶7

Versus

¶8

M/s Prem Bakers

¶9

Proprietor Sh.Jitin Kumar 519/3-B, Gali No.2, Vishwas Nagar Shandara, Delhi-110032

¶10

Also at:

¶11

M/s Prem Bakers- Proprietor Sh.Jitin Kumar B-44A, JP Bakers, Pushpa Apartment Sector-5, Rajendra Nagar, Sahibabad, Ghaziabad, UP-201005

¶12

Sh.Jitin Kumar s/o Vijaypal Panchal Proprietor of M/s Prem Bakers E-50/1, Harsh Vihar, Sahibabad, Ghaziabad, UP-201005 Defendants

¶13

Present: Ms.Geetanjali Sharma, Counsel for applicant bank

¶14

Date of Reserve: 20.05.2026

¶15

Date of Pronouncement: 05.06.2026

¶16

FINAL ORDER

¶17

This original application has been filed by the applicant bank on 23.12.2024 under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the

¶18

O.A. No. 90 of 2025

¶19

defendants for recovery of a sum of Rs.40,24,263.77 (Rupees Forty Lacs Twenty Four Thousand Two Hundred Sixty Three & paisa Seventy Seven only) as on 18.12.2024 along with @12.40% pendentelite and future interest plus @2% penal interest per annum from 18.12.2024 till the date of its realization with costs.

¶20

The brief facts of the case are that on the request of defendant no.1 through its proprietor being defendant no.2 vide loan application with Form 135 and various registration and KYC documents dated 12.06.2023, the applicant bank sanctioned Cash Credit facility of Rs.19.00 lacs (Rupees Nineteen Lacs only) for working capital requirement under Prime Minister Employment Generation Programme and Term Loan facility of Rs.28,50,000/- (Rupees Twenty Eight Lacs Fifty Thousand only) @12.50% floating interest per annum for purchase of machinery etc. to be repaid on 26.06.2023 against hypothecation of stock, book debts and machinery. In case of default in repayment of interest or installments, the defendants agreed to pay penal interest @2% over the agreed rate on outstanding amount.

¶21

That in order to avail the credit facilities, the defendant no.1 through its proprietor defendant no.2 submitted loan application with PAN Card & Voter Card and executed Letter of Sole Proprietorship, Letter of Authority to make payment directly to the Dealers and LDOC 14413 Loan Agreement dated 26.06.2023 in favour of the applicant bank.

¶22

That in order to secure the loan facilities, the defendant no.2 hypothecated the machinery, stocks and book debts towards applicant bank.

¶23

Sd-

¶24

O.A. No. 90 of 2025

¶25

It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and failed to route their transactions through the account and submit regular stocks statements and also failed to regularize the account. The applicant bank classified the accounts as NPA on 25.07.2024 as per RBI guidelines and issued legal notice on 03.12.2024 but no response from the defendants, hence the applicant bank has approached this Tribunal for recovery of their dues.

¶26

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 18.03.2026, 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 filed by the defendants.

¶27

Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 04.09.2024 was issued to the defendants to clear the outstanding dues but they did not bother to repay the dues. The defendants shifted all the stocks, book debt and hypothecated machineries etc. from the premises. The applicant bank appropriate the FDR of Rs.7,58,741/- towards Cash Credit limit account.

¶28

In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Pankaj Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Various Registration and

¶29

Sd-

¶30

O.A. No. 90 of 2025

¶31

KYC documents, Sanction Letter, Letter of Sole Proprietorship, Letter of Authority, LDOC 144B Loan Agreement, Demand Notice u/s 13(2) & Track Report, Legal Notice, Postal Receipts, Screen shot of WhatsApp & Printout of email, Statement of Account showing principal outstanding, Unapplied Interest and Unserved Interest and Certificates u/s 2A(b) & 2A(c) of Bankers' Books Evidence Act 1891 r/w Section 63 of Bhartiya Sakshya Adhiniyam marked as Exhibit AW1/1 to Exhibit AW1/8.

¶32

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.

¶33

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.

¶34

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

¶35

ORDER

¶36

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.40,24,263.77 (Rupees Forty Lacs Twenty Four Thousand Two Hundred Sixty Three & paisa Seventy Seven only) as on 18.12.2024 together with interest @12.40% per annum with quarterly rests from 18.12.2024 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts and machinery / equipment etc. In case of shortfall, the same

¶37

O.A. No. 90 of 2025

¶38

shall be recovered from the sale of movable and immovable properties of the defendants.

¶39

(II) The recovery certificate be issued forthwith and be sent to Recovery Officer, Debt Recovery Tribunal-I, Delhi.

¶40

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 04.08.2026.

¶41

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

¶42

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

¶43

(Dictated and pronounced in open court) Date: 05.06.2026

Bank of Baroda v. Prem Bakers

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Prem Bakers

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases

Indian Bank (Allahabad Bank) versus Dilip

Central Bank of India versus M/S Radha Rice Mills

Johny Mathew and Anneyamma Johny versus PNB Housing Finance Ltd.

Kirti Kapoor versus Bank of Maharashtra

Alok Kumar versus Hinduja Housing Finance Limited

Hdfc Bank versus M/s Banyan Industries