Allowed

Bank of India v. M/S Interior Worlds

DRT27 Mar 2026TA/868/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application under Section 19 of the RDBA Act for recovery of dues. Finding the defendants' default established via affidavit evidence, the Tribunal directed payment of the outstanding sum with interest and cost, authorizing recovery from hypothecated and personal assets.

What did the court decide?

Directed respondents to pay Rs. 42,10,946 with interest at 14.50% and costs within 30 days; recovery authorized from assets.

Bank of India versus M/S Interior Worlds — Contract and Commercial Disputes | DRT (2026)

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Beforc susHIL^{KUMAR RASTOGI,Prcsidingofficer} Debts RecoverY^{Tribunal'Il,Delhi}

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TA No.868^{OF 2023} BANK OF^{rNDrAVS M/S TNTERTORWORIDS & oRs}

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Reserued on z 27.02.2026 Prcnounced^{on z 27.03.2026}

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-Applicant bank

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Bank of^India Vs. 1. M/s Interior^Worlds Defendants 2. Mr. Zishan^Khan

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Present Mr. Aditya^{Kumar Jha, Counselappears for} applicant^bank. Deiendants^{are expafte dated 23'0L'2024'}

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FINAL ORDER

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This original^{application has been filed by the} applicantbank,on12.04.IOLTthroughMr'J'PSingh' ChiefManageroftheapplicantbank,underSection19 oftheRDBACt,lgg3againstthedefendantsfor recoveryofasumofRs.42,t},g46l-togetherwithcost' charges and^{pendentelliteand futureinterest} @16.250lo^{from date of filing of this O'A' till the} realization^{in full.}

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2.Thebrieffactsofthecasearethatattherequest of the^{defendant no.2 being the proprietor of the} defendantno.l,theapplicantbanksanctionedaCash Credit^{Facility underMICRO & SMALL ENTERPRISES} (MSEs) of^{Rs.15,O0,O0O/-, vide sanction letter dated} 09.11.20t2.Thedefendantsexecutedallnecessary loaning^{documents on l4'Ll'20L2'The defendants} have also^{createhypothecali-onof book debtsand all} 9o^^</sup>

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TA NO. 868^{of 2023}

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stock of brass^{wares and glass wares at godown in} Delhi. Again, at^{the request of defendants,the} applicant bank^{sanctioneda cash credit Facility of} Rs.30 Lacs,^{vide sanctionletter dated L6.07.2013. The} defendants^{executedcredit facility agreement dated} 23.oT.2ol3infavourofapplicantbank.Thedefendants executed^{hypothecation cum loan agreement plant and} machinery,stocksandbookdebtsdated23.0T.2013in favour of^{the aPPlicantbank'}

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It^{is further submitted that the defendants} enjoyedandutilizedtheLoanfacilities,butfailedto maintain^{the financial discipline and failed to repay the} due amounts.^{The applicantbank requested the} defendantstoregularizetheloanaccountbyvisitsand letters, but^{there was no response from the} defendants,^{hence the account was classifiedas NPA} on30.06.2016.thepresento.A.fl..A.ispreferredby the applicant^{bank to recover its dues'}

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4.onnoticebythisTribunal,defendantsfailedto putappearanceatall,despitepublication.Accordingly, the defendants^{were proceededagainstexpafteon} 23.0L.2024.

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The^{applicant bank has filed evidenceby way of} affidavitofSh.RakeshKumarJain,ChiefManagerof the applicant^{bank as Annexure A-1 to AnnexureA-16'} which^{have gone unchallengedand un-rebutted'} Hence,thecaseoftheapplicantstandsfully establishedagainstthedefendantswithrespectto nonpayment^{of outstanding amount'} -r}'

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TA NO. 868^{of 2023}

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After^{perusing the records, this Tribunalis of the} view that the^{applicant bank has provedits case} beyond^{reasonable doubts.The evidenceand} documents^{filed by the applicantbank not rebuttedby} the defendants^{by not placing any evidenceand there} is no^{question of disbelievingthe evidenceand} documents^{filed by the applicant bank based upon the} written/Printed^documents.

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In the light^{of the abovediscussions,the presentT.A.} deserues^{to be allowed.}

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ORDER

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t)IherebyallowthisT.A.oftheapplicantbankand direct the^{defendant nos. t and 2 to pay jointly and} severallytotheapplicantbankwithin30daysfrom today, a^{sum of Rs.42,10,9461- along with cost'} expenses^{and interest @14.50o/ofrom the date of filing} of this o.A.^{which has become T.A till the date of} realization.

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2)Incaseoffailuretodeposittheaboveamount within the^{stipulated period, the same shall be} recovered^{from the sale of the hypothecated assets. In} case of short^{fall, the same shall be recover from the} sale of^{personal movable and immovable assets of the} defendant^{nos. 1 and 2'}

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3)RecoveryCertificatebeissuedforthwithandbe sent to^{Recovery officer, Debts Recovery Tribunal-Il,} Delhi

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4)TheregistryofthisTribunalisherebydirectedto issuefreecopyoftheorderandsendthesametoboth ---'-.-_.^--- the Parties.

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€^

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TA NO. 868 of 2023 4

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Pafties are directed^{to appear before the Ld.} Recovery Officer, DRT-II,^{Delhi on 28.05 .2026. Pending} IAs, if ory, stand disPosed^of.

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File be consigned to^records.

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Date : 27.03.2026

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s4 (susHIL KUMAR nnSroGI) PRESIDING OFFICER DRT-II, Delhi

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This^{judgement has been signed, datedand} pronounced in open court. __..-.-

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_..-.-^{^-..--}*-

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,"-. gx (SUSHIL KUMnx rv{s tuul) PRESIDING OFFICER DRT-II, Delhi

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Date : 27.03.2026

Bank of India v. M/S Interior Worlds

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Bank of India v. M/S Interior Worlds

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