Allowed

Central Bank of India v. M/S Munish Oswal Hosiery and Others

DRT27 Jun 2025OA/119/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application filed under Section 19 of the RDBFIA. It declared the defendants liable to pay a debt of Rs.49,01,989.01 plus interest at 8% per annum, directed the issuance of a recovery certificate, and authorized recovery sale of mortgaged properties.

What did the court decide?

Recovery of Rs.49,01,989.01 with simple interest @8% p.a.; issued Recovery Certificate; liberty to recover by sale of properties.

Central Bank of India versus M/S Munish Oswal Hosiery and Others — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.119/2023

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 24.01.2023

¶5

DATE OF DECISION: 27.06.2025

¶6

Central Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its head office at Chander Mukhi Building, Nariman Point, Mumbai 400021 a nd having one of its Branch situated at Central Bank of India, C-145, Bindra Complex, Phase V, Focal Point, Ludhiana, Punjab t hrough Mrs. Nikita Aggarwal who is presently working as Chief Manager, Central Bank of India, C-145, Bindra Complex, Phase V, Focal Point, Ludhiana, Punjab c onstituted Power of Attorney Holder of the Bank and Principal Officer.

¶7

……..Applicant Versus

¶8

M/s Munish Oswal Hosiery, through its Proprietor Mrs. Kanchan Jain, Address B-111-811, Near M.K. Public School, Chhatti Gali, Ludhiana, Punjab.

¶9

Mrs. Kanchan Jain (Proprietor) M/s Munish Oswal Hosiery, W/o Late Sh. Rajesh Kumar Jain, B-111-811, Near M.K. Public School, Chhatti Gali, Ludhiana, Punjab.

¶10

2^nd Address: H. No. 3-545, situated at Taraf Saidan, locality known as Saidan Mohalla, Ludhiana, Punjab.

¶11

Mr. Avinish Jain S/o Late Sh. Rajesh Kumar Jain, R/o H. No. 3-545, situated at Taraf Saidan, locality known as Saidan Mohalla, Ludhiana, Punjab.

¶12

Ms. Megha Jain D/o Late Sh. Rajesh Kumar Jain R/o H. No. 3- 545, situated at Taraf Saidan, locality known as Saidan Mohalla, District Ludhiana, Punjab.

¶13

…..Defendants

¶14

Advocates:

¶15

Argued by Sh. Arvind Rajotia, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for the applicant Defendants are ex-parte

¶16

2 OA NO.119-2023 CENTRAL BANK OF INDIA VS M/S MUNISH OSWAL HOSIERY AND OTHERS

¶17

FINAL ORDER

¶18

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.49,01,989.01 (Rupees Forty Nine Lacs One Thousand Nine Hundred Eighty Nine and One Paisa Only). The Original Application has been filed through Mrs. Nikita Aggarwal , Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.02.2020 which is Annexure A1 to this OA.

¶19

The brief facts of the OA are that the defendant no.1 through its then proprietor late Sh. Rajesh Kumar had approached the applicant for grant of CC Limit of Rs.24.00 Lacs vide Loan Application dated 16.03.2017, which is Annexure A2 to this OA and further for Term Loan of Rs. 9.50 Lacs vide Loan Application dated 27.04.2017 which is Annexure A18 to this OA. Thereafter defendants approached the applicant for Enhancement of CC Limit to Rs 32.00 Lacs vide Loan Application dated 18.05.2018 which is Annexure A31 to this OA. Later for GECL of Rs. 06.00 Lacs vide Loan Application dated 12.06.2020 which is Annexure 52 to this OA.

¶20

The applicant sanctioned CC Loan of Rs.24.00 Lacs vide Sanction Letter dated 16.03.2017, which is Annexures A3 to this OA and further sanctioned TL Loan vide Sanction Letter and CC renewal dated 28.04.2017, which is Annexures A19 to this OA. Thereafter applicant sanctioned the enhancement of CC Limit to Rs. 32.00 Lacs and further sanctioned GECL Loan of Rs.6.00 Lacs vide sanction letter dated 12.06.2020, which is Annexures A53 to this OA and the terms and conditions were duly accepted by the defendant. 4. Late Sh. Rajesh Kumar had mortgaged his immovable properties i.e. House bearing M C No. B- III-545, measuring 42.50 Sq. yards situated at Taraf Saidan Abadi, Saidan Mohalla, Ludhiana vide Equitable

¶21

3 OA NO.119-2023 CENTRAL BANK OF INDIA VS M/S MUNISH OSWAL HOSIERY AND OTHERS

¶22

Mortgage of Sale Deed bearing vasika no. 17669 dated 29.11.2012 along with its Translation, w hich are Annexures A4 and A4 (T) to this OA.

¶23

Documents executed:- Non Encumbrance Certificate, which is Annexure A5 to this OA; Affidavit by Mr. Rajesh Kumar (now deceased) dated 24-02-2017 which is Annexure A6 to this OA; Declaration and Undertaking by the Borrower , Agreement of Hypothecation to secure Demand cash credit (Rs. 24,00,000/-) against goods, Supplementary Agreement (Rs. 24,00,000/- as CC), D.P. Note, Letter of Waiver, Letter of Interest Variation, Form of Guarantee for Advances and Credits generally Supplementary Agreement by Defendant 2, Form of Guarantee for Advances and Credits generally Supplementary Agreement by Defendant 3, letter of continuity all dated 16.03.2017, which are Annexure A7 to A12, A15 to A17 to this OA; Guarantor’s Consent letter by Defendant 1and Guarantor’s Consent letter by Defendant 2, both dated 14.03.2017, which are Annexures A13 and A14 to this OA; Declaration and Undertaking by the Borrower, Document for Term Loan Granted against fixed assets, Supplementary Agreement (Rs. 33,50,000/-), D.P. Note, Letter of Waiver, Letter of Interest Variation, Form of Guarantee for Advances and Credits generally Supplementary Agreement by Defendant 2, Form of Guarantee for Advances and Credits generally Supplementary Agreement by Defendant 3, letter of continuity all dated 28.04.2017, which are Annexure A20 to A25, A28 to A30 to this OA; Guarantor’s Consent letter by Defendant 1and Guarantor’s Consent letter by Defendant 2, both dated 27.04.2017, which are Annexures A26 and A27 to this OA; Declaration and Undertaking by the Borrower , Agreement of Hypothecation to secure Demand cash credit against goods, TL Agreement , Letter of Waiver, Letter of Interest Variation, Form of Guarantee for Advances and Credits generally Supplementary Agreement by Sh. Rajesh Kumar (now deceased), Form of Guarantee

¶24

4 OA NO.119-2023 CENTRAL BANK OF INDIA VS M/S MUNISH OSWAL HOSIERY AND OTHERS

¶25

for Advances and Credits generally Supplementary Agreement by Mrs Kanchan Jain, letter of continuity all dated 21.05.2018, which are Annexure A32 to A40 to this OA; Copy of Death Certificate of Sh. Rajesh Kumar dated 15.11.2019, which is Annexure A41 to this OA; Copy of Registration Certificate of the Firm dated 06.12.2019 duly signed by Mrs. Kanchan Jain as Proprietor of the firm M/s Munish Oswal Hosiery, which is Annexure A42 to this OA; Declaration and Undertaking by the Mrs. Kanchan Jain, Agreement of Hypothecation to secure Demand cash credit against goods, TL Agreement , Supplementary, D.P Note, Letter of Waiver, Letter of Interest Variation, Form of Guarantee for Advances and Credits generally Supplementary Agreement Defendant 2-4, letter of continuity all dated 12.06.2020, which are Annexure A43 to A51 to this OA; Working Capital Term Loan dated 12.06.2020, , which is Annexure A54 to this OA; Supplementary Report by the Advocate on the Title dated 15-01-2021, which is Annexure A55 to this OA; Recall Notices Letters dated 22.11.2021 and 26.11.2021, which are Annexures A56 and A57 to this OA; Notice U/s 13(2) of SARFAESI Act, 2002 dated 02-12-2021, which is Annexure A58 to this OA; Valuation Report dated 29.03.2022, which is Annexure A59 to this OA; Possession Notice dated 03.09.2022, which is Annexure A60 to this OA Letter by Mrs. Kanchan Jain, Megha Jain and Avinish Jain dated 06-12-2022 to the bank declaring handing over of vacant physical possession of the mortgaged property, which is Annexure A61 to this OA; Possession Notice dated 08.12.2022 which is Annexure A62 to this OA; Statements of Accounts with certificate, which are Annexures A63 to A65 to this OA.

¶26

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.49,01,989.01, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

¶27

5 OA NO.119-2023 CENTRAL BANK OF INDIA VS M/S MUNISH OSWAL HOSIERY AND OTHERS

¶28

amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶29

The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 25.06.2025. 7. In support of the OA, affidavit of Mrs. Nikita Aggarwal, Chief Manager, Central Bank of India h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A65 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 Housings and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.49,01,989.01p (Rupees Forty Nine Lacs One Thousand Nine Hundred Eighty Nine and One Paisa Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.80%p.a. plus penal interest @2.00%p.a. monthly rests from 16.01.2023 till the realization.

¶30

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, undertaking of the defendants, quantum of loan and prevalent market rates of interest

¶31

6 OA NO.119-2023 CENTRAL BANK OF INDIA VS M/S MUNISH OSWAL HOSIERY AND OTHERS

¶32

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 @08.00%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.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.49,01,989.01p (Rupees Forty Nine Lacs One Thousand Nine Hundred Eighty Nine and One Paisa Only) jointly and severally, with costs, current and future simple interest @08.00%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 hypothecated/mortgaged properties 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.

¶34

Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.07.2025. 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. Pronounced by me in the open Tribunal . Dated: 27.06.2025

¶35

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

Central Bank of India v. M/S Munish Oswal Hosiery and Others

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/S Munish Oswal Hosiery and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Bank versus Sh. Gurcharan Singh and Others

Punjab Gramin Bank versus Smt. Pushpa Devi and Another

State Bank of India versus M/S Bachna Ram Krishan Chand and Others

Hdfc Bank Ltd. versus M/S Sangmeshwar Marketing Agencies and Others

Punjab National Bank versus Late Smt. Charan Kaur and Others

Punjab National Bank versus Sh. Balwinder Singh @ Balvinder and Others