Allowed

Yes Bank Ltd. v. Mahajan Trading Co. and another

DRT26 Dec 2025OA/1209/2025

Case brief

AI extract

What is this about?

The DRT allowed the applicant's application for recovery of a business loan default. The court held the defendants liable to pay the principal amount plus interest at an adjusted rate of 8% p.a., and authorized recovery through asset attachment and enforcement.

What did the court decide?

Recovery of Rs. 25,24,214.98 plus interest at 8% p.a. from filing date until realization. Recovery through attachment and sale of assets. Recovery Certificate issued.

Yes Bank Ltd. versus Mahajan Trading Co. and another — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1209/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.08.2025

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DATE OF DECISION: 26.12.2025

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YES BANK LTD., a Banking company incorporated under the Companies Act, 1956 and carrying on banking business under the Banking Regulation Act, 1949 having its Registered Office at Yes Bank House, Western Express Highway, Santacruz (East) Mumbai-400055, Regional office: SCO No.129-130, 2^nd Floor, Sector 9-C, Near CITCO Petrol Pump, Chandigarh-160009, through Aashiv Bhayana, Authorized Officer, Legal Department.

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……. Applicant

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Versus

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Mahajan Trading Co., 271/1, Naya Mohalla, Ludhiana, Punjab-

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141008 through its proprietor.

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Sh. Dinesh Kapoor Son of Sh. Hem Raj Kapoor, R/o H.No. 802,

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Basant Avenue, Ludhiana, Punjab-141013.

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….……Defendants

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Advocates:

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Argued by Sh. Nakul Sharma, Advocate for Applicant (through VC) Defendants already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act 1993, against the defendants for recovery of Rs.25,24,214.98 (Rupees Twenty Five Lacs Twenty Four Thousand Two Hundred Fourteen & Paise Ninety Eight Only). The Original Application has been filed through Sh. Aashiv Bhayana, Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of attorney dated 28.03.2025, which is Annexure A1 to this OA.

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2 OA/1209/2025 YES BANK LTD. VS. MAHAJAN TRADING CO. AND ANOTHER

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The brief facts of the OA are that the defendant No. 1 through its Proprietor defendant no. 2 had approached the applicant for the grant of Business Loan of Rs.50.00 Lacs vide Loan applications dated 15.03.2024, which are Annexures A2 and A3 to this OA. 3. The applicant sanctioned the Business Loan of Rs.30.00 Lacs and terms and conditions were duly accepted by the defendants. Loan agreement dated 19.03.2024, is Annexure A5 to this OA. Documents executed : GST Registration Certificate, which is Annexure A4 to this OA; Recall notice dated 11.06.2025, which is Annexure A6 to this OA and Account statement along with foreclosure, which are Annexures A7 & A8 to this OA. 4. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.25,24,214.98, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 05.12.2025. 6. In support of the OA, affidavit of Sh. Aashiv Bhayana, Authorized Officer, Yes Bank Ltd. has been filed. 7. Heard ex-parte arguments and perused record. 8. It was argued by learned counsel through video conferencing 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 A8 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay

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3 OA/1209/2025 YES BANK LTD. VS. MAHAJAN TRADING CO. AND ANOTHER

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back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,24,214.98 (Rupees Twenty Five Lacs Twenty Four Thousand Two Hundred Fourteen & Paise Ninety Eight Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @20% p.a. with 2% penal interest with monthly rests from 03.07.2025 till the realization.

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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/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest 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 @8.00%p.a. along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,24,214.98 (Rupees Twenty Five Lacs Twenty Four Thousand Two Hundred Fourteen & Paise Ninety Eight Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover

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OA/1209/2025 YES BANK LTD. VS. MAHAJAN TRADING CO. AND ANOTHER

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afore	said amount by attachment and sale	of personal assets of the
defen proce	dants. The applicant is at liberty to enf ss of law.	orce the claim through due
11.	Any other application pending sta	nds disposed of.
12.	Issue Recovery Certificate accordingly	.
13.	Parties to appear before Learned	Recovery Officer of this
Tribu	nal on 09.01.2026.
14.	Copy of this order be given dasti to th	e applicant and be sent to
defen	dants through registered/speed post	and this order be also
uploa consi	ded on the official website of this gned.	Tribunal and record be
Pron	ounced by me in the open Tribunal.
Date	d: 26.12.2025.
	(MRI	DULESH KUMAR SINGH) Presiding Officer,
		DRT-III, Chandigarh

Yes Bank Ltd. v. Mahajan Trading Co. and another

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Yes Bank Ltd. v. Mahajan Trading Co. and another

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