Allowed

Central Bank of India v. Aryan aromas

DRT19 Nov 2025OA/1223/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act 1993 filed by the Central Bank of India against M/s. Aryan Aromas for issuance of a Recovery Certificate. The debtor was heard ex-parte. The Tribunal approved the claim of Rs. 76.30 Lakh with future interest at 10% per annum.

What did the court decide?

Recovery Certificate for Rs. 76,30,598/- with future interest at 10% p.a. (simple) from 05.09.2022 is allowed to be recovered personally and from schedule movables. Prayer for monthly rests and penal

Central Bank of India versus Aryan aromas — Company and Corporate | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, BENGALURU

¶2

Dated this 19^th Day of November, 2025

¶3

Present: Sri. T. RAJESH Presiding Officer OA.No.1223/2022

¶4

BETWEEN:

¶5

Central Bank of India, Basavanagudi Branch, No.22, 1^st Floor, V. C. Complex, Dr. D. V. G Road, Basavanagudi, Bangalore -560004. Rep. by its Chief Manager,

¶6

…APPLICANT

¶7

AND:

¶8

M/s. Aryan Aromas, Formerly represented by its Proprietor Smt. Vijayalakshmi, W/o. Sri. S Gopal, Presently Rep. by its Proprietor Sri. S Gopal, S/o. Gundaiah Setty, Having its office at No. 298/D, 7^th Main, Near Bavi Park, 4^th Block, Jayanagar, Bangalore -560011. Residing at No. 106, 2^nd Main Road, Chamarajpet, Bangalore -560018.

¶9

...DEFENDANT

¶10

Counsel on record/appeared for:

¶11

Applicant : Smt. Sowbhagya N. A Defendant : Exparte

OA 1223/2022

FINAL ORDER

The present Original Application in short “OA” has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate for Rs. 76,30,598/(Rupees seventy-six lakh thirty thousand five hundred and ninety-eight only) with further interest thereon and cost from the Defendant.

¶16

The Applicant states that the Defendant, as the proprietor of M/s. Aryan Aromas, is the borrower and had availed a Cash Credit limit of Rs. 25,00,000/- (Rupees Twenty-five Lakh only) for the purpose of manufacturing Agarbathies and industrial fragrances. Further, at the request of the Defendant, the said Cash Credit facility was enhanced and the working capital Cash Credit limit was increased to Rs. 60,00,000/- (Rupees Sixty Lakh only).

¶17

It is also the case of the Applicant that, in view of the above loan, the Defendant executed necessary loan documents in favour of the Applicant bank to secure the loan and also had created hypothecation over the schedule property.

¶18

It is the case of the Applicant that the Defendant, despite

¶19

OA 1223/2022

¶20

¶21

availing the credit facility, after agreeing with the Terms and Conditions for the loan, failed in complying with the same, resulting in defaults and consequentially turning the loan accounts as Non-Performing Asset (NPA).

¶22

In the above circumstances, the Applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶23

Despite, taking out the summons, there was no appearance of Defendant. Hence, he was called absent and set ex parte on 12.07.2024.

¶24

The Applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A38, got the same marked in evidence.

¶25

Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

¶26

The following issues arise for consideration in this matter:

¶27

i) Whether the applicant succeeded in proving the OA

¶28

OA 1223/2022

¶29

¶30

claim as against the Defendant?

¶31

ii) If so, to what extent?

¶32

Both these issues are gone into and decided together.

¶33

The case put forth by the Applicant in the Application remains unrebutted as Defendant remained exparte. The evidence tendered by the Applicant remains uncontroverted and undisputed. The evidence put forth by the Applicant is found admissible and are sufficient to prove the averments made in the OA, and the defaults committed by the Defendant in repaying the loan amount due. The liability of the Defendant and the loan amount due are also proved by the above documents. The claim of the Applicant is well within the limitation.

¶34

11. Hence in view of the above findings this Tribunal comes

¶35

to the conclusion that the OA is liable to be allowed.

¶36

Taking into consideration the fact that the loan is availed

¶37

by the Defendant for business purpose and also the fact that OA

¶38

claim is arrived at by calculating interest at the agreed rate, pendente lite and future interest is awarded at 10.00% (simple).

¶39

OA 1223/2022

¶40

¶41

The prayer for interest with monthly rests and for penal interest

¶42

for the future period is hereby declined.

¶43

In the result, OA.No.1223/2022, is allowed,

¶44

i) The Applicant is allowed to recover an aggregate sum

¶45

of Rs. 76,30,598/- (Rupees seventy six lakh thirty thousand five hundred and ninety eight only) with pendente lite and future interest of 10.00% p.a. (simple), from 05.09.2022 till the realization, from the Defendant personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding

¶46

against the defendant personally and their assets including the schedule movable property. Properties schedule to the OA be the schedule to the Recovery Certificate.

¶47

ii) The applicant bank is allowed cost of the proceedings

¶48

for which Applicant to file cost memo within seven days from the date of receipt of the order.

¶49

iii) The Recovery Certificate to be drawn in terms of this

¶50

order and transferred to Recovery for execution.

¶51

iv) Interim application pending, if any, stands disposed of

¶52

OA 1223/2022

¶53

¶54

in terms of this final order.

¶55

14. Communicate a copy of the order to the parties concerned

¶56

in terms of Section 19(21)(i) of the RDB Act, read with Rule 16

¶57

of DRT (Procedure) Rules, 1993.

¶58

(Dictated to PY directly on the Computer, after its transcription, corrected and pronounced by me in the open Court on this the 19^th day of November, 2025)

¶59

Sd/(T. RAJESH)

¶60

PRESIDING OFFICER

¶61

ANNEXURES

¶62

WITNESSES EXAMINED FOR THE APPLICANT BANK:

¶63

AW-1: Sri. Anjana V P, Chief Manager of Applicant Bank.

¶64

Exhibits on the part of the Applicant:

¶65

Exhibit Nos.	Date	Particulars of Documents
A1	--	Evidence affidavit
A2	--	List of Documents
A3	28.03.2012	D. P. Note single
A4	28.03.2012	Interest variation letter
A5	28.03.2012	Letter of Waiver
A6	28.03.2012	Agreement of Hypothecation
A7	28.03.2012	Letter of continuity
A8	10.07.2013	Loan application
A9	25.07.2013	Demand promissory note
A10	25.07.2013	Interest variation letter
A11	25.07.2013	Letter of Waiver

¶66

OA 1223/2022

¶67

¶68

A12	25.07.2013	Agreement of Hypothecation to secure Demand cash credit
A13	25.07.2013	Guarantee for advances and credit generally along with Annexures I and II
A14	25.07.2013	Letter of continuity
A15	09.10.2015	Loan application
A16	09.10.2012	Demand promissory note
A17	09.10.2012	Variation letter
A18	09.10.2015	Letter of Waiver
A19	09.10.2015	Agreement of Hypothecation to secure Demand cash credit against goods alongwith Annexure -I
A20	09.10.2015	Letter of continuity
A21	31.03.2018	Letter
A22	31.03.2018	Demand promissory note
A23	31.03.2018	Interest variation letter
A24	31.03.2018	Letter of continuity
A25	21.05.2020	Letter of change of ownership
A26	--	Renewal application
A27	21.05.2020	Sanction letter
A28	02.06.2020	DP Note single
A29	02.06.2020	Interest variation letter
A30	02.06.2020	Letter of Waiver
A31	02.06.2020	Agreement of hypothecation to secure demand Cash credit
A32	02.06.2020	Letter of continuity
A33	24.09.2020	Document to be obtained for working capital term loan
A34 & A35	30.07.2021	Legal notice
A36 &	--	Closure balance sheet and
A37		computerized statement of account extract
A38	--	Certificate

¶69

OA 1223/2022

¶70

¶71

Witness Examined for the Defendant: -Nil - List of Documents Exhibited for the Defendant: -Nil -

¶72

Sd/(T. RAJESH) PRESIDING OFFICER

Central Bank of India v. Aryan aromas

Case brief

What is this about?

What did the court decide?

Central Bank of India v. Aryan aromas

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

Union Bank of India (Andhra Bank) versus Sh. Jagar @Jaggar Singh @Ujjagar Singh

State Bank of India versus Manjit Kaur

Ms Supreme Briquettes versus Hdfc Bank Ltd.

State Bank of India versus Praveen

Idfc First Bank Ltd. versus Harjeet Singh

Icici Bank Limited versus Raja Ram Mishra