Allowed

Yes Bank Ltd. v. Sh. Nirmal Singh and Another

DRT21 Nov 2025OA/1280/2025

Case brief

AI extract

What is this about?

This DRT allowed Yes Bank Ltd.'s application for recovery of a vehicle loan default. The court declared the defendants liable to pay the outstanding principal and granted 8% simple interest per annum, ordering recovery from the hypothecated vehicle or personal assets.

What did the court decide?

Recovery of Rs.32,90,784.03p jointly and severally with costs and simple interest @8.00%p.a.; direction to issue Recovery Certificate; liberty to attach/sell assets.

Yes Bank Ltd. versus Sh. Nirmal Singh and Another — Cheque Dishonour | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1280/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.09.2025

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DATE OF DECISION: 21.11.2025

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YES BANK LTD, a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The companies Act, 1956 and having its Registered office at YES BANK House, off western Express Highway, Santacruz(E) Mumbai-400055 and one of its branch offices amongst other places known as Yes Bank Ltd. Situated in SCO No.129-130, 2^nd Floor, Sector 9C, Near Citco Petrol Pump, Chandigarh-160009 through its Manager, Sh. Aashiv Bhayana.

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……..Applicant

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Versus

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Sh. Nirmal Singh s/o Sh. Jagdev Singh R/o Village Pakho Kalan,

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Barnala, Punjab.

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Smt. Virpal Kaur w/o Sh. Nirmal Singh, R/o Village Pakho

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Kalan, Barnala, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant (through VC)

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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.32,90,784.03p (Thirty Two Lacs Ninety Thousand Seven Hundred Eighty Four & Paise Three Only). The Original Application has been filed through Sh. Aashiv Bhayana, Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.03.2025, which is Annexure A1 to this OA.

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OA NO.1280/2025 YES BANK LTD. VS SH. NIRMAL SINGH AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Vehicle Loan of Rs. 32.00 Lacs for purchase of MAHINDRA XUV700 vide loan application dated 20.04.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the Two Term Loan of Rs.20,21,282.00 and of Rs.13,87,643.00 and terms were duly accepted by the defendants. Loan agreements of Loans of Rs.20,21,282.00 and of Rs.13,87,643.00, both dated 18.04.2024, are Annexures A3 & A4 to this OA. 4. Defendant no.1 had hypothecated Vehicle namely MAHINDRA & MAHINDRA XUV 700 AX 7L bearing Registration No. PB19V8288, Chassis No. MA1NE2ZF8N6J11102 & Engine No. ZFN4J89088. RC of Vehicle is Annexure A5 to this OA.

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Documents executed: - Recall notice dated 22.07.2025, which is Annexure A6 to this OA; Foreclosure letter, which are Annexures A7 & A9 to this OA and Statements of accounts, which are Annexures A8 & A10 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.32,90,784.03p, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte 14.11.2025. 7. In support of the OA, affidavit of Sh. Aashiv Bhayana, Authorised Signatory, Yes Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its

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OA NO.1280/2025 YES BANK LTD. VS SH. NIRMAL SINGH AND ANOTHER

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case.From the perusal of all the Annexures A1 to A10 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 bank. The defendants failed to pay back the loans 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.32,90,784.03p (Thirty Two Lacs Ninety Thousand Seven Hundred Eighty Four & Paise Three 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @15.50%p.a. from 23.07.2025 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 loans 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. in both 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.

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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.32,90,784.03p (Thirty Two Lacs Ninety Thousand Seven Hundred Eighty Four & Paise Three Only) jointly and severally, with costs,

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OA NO.1280/2025 YES BANK LTD. VS SH. NIRMAL SINGH AND ANOTHER

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current and future simple interest @8.00%p.a. in both 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 vehicle of 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.

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.12.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 21.11.2025.

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

Yes Bank Ltd. v. Sh. Nirmal Singh and Another

Case brief

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Yes Bank Ltd. v. Sh. Nirmal Singh and Another

Case brief

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