Allowed

Central Bank of India v. M/S Sareen Telecom and Another

DRT19 Sept 2025OA/2138/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed by Central Bank of India for recovery of Rs.44,65,385 from M/s Sareen Telecom and proprietor Girish Sareen. The Tribunal, after hearing arguments, quantified interest at 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.44,65,385 jointly and severally with costs and simple interest at 8% p.a.; issuance of Recovery Certificate.

Central Bank of India versus M/S Sareen Telecom… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2138/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.12.2022

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DATE OF DECISION: 19.09.2025

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Central Bank of India, a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Chander Mukhi Building, Nariman Point, Mumbai 400021 and having one of its Branch situated at Central Bank of India, Brown Road, Near Subhani Building, District Ludhiana, Punjab through Sh. Ankur Gandhi who is presently working as Senior Manager, Central Bank of India, Brown Road, Near Subhani Building, District Ludhiana, Punjab constituted Power of attorney of the Bank and Principal Officer.

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……..Applicant Versus

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M/s Sareen Telecom, through its proprietor Sh. Girish Sareen Address: Shop no.32, 1^st Floor, Mahavir Mandir Market, Gur Mandi, Ludhiana, Punjab.

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Sh. Girish Sareen, Proprietor, M/s Sareen Telecom

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S/o Sh. Shubash Chand Sareen

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Address:

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(i) Shop no.32, 1^st Floor, Mahavir Mandir Market, Gur Mandi, Ludhiana, Punjab.

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(ii) B-X-51, Rarri Mohalla, Ludhiana, Punjab

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…….Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for the applicant

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Sh. Shubham Pabbi, Advocate proxy for Sh. Supneet Singh, Advocate for defendants.

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.44,65,385.00p (Rupees Forty Four Lacs Sixty Five Thousand Three Hundred Eighty Five Only). The Original

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2 OA/2138/2022 CENTRAL BANK OF INDIA VS M/S SAREEN TELECOM AND ANOTHER

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Application has been filed through Sh. Ankur Gandhi, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 13.02.2020, which is Annexure A1 to this OA.

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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 grant of CC Limit of Rs.20.00 Lacs vide loan application dated 26.10.2018 which is Annexure A2 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 30.00 Lacs vide loan application dated 21.10.2019, which is Annexure A11 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for Working Capital Term Loan of Rs. 6.00 Lacs under GECL. Again, Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for FITL of Rs. 5.45 Lacs vide application under restructuring of MSME (stressed asset) dated 20.03.2021, which is Annexure A24 to this OA. Thereafter, again defendant no. 1 through its proprietor defendant no. 2 approached the applicant for additional 10% GECL Loan vide application dated 26.05.2022, which is Annexure A26 to this OA. 3. The applicant sanctioned CC Limit of Rs.20.00 Lacs vide Sanction Letter dated 15.11.2018, which is Annexure A3 to this OA. Thereafter, this limit was enhanced by applicant to Rs. 30.00 Lacs vide sanction letter dated 29.10.2019, which is Annexure A12 to this OA. Thereafter, the applicant sanctioned Working Capital Term Loan of Rs. 6.00 Lacs vide sanction letter dated 20.06.2020, which is Annexure A21 to this OA. Thereafter, FITL of Rs 5.45 Lacs was sanctioned by the applicant. Again, another Working Capital Term Loan of Rs. 3.06 Lacs under GECL was sanctioned by the applicant vide sanction letter dated 09.06.2022, which is Annexure A27 to this OA. The terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its proprietor defendant no. 2 had mortgaged its movable properties i.e. hypothecation of stock and

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3 OA/2138/2022 CENTRAL BANK OF INDIA VS M/S SAREEN TELECOM AND ANOTHER

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hosiery goods vide agreement of hypothecation to secure Demand Cash Credit against goods, dated 15.11.2018 and 30.10.2019, which are Annexures A4 and A13 to this OA.

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Documents executed:- Form of declaration to be taken from sole proprietor, Agreement for non-diversion of funds, supplementary agreement, letter of interest variation, letter declaring acceptance of consent clause, letter of continuity, all dated 15.11.2018, which is Annexure A5 to A10 to this OA; Form of declaration to be taken from sole proprietor, supplementary agreement, declaration and undertaking, letter declaring acceptance of consent clause, DP Note, Letter of waiver, letter of continuity, all dated 30.10.2019, which are Annexure A14 to A20 to this OA; Working Capital Term Loan agreement, letter declaring acceptance of consent clause, both dated 20.06.2020, which are Annexures A22 and A23 to this OA; Agreement for Funded Term Loan for interest charged Articles of Agreement dated 29.06.2021, which is Annexure A25 to this OA; Working Capital Term Loan agreement, letter by borrower/undertaking to inform the Bank in case of change in constitution of the concern, affidavit cum undertaking, letter of interest variation, all dated 09.06.2022, which are Annexures A28 to A31 to this OA; Balance confirmation dated 30.09.2022, which is Annexure A32 to this OA; Notice of Recall of Bank’s dues by Advocate dated 07.12.2022, which is Annexure A33 to this OA; Statement of Accounts, which are Annexures A34 to A37 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.44,65,385.00p (Rupees Forty Four Lacs Sixty Five Thousand Three Hundred Eighty Five Only) 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. Sh. Supneet Singh, Advocate appeared on behalf of defendants on 17.08.2023 and filed his Power of Attorney on their behalf. Since WS

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4 OA/2138/2022 CENTRAL BANK OF INDIA VS M/S SAREEN TELECOM AND ANOTHER

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was not filed by defendants within stipulated period, their opportunity to file WS was closed and defense was struck off on 17.01.2024.

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In support of the OA, affidavit of Sh. Ankur Gandhi, Senior Manager, Central Bank of India h as been filed.

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Heard arguments and perused record.

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Learned proxy counsel for defendants not advanced any arguments. It was argued by learned proxy counsel for applicant 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 A37 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 terms 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.44,65,385.00p (Rupees Forty Four Lacs Sixty Five Thousand Three Hundred Eighty Five 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 @11.10%p.a. with monthly rests and penal interest @2%p.a. from 27.12.2022 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/hypothecated property, 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 @08.00%p.a. in all the loan accounts from the date of filing of the OA

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5 OA/2138/2022 CENTRAL BANK OF INDIA VS M/S SAREEN TELECOM AND ANOTHER

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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.44,65,385.00p (Rupees Forty Four Lacs Sixty Five Thousand Three Hundred Eighty Five 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 assets 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.

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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 10.10.2025.

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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. Pronounced by me in the open Tribunal . Dated: 19.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Central Bank of India v. M/S Sareen Telecom and Another

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/S Sareen Telecom and Another

Case brief

What is this about?

What did the court decide?

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