Allowed

Indian Bank v. M/S Rudra International and Others

DRT17 Jul 2025OA/428/2025

Case brief

AI extract

What is this about?

The tribunal allowed an application for recovery of a loan debt of approximately Rs. 3.68 crore sanctioned to a corporate borrower and its partners. The admissions were made against mortgage and hypothecation of properties. The court granted a uniform simple interest rate of 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Defendants ordered to pay Rs. 3,69,08,056.00 jointly and severally with 8% simple interest; Recovery Certificate issued.

Indian Bank versus M/S Rudra International and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.428/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.03.2025

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DATE OF DECISION: 17.07.2025

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Indian Bank, a Body Corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at 254-260, Avvai Shanmugam Salai, Royapeetah, Chennai, having its Zonal Office at Ludhiana and amongst other places a branch at Vardhman Branch, District Ludhiana, Punjab through its authorized officer, Sh. Amit Bansal, Senior Manager, Indian Bank, Vardhman Branch, District Ludhiana, Punjab.

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……..Applicant

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Versus

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M/s Rudra International having its office at 3676/23-A, New Madhopuri, Ludhiana, Punjab- 141008 through its partners.

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Sh. Amit Mahajan S/o Sh. Tarsem Lal Mahajan R/o 4131/3A/1, Street No. 4, New Madhopuri, Ludhiana, Punjab- 141008

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Sh. Kapil Mahajan S/o Sh. Tarsem Lal Mahajan R/o 4131/3A/1, Street No. 4, New Madhopuri, Ludhiana, Punjab- 141008

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….……Defendants

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Advocates:

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Argued by Ms. Manjari Joshi, Advocate for the applicant

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 3,69,08,056.00 (Rupees Three Crore Sixty Nine Lakh Eight Thousand and Fifty Six Only). The Original Application has been filed through Sh. Amit Bansal, Senior Manager of the applicant, who is competent to institute the Original Application vide Letter of Authorization dated 01.03.2025, which is Annexure A1 to this OA.

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2 OA/428/2025 INDIAN BANK VS M/S RUDRA INTERNATIONAL AND OTHERS

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The brief facts of the OA are that the defendant no.1 through its partners defendant no. 2 & 3 had approached the applicant for the grant of Working Capital Limit of Rs. 200.00 Lacs vide Application for Loan dated 16.02.2022, which is Annexure A2 to this OA. Further, the defendant no.1 through its partners defendant no. 2 & 3 again approached the applicant for its enhancement of this Limit to Rs. 350.00 Lacs vide Application dated 02.03.2023, which is Annexure A15 to this OA.

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The applicant sanctioned Working Capital Limit of Rs. 200.00 Lacs vide sanction letter dated 08.06.2022 which is Annexure A3 to this OA. Further the applicant sanctioned its enhancement to Rs. 350.00 Lacs vide Sanction Letter dated 27.04.2023, which is Annexure A16 to this OA. The terms and conditions were duly accepted by the defendants vide acknowledgement of sanction letter dated 08.06.2022 and 05.05.2023, which is Annexure A4 and A17 to this OA.

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Defendants had mortgaged their moveable and immovable properties i.e.

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Hypothecation of stock and book debts, etc. 2. Residential Property i.e. House measuring 145 Sq. Yards situated at M.C. No. B-XXXII-E-8/912, Sant Nagar, Kakowal Road, Ludhiana, in the name of defendant no. 3, vide equitable mortgage of Sale Deed bearing vasika no. 8822 dated 21.10.2014, along with its translation, which is Annexure A11 to this OA.

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Industrial Plot measuring 5643-3/4 Sq. Yards situated at Village Mangat, Hadbast no. 64, Tehsil & District Ludhiana, in the name of defendant no. 2, vide equitable mortgage of Transfer deed bearing deed no. 2018-19/106/1/6143 dated 29.10.2018, along with its translation which is Annexure A12 to this OA. Documents executed:- D.P. Note, Partnership Letter, Agreement of hypothecation, Letter from the borrower, Letter of undertaking cum

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3 OA/428/2025 INDIAN BANK VS M/S RUDRA INTERNATIONAL AND OTHERS

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declaration and Agreement for open cash credit all dated 08.06.2022, which are Annexures A5 to A10 to this OA; Letters from party to bank confirming equitable mortgage dated 10.06.2022, which are Annexures A13 & A14 to this OA; D.P. Note, Letter from Borrower, Letter of undertaking cum declaration, Consent Letter, Annexure to Loan Document, Letter of continuity, Partnership Letter, Agreement of hypothecation of movables, Agreement for open cash credit and Deed of guarantee all dated 05.05.2023, which are Annexures A18 to A27 to this OA; Letters from third party to bank dated 06.05.2023 for extension of mortgage, which are Annexures A28 & A29 to this OA; CERSAI which is Annexure A30 to this OA; Statement of account which is Annexure A31 to this OA and Demand Notice dated 01.01.2025, which is Annexure A32 to this OA.

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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. 3,69,08,056.00 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 15.07.2025.

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In support of the OA, affidavit of Sh. Amit Bansal, Senior Manager, Indian Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A32 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

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4 OA/428/2025

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INDIAN BANK VS M/S RUDRA INTERNATIONAL AND OTHERS

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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. 3,69,08,056.00 (Rupees Three Crore Sixty Nine Lakh Eight Thousand and Fifty Six 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.70%p.a. including penal interest @2%p.a. from 11.03.2025 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, 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 the loan account 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. 3,69,08,056.00 (Rupees Three Crore Sixty Nine Lakh Eight Thousand and Fifty Six Only) jointly and severally, with costs, current and future simple interest @08.00%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 aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution

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OA/428/2025 INDIAN BANK VS M/S RUDRA INTERNATIONAL AND OTHERS

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proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.08.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 17.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. M/S Rudra International and Others

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S Rudra International and Others

Case brief

What is this about?

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