Allowed

Central Bank of India v. M/S Jass Enterprises and Another

DRT16 Jul 2025OA/438/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application to recover Rs. 83,15,799.00p against defendants who defaulted on a credit card limit. The Tribunal ex-parte proceedings and granted uniform simple interest at 8% p.a. directed issuance of a recovery certificate and enforcement against hypothecated assets.

What did the court decide?

Recovery Certificate to be issued; defendants to pay Rs. 83,15,799.00p plus cost and simple interest at 8% p.a.; enforcement through hypothecated or personal assets.

Central Bank of India versus M/S Jass Enterprises and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.438/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.03.2025

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DATE OF DECISION: 16.07.2025

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Central Bank of India, a body corporate constituted under the Banking Companies (Acquisition & transfer of undertakings) Act of 1970 having its Head Office at Chander Mukhi, Nariman Point, Mumbai and its branch office at Central Bank of India, Shivpuri Road, Opposite Kewal Bakery, District Ludhiana through its Authorized Representative Sh. Sandeep Wadhwa, Chief Manager.

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……..Applicant

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Versus

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M/s Jass Enterprises Shop No.30, Shiv market, Overlock Road, District Ludhiana, Punjab.

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Sh. Gurwinder Pal Singh S/o Sh. Kultar Singh R/o House No.62B, Shaheed Karnail Singh, PH-2, Pakhowal Road, Basant Avenue, District Ludhiana, Punjab-141013.

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….……Defendants

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Advocates:

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Argued by, Sh. Rehan Chaudhary, Advocate for Applicant (through

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.83,15,799.00p (Rupees Eighty Three Lacs Fifteen Thousand Seven Hundred Ninety Nine only). The Original Application has been filed through Mr. Sandeep Wadhwa, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of attorney dated 19.08.2017, which is Annexure A1 to this OA.

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2 OA/438/2025 CENTRAL BANK OF INDIA VS M/S JASS ENTERPRISES AND ANOTHER

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The brief facts of the OA are that the defendant no.1, through its proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 80.00 Lacs vide Loan application dated 01.01.2024, which is Annexure A2 to this OA.

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The applicant sanctioned the CC Limit of Rs.80.00 Lacs vide sanction letter dated 17.01.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 had hypothecated stocks and Book debts, receivables vide agreement of hypothecation to secure demand cash credit dated 17.01.2024, which is Annexure A4. Documents executed: - Legal notice dated 17.02.2025 along with postal receipts, which is Annexure A5 to this OA and Statement of account along with memorandum of accounts, which is Annexure A6 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.83,15,799.00p, 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 14.07.2025.

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In support of the OA, affidavit of Mr. Sandeep Wadhwa, Chief Manager, Central Bank of India, has been filed.

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Heard arguments and perused record.

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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 A6 to this OA, it is proved that the defendants approached applicant for availing of the

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3 OA/438/2025 CENTRAL BANK OF INDIA VS M/S JASS ENTERPRISES AND ANOTHER

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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 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.83,15,799.00p (Rupees Eighty Three Lacs Fifteen Thousand Seven Hundred Ninety Nine only) along with interest from the defendant, 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 [email protected]%p.a. plus additional penal interest of 2% penal interest from 16.02.2025 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 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. 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.83,15,799.00p (Rupees Eighty Three Lacs Fifteen Thousand Seven Hundred Ninety Nine 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 aforesaid amount

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OA/438/2025 CENTRAL BANK OF INDIA VS M/S JASS ENTERPRISES AND ANOTHER

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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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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 18.08.2025.

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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: 16.07.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Central Bank of India v. M/S Jass Enterprises and Another

Case brief

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Central Bank of India v. M/S Jass Enterprises and Another

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