Allowed

Central Bank of India v. M/S Paras Traders and Others

DRT19 Nov 2025OA/466/2025

Case brief

AI extract

What is this about?

The tribunal allowed an original application by Central Bank of India for recovery of Rs. 43,93,826 against defaulting borrowers and guarantors. Evidence proved loan defaults across OD, housing, education, and GECL loans with security interests. The decree includes principal, costs, and uniform 8% p.a. simple interest.

What did the court decide?

Declare respondents liable to pay Rs. 43,93,826 with costs and 8% p.a. simple interest; issue Revenue Certificate; grant liberty to recover from mortgage assets.

Central Bank of India versus M/S Paras Traders and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.466/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.04.2025

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DATE OF DECISION: 19.11.2025

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Central Bank of India a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Registered Office at Chandramukhi Building, Nariman Point, Mumbai-400021 and one of its Branch Office at G. T. Road, Miller Ganj, Ludhiana-141003 through its Branch Manager.

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……..Applicant Versus

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M/s. Paras Traders, House No.11066/47A, Kartar Avenue, Haibowal Kalan, Ludhiana-141001 (Punjab) through its Proprietor Smt. Chandni Bhasin

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Smt. Chandni Bhasin, Proprietor M/s. Paras Traders, House No.11066/47A, Kartar Avenue, Haibowal Kalan, Ludhiana141001 (Punjab), resident of House No.10584, Near Santosh Dharamshala, New Patel Nagar, Haibowal Kalan, Ludhiana141001

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Sh. Narinder Bhasin alias Narinder Kumar Bhasin son of Sh. Nand Kishore Bhasin, resident of House No.10584, Near Santosh Dharamshala, New Patel Nagar, Haibowal Kalan, Ludhiana141001

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Sh. Samarth Bhasin son of Sh. Narinder Kumar Bhasin, resident of House No.10584, Near Santosh Dharamshala, New Patel Nagar, Haibowal Kalan, Ludhiana-141001

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………Defendants

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Advocates:

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Present: Sh. Chander Kumar Jha, Advocate for Applicant (through

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VC)

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Defendants already ex parte

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2 OA NO.466/2025 CENTRAL BANK OF INDIA VS M/S PARAS TRADERS AND OTHERS

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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. 43,93,826.00p (Rupees Forty Three Lacs Ninety Three Thousand Eight Hundred Twenty Six Only). The Original Application has been filed through Sh. Shamim Khan, Branch Manager, of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.03.2019, 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 approached the applicant for grant of OD Limit of Rs. 5.00 Lacs vide loan application 12.03.2014, which is Annexure A2 to this OA. The defendant no. 3 stood as guarantor. Thereafter, the defendant no.1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs. 12.00 Lacs vide loan application dated 16.05.2015, which is Annexure A12 to this OA. Defendant no. 3 stood as guarantor. Thereafter, the defendant no.1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs. 20.00 Lacs vide loan application dated 29.07.2016, which is Annexure A25 to this OA. Defendant no. 3 stood as guarantor, Guarantor’s Consent letter dated 29.07.2016, which is Annexure A37 to this OA. Thereafter, defendant nos. 2 and 3 approached the applicant for grant of Housing Loan of Rs. 14.00 Lacs vide loan application dated 25.06.2019, which is Annexure A38 to this OA. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of loan of Rs. 2.80 Lacs under GECL vide application dated 10.06.2020, which is Annexure A41 to this OA. Thereafter, the defendant nos. 3 and 4 approached the applicant for grant of Education Loan of Rs. 20.00 Lacs for the purpose of study of defendant no. 4 in abroad vide loan

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3 OA NO.466/2025

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CENTRAL BANK OF INDIA VS M/S PARAS TRADERS AND OTHERS

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application dated 12.07.2023, which is Annexure A44 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned OD Limit of Rs. 5.00 Lacs vide sanction letter dated 11.04.2014, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendant nos. 1 to 3. Thereafter, the applicant enhanced the limit to Rs. 12.00 Lacs vide sanction letter dated 11.07.2015, which is Annexure A13 to this OA and was again enhanced to Rs. 14.00 Lacs vide sanction letter dated 27.09.2016, which is Annexure A26 to this OA. Thereafter, the applicant sanctioned Housing Loan of Rs. 12.81 Lacs to defendant nos. 2 and 3 vide sanction letter dated 21.12.2019, which is Annexure A39 to this OA. Thereafter, the applicant sanctioned Working Capital Term Loan of Rs. 2.80 Lacs under GECL, vide sanction letter dated 10.06.2020, which is Annexure A42 to this OA. Thereafter, the applicant sanctioned Education Loan of Rs. 20.00 Lacs to defendant nos. 3 and 4 vide sanction letter dated 01.08.2023, which is Annexure A45 to this OA and defendant no. 2 stood as guarantor in this Loan.

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Defendant no. 2 and 3 mortgaged their immovable property i.e. (i) Property bearing MC No. B-34-11066/47A, measuring 16.66 sq. yards situated at Village Haibowal Kalan, Hadast no. 102, Abadi Kartar Avenue, New Hakikat Nagar, Tehsil and District Ludhiana, Punjab (in the name of defendant no. 2) through equitable mortgage of Sale Deed bearing vasika no.6444 dated 20.07.2011, along with its translations, which are Annexure A11, A11T to this OA; Letter of continuity for equitable mortgage by deposit of Title Deed dated 11.07.2015, which is Annexure A23 to this OA; Declaration and undertaking in matter of mortgage by deposit of Title Deeds dated 01.08.2023, which is Annexure A55 to this OA; Letter of deposit of Title Deed dated 03.08.2023, which is Annexure A58 to this OA; CERSAI Registration, which is Annexure A60 to this OA.

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4 OA NO.466/2025

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CENTRAL BANK OF INDIA VS M/S PARAS TRADERS AND OTHERS

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(ii) Property bearing plot no. 21, measuring 91 sq. yards situated at Village Jassian, Hadbast No.107, Abadi New Tarsem Colony, Tehsil and District Ludhiana, Punjab (in the name of defendant no. 3) through equitable mortgage of Sale Deed bearing vasika no.33 dated 02.04.2008, along with its translation which are Annexure A24, A24T to this OA; Declaration and undertaking in matter of mortgage by deposit of Title Deeds dated 01.08.2023, which is Annexure A53 to this OA; Letter of deposit of Title Deed dated 03.08.2023, which is Annexure A59 to this OA; CERSAI Registration, which is Annexure

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A61 to this OA.

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Jamabandi for the year 2007-08, along with its translation, which is Annexure A62 to this OA.

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Documents executed: - Over Draft Agreement of Rs.5.00 Lacs, D.P. Note, Letter of Interest Variation, Letter of Waiver, Letter Of Continuity, Supplementary Agreement, Form of Guarantee, all dated 11.04.2014, which are Annexures A4 to A10 to this OA; Overdraft Agreement of Rs.12.00 Lacs, Form of Guarantee, Letter of Interest, Letter of Waiver, Letter of Interest Variation, Form of Declaration, D.P. Note, Letter of Continuity, General Undertaking, all dated 11.07.2015, which are Annexures A14 to A22 to this OA; Overdraft Agreement of Rs. 20.00 Lacs, Letter of Exclusive Use of Banks finance, Letter of Interest Variation, General Undertaking, Letter of Interest, Letter of Waiver, D.P. Note, Letter of Continuity, Form of Guarantee, Supplementary Agreement, Guarantor's Consent Letter, all Dated 27.09.2016, Which are Annexures A27 To A36 to this OA; Loan agreement dated 30.12.2019, which is Annexure A40 to this OA; Working Capital Term Loan Agreement dated 10.06.2020, which is Annexure A43 to this OA; Agreement of loan for Education, Supplementary Agreement, Deed Of Assignment of Future Income, Letter of Interest Variation, Letter Of Waiver, Letter of Consent by Borrower, Letter Of Authority, Letter of Undertaking For Education

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5 OA NO.466/2025

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CENTRAL BANK OF INDIA VS M/S PARAS TRADERS AND OTHERS

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Loan, Declaration Undertaking, Consent Clause By Guarantors, Form of Guarantee, all dated 01.08.2023, which are Annexures A46 to A52, A54, A56 and A57 to this OA; Notice dated 30.12.2023 u/s 13(2) of SARFAESI Act, which is Annexure A63 to this OA; Possession notice dated 09.10.2024, along with postal receipts and publication of possession in newspapers, which are Annexures A64 to A67 to this OA; Letter of acknowledgement dated 13.01.2025, which is Annexures A68 to this OA and Statements of accounts along with certificate by the officer in charge of the computer system, which are Annexures A69 to A80 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.43,93,826.00p which is recoverable and the defendants were served recall notice but defendants 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 10.11.2025. 7. In support of the OA, affidavit of Sh. Shamim Khan, Branch Manager, Central Bank of india, has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A80 to this OA, it is proved that the defendants approached applicant for availing of various 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

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6 OA NO.466/2025

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CENTRAL BANK OF INDIA VS M/S PARAS TRADERS AND OTHERS

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as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 43,93,826.00p (Rupees Forty Three Lacs Ninety Three Thousand Eight Hundred Twenty 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 accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has interest @9.80%p.a. with 2% penal interest in Overdraft loan, interest @9.45%p.a. with 2% penal interest in Housing loan, interest @11.50%p.a. with 2% penal interest in Education loan & interest @9.25% p.a. with 2% penal interest in GECL Loan, with monthly rests in all the accounts from 26.03.2025 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/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 @08.00%p.a. in all 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. 43,93,826.00p (Rupees Forty Three Lacs Ninety Three Thousand Eight Hundred Twenty six 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

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OA NO.466/2025

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CENTRAL BANK OF INDIA VS M/S PARAS TRADERS AND OTHERS

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from the sale of mortgaged property/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. 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 01.12.2025. 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. Pronounced by me in the open Tribunal . Dated: 19.11.2025

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

Central Bank of India v. M/S Paras Traders and Others

Case brief

What is this about?

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Central Bank of India v. M/S Paras Traders and Others

Case brief

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