Allowed

Yes Bank Ltd. v. Virdi Textiles Engg Works and another

DRT23 Oct 2025OA/637/2025

Case brief

AI extract

What is this about?

The Applicant sought recovery of Rs.23,17,426.82 from Respondents for a sanctioned business loan turned NPA. The Tribunal proceeded ex parte, found the loan valid and quantum indisputable. It allowed the application, ordered recovery with reduced simple interest at 8% p.a., and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs.23,17,426.82 with interest @8.00%p.a. and costs; Recovery Certificate issued.

Yes Bank Ltd. versus Virdi Textiles Engg Works and another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.637/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.05.2025

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DATE OF DECISION: 23.10.2025

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YES Bank Ltd., a Banking company incorporated under the Companies Act, 1956 and carrying on banking business under the Banking Regulation Act, 1949 having its Registered Office at Yes Bank House, Western Express Highway, Santacruz (East) Mumbai -400055, Regional office: SCO No.129-130, 2nd Floor, Sector 9-C, near CITCO Petrol Pump, Chandigarh-160009, through Aashiv Bhayana, Authorized Officer, Legal Department.

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……..Applicant

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Versus

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Virdi Textiles Engg. Works, Chandigarh Road, Mundian Kalan, Near Main Road, Ludhiana -141015 through its Proprietor

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Sh. Inderpal Singh son of Sh. Nath Singh Resident of House No.4735, Village Mundian Kalan, Bhamian Kalan, Ludhiana. 141015.

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….……Defendants

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Advocates:

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Present :- Ms. Deepika Mittal, Advocate proxy for Sh. Nakul Sharma, Advocate 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,17,426.82 (Rupees Twenty Three Lakhs Seventeen Thousand Four Hundred Twenty Six and Eighty Two Paisa only). The Original Application has been filed through Sh. Aashiv Bhayana, Authorized Officer of the applicant, who

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OA NO.637/2025 YES BANK LTD. VS M/S VIRDI ENGG WORKS AND ANOTHER

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is competent to institute the Original Application vide Power of Attorney dated 28.03.2025, which is Annexure A1 to this OA. 2. 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 Business Loan (Working Capital) of Rs.25.00 Lacs vide Loan applications dated 22.06.2023, which are Annexures A2 and A3 to this OA and application for Business Loan dated 27.06.2023, which is Annexure A4 to this OA. 3. The applicant sanctioned Business Loan of Rs.20.00 Lacs and terms and conditions were duly accepted by the defendants. Loan agreement dated 27.06.2023 executed by defendants, which is Annexure A6 to this OA. Documents executed: - GST Registration certificate dated 25.09.2017, which is Annexure A5 to this OA; Recall notice dated 08.02.2024, which is Annexure A7 to this OA and Account statement along with foreclosure, which are Annexures A8 & A9 to this OA. 4. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.23,17,426.82, 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. 5. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte 13.10.2025.

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In support of the OA, affidavit of Sh. Aashiv Bhayana, Authorized Officer, Yes Bank Limited, has been filed.

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OA NO.637/2025 YES BANK LTD. VS M/S VIRDI ENGG WORKS AND ANOTHER

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Matter was listed for ex-parte arguments on 17.10.2025 and again on 21.10.2025. On 17.10.2025, the learned proxy counsel for applicant sought time for ex-parte arguments. Again on 21.10.2025, the learned proxy counsel for applicant prayed for adjournment. The prayer was declined as there was no ground to adjourn. Perused record.

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From the perusal of all the Annexures A1 to A9 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 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 bank is entitled to recover a sum of Rs.23,17,426.82 (Rupees Twenty Three Lakhs Seventeen Thousand Four Hundred Twenty Six and Eighty Two Paisa 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. 9. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @20%p.a. with monthly rests plus 2% penal interest from 11.04.2025 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 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

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OA NO.637/2025 YES BANK LTD. VS M/S VIRDI ENGG WORKS AND ANOTHER

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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.23,17,426.82 (Rupees Twenty Three Lakhs Seventeen Thousand Four Hundred Twenty Six and Eighty Two Paisa 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 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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11. Any other application pending stands disposed of . 12. Issue Recovery Certificate accordingly. 13. Parties to appear before Learned Recovery Officer of this Tribunal on 04.11.2025. 14. 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: 23.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Yes Bank Ltd. v. Virdi Textiles Engg Works and another

Case brief

What is this about?

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Yes Bank Ltd. v. Virdi Textiles Engg Works and another

Case brief

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