Allowed

Indian Overseas Bank v. M/S Bhavya Print O Flex and Another

DRT1 Sept 2025OA/64/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed Indian Overseas Bank's application against M/s Bhavya Print O Flex for recovery of Rs. 20,30,041.31p with interest at 8% p.a., granted a recovery certificate, and directed enforcement through sale of hypothecated properties or attachment of personal assets.

What did the court decide?

Recovery of Rs. 20,30,041.31p along with 8% p.a. simple interest and costs; issue of Recovery Certificate.

Indian Overseas Bank versus M/S Bhavya Print O Flex and Another — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.64/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.11.2023

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DATE OF DECISION: 01.09.2025

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Indian Overseas Bank, a body corporate constituted under the provisions of Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Central Office at 763, Anna Salai, Chennai, Tamil Nadu – 600002, having one of its branch at Sunder Nagar, Ludhiana – 141007 through its Chief Manager, Sh. Deepak Kumar Jha.

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……..Applicant

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Versus

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M/s Bhavya Print O Flex, Dhir Colony, Kakowal Road, Ludhiana, through its Proprietor Vishesh Jain.

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2^nd Address: 38, Jassian Road, Jawala Singh Nagar, Ludhiana.

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Sh. Vishesh Jain S/o Sh. Sunil Kumar Jain, Proprietor, M/s Bhavya Print O Flex, Dhir Colony, Kakowal Road, Ludhiana.

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2^nd Address: 38, Jassian Road, Jawala Singh Nagar, Ludhiana.

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………. Defendants

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Advocates:

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Argued by Ms. Monika Thakur, Advocate for 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.20,30,041.31p (Rupees Twenty Lacs Thirty Thousand Forty One and Paise Thirty One Only). The Original Application has been filed through Sh. Deepak Kumar Jha, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 28.01.2012, which is Annexure A1 to this OA.

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OA No. 64/2024 INDIAN OVERSEAS BANK VS. MESSRS BHAVYA PRINT O FLEX AND ANOTHER

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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 Term Loan of Rs.7.00 Lacs vide Application for Term Loan Facility dated 21.11.2020, which is Annexure A2 to this OA. Further, defendant no. 1 through its proprietor of defendant no. 2 again approached the applicant for the grant of CC Limit of Rs.10.00 Lacs vide Application for Cash Credit Limit dated 19.08.2021, which is Annexure A8 to this OA. Further, defendant no. 1 through its proprietor defendant no. 2 again approached the applicant bank for enhancement of CC Limit to Rs.15.00 Lacs vide Application for MSME Loan dated 20.06.2022, which is Annexure A15 to this OA.

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The applicant sanctioned Term Loan of Rs.7.00 Lacs vide Credit Sanction Letter dated 08.12.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Further, applicant sanctioned CC Limit of Rs.10.00 Lacs vide Credit Sanction Advice dated 27.08.2021, which is Annexure A9 to this OA. Further, the applicant sanctioned enhancement CC Limit to Rs.15.00 Lacs vide Credit Sanction dated 30.07.2022, which is Annexure A16 to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 had hypothecated movable properties i.e. Machinery, Stock, Book debts, Current assets etc. vide letter of hypothecation securing machinery dated 08.12.2020, which is Annexure A6 to this OA; Letter of hypothecation of book debts, Letter of hypothecation in case of open advance, Letter of hypothecation for securing moveable assets including machinery/book debts, all dated 27.08.2021, which are Annexures A12 to A14 to this OA; Letter of hypothecation of book debts, Letter of hypothecation in case of open advance, Letter of hypothecation for securing moveable assets including machinery/book debts, all dated 30.07.2022, which are Annexures A19 to A21 to this OA;.

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OA No. 64/2024 INDIAN OVERSEAS BANK VS. MESSRS BHAVYA PRINT O FLEX AND ANOTHER

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Documents executed :- Demand Promissory Note, Letter Undertaking Repayment & Term Loan Agreement dated 08.12.2020, which are Annexures A4, A5 & A7 to this OA; Demand Promissory Note, Letter of Continuity for DPN, both dated 27.08.2021, which are Annexures A10 and A11 to this OA; Demand Promissory Note, Letter Continuity for DPN, both dated 30.07.2022, which are Annexures A17 and A18 to this OA; Legal Notice dated 17.08.2023, which is Annexure A22 to this OA; Statement of Accounts with Certified under Banker’s Books Evidence Act 1891, which are Annexure A23 and A24 to this OA. 5. 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.20,30,041.31p, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.08.2025. 7. In support of the OA, affidavit of Sh. Deepak Kumar Jha, Chief Manager, Indian Overseas 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 A24 to this OA, it is proved that the defendants approached applicant for availing of the loans 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

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OA No. 64/2024 INDIAN OVERSEAS BANK VS. MESSRS BHAVYA PRINT O FLEX AND ANOTHER

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brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,30,041.31p (Rupees Twenty Lacs Thirty Thousand Forty One and Paise Thirty One 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.15%p.a. along with penal interest @2%p.a. with monthly rests from 01.10.2023 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 @08.00%p.a. in both 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.20,30,041.31p (Rupees Twenty Lacs Thirty Thousand Forty One and Paise Thirty One Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 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

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OA No. 64/2024 INDIAN OVERSEAS BANK VS. MESSRS BHAVYA PRINT O FLEX AND ANOTHER

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.09.2025. 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: 01.09.2025.

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

Indian Overseas Bank v. M/S Bhavya Print O Flex and Another

Case brief

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Indian Overseas Bank v. M/S Bhavya Print O Flex and Another

Case brief

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