Allowed

Bank of India v. M/S Radhika Enterprises and Another

DRT27 Oct 2025OA/811/2025

Case brief

AI extract

What is this about?

In an ex-parte Original Application filed under the Recovery of Debts & Bankruptcy Act, 1993, the Debt Recovery Tribunal allowed the Bank of India's claim for recovery of a loan default. The Tribunal modified the claimed interest rate to 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs. 43,72,915.03 plus simple interest @ 8.00% p.a.; issue of Recovery Certificate.

Bank of India versus M/S Radhika Enterprises and… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.811/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.06.2025

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DATE OF DECISION: 27.10.2025

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Bank of India, a body corporate constituted under The Banking Companies(Acquisition and Transfer of Undertaking) Act 1970, having its Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East) Mumbai-400051 and having its Zonal office at Surya Kiran Complex, 1st Floor, Phase-II, The Mall, near Rakh Bagh, Civil Lines, Ludhiana and amongst various branches having its branch at 984/2, Tej Complex, opposite Passport Office, Link Road, Model Town, Ludhiana-141002, through its duly Constituted Attorney and

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Authorized Officer of plaintiff bank Sh. Dwarka Prasad.

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……..Applicant

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Versus

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M/s Radhika Enterprises, Near Lal Chand Bhatia School, Bank Colony, Haibowal Kalan Ludhiana., through its proprietor.

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Sh. Yogesh Malhotra s/o Sh. Radha Krishan Malhotra, proprietor M/s Radhika Enterprises, r/o H.no.328, street no.10, Sant Vihar, Haibowal Kalan, Ludhiana.

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Alternate address: Sh. Yogesh Malhotra s/o Sh. Radha Krishan Malhotra, proprietor M/s Radhika Enterprises, r/o H.no. B34/2256/A(old) 9403(New), Joshi Nagar, Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. Satish Jaswal, Advocate proxy for Sh. Mouhit K.Goel, 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 & Bankruptcy Act, 1993,

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OA NO.811/2025 BANK OF INDIA VS M/S RADHIKA ENTERPRISES AND ANOTHER

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against the defendants for recovery of Rs.43,72,915.03p (Rupees Forty Three Lacs Seventy Two Thousand Nine Hundred Fifteen & Paise Three Only). The Original Application has been filed through Sh. Dwarka Prasad, Authorized Officer of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2016, 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 had approached the applicant for grant of CC Limit of Rs.5.00 Lacs under CGTMSE Scheme for running its business. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs. 9.50 Lacs and again to Rs. 25.00 Lacs along with Fresh Term Loan of Rs. 11.00 Lacs for purchase of plant and machinery. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of the limit to Rs. 30.00 Lacs. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Working Capital Term Loan of Rs. 6.00 Lacs under GECL vide loan application dated 29.05.2020, which is Annexure A40 to this OA.

¶23

The applicant sanctioned the CC Limit of Rs. 5.00 Lacs vide sanction letter dated 28.02.2007, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the limit was enhanced by the applicant to Rs. 9.50 Lacs. Thereafter, the limit was enhanced to Rs. 25.00 Lacs and Term Loan of Rs. 11.00 Lacs was sanctioned for purchase of plant and machinery vide sanction letter dated 19.08.2010, which is Annexure A13 to this OA. Thereafter, the limit was enhanced by the applicant to Rs. 30.00 Lacs vide sanction letter dated 28.04.2016, which is Annexure A28 to this OA. Thereafter, Working Capital Term Loan of Rs. 6.00 Lacs was sanctioned by the applicant vide sanction letter dated 30.05.2020,

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OA NO.811/2025 BANK OF INDIA VS M/S RADHIKA ENTERPRISES AND ANOTHER

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which is Annexure A41 to this OA. Thereafter, another Working Capital Term Loan of Rs. 3.00 Lacs was sanctioned by the applicant under GECL vide sanction letter dated 18.11.2021, which is Annexure A53 to this OA.

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Defendant no.1 through defendant no. 2 had hypothecated its moveable assets i.e. all kind of paint brushes, finished and unfinished goods, all kind of raw material, packing material, book debts, plant and machinery etc. vide hypothecation agreement of tangible moveable property dated 01.03.2007, which is Annexure A5 to this OA; Hypothecation agreement of tangible moveable property dated 20.08.2010, which is Annexure A17 to this OA; Charge and hypothecation of book debts dated 20.08.2010, which is Annexure A19 to this OA; supplemental deed of hypothecation dated 30.05.2020, which is Annexure A48 to this OA.

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Documents executed: - Demand Promissory Note, Declarations by borrower, all dated 01.03.2007, which are Annexures A3, A4 and A6 to this OA; Demand Promissory Note, Declarations by borrower, Supplemental agreement, Letter of declaration, undertaking & authority & Acknowledgement of debts and securities, all dated 15.10.2008, which are Annexures A7 to A12 to this OA; Demand Promissory Note, Declaration by borrower, Letter of declaration, undertaking & authority, Agreement of term loan and hypothecation of Moveable goods, all dated 20.08.2010, which are Annexures A14 to A16 and A18 and A20 to this OA; Acknowledgement of debt/ securities dated 13.10.2021, 23.11.2011, 08.08.2013, 13.11.2015, which are Annexures A21 to A27 to this OA; Demand Promissory Note, Declarations by borrower, undertaking & authority, Undertaking, all dated 29.04.2016, which are Annexures 29 to A33 to this OA; Acknowledgement of debt/securities dated 28.04.2016, 28.09.2018, 16.02.2019, which are Annexures A34 to A39 to this OA; Demand

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OA NO.811/2025 BANK OF INDIA VS M/S RADHIKA ENTERPRISES AND ANOTHER

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Promissory Note, Declarations by borrower, Letter of declaration, undertaking & authority, Letter of installment, Term loan agreement, RBLR Agreement, MCLR agreement, Acknowledgement of debt and securities all dated 30.05.2020, which are Annexures A42 toA47 and A49 to A52 to this OA; Demand Promissory Note, Declarations by borrower, Letter of declaration, undertaking & authority, Letter of installment, Supplemental loan cum hypothecation agreement, RBLR Agreement, Acknowledgement of debt and securities, all dated 18.11.2021, which are Annexures A54 to A63 to this OA; Acknowledgement of debt and securities 22.03.2023, 20.09.2024, which are Annexures A64 to A68 to this OA; Notice dated 06.09.2023 u/s 13(2) of SARFAESI Act, which is Annexure A69 to this OA and Statement of accounts along with memorandum of interest, which are Annexures 70 to A74 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 both the loan accounts there was a debit of Rs.43,72,915.03p, 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 07.08.2025.

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In support of the OA, affidavit of Sh. Dwarka Prasad, Authorized Officer, Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A74 to this OA, it is proved that the defendants

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OA NO.811/2025 BANK OF INDIA VS M/S RADHIKA ENTERPRISES AND ANOTHER

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approached applicant bank for availing of the 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 loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.43,72,915.03p (Rupees Forty Three Lacs Seventy Two Thousand Nine Hundred Fifteen & Paise Three 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 claimed interest @11.70%p.a. in CC & @11.40%p.a. in Term loan accounts from 23.05.2025 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 @8.00%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.

¶40

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.43,72,915.03p (Rupees Forty Three Lacs Seventy Two Thousand Nine Hundred Fifteen & Paise Three Only) jointly and severally, with

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OA NO.811/2025

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BANK OF INDIA VS M/S RADHIKA ENTERPRISES AND ANOTHER

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costs, current and future simple interest @8.00%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 from the sale of hypothecated assets of 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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12. 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 06.11.2025.

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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: 27.10.2025

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

Bank of India v. M/S Radhika Enterprises and Another

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Radhika Enterprises and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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