Allowed

Central Bank of India v. M/S Deepika Enterprises and Others

DRT31 Oct 2025OA/893/2025

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an application for recovery of Rs.1.29 Crore by a nationalized bank against defaulting borrowers, ordering payment with reduced interest and instructing issuance of recovery certificate.

What did the court decide?

Recovery Certificate issued; defendants ordered to pay Rs.1,29,33,279 with 8% simple interest from filing date.

Central Bank of India versus M/S Deepika Enterprises and Others — Intellectual Property | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.893/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.07.2025

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DATE OF DECISION: 31.10.2025

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Central Bank Of India, A Nationalized Bank, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No. V of 1970 having its Central Office at Central Bank Of India, Chander Mukhi, Nariman Point, Mumbai-400021; having its Zonal Offices and Regional Offices all over India and Amongst others having, interalia, one of its Regional Office at K. P. Complex, Near Hotel Park Plaza, Ludhiana-141001, and having branches all over India and interalia, one of its Branches at Mid Corporate Branch, Miller Ganj Ludhiana, District Ludhiana, represented through Sh. Pardeep, Chief Manager, presently posted at Mid Corporate Branch Ludhiana and Holder of Power of Attorney, Authorized to sign and file legal proceedings on behalf of the Applicant.

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……..Applicant Versus 1. M/S Deepika Enterprises, through Its Sole Prop. Mrs. Neha Sharma, B-29/212/29/38, New Ambedkar Nagar, Giaspura, Street Number-0, Dhandari Kalan Village, Ludhiana-141014 2. Smt. Neha Sharma W/O Sh. Santosh Kumar Sharma, Sole Prop. M/S Deepika Enterprises B-29/212/29/38, New Ambedkar Nagar, Giaspura, Street Number-0, Dhandari Kalan Village, Ludhiana -141014 2nd Address: - Opposite G.K. Kalra Kanda, Mahadev Nagar, Lohara, Punjab-141016. 3. Sh. Santosh Kumar Sharma S/O Sh. Shri Niwas Sharma Opposite G.K. Kalra Kanda, Mahadev Nagar, Lohara, Punjab-141016 2nd Address: - B-29/212/29/38, New Ambedkar Nagar, Giaspura, Street Number-0, Dhandari Kalan Village, Ludhiana-141014 ………. Defendants

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OA NO.893/2025 CENTRAL BANK OF INDIA VS M/S DEEPIKA ENTERPRISES AND OTHERS

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Advocates:

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Argued by Sh. Aman Sharma, Advocate for Applicant (through VC) 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.1,29,33,279.00p (Rupees One Crore Twenty Nine Lacs Thirty Three Thousand Two Hundred Seventy Nine Only). The Original Application has been filed through Sh. Pardeep, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 14.12.2017, 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 CC Limit of Rs.1.00 Crore & Term Loan of Rs.40.00 Lacs vide Loan application form dated 27.06.2023, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor. 3. The applicant sanctioned the CC Limit of Rs.1.00 Crore & Term Loan of Rs.40.00Lacs vide Sanction letter dated 04.07.2023, which is Annexure A3 to this OA and terms and conditions duly accepted by the defendants.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated stock, receivables, book debts and other current assets, etc. vide letter of hypothecation to secure demand Cash Credit against goods dated 04.07.2023, which is Annexure A4 to this OA and hypothecation agreement of goods and debts dated 04.07.2023, which is Annexure A4A to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 also hypothecated machinery vide loan cum hypothecation agreement (machinery) dated 04.07.2023, which is Annexure A11 to this OA.

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OA NO.893/2025 CENTRAL BANK OF INDIA VS M/S DEEPIKA ENTERPRISES AND OTHERS

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Defendant no. 3 mortgaged his immovable property i.e. Industrial Property having area of 300 sq yards. Situated at Village Lohara, Hadbast No.260, Tehsil and District Ludhiana, Punjab, through equitable mortgage of Title Deed bearing no. 2022-23/103/1/8887 dated 21.02.2023, along with its translation, which is Annexure A19 to this OA; Recital of equitable mortgage register, which is Annexure A20 to this OA.

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Documents executed : - Supplementary agreement, Letter of Continuity, Undertakings, D.P. note, Letter of Waiver, letter of interest variation, all dated 04.07.2023, which are Annexures A5 to A10 to this OA; Supplementary Agreement, Term Loan Agreement, Letter of Interest Variation, Declaration from sole proprietor, declaration for non-diversion of funds, letter of guarantee, consent clause, all dated 04.07.2023, which are Annexures A12 to A18 to this OA; valuation report dated 27.06.2023, which is Annexure A21 to this OA; Notice dated 08.05.2025 u/s 13(2) of SARFAESI Act, along with postal receipts, which are Annexure A22 and A23 to this OA; Publication dated 24.05.2025 of Notice u/s 13 (2), which are Annexures A24 and A25 to this OA; Legal notice dated 02.06.2025, along with postal receipts, which are Annexures A26 & A27 to this OA and Statement of Accounts along with certificate, which are Annexures A28 & 29 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 account there was a debit of Rs.1,29,33,279.00p, 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 23.09.2025.

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OA NO.893/2025 CENTRAL BANK OF INDIA VS M/S DEEPIKA ENTERPRISES AND OTHERS

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In support of the OA, affidavit of Sh. Pardeep, Chief Manager, Central Bank of India, has been filed.

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Heard ex-parte 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 A29 to this OA, it is proved that the defendants approached applicant 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 loans 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 is entitled to recover a sum of Rs.1,29,33,279.00p (Rupees One Crore Twenty Nine Lacs Thirty Three Thousand Two Hundred Seventy Nine 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 @11.10% p.a. plus 2% penal interest in CC & interest @13.10% p.a. plus 2% penal interest in TL with Monthly rests from 27.06.2025 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

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OA NO.893/2025 CENTRAL BANK OF INDIA VS M/S DEEPIKA ENTERPRISES AND OTHERS

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@08.00%p.a. in both 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 Rs.1,29,33,279.00p (Rupees One Crore Twenty Nine Lacs Thirty Three Thousand Two Hundred Seventy Nine Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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/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 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 11.11.2025.

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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: 31.10.2025

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

Central Bank of India v. M/S Deepika Enterprises and Others

Case brief

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Central Bank of India v. M/S Deepika Enterprises and Others

Case brief

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