Allowed

Indian Bank v. Makkar Motors and Another

DRT15 Sept 2025OA/918/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Indian Bank for recovery of Rs. 23,47,904 from respondents who failed to repay secured loans. The Tribunal issued a Recovery Certificate and modified the claimed interest rate.

What did the court decide?

Recovery of Rs. 23,47,904 with costs and simple interest at 8% p.a.; issuance of Recovery Certificate; authorization for sale of hypothecated/personal assets.

Indian Bank versus Makkar Motors and Another — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.918/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.07.2025

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DATE OF DECISION: 15.09.2025

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Indian Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at PB no. 5555, 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and its Branches throughout India and amongst other branches one of its branch office at Shaheed Karnail Singh Nagar, Ludhiana, Punjab through its constituted attorney Sh. Vikram Singh, Chief Manager, Indian bank, Zonal Office, Dugri, Ludhiana, Punjab through its Authorized Signatory Sh. Abhinav, Branch Manager, Indian Bank, Shaheed Karnail Singh Nagar, Ludhiana, Punjab and who is also the Principal Officer of the Plaintiff/ Applicant.

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……..Applicant

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Versus

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M/s Makkar Motors, Shop No 12, Gian Singh Rare Wala Market, Near Passport Office, Link Road, Ludhiana, Punjab, through its sole proprietor Sh. Davinder Pal Singh S/o Sh. Harvinder Pal Singh.

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Sh. Davinder Pal Singh S/o Sh. Harvinder Pal Singh, sole proprietor, M/s Makkar Motors R/o House No. B-XXVIII353/1, Plot No. 186/33, Street No. 6, Backside Gurmat Gian Missionary College, Punjabi Bagh, Near Sua Road, Jawadi, Ludhiana, Punjab. Also, at: -House No. 25 B, Sargodha Colony Pakhowal Road, Model Town, Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate for the applicant Defendants already ex parte

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OA/918/2025 INDIAN BANK VS M/S MAKKAR MOTORS AND ANOTHER

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.23,47,904.00 (Rupees Twenty Three Lacs Forty Seven Thousand Nine Hundred and Four Only). The Original Application has been filed through Sh. Abhinav, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.06.2022, which is Annexure A1 to this OA and letter of authorization dated 01.07.2025, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant no.1 sole proprietor of defendant no. 2 had approached the applicant for grant of CC Limit of Rs.20.00 Lacs vide loan application dated 07.11.2020, which is Annexure A3 to this OA. Thereafter the defendant no. 1 through its proprietor defendant no. 2 approach the applicant for grant of loan of Rs. 2.60 Lacs under IND-GECL 1.0 (extension), vide loan application dated 06.12.2021, which is Annexure A15 to this OA.

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The applicant sanctioned CC Limit of Rs.20.00 Lacs vide sanction letter dated 21.11.2020, which is Annexure A4 to this OA. Further, a loan of Rs. 2.60 Lacs under IND-GECL 1.0 (extension) was sanctioned by the applicant vide sanction letter dated 07.12.2021, which is Annexure A16 to this OA. The terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable property i.e. House No. B-XXVIII-353/1, measuring 200 Sq. Yards situated at Village Jawaddi, Hadbast 160, now locality Street No. 6, Backside Gurmat Gian Missionary College, Punjabi Bagh, Near Sua Road, Ludhiana vide equitable mortgage of Sale deed No. 202021/101/1/2000 dated 17.07.2020, along with translations, which

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OA/918/2025 INDIAN BANK VS M/S MAKKAR MOTORS AND ANOTHER

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is Annexure A13 to this OA and confirmation of extension of equitable mortgage dated 11.12.2020 and 14.12.2021, which are Annexure A14 and A19 to this OA.

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Documents executed:- D. P Note, Agreement for open Cash Credit, Letter from borrower for disclosure of information, Declaration by borrower on details of relatives, Details of Family members, Declaration by Sole Proprietor, Agreement of Hypothecation of movables, Deed of Guarantee, all dated 09.12.2020, which are Annexures A5 to A12 to this OA; D. P Note, Term Loan Agreement, both dated 13.12.2021, which are Annexures A17 and A18 to this OA; Acknowledgement of DebtCum-Security, dated 15.03.2023, which is Annexure A20 to this OA; Notice dated 05.02.2025 under section Section 13(2), , which is Annexure A21 to this OA; Statement of account of Cash Credit Account, which is Annexure A22 to this OA; Statement of INDGECLS Loan, which is Annexure A23 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.23,47,904.00 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 01.09.2025.

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In support of the OA, affidavit of Sh. Abhinav, Branch Manage r, Indian Bank has been filed. 8. Heard ex-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

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OA/918/2025 INDIAN BANK VS M/S MAKKAR MOTORS AND ANOTHER

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of all the Annexures A1 to A23 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.23,47,904.00 (Rupees Twenty Three Lacs Forty Seven Thousand Nine Hundred and Four 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 @ 14.55%p.a. plus penal interest @2%p.a. with monthly rests from 10.07.2025 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, undertaking of the defendants, quantum of loans 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,47,904.00 (Rupees Twenty Three Lacs Forty Seven

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OA/918/2025

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INDIAN BANK VS M/S MAKKAR MOTORS AND ANOTHER

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Thousand Nine Hundred and Four 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/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 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 06.10.2025. 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: 15.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Makkar Motors and Another

Case brief

What is this about?

What did the court decide?

Indian Bank v. Makkar Motors and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

Parties & counsel

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Case details

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