Allowed

Central Bank of India v. M/S Indigo Marketing

DRT23 Dec 2025TA/3138/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues after the fraud investigation did not invalidate the loan agreements. The court reduced the interest rate to 12% and directed the issuance of a recovery certificate.

What did the court decide?

Directed defendants to pay Rs.2,46,64,563/- @12% interest and costs within 30 days; recovery certificate issued for sale of properties.

Central Bank of India versus M/S Indigo Marketing — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 3138 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No.3138 of 2022

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Central Bank of India

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Ghonda Village, P.O.Maujpur Main Road, Maujpur Distt., Delhi-53 Applicant

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Versus

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M/s Indigo Marketing

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Through its Proprietor —

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Sh.Sanjay Pandey s/o Cheddi Lal Pandey IX/6052, 1st Floor, Guru Harikrishan Gali Gandhi Nagar, Delhi-110031

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Sh.Sanjay Pandey s/o Cheddi Lal Pandey B-91, Ramprastha, Ghaziabad, UP

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Also at:

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Sh.Sanjay Pandey s/o Cheddi Lal Pandey IX/6052, 1st Floor, Guru Harikrishan Gali Gandhi Nagar, Delhi-110031

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Mrs.Nirupma Pandey w/o Sh.Sanjay Pandey IX/6052, 1st Floor, Guru Harikrishan Gali Gandhi Nagar, Delhi-110031

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Also at:

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Mrs.Nirupma Pandey w/o Sh.Sanjay Pandey B-91, Ramprastha, Ghaziabad, UP

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Sh.Md. Naeem Khan Z-IInd 593, Welcome, Seelampur III Shandara, Delhi-110053 Defendants

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Present: Ms. Ekta Chaudhary, Counsel for the applicant bank

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Date of Reserve: 12.12.2025

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Date of Pronouncement: 23.12.2025

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T.A. No. 3138 of 2022

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FINAL ORDER

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This original application has been filed by the applicant bank on 16.09.2021 before DRT-III Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of Rs.2,46,64,563/- (Rupees Two Crores Forty Six Lacs Sixty Four Thousand Five Hundred Sixty Three only) as of 23.08.2021 along with interest ©14.70% per annum from 24.08.2021 till .00000000000000.the date of realization with costs.

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The brief facts of the case are that on the request of the defendant no.1 through its proprietor defendant no.2, the applicant bank sanctioned Cash Credit facility of Rs.60,00,000/(Rupees Sixty lacs only) and Overdraft facility of Rs.40.00 lacs (Rupees Forty lacs only) against book debts on 21.08.2012 with rate of interest @As Per Rating (As per sanction letter) per annum against stock and EM of property at Gandhi Nagar, Delhi owned by defendant no.2.

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In order to avail both the loan facilities, the defendants executed Demand Promissory Notes, Letters of Waiver, Letters of Interest, Letters of Continuity, Declarations and Undertakings, Agreement for Hypothecation to secure Demand Cash Credit against Goods, Form of Guarantee for Advance & Credits, Sanctions Letter for CC & Overdraft limits, Agreement of Book Debts for Overdraft against book debts, Consent Clause of borrower and guarantors all dated 04.06.2012 in favour of applicant bank. The defendant no.3 and 4 executed Guarantee Agreement for advance and credits dated 04.06.2012 towards applicant bank.

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T.A. No. 3138 of 2022

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That in order to secure the loan facilities, the defendant no.2 created equitable mortgage of his property being Ist Floor of Property No.IX/6052, Guru Harkishan Gali, Gandhi Nagar, measuring 99 sq.yds. by depositing security documents duly recorded in EM register of applicant bank on 08.06.2012. The property was duly registered with CERSAI on 02.02.2013 by creating charge over the mortgaged property.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction, failed to service the interest and failed to maintain financial discipline. Ultimately, the applicant bank classified the account as NPA on 29.04.2016 as per RBI guidelines but defendants neglected to repay the dues, hence the applicant bank has approached this Tribunal for recovery of its dues.

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Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 was issued on 06.06.2016 to the defendants by the applicant bank but they failed to clear the dues. The applicant bank taken symbolic possession of property under Rule 8(1) on 26.08.2016.

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The CBI seized certain loan documents and title documents of property mortgaged vide Production cum Seizure Memo no.CBI/EO-I/New Delhi dated 31.07.2014 due to fraudulent transactions in the account.

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Notices of this O.A. were issued to the defendants and ‘^{despite of proper service, the defendants have chosen to}

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T.A. No. 3138 of 2022

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absent from the proceedings. As per order dated 12.11.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Mr.Piyush Dewangan, authorized representative of the applicant bank who has proved the documents such as Letter of Authority of AR, Sanction Letter, Demand Promissory Notes, Letters of Waiver, Letters of Interest, Letters of Continuity, Declarations and Undertakings for CC and Overdraft limit, Agreement of Hypothecation to secure demand Cash Credit against Goods, Forms of Guarantee, Consent Clause, NPA Certificate, Legal Demand Notice, Copy of Recital of EM Register, Registration with CERSAI Home, Notice u/s 13(2), Possession Notice, Paper Publication/Citation, Production cum Seizure Memo of CBI, Statement of Account along with NPA Certificate marked as EXB-AW-1/1 to EXB-AW-1/27(Colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which Sd-

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T.A. No. 3138 of 2022

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is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, a sum of Rs.2,46,64,563/- (Rupees Two Crores Forty Six Lacs Sixty Four Thousand Five Hundred Sixty Three only) as of 2108.2021 @12.00% with pendentelite and future interest from 23.08.2021 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock & mortgaged property being Ist Floor, Property No.IX/6052, Guru Harkishan Gali, Gandhi Nagar, measuring 99 sq.yds. In case of default / shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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T.A. No. 3138 of 2022

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 20.02.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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