Allowed

Bank of India v. M/s Estofers Enterprises LLP and Others

DRT15 Apr 2026OA/1127/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's original application for recovery of a debt of Rs. 47,83,552.00 from the borrowers and guarantors. The court modified the offered interest rate to a uniform simple rate of 8% per annum from the date of filing.

What did the court decide?

Recovery of Rs. 47,83,552.00 with simple interest at 8% p.a. jointly and severally from date of OA filing till realization; Recovery Certificate issued.

Bank of India versus M/s Estofers Enterprises LLP… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1127/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 18.08.2023

¶5

DATE OF DECISION: 15.04.2026

¶6

Bank of India, a body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at "Star House", C-5, G-Block, 2^nd Floor, Bandra Kurla Complex, Bandra (East) Mumbai-400051 and one of its branches at Bharat Nagar Chowk through Sh.Ajit Singh Dadwal, Chief Manager Bank of India, Bharat Nagar Chowk, Ludhiana, its Principal Officer and Constituted Attorney.

¶7

……..Applicant

¶8

Versus

¶9

M/s Estofers Enterprises LLP, 101, First Floor, Gitika Valley, Sant Nirankari Bhawan, JLD Estate, Sangowal, Ludhiana, through any of its Partner Defendants No.2 and/or 3.

¶10

Second Address: 401/01, Street No.6-1/2, Nirmal Nagar, Dugri, Ludhiana

¶11

Sh. Akshay J Pathaania S/o Sh. Jagdish Pathania, Partner, M/s Estofers Enterprises LLP, 101, First Floor, Gitika Valley, Sant Nirankari Bhawan, JLD Estate, Sangowal, Ludhiana. Second Address: 401/01, Street No.6-1/2, Nirmal Nagar, Dugri, Ludhiana

¶12

Smt. Aarti Pathaania W/o Sh.Akshay J Pathaania M/s Estofers Enterprises LLP101, First Floor Gitika Valley,.Sant Nirankari Bhawan, JLD Estate, Sangowal, Ludhiana.

¶13

Second Address: 401/01, Street No.6-1/2, Nirmal Nagar, Dugri, Ludhiana

¶14

………Defendants

¶15

Advocates:

¶16

Argued by Sh. RV Mehra, Advocate for the applicant

¶17

Ms. Parmeet Kaur, Advocate for defendants (through VC)

¶18

2 OA NO.1127/2023 BANK OF INDIA VS MESSERS ESTOFERS ENTERPRISES LLP AND OTHERS

¶19

FINAL ORDER

¶20

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for recovery of Rs.47,83,552.00 (Rupees Forty Seven Lacs Eighty Three Thousand Five Hundred and Fifty Two Only). The Original Application has been filed through Sh. Ajit Singh Dadwal, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

¶21

The brief facts of the OA are that the Defendant no.1 through defendant no.2 and 3 approached the applicant for grant of Cash Credit Limit of Rs.40.00 Lacs vide Loan Application dated 18.03.2020, which is Annexure 2 to this OA. Thereafter, the Defendant no.1 through defendant no.2 and 3 approached the applicant for grant of Working Capital Term Loan of Rs.9.00 Lacs under STAR GECL Scheme vide Loan Application dated 29.09.2021, which is Annexure A15 to this OA. Defendant nos. 2 and 3 stood as guarantors.

¶22

The applicant sanctioned the grant Cash Credit Limit of R.40.00 Lacs (Stock - Rs.30.00 Lacs and Book Debts - Rs.10.00 Lacs) vide Sanction Letter dated 29.06.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the Working Capital Term Loan of Rs.9.00 Lacs under STAR GECL 1.0 Extension Scheme vide Sanction Letter dated 17.10.2021, which is Annexure A16 to this OA.

¶23

The applicant also converted unpaid interest in CC Limit into Funded Interest Term Loan (FITL) of Rs.7.08 Lacs. 4. Defendant no. 1 through its partners hypothecated stocks and book debts vide Hypothecation Cum Loan Agreement dated 29.06.2020, which is Annexure A6 to this OA; Supplemental cum loan cum hypothecation dated 21.10.2021, which is Annexure A19 to this OA.

¶24

3 OA NO.1127/2023 BANK OF INDIA VS MESSERS ESTOFERS ENTERPRISES LLP AND OTHERS

¶25

Documents executed : Demand Promissory Note, Demand Promissory Note Bearer Letter, Composite Document L-516, Letter of Declaration & Assurance (L-515), Letter of Declaration, Undertaking and Authority, RBLR (Repo Based Lending Rate) Agreement, Letter of Undertaking, Undertaking for CGTMSE Coverage of loan and Annual Guarantee Fees, Letter of Declaration, Deed of Guarantee, all dated 29.06.2020, which are Annexures A4, A5, A7 to A14 to this OA; Demand Promissory note, Bearer Letter, Composite Agreement L-516, Letter of Declaration & Assurance (L-515), Letter of Declaration, Undertaking & Authority, Installments Letter, RBLR (Repo Based Lending Rate) Agreement, all dated 21.10.2021, which are Annexures A17, A18, A20 to A24 to this OA; Legal Notice dated 06.04.2023, along with Postal Receipts, which are Annexures A25 to A31 to this OA; Statement Accounts, which are Annexures A32 to A34 to this OA; Acknowledgement of Debts and Securities dated 21.10.2021, which is Annexure A35 to this OA.

¶26

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there were a debit of Rs.47,83,552.00, which is recoverable and the defendants were served recall notice but defendants did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶27

The defendants were served summons to appear before this Tribunal. Ms. Parmeet Kaur, Advocate appeared on behalf of defendants on 13.12.2024 and filed her Power of Attorney on behalf of defendants. WS was filed on 07.03.2025. On 05.08.2025, Sh. Ashutosh, Senior Manager produced original documents for their admission or denial which were seen by defendant nos. 2 and 3 who admitted the signatures on document but denied their contents.

¶28

In support of the OA, affidavit of Sh. Ajit Singh Dadwal, Chief Manager, Bank of India, has been filed.

¶29

4 OA NO.1127/2023 BANK OF INDIA VS MESSERS ESTOFERS ENTERPRISES LLP AND OTHERS

¶30

Heard arguments and perused record.

¶31

It was argued by learned counsel for applicant that in view of the documentary evidence brought on record, the applicant had proved its case.

¶32

It was argued by learned counsel for defendants through video conferencing that lenient view may be taken at time of decree and prayed for granting simple rate of interest.

¶33

From the perusal of all the Annexures A1 to A35 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 applicant. 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.47,83,552.00 (Rupees Forty Seven Lacs Eighty Three Thousand Five Hundred and Fifty Two 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.

¶34

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.35%p.a. including 2% penal interest with monthly rests in CC Limit, @11.25%p.a. including 2% penal interest with monthly rests in WCTL and @11.35%p.a. including 2% penal interest with monthly rests in FITL, from 16.07.2023 till the realization.

¶35

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 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

¶36

5 OA NO.1127/2023 BANK OF INDIA VS MESSERS ESTOFERS ENTERPRISES LLP AND OTHERS

¶37

just and appropriate to grant uniform simple interest @08.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.47,83,552.00 (Rupees Forty Seven Lacs Eighty Three Thousand Five Hundred and Fifty Two Only), jointly and severally, with 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 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. 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 05.05.2026. 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: 15.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. M/s Estofers Enterprises LLP and Others

Case brief

What is this about?

What did the court decide?

Bank of India v. M/s Estofers Enterprises LLP and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Sh. Bakhshish Singh And Another

Kotak Mahindra Bank Limited versus Smt. Saranjit Kaur and Others

Bank of India versus Sh. Surinder Singh and Another

Hdfc Bank versus Sh. Nirbhay Singh and Others

State Bank of India versus M/S R S Engg Works and Another

Kotak Mahindra Bank Limited versus Ms Vijay Enterprises and Others