Allowed

Indian Bank v. M/S Preet Garments and Another

DRT24 Jun 2026OA/1184/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application by Indian Bank for recovery of Rs. 49,94,390.95 from M/S Preet Garments and proprietor Sh. Harjeet Singh. The court fixed simple interest at 8% p.a. instead of the claimed rate and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 49,94,390.95 with simple interest @ 8% p.a. from date of filing; issuance of Recovery Certificate.

Indian Bank versus M/S Preet Garments and Another — Specific Performance | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1184/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.09.2024

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DATE OF DECISION: 24.06.2026

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Indian Bank, a Body Corporate constituted under the Banking Companies Acquisition and Transfer of Undertaking Act, 1970 having its Corporate Office at PB no. 5555, 254-260, Avvai Shanmugam Sakai, Royapettah, Chennai and its Branches throughout India and amongst other Branches, one of its Branch Office at Dugri, Ludhiana, Punjab through its Constituted Attorney/Authorized Officer, Ms. Suman, Branch Manager, Indian Bank, Dugri, Ludhina, Punjab and who is also the Principal Officer

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……..Applicant

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Versus

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M/S Preet Garments through its sole Proprietor, Sh. Harjeet Singh, S/o Sh. Makhan Singh, House no. 5758, Street no. 9/1, Rahgubir Park, Jassian Road, Haibowal Kalan

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2^nd Address: Plot no. 6715, Street no. 3, New Janta Nagar, Daba Road, Ludhiana, Punjab- 141003

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Sh. Harjeet Singh, S/o Sh. Makhan Singh, sole Proprietor, M/S Preet Garments, R/o House no. 5758, Street no. 9/1, Rahgubir Park, Jassian Road, Haibowal Kalan

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….……Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate proxy for Sh. Ashok Kumar Verma, Advocate for applicant

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None for defendants (already ex-parte vide order dated 20.06.2026)

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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. 49,94,390.95 (Rupees Forty

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2 OA/1184/2024 INDIAN BANK VS. M/S PREET GARMENTS AND ANOTHER

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Nine Lacs Ninety Four Thousand Three Hundred Ninety and Paise Ninety Five Only). The Original Application has been filed through Ms. Suman, Authorized Officer of the applicant, who is competent to institute the Original Application vide Authorization Letter dated 22.08.2024, which is Annexure A2 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 approached the applicant for grant of OCC Limit of Rs. 5.00 Lacs vide Loan Application dated 19.03.2017, which is Annexure A3 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loan- I of Rs. 13.50 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loan- II of Rs. 16.50 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 10.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of MSE Emergency Loan of Rs. 1.00 Lac. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECLS Limit of Rs. 7.00 Lacs vide Application dated 05.06.2020. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for renewal of CC Limit of Rs. 10.00 Lacs, Term Loan- I of Rs. 13.50 Lacs, Term Loan- II of Rs.16.50 Lacs, MSE Emergency Loan of Rs. 1.00 Lac and GECLS Limit of Rs. 7.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECLS Extension Loan of Rs. 4.00 Lacs vide Letter dated 09.02.2022. 3. The applicant sanctioned OCC Limit of Rs. 5.00 Lacs vide Sanction Letter dated 13.03.2018, which is Annexure A4 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Term Loan- I of Rs. 13.50 Lacs vide Sanction Letter dated 24.05.2018, which is Annexure A9 to this OA. Thereafter, the applicant sanctioned Term Loan- II of Rs. 16.50

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3 OA/1184/2024 INDIAN BANK VS. M/S PREET GARMENTS AND ANOTHER

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Lacs vide Sanction Letter dated 21.05.2019, which is Annexure A14 to this OA. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 10.00 Lacs vide Sanction Letter dated 13.12.2019, which is Annexure A22 to this OA. Thereafter, the applicant sanctioned MSE Emergency Loan of Rs. 1.00 Lac vide Sanction Letter dated 07.05.2020, which is Annexure A30 to this OA. Thereafter, the applicant sanctioned GECLS Limit of Rs. 7.00 Lacs vide Sanction Letter dated 11.06.2020, which is Annexure A34 to this OA. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 10.00 Lacs, Term LoanI of Rs. 13.50 Lacs, Term Loan- II of Rs.16.50 Lacs, MSE Emergency Loan of Rs. 1.00 Lac and GECLS Limit of Rs. 7.00 Lacs vide Sanction Letter dated 04.02.2021, which is Annexure A39 to this OA. Thereafter, the applicant sanctioned GECLS Extension Loan of Rs. 4.00 Lacs vide Sanction Letter dated 25.02.2022, which is Annexure A41 to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and book debts vide Agreements of Hypothecation of Movables dated 24.05.2019, 06.05.2020, 11.06.2020 and 16.03.2022, which are Annexure A19, A31, A35 and A42 to this OA.

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Documents executed: Power of Attorney dated 13.10.2014, which is Annexure A1 to this OA; DP Note, Agreement for Open CC, Letter of Continuity and Declaration, all dated 19.03.2018, which are Annexure A5 to A8 to this OA; DP Note, Medium Term Loan Agreement, Letter from Borrower and Letter of Authority, all dated 24.05.2018, which are Annexure A10 to A13 to this OA; DP Note, Declarations, Letter from Borrower, Medium Term Loan Agreement and Acknowledgment of Debt cum Security, all dated 24.05.2019, which are Annexure A15 to A18, A20 and A21 to this OA; DP Note, Disposal of Proceeds Letter, Letter of Continuity, Agreement for Open CC, Letter from Borrower, Declaration and Letter of Authority, all dated 30.12.2019, which are Annexure A23 to A29 to this OA; DP Note and Disposal of Proceeds

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4 OA/1184/2024 INDIAN BANK VS. M/S PREET GARMENTS AND ANOTHER

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Letter, both dated 06.05.2020, which are Annexure A32 and A33 to this OA; DP Note, Disposal of Proceeds Letter and Medium Term Loan Agreement, all dated 11.06.2020, which are Annexure A36 to A38 to this OA; Acknowledgment of Debt cum Security dated 08.03.2021, which is Annexure A40 to this OA; Disposal of Proceeds Letter, Letter of Continuity, Term Loan Agreement and Letter from Borrower, all dated 16.03.2022, which are Annexure A43 to A46 to this OA; Legal Notice dated 07.04.2023 along with postal receipts, which are Annexure A47 and A48 to this OA; Acknowledgment of Debt cum Security dated 29.03.2023, which is Annexure A49 to this OA and Statement of Accounts, which are Annexure A50 to A55 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. 49,94,390.95, which is recoverable and the defendants were served recall notice 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 summons to appear before this Tribunal and after service upon defendants, Ms. Navneet Kaur, Advocate appeared through VC on behalf of defendants on 18.03.2026 and filed Memo of Appearance. No POA was filed. Therefore, defendants were proceeded ex-parte vide order dated 20.06.2026.

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In support of the OA, affidavit of Ms. Suman, Branch Manager, Indian Bank has been filed.

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Heard ex-parte arguments and perused record.

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

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From the perusal of all the Annexure A1 to A55 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant

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5 OA/1184/2024 INDIAN BANK VS. M/S PREET GARMENTS AND ANOTHER

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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. 49,94,390.95 (Rupees Forty Nine Lacs Ninety Four Thousand Three Hundred Ninety and Paise Ninety Five Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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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 @12.60%p.a. (excluding penal interest @2%) with half yearly rests from 24.08.2024 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 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 just and appropriate to grant 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.

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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 of Rs.49,94,390.95 (Rupees Forty Nine Lacs Ninety Four Thousand Three Hundred Ninety and Paise Ninety Five Only), jointly and severally, with costs, current and future simple interest @08.00% 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

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6 OA/1184/2024 INDIAN BANK VS. M/S PREET GARMENTS AND ANOTHER

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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 09.07.2026. 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: 24.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. M/S Preet Garments and Another

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S Preet Garments and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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