Allowed

Central Bank of India v. M/S Santosh Box Industries

DRT11 Feb 2026OA/1199/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for recovery of dues under the RDB Act against the respondents. The bank proved the loans advanced and non-payment. The Tribunal ordered joint and several liability of respondents and directed recovery via sale of assets.

What did the court decide?

Recovery of Rs.37,89,304/- with interest allowed; recovery certificate issued; respondents directed to appear for distribution of sale proceeds.

Central Bank of India versus M/S Santosh Box Industries — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1199/2022

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Date of Institution: 07.06.2022 Date of Decision: 11.02.2026

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Central Bank of India having its branches all over India and a branch at Parwanoo, Himachal Pradesh.

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……..Applicant

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Vs.

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M/s Santosh Box Industries, through its sole proprietor, Sh. Shyam Lal, r/o Rakwa 216 Plot No. HIG8, Sector-5, Parwanoo, Himachal Pradesh.

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Sh. Shyam Lal, proprietor of M/s Santosh Box Industries Parwanoo, r/o Rakwa 216 Plot No. HIG8, Sector-5, Parwanoo, Himachal Pradesh.

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……….Defendants

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Advocates

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Mr. Jitesh Verma proxy counsel for Sh. D.P. Garg, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 20.08.2024 .

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OA for the Recovery of Rs.37,89,304/- with interest @11.25% per annum with half-yearly rests from 07.06.2022.

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ORDER

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Central Bank of India has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.37,89,304/- with interest against M/s Santosh Box Industries and another (defendants).

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Bank’s case is that on 10.02.2012, it had granted a loan of Rs.10.00 Lacs to defendant No.1 through its proprietor i.e. defendant No.2 in the form of Demand C.C Limit for Business purpose. The above mentioned C.C. Limit was enhanced from time to time and lastly on 05.02.2021, at Rs.26.00 Lacs. On 05.06.2020, as per the scheme announced by the Govt. of India for MSME units, a loan of Rs.5.00 Lacs was granted to the defendants. Again on 28.05.2020, as per the scheme

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announced by the Govt. of India for MSME units, a loan of Rs.2.60 Lacs was sanctioned as Term Loan to the defendants. On 05.12.2020, another Term Loan of Rs.1,36,212/- under F.I.T.L. Scheme was granted to the defendants. To secure the loans, Defendant No.1 had hypothecated assets (fully detailed in para No.3A of the application). The loans were chargeable to different rates of interest. On 12.05.2022, a sum of Rs.37,89,304/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 07.07.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 20.08.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Narender Jaggi, Chief Manager along with the loan and security documents and marked them as Exhibit A-1 to A-32. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan under various schemes and on 12.05.2022, a sum of Rs.37,89,304/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.37,89,304/- (Rupees Thirty Seven Lacs Eighty Nine Thousand Three Hundred Four Only) with interest @11.25% per annum with monthly rests from 07.06.2022, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 20.03.2026, who is directed to distribute the sale proceeds of the hypothecated assets as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 11.02.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Central Bank of India v. M/S Santosh Box Industries

Case brief

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Central Bank of India v. M/S Santosh Box Industries

Case brief

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