Debts Recovery Tribunal allowed an Original Application filed by Indian Bank against M/s Vijay Fabrics for recovery of Rs. 53,04,532.00. The Tribunal directed issue of a Recovery Certificate and liability for simple interest at 8% p.a.
Recovery Certificate issued. Defendants liable to pay Rs. 53,04,532.00 with simple interest @08% p.a. and costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1334/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 18.09.2025
DATE OF DECISION: 23.03.2026
Indian Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970, having its Head Office at 254-260, Avvai Shanmugan Salai, Royapettah, Chennai, having its Zonal Office at Ludhiana and amongst other places a branch at Vardhman Branch, District Ludhiana, Punjab through its authorized officer Sh. Amit Bansal, Senior Manager, Indian Bank, Vardhaman Branch, District Ludhiana, Punjab.
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Ms. Manjari Joshi, Advocate for the applicant None for Defendants.
FINAL ORDER
2 OA /1334/2025 INDIAN BANK VS. M/S VIJAY FABRICS AND ANOTHER
Application vide the letter of authorization dated 01.07.2025 which is Annexure 1 to this OA.
Documents executed : Letter of acknowledging terms and conditions dated 11.09.2023, which is Annexure A4 to this OA; Single/Joint Demand Promissory Note dated 11.09.2023, which is Annexure A5 to this OA; Annexure to loan document dated 11.09.2023, which is Annexure A6 to this OA; Agreement for Open Cash Credit dated 11.09.2023, which is Annexure A7 to this OA; Registration of Security Interest Acknowledgement Report (CERSAI) dated 12.10.2023, which is Annexure A9 to this OA; Statement of Account with certificate, which is Annexure A10 to this OA; Demand note dated 20.06.2025, which is Annexure A11 to this OA.
3 OA /1334/2025 INDIAN BANK VS. M/S VIJAY FABRICS AND ANOTHER
defendants was directed to file the Power of Attorney before the next date of hearing. But no one appeared on behalf of defendants thereafter. No WS was filed by defendants, hence opportunity to file WS by the defendants was closed and defense was struck off vide order dated 10.02.2026.
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 hypothecation assets, undertaking of the defendants, quantum of loan and prevalent market rates of
4 OA /1334/2025 INDIAN BANK VS. M/S VIJAY FABRICS AND ANOTHER
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 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 defendant is liable to pay to the applicant a total sum of Rs.53,04,532.00 (Rupees Fifty Three Lacs Four Thousand Five Hundred and Thirty Two only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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.
Pronounced by me in the open Tribunal .
Dated: 23.03.2026.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant is entitled to recovery of the admitted debt amount with interest.
2 provisions across 2 enactments
INDIAN BANK
M/s VIJAY FABRICS
Smt. SUNITA RANI
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
