Allowed

Bank of India v. Ms Om Enterprises

DRT19 Jan 2026OA/1607/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Bank of India to recover Rs. 28,76,519.51 from M/s Om Enterprises and Shri Ram Narayan Yadav. The court held the defendants jointly and severally liable and issued a recovery certificate.

What did the court decide?

Declaration of joint and several liability to pay Rs. 28,76,519.51 with interest; issuance of recovery certificate for enforcement against assets.

Bank of India versus Ms Om Enterprises — Contract and Commercial Disputes | DRT (2026)

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“ORIGINALAPPLICATION” No. 1607 OF 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1607 OF 2024

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DATE OF DELIVERY OF ORDER 19.01.2026

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BANK OF INDIA, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at C-5, Star House, G- Block, Bandra Kurla Complex, Bandra (East) , Mumbai - 400051 and having its Branch Office at New Sanganer Road, Jaipur ( Raj).

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…..Applicant Bank…..

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VERSUS

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1. M/S Om Enterprises , Through Proprietor Shri Ram Narayan Yadav, G-4 A, Badharana Road No. 14, VKIA, Area. Jaipur 302013.

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2. Shri Ram Narayan Yadav , G-4 A, Badharana Road No. 14, VKIA, Area. Jaipur 302013 .

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……Defendants…..

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Counsel for the Applicant Bank Sh. Ratnesh Sharma Defendants Ex parte

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Order signed and uploaded on 20.01.2026.

OA No. 1607 OF 2024

JUDGMENT

This Original Application was filed by the applicant bank on 09.10.2024 for recovery of outstanding amount of Rs. 28,76,519.51/- from the Defendants.

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As per the pleadings, Defendant No. 1 is the proprietorship firm and Defendant No. 2 is the proprietor of the Defendant No. 1, being impleaded in the capacity as Borrower, had approached the applicant bank for availing Cash Credit loan facility of Rs. 15 Lac for working capital requirement in business. After due consideration, cash credit facility was sanctioned by the Applicant Bank in favour of Defendants in the year 2015 vide sanction letter dated 21.02.2015 for a total sum of Rs. 15 Lac.

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It is submitted that the Defendants accepted the said sanction letter duly signed thereon and accordingly the said offer was duly accepted by the Defendants with regard to the Cash Credit Loan facility of Rs. 15,00,000/- on the terms and conditions contained in the Letter of Sanction.

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It is submitted that the defendants vide application dated 05.11.2015 requested to Applicant for enhancement of Cash Credit Limit for Rs.25.00 Lac and Term Loan for Rs.9.80 Lac aggregating to Rs 34.80 Lacs and keeping in view business needs the Applicant vide sanction letter dated 07 .11.2015 sanction Cash Credit Limit for Rs.25.00 Lakhs enhancing existing limit of Rs.15.00 Lac and sanctioned Term Loan for Rs.9.80 Lac.

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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It is submitted that Applicant further at the request application dated 23.06.2020 and business turnover of the Defendants and keeping in view business needs sanctioned a separate Star GECL Term Loan for Rs.5.00 Lac in addition to the existing Cash Credit Limit of Rs.25.00 Lakhs and Term Loan.

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The Applicant Bank submits that the Defendants have availed the aforesaid Loan facility and further failed to maintain financial discipline. The Applicant Bank submits that the Defendants did not comply with the terms and conditions of the Sanction Letters, and loan documents and as per the Terms & Condition, the loan amount should be paid in the accordance with the terms of the sanction and that the non-payment of amount outstanding attracts penal charges and also makes the Loan facility account irregular. The Applicant Bank further submits that the interest is to be serviced on its due dates as and when it becomes due and the Defendants have availed the Loan and utilized and continued to enjoy the above facility. The Applicant Bank further submits that the interest should be paid regularly on monthly basis while making transactions of credits and debits in the Home Loan Account and that the non-payment of interest attracts penal charges and also makes the Loan facilities account irregular. The said facts are clearly mentioned in the terms and conditions which are accepted and executed by the Defendants and are well aware about the same. At the time of availing the Loan facilities the Defendants were fully aware of rate of interest, tenure of the

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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Loan facility along with the other details as the same were clearly explained to them. Based on the same, the necessary documents were executed by the Defendants. In terms of the loan agreement, Defendants had agreed to make timely & regular repayment of Cash Credit and Term Loan facility which was the essence of the contract. At the time of availing the loan, Defendants were also informed that in case of default to pay the outstanding amount on the due dates, charges will be levied and Bank may exercise their right to enforce the security interest on the secured assets charged to the Bank as per law.

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The Applicant Bank submits that the Defendants have failed to regularize the account despite frequent request and failed and neglected to repay the amount due to the Applicant Bank in Home Loan account despite the serving of the Demand Notices. Consequently, the account of the Defendants were classified as NPA on 20.04.2024.

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It is submitted that Applicant Bank finally issued a legal Notice dated 21.09.2024 to the Defendants demanding for payment of outstanding amount of Rs 28,76,519.51/- due and payable as on 30.09.2024 along with further interest and charges due and payable thereon in the said loan accounts within 7 days. That the Applicant Bank states that the said notices were dispatched to the Defendants on recorded addresses by speed post and the same have been returned on 26.09.2024 with postal remarks "No such Person” while the defendants are very much residing at the address as mentioned.

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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Summons were issued to the Defendants on 17.12.2024. Counsel for the Applicant Bank filed proof of dasti along with affidavit in support of service dated 24.03.2025. Despite service none appeared on behalf of the Defendants, therefore their right to file reply was closed and proceeded ex-parte vide order dated 24.03.2024.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit of Shri Vishnu Kumar Goyal coupled with the recitals in the documents, viz Exhibit A/1 to A/35 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 1607 OF 2024 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 28,76,519.51/- (Rupees Twenty Eight Lac Seventy Six Thousand Five Hundred Nineteen and Fifty One Paisa Only) with pendente lite and future interest @ 10% (simple) from 01.10.2024 till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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13.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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14.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 26.02.2026 .

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15.Prepare Recovery Certificate accordingly.

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16.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 19.01.2026 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1607 OF 2024

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DATE OF DELIVERY OF ORDER 19.01.2026

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

1. M/S Om Enterprises , Through Proprietor Shri Ram Narayan Yadav, G-4 A, Badharana Road No. 14, VKIA, Area. Jaipur 302013.

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2. Shri Ram Narayan Yadav , G-4 A, Badharana Road No. 14, VKIA, Area. Jaipur 302013 .

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……Defendants…..

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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Recovery Certificate for Rs. 28,76,519.51/-

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In terms of final order dated 19.01.2026 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 28,76,519.51/- (Rupees Twenty Eight Lac Seventy Six Thousand Five Hundred Nineteen and Fifty One Paisa Only) with pendente lite and future interest @ 10% (simple) from 01.10.2024 till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A. Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 26.02.2026 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 19.01.2026 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1607 OF 2024

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DATE OF DELIVERY OF ORDER 19.01.2026

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/S Om Enterprises , Through Proprietor Shri Ram Narayan Yadav, G-4 A, Badharana Road No. 14, VKIA, Area. Jaipur 302013.

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2. Shri Ram Narayan Yadav , G-4 A, Badharana Road No. 14, VKIA, Area. Jaipur 302013 .

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……Defendants…..

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Order signed and uploaded on 20.01.2026.

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OA No. 1607 OF 2024

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	31,000.00
2	Process Fee (Inc. Publication)	59.00
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	32,309.00

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed and uploaded on 20.01.2026.

OA No. 1607 OF 2024

19.01.2026

Counsel:

Sh. Ratnesh Sharma, Counsel for Applicant Bank Defendants are ex-parte

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed and uploaded on 20.01.2026.

OA No. 1607 OF 2024

19.01.2026

Counsel:

Sh. Ratnesh Sharma, Counsel for Applicant Bank Defendants are ex-parte

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The Tribunal vide order dated 19.01.2026 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 19.01.2026 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed and uploaded on 20.01.2026.

Bank of India v. Ms Om Enterprises

Case brief

What is this about?

What did the court decide?

Bank of India v. Ms Om Enterprises

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

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