Allowed

Equitas Small Finance Bank Limited v. Mithlesh Kumar Yadav

DRT12 May 2026OA/1783/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's original application for recovery of outstanding dues of Rs. 34,92,808.48 from borrowers who defaulted on a vehicle loan and failed to appear in court.

What did the court decide?

Direction to pay Rs. 34,92,808.48 with 10% interest; entitlement to recover from sale of hypothecated vehicle and other assets; issuance of Recovery Certificate.

Equitas Small Finance Bank Limited versus Mithlesh… — Contract and Commercial Disputes | DRT (2026)

¶1

“ORIGINAL APPLICATION” No. 1783 OF 2025

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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. 1783 OF 2025

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DATE OF DELIVERY OF ORDER 12.05.2026

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EQUITAS SMALL FINANCE BANK LIMITED, Registered Office At: 4th Floor, Phase II, Spencer Plaza No. 769, Mount Road, Anna Salai, Chennai - 600002 And Branch Office At: Plot No. 87, 2nd Floor, Tegor Nagar, Near Asopa Hospital, Dcm, Ajmer Road, Jaipur, 302001 Rajasthan. Through Authorized Signatory Miss. Huma Khanam.

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…..Applicant Bank…..

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VERSUS

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1. Mithlesh Kumar Yadav S/o Om Prakash Yadav, R/o - 101, Mukhya Gaon Sujatnagar Kotputli, Jaipur, Rajasthan303107.

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2. Muneshi Devi Yadav W/o Mithlesh Kumar Yadav, R/oVillage Sujatnagar, Kotputli, Jaipur, Rajasthan- 303107.

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……Defendants…..

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Counsel for the Applicant Bank Sh. Avinash Kumbhaj Defendants None

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JUDGMENT

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This Original Application was filed by the applicant bank on 16.10.2025 for recovery of outstanding amount of Rs. 34,92,808.48/- from the Defendants.

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Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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As per the pleadings, Defendant No. 1 in the capacity of Applicant and Defendant no. 2 in the capacity of coapplicant had approached the applicant bank for availing credit facilities in the form of loan of the vehicle along with the trolley of the vehicle for the purpose of business improvement. After due consideration, the said credit facility was sanctioned by the Applicant Bank in favour of Defendants in the year 2022 vide loan agreement dated 30.09.2022 for a total sum of Rs. 24,50,000/-.

¶20

It is submitted that it was specifically agreed between the parties that the vehicle that was financed by the applicant shall be hypothecated in favor of the applicant bank and the applicant shall enjoy first and exclusive charge upon the vehicle in question till the full repayment of the loan amount.

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It is submitted that it is pertinent to mentioned here that the upon default committed by the Defendants in repayment of the said loan, the Applicant Bank was also initiated the Arbitration Proceedings in accordance with the terms and conditions of the loan agreement. The Learned Sole Arbitrator, after due consideration, was pleased to pass an Award in favour of the Applicant Bank. However, despite the passing of the Award, the Respondent(s) have failed and neglected to discharge their liability, hence the present Original Application is being filed for recovery of the outstanding dues.

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It is submitted that due to the default committed by the defendants, applicant bank sent loan recall notice to the

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Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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defendants on 17.09.2025 to pay the dues of applicant bank. Copy of recall notice dated 17.09.2025 sent to defendants along with postal receipts are annexed herewith. It is submitted that despite receipt of the said notice defendants didn't make payment to applicant bank and thus applicant bank is entitled to claim the amount due to defendants.

¶27

It is submitted that despite receipt of the said notice defendants didn't make payment to applicant bank and thus applicant bank is entitled to claim the amount due to defendants.

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It is submitted that the amount of claim under the present Original Application has been availed and utilized by the defendants, which was admitted by the defendants by executing various loan and security documents, Law of Limitation does not bar any part of the claim made by the applicant bank in the present original application as the Original Application has been filed within the prescribed period of limitation as per the provisions of law .

¶29

It is submitted that for filing the present original application, cause of action arose when the defendants executed the various security documents in favour of the applicant bank on 30.09.2022 and arise again when defendant failed to repay the loan amount to the applicant Bank. Consequently, on being failed to maintain the financial discipline, applicant Bank served the Loan recall notice on 17.09.2025, in view of the fact that defendant still not repaid the dues. Cause of action has been arising continuously ever since and will

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Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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continue so till realization of the entire dues from defendants along with all interest, costs and charges etc.

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Defendants failed to maintain financial discipline and therefore, their loan account was classified as NPA. Applicant Bank has therefore, filed this original application for recovery of its dues against the Defendants.

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Summons were issued to the Defendants on 18.11.2025 and re-issued on 16.12.2025 through court commissioner Ms. Aditi Swami. The court commissioner filed her report dated 27.01.2026 and she narrated that Mr. Mithilesh Kumar Yadav misbehaved and also threatened her. However, the notice was received by wife of defendant no. 1 but she did not sign the same. Despite service none appeared on behalf of the Defendants.

¶36

Heard arguments and perused the record.

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The Applicant Bank is directed to lodge an FIR against the Defendants for misbehaving with the Court Commissioner during the service of summons.

¶38

As stated supra, the Applicant Bank filed the evidence affidavit of Ms Huma Khanam coupled with the recitals in the documents, viz Exhibit A/1 to A/6 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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Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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In the result, this O.A. No. 1783 OF 2025 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. 34,92,808.48/- (Rupees Thirty Four Lac Ninety Two Thousand Eight Hundred Eight and Forty Eight Paisa Only) with pendente lite and future interest @ 10% (simple) from the date of filing of this OA 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/ commercial vehicle :-

¶45

Loan Account	Product	Model No.	Reg.	Engine	Chassis
No.	Code		No.	No.	No.
70000 6245562	Commercial	TATALPTI5 12	HR55	38SGJ81	MAT56
	Vehicle		AM92	GXX814	3056N5
			29	193	H11437

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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.

¶48

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

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Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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16.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 29.06.2026 .

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17.Prepare Recovery Certificate accordingly.

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18.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. 12.05.2026 .

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

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Order signed & uploaded on 14.05.2026.

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¶60

OA No. 1783 OF 2025

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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. 1783 OF 2025

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DATE OF DELIVERY OF ORDER 12.05.2026

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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. Mithlesh Kumar Yadav S/o Om Prakash Yadav, R/o - 101, Mukhya Gaon Sujatnagar Kotputli, Jaipur, Rajasthan303107.

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2. Muneshi Devi Yadav W/o Mithlesh Kumar Yadav, R/oVillage Sujatnagar, Kotputli, Jaipur, Rajasthan- 303107.

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……Defendants…..

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Recovery Certificate for Rs. 34,92,808.48/-

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In terms of final order dated 12.05.2026 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. 34,92,808.48/- (Rupees

¶76

Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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Thirty Four Lac Ninety Two Thousand Eight Hundred Eight and Forty Eight Paisa Only) with pendente lite and future interest @ 10% (simple) from the date of filing of this OA 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/ commercial vehicle :-

¶81

Loan Account	Product	Model No.	Reg.	Engine	Chassis
No.	Code		No.	No.	No.
70000 6245562	Commercial	TATALPTI5 12	HR55	38SGJ81	MAT56
	Vehicle		AM92	GXX814	3056N5
			29	193	H11437

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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.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 29.06.2026 .

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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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Order signed & uploaded on 14.05.2026.

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OA No. 1783 OF 2025

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This Certificate has been issued under my signatures and seal of the Tribunal on this 12.05.2026 .

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

¶91

Order signed & uploaded on 14.05.2026.

¶92

¶93

OA No. 1783 OF 2025

¶94

BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

¶95

PRESENT- SHRI VIMAL GUPTA

¶96

PRESIDING OFFICER

¶97

O.A. NO. 1783 OF 2025

¶98

DATE OF DELIVERY OF ORDER 12.05.2026

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. Mithlesh Kumar Yadav S/o Om Prakash Yadav, R/o - 101, Mukhya Gaon Sujatnagar Kotputli, Jaipur, Rajasthan303107.

¶105

2. Muneshi Devi Yadav W/o Mithlesh Kumar Yadav, R/oVillage Sujatnagar, Kotputli, Jaipur, Rajasthan- 303107.

¶106

……Defendants…..

¶107

Order signed & uploaded on 14.05.2026.

¶108

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OA No. 1783 OF 2025

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	37,000.00
2	Process Fee (Inc. Publication)	NIL
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	10,000.00
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	48,250.00

¶111

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

¶112

Order signed & uploaded on 14.05.2026.

OA No. 1783 OF 2025

12.05.2026

Counsel:

Sh. Avinash Kumbhaj, Counsel for Applicant Bank None for the Defendants

¶118

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 22(1) of Debts Recovery Tribunal Regulation 2024 and after verification place the same before the Tribunal.

¶119

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

¶120

Order signed & uploaded on 14.05.2026.

OA No. 1783 OF 2025

12.05.2026

Counsel:

Sh. Avinash Kumbhaj, Counsel for Applicant Bank None for the Defendants

¶126

The Tribunal vide order dated 12.05.2026 , directed the Registrar to verify the Recovery Certificate as per Regulation 22(1) of Debts Recovery Tribunal Regulation 2024.

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The Registrar vide order dated 12.05.2026 verified the Recovery Certificate as per Regulation 22(1) of Debts Recovery Tribunal Regulation 2024. 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.

¶128

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

¶129

Order signed & uploaded on 14.05.2026.

Equitas Small Finance Bank Limited v. Mithlesh Kumar Yadav

Case brief

What is this about?

What did the court decide?

Equitas Small Finance Bank Limited v. Mithlesh Kumar Yadav

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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