Allowed

Indian Bank (Allahabad Bank) v. M/S. Jerath Cosmetology LLP

DRT29 Apr 2026OA/186/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh allowed an application filed by Indian Bank under Section 19 of the RDB Act for recovery of ₹1.55 crore and interest against M/s. Jerath Cosmetology LLP and partners. The bank established the loan advance and due amount via evidence. The Tribunal granted a recovery certificate and directed the sale of hypothecated assets. The proceedings were ex parte as def

What did the court decide?

Recovery of ₹1,55,38,632/- with interest at 13.90% p.a. from 01.02.2025 granted; Recovery Certificate issued; direction to recover from sale of hypothecated assets and personal property.

Indian Bank (Allahabad Bank) versus M/S. Jerath… — Contract and Commercial Disputes | 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: 186/2025 Date of Institution: 29.01.2025 Date of Decision: 29.04.2026

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Indian Bank (erstwhile Allahabad Bank) having its branches all over India and a branch at Govind Nagar, Sultanwind Road, Distt. Amritsar, Punjab.

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……..Applicant

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Vs.

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M/s. Jerath Cosmetology LLP is a partnership Firm, situated at Plot No.6, Sharda Building Diamond Avenue, Amritsar. Through its partners Dr. Prashant Jerath and Dr. Rita Jerath. Reg. Address: - 14, Link Road, Model Town, Jalandhar, Punjab.

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Dr. Prashant Jerath s/o Sh. Vinod Parkash Jerath, partner r/o H. No. 299/300, Eldeco Greens, Jalandhar l, Jalandhar City, Punjab.

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Dr. Rita Jerath w/o Sh. Vinod Parkash Jerath, Partner, r/o. H.No. 299/300, Eldeco Greens, Jalandhar l, Jalandhar City, Punjab.

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……….Defendants

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Advocates

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Ms. Lovedeep Kaur proxy counsel for Ms. Puja Sharma, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 29.09.2025 .

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OA for the Recovery of ₹1,55,38,632/- with interest @13.90% per annum with monthly rests from 29.01.2025.

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ORDER

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Indian Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹1,55,38,632/- with interest against M/s. Jerath Cosmetology LLP and others (defendants).

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Bank’s case is that on 31.10.2022, it had granted a loan of ₹290.00 Lacs to defendant No.1 through its partners i.e. defendant Nos.2

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and 3 in the form of Term Loan under MSME Scheme for Business purpose. To secure the loan, defendant No.1 had hypothecated assets (fully detailed in para No.3A of the application). The loan was chargeable to interest @13.90% per annum with monthly rests. On 24.01.2025, a sum of ₹1,55,38,632/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 06.02.2025, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 29.09.2025, 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. Harpreet Singh, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-12.

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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 of ₹290.00 Lacs and on 24.01.2025, a sum of ₹1,55,38,632/- was due.

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Accordingly, the application of the bank for the recovery of ₹1,55,38,632/- (Rupees One Crore Fifty Five Lacs Thirty Eight Thousand Six Hundred Thirty Two Only) with interest @13.90% per annum with monthly rests from 29.01.2025, till the date of payment is hereby allowed with costs. The liability of all 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.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 03.06.2026, 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: 29.04.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Indian Bank (Allahabad Bank) v. M/S. Jerath Cosmetology LLP

Case brief

What is this about?

What did the court decide?

Indian Bank (Allahabad Bank) v. M/S. Jerath Cosmetology LLP

Case brief

What is this about?

What did the court decide?

What the court decided

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