Allowed

Edelweiss Asset Reconstruction Company Limited v. M/s S N Arts

DRT29 Apr 2026OA/20/2025

Case brief

AI extract

What is this about?

This case involves a recovery application filed by Edelweiss Asset Reconstruction Company Limited against three respondents for an outstanding loan amount. The Tribunal allowed the application ex-parte, declaring the respondents liable to pay the debt with interest and empowered the bank to recover the amount from mortgaged and personal assets.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 3,22,42,237.89 with interest; Recovery Certificate issued from mortgaged and personal assets; Costs awarded.

Edelweiss Asset Reconstruction Company Limited versus M/s S N… — Banking and Recovery | DRT (2026)

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“ORIGINAL APPLICATION” No. 20 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. 20 OF 2025

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DATE OF RESERVE OF ORDER 24.03.2026

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DATE OF DELIVERY OF ORDER 29.04.2026

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Edelweiss Asset Reconstruction Company Limited having its registered office at Edelweiss House Off C.S.T. Road, Kalina, Mumbai - 400098 and one of its Branch Office at lncuspaze, A- 68, Sector-64, Noida, U.P. - 201301, India through its Authorized Signatory Mr. V. K. Tiwari.

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…..Applicant Bank…..

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VERSUS

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1. M/s S N Arts through Its Proprietor Mrs. Shikha Naval Jagetiya W/o Mr. Naval Kishore Jagetiya, Resident of 2nd Floor, Sajjan Complex, Aazad Chowk, Bhilwara - 311001, Rajasthan.

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2. Mrs. Shikha Naval Jagetiya W/o Mr. Naval Kishore Jagetiya, Resident of Sajjan Bhawan, Aazad Chowk, Bhilwara - 311001, Rajasthan.

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3. Mr. Naval Kishore Jagetiya S/o Sh. Mool Chand Jagetiya, Resident of Opposite Shani Mandir, Pur Road, Aazad Nagar, Bhilwara – 311001, Rajasthan .

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……Defendants…..

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

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Ex parte

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Order signed & uploaded on 29.04.2026.

OA No. 20 of 2025

JUDGMENT

This Original Application was filed by the applicant bank on 11.11.2024 for recovery of outstanding amount of Rs. 3,22,42,237.89/- from the Defendants.

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As per the pleadings, the Defendants in the capacity of borrower/co-borrower/ mortgagor had approached Original Lender in the year 2016, had applied for seeking credit facility in the form of loan against property.

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After due consideration, the said loan facility was sanctioned by the Applicant Bank in favour of Defendants in the year 2016 vide sanction letter dated 30.07.2016 for a sum of Rs. 1,20,52,487/-.

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It is submitted that in the year 2018 the defendants again approached the original lender for availing credit facility in the form of loan against property. As per the request made by the defendants, the applicant bank sanction credit facility to the defendants vide sanction letter dated 31.01.2018 for a sum of Rs. 50,00,000/- vide loan agreement dated 31.01.2018.

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It is submitted that, in addition to this in the year 2019, the defendants once again approached the Original Lender for availing credit facility in the form of loan against property. That in pursuance of the same the Original Lender sanctioned loan against property facility to the defendants vide sanction letter dated 29.03.2019 for a sum of Rs.

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Order signed & uploaded on 29.04.2026.

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OA No. 20 of 2025

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14,80,000/- under the loan account bearing no. RUB00152N and for a sum of Rs. 20,70,000/- under the loan account bearing no. RUB00153N and agreement for the facilities were executed on 29.03.2019 between the original lender and defendants.

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It is submitted that in addition to aforesaid facilities the Defendants had also approached the Original Lender for availing working capital/term loan under the ECLGS. After due consideration, loan agreement was executed for the same on 30.07.2020 and sanctioned a loan amount of Rs. 25,00,000/-.

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It is submitted that in the meanwhile, Original Lender has unconditionally and irrevocably assigned, transferred and sold the said loan account in favor of the Applicant herein vide deed of assignment dated 29.12.2021 wherein all its rights, liabilities title, security interest, claims and dues receivable under the loan agreement and all other transactional documents relating thereto was that of the Applicant wherein the Applicant became the absolute owner thereof and entitled to recover the dues and arrears under the agreement.

¶31

Defendants failed to maintain financial discipline and therefore, their loan account was classified as NPA on 05.01.2021. 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 07.01.2025. Dasti summons through court commissioner was served and

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Order signed & uploaded on 29.04.2026.

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OA No. 20 of 2025

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report was filed on 12.04.2025. Despite service none were appeared on behalf of the Defendants, therefore, they were proceeded ex-parte vide order dated 23.07.2025.

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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 V. K. Tiwari coupled with the recitals in the documents, viz Exhibit Aw/1 to Aw/27 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.

¶39

In the result, this O.A. No. 20 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. 3,22,42,237.89/(Rupees Three Crore Twenty Two Lac Forty Two Thousand Two Hundred Thirty Seven and Eighty Nine Paisa Only) with pendente lite and future interest @ 10% (simple) from 19.10.2024 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 mortgaged property – all that part and parcel of freehold and Commercial Property (Second Floor and above upto the Sky) Part of Plot No. 2 Situated at Sajjan Complex, Azad Chowk, Bhopal Ganj,

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Order signed & uploaded on 29.04.2026.

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OA No. 20 of 2025

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Bhilwara Rajasthan - 311001 Admeasuring 1140 Sq. Ft. in the name of Defendant no. 2 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.

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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 01.06.2026 .

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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. 29.04.2026 .

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

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Order signed & uploaded on 29.04.2026.

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OA No. 20 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. 20 OF 2025

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DATE OF RESERVE OF ORDER 24.03.2026 DATE OF DELIVERY OF ORDER 29.04.2026

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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 S N Arts through Its Proprietor Mrs. Shikha Naval Jagetiya W/o Mr. Naval Kishore Jagetiya, Resident of 2nd Floor, Sajjan Complex, Aazad Chowk, Bhilwara - 311001, Rajasthan.

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2. Mrs. Shikha Naval Jagetiya W/o Mr. Naval Kishore Jagetiya, Resident of Sajjan Bhawan, Aazad Chowk, Bhilwara - 311001, Rajasthan.

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3. Mr. Naval Kishore Jagetiya S/o Sh. Mool Chand Jagetiya, Resident of Opposite Shani Mandir, Pur Road, Aazad Nagar, Bhilwara – 311001, Rajasthan .

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……Defendants…..

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Order signed & uploaded on 29.04.2026.

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OA No. 20 of 2025

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Recovery Certificate for Rs. 3,22,42,237.89/-

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In terms of final order dated 29.04.2026 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. 3,22,42,237.89/(Rupees Three Crore Twenty Two Lac Forty Two Thousand Two Hundred Thirty Seven and Eighty Nine Paisa Only) with pendente lite and future interest @ 10% (simple) from 19.10.2024 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 mortgaged property – all that part and parcel of freehold and Commercial Property (Second Floor and above upto the Sky) Part of Plot No. 2 Situated at Sajjan Complex, Azad Chowk, Bhopal Ganj, Bhilwara Rajasthan - 311001 Admeasuring 1140 Sq. Ft. in the name of Defendant no. 2 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.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 01.06.2026 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25

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Order signed & uploaded on 29.04.2026.

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OA No. 20 of 2025

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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 29.04.2026 .

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

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Order signed & uploaded on 29.04.2026.

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¶89

OA No. 20 of 2025

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

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PRESIDING OFFICER

¶92

O.A. NO. 20 OF 2025

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DATE OF RESERVE OF ORDER 24.03.2026

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DATE OF DELIVERY OF ORDER 29.04.2026

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/s S N Arts through Its Proprietor Mrs. Shikha Naval Jagetiya W/o Mr. Naval Kishore Jagetiya, Resident of 2nd Floor, Sajjan Complex, Aazad Chowk, Bhilwara - 311001, Rajasthan.

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2. Mrs. Shikha Naval Jagetiya W/o Mr. Naval Kishore Jagetiya, Resident of Sajjan Bhawan, Aazad Chowk, Bhilwara - 311001, Rajasthan.

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3. Mr. Naval Kishore Jagetiya S/o Sh. Mool Chand Jagetiya, Resident of Opposite Shani Mandir, Pur Road, Aazad Nagar, Bhilwara – 311001, Rajasthan .

¶103

……Defendants…..

¶104

Order signed & uploaded on 29.04.2026.

¶105

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OA No. 20 of 2025

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S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	1,50,000.00
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	1,61,250.00

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

¶109

Order signed & uploaded on 29.04.2026.

OA No. 20 of 2025

29.04.2026

Counsel:

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

¶116

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

¶117

Order signed & uploaded on 29.04.2026.

OA No. 20 of 2025

29.04.2026

Counsel:

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

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The Tribunal vide order dated 29.04.2026 , 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 29.04.2026 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.

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

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Order signed & uploaded on 29.04.2026.

Edelweiss Asset Reconstruction Company Limited v. M/s S N Arts

Case brief

What is this about?

What did the court decide?

Edelweiss Asset Reconstruction Company Limited v. M/s S N Arts

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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Case details

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