Allowed

Bank of India v. M/S Lehal Fridge and Tv Centre and Others

DRT12 Jun 2026OA/309/2026

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal admitted an original application filed by the Bank of India against the proprietor of a TV centre and three guarantors for recovery of a loan debt of over Rs. 91 lacs. The respondents were absent, and the application was decided ex parte.

What did the court decide?

Recovery of Rs. 91,07,500.62 plus costs and simple interest @ 8% p.a. from date of filing until realization, enforced via Recovery Certificate.

Bank of India versus M/S Lehal Fridge and Tv Centre and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 309/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.02.2026

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DATE OF DECISION: 12.06.2026

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Bank Of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. V of 1970, having its Head office at “Star House” C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office, amongst other places, at Machhiwara, District Ludhiana and Asset Recovery Branch, at Zonal Office, Surya Kiran Complex, Civil Lines, Ludhiana (Punjab) through its duly Constituted Attorney, Sh. Inder Jeet, Chief Manager.

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……..Applicant

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Versus

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M/s Lehal Fridge and TV Centre situated at Sunder Market, Gurudwara Shri Charan Kanwal Road, Machhiwara Tehsil Samrala, Distt. Ludhiana through its Proprietor Sh. Sanjeev Lehal @ Sanjeev Kumar Lehal S/o Late Sh. Ram Chand

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Sh. Sanjeev Lehal @ Sanjeev Kumar Lehal S/o Late Sh. Ram Chand R/o Sunder Market, Gurudwara Shri Charan Kanwal Road, Machhiwara Tehsil Samrala, Distt. Ludhiana

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Sh. Jatinder Kumar Lehal @ Jatinder Lehal S/o Sh. Ram Chand R/o #3135, Sundar Nagar, Machhiwara, Tehsil Samrala, Distt. Ludhiana.

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Alternative Address: Sunder Market, Gurudwara Shri Charan Kanwal Road, Ward no. 7, H.no. 1701, Machhiwara, Tehsil Samrala, Distt. Ludhiana

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Sh. Ashok Kumar Lehal @ Ashok Lehal S/o Sh. Ram Chand R/o #1701, Shri Charan Kawal Road, Machhiwara, Tehsil Samrala, Distt. Ludhiana.

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2 OA/ 309/2026 BANK OF INDIA VS M/S LEHAL FRIDGE AND TV CENTRE AND OTHERS

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Smt. Anita Rani W/o Sh. Sanjeev Kumar Lehal R/o Sunder Market, Gurudwara Shri Charan Kanwal Road, Machhiwara, Tehsil Samrala, Distt. Ludhiana.

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Alternative Address: H. no. 1106, Near Cambridge Model School, Street Opposite to Ram Sons Glass House Machhiwara, Tehsil Samrala, Distt. Ludhiana.

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.……Defendants

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Advocates:

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Argued by Sh. Arpit Chawla, Advocate proxy for Ms. Puja Sharma, Advocate for applicant None for Defendants (already ex parte vide order dated 10.06.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.91,07,500.62 (Rupees Ninety One Lacs Seven Thousand Five Hundred and Paise Sixty Two Only). The Original Application has been filed through Sh. Inder Jeet, Chief Manager , of the applicant , who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2, approached the applicant for CC Limit of Rs. 20.00 lacs vide Loan Application Form dated 18.07.2006, which is Annexure A2 to this OA. Defendant nos. 3 & 4 stood as guarantor.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2, approached the applicant for enhancement of CC Limit from Rs. 20.00 lacs to 30.00 lacs.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2, approached the applicant for enhancement of CC Limit from Rs. 30.00 lacs to 40.00 lacs.

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Thereafter, the defendant no. 1 through its proprietor defendant

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no. 2, approached the applicant for enhancement of CC Limit from Rs.

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3 OA/ 309/2026 BANK OF INDIA VS M/S LEHAL FRIDGE AND TV CENTRE AND OTHERS

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40.00 lacs to 60.00 lacs vide Loan Application Form dated 23.05.2018, which isAnnexure A25to this OA.
Thereafter, the defendant nos. 1 through its proprietor defendant
no. 2, approached the applicant for grant of GECL Loan of 12.00 lacs
vide Application Form for GECL Facility dated 06.08.2020, which is
Annexure A34to this OA.
Defendant nos. 3 to 5 stood as guarantor in both the loans.
3. The applicant sanctioned the CC Limit of Rs. 20.00 lacs vide
Sanction Letter dated 21.07.2006, which isAnnexure A3to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, theapplicant sanctioned the enhancement of CC Limit
from Rs. 20.00 lacs to Rs. 30.00 lacs vide Sanction Letter dated
29.08.2008, which isAnnexure A12-Ato this OA. Thereafter, theapplicant sanctioned the enhancement of CC Limit
from Rs. 30.00 lacs to Rs. 40.00 lacs vide Sanction Letter dated
23.04.2011, which isAnnexure A17to this OA. Thereafter, theapplicant sanctioned the enhancement of CC Limit
from Rs. 40.00 lacs to Rs. 60.00 lacs vide Sanction Letter dated
02.06.2018, which isAnnexure A26to this OA. Thereafter, theapplicant sanctioned the GECL Loan of 12.00 lacs
vide Sanction Letter dated 14.08.2020, which isAnnexure A35to this
OA.
4. Defendant no. 1 through its proprietor defendant no. 2,
hypothecated its stocks and book debts vide Deed of Hypothecation
dated 21.07.2006, which isAnnexure A5to this OA.
Defendants mortgaged their properties as under:
i. Defendant no. 2 mortgaged his commercial property ie. Shop measuring 24 SqYds situated atShop no. B-8/2327, Main Bazar, Ward no. 3, Charan Kamal Road, Machhiwara. vide deposit ofOriginal Title Deed bearing Wasika No. 975 dated
13.01.1998 along with English Translation, which are Annexures A9 and A9-Tto this OA;

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4 OA/ 309/2026 BANK OF INDIA VS M/S LEHAL FRIDGE AND TV CENTRE AND OTHERS

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ii. Defendant no. 2 mortgaged his Residential House measuring 7Marla (211 SqYds) situated at H.No. 2330, Ward no. 3, Main Bazar, Charan Kamal Road, Machhiwara. vide deposit of Original Sale Deed bearing Wasika No. 227 dated 27.05.1997 and Transfer Deed Wasika No. 1855 dated 16.01.2003 along with English Translation, which are Annexure A10 to A11 and A10-T to A11-T to this OA; Transfer Deed Wasika No. 2291 dated 23.01.2013 along with English Translation, which is Annexure A32 & A32-T to this OA. iii. Defendant no. 2 mortgaged his commercial property ie. Shop measuring 24 SqYds situated at Shop no. B-8/2328, Main Bazar, Ward no. 3, Charan Kamal Road, Machhiwara. vide deposit of Original Title Deed bearing Vasika No. 302 dated 15.05.2009 along with English Translation, which are Annexure A23 and A23-T to this OA;

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Documents executed: DP Note dated 21.07.2006, which is Annexure A4 to this OA; Letter of Declaration, Undertaking and Authority dated 21.07.2006, which is Annexure A6 to this OA; Composite Agreement dated 21.07.2006, which is Annexure A7 to this OA; Common Guarantee Deed dated 21.07.2006, which is Annexure A8 to this OA; Depositing the Original Title Deeds on 21.07.2006, which is Annexure A12 to this OA; D.P. Note dated 29.08.2008, which is Annexure A13 to this OA; Deed of Hypothecation dated 29.08.2008, which is Annexure A14 to this OA; Letter of Declaration, Undertaking & Authority dated 29.08.2008, which is Annexure A15 to this OA; Composite Agreement dated 29.08.2008, which is Annexure A16 to this OA; Deed of Guarantee dated 29.08.2008, which is Annexure A16A to this OA; D.P. Note dated 23.04.2011, which is Annexure A18 to this OA; Deed of Hypothecation dated 23.04.2011, which is Annexure A19 to this OA; Letter of Declaration, Undertaking & Authority dated 23.04.2011, which is Annexure A20 to this OA;

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5 OA/ 309/2026 BANK OF INDIA VS M/S LEHAL FRIDGE AND TV CENTRE AND OTHERS

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Composite Agreement dated 23.04.2011, which is Annexure A21 to this OA; Deed of Guarantee dated 23.04.2011, which is Annexure A22 to this OA; Depositing the Original Title Deeds on 23.04.2011, which is Annexure A24 to this OA; D.P. Note dated 05.06.2018, which is Annexure A27 to this OA; Deed of Hypothecation dated 05.06.2018, which is Annexure A28 to this OA; Letter of Declaration, Undertaking & Authority dated 05.06.2018, which is Annexure A29 to this OA; Composite Agreement dated 05.06.2018, which is Annexure A30 to this OA; Deed of Guarantee dated 05.06.2018, which is Annexure A31 to this OA; Depositing the Original Title Deeds dated 05.06.2018, which is Annexure A33 to this OA; Supplemental Loan-cum-Hypothecation Agreement dated 14.08.2020, which is Annexure A36 to this OA; Depositing the Original Title Deeds dated 14.08.2020, which is Annexure A37 to this OA; Acknowledgement of Debt for CC dated 19.07.2006, 30.08.2008, 23.04.2011, 13.03.2014, 23.01.2017, 03.10.2019, 23.11.2021 and 28.02.2023, which is Annexure A38 to this OA; Legal Notice dated 28.03.2023, which is Annexure A39 to this OA; Demand Notice dated 02.09.2023, which is Annexure A40 to this OA; Statement of Account, which are Annexures A41 and A42 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.91,07,500.62 (Rupees Ninety One Lacs Seven Thousand Five Hundred and Paise Sixty Two Only), which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 10.06.2026.

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6 OA/ 309/2026 BANK OF INDIA VS M/S LEHAL FRIDGE AND TV CENTRE AND OTHERS

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In support of the OA, affidavit of Sh. Inder Jeet, Chief Manager, Bank of India, h as been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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From the perusal of all the Annexures A1 to A42 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. Defendant nos. 3 to 5 stood as guarantor. They had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.91,07,500.62 (Rupees Ninety One Lacs Seven Thousand Five Hundred and Paise Sixty Two Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @10.35%p.a. plus penal interest @2.00% p.a. with monthly rests from 11.12.2025 till the realization. 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 hypothecated assets and mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of 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 simple interest @8.00% p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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7 OA/ 309/2026 BANK OF INDIA VS M/S LEHAL FRIDGE AND TV CENTRE AND OTHERS

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.91,07,500.62 (Rupees Ninety One Lacs Seven Thousand Five Hundred and Paise Sixty Two Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in both the loan accounts 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 defendant no.1 and mortgaged property of the defendant no. 2 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 29.06.2026

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 12.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Bank of India v. M/S Lehal Fridge and Tv Centre and Others

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Lehal Fridge and Tv Centre and Others

Case brief

What is this about?

What did the court decide?

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