Allowed

Indian Bank v. Shiksha Knitters and Others

DRT26 May 2026OA/475/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Indian Bank against Shiksha Knitters and guarantors for recovery of Rs. 26,16,884. The court deemed 8% p.a. simple interest appropriate and ordered the issuance of a Recovery Certificate.

What did the court decide?

Granted Rs. 26,16,884.00 with interest @ 8% p.a. from filing; Recovery Certificate issued; directed to enforce against mortgaged or other assets.

Indian Bank versus Shiksha Knitters and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.475/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.03.2025

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DATE OF DECISION: 26.05.2026

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Indian Bank (In which Allahabad Bank stands amalgamated and the name of Allahabad Bank has been changed to Indian Bank pursuant To Government Of India Gazette Notification No. 133 (GSR-156(E) dated 04.03.2020 sanctioning the scheme of amalgamation effective from 01.04.2020) applicant is a Body Corporate duly constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at 254-260, Avvai Shammugam Salai, Royapettah, Chennai - 600014, and having its Branches all over India and amongst other places at H.N 3673, B-31, Chandigarh Road, Jamalpur, Ludhiana - 141010 through its Branch Head and Constituted Attorney Sh. Vikas.

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…….A pplicant

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Versus

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M/s Shiksha Knitters through its partners: Sh. Sudhir Kumar and Sh. Avdhesh Kumar, Street No.5, Surjit Nagar, Near Welfare Senior Secondary School, Giaspura, Ludhiana.

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Sh. Sudhir Kumar S/o Sh. Sham Sundar Lal, R/o # H.No. 157/46-J-2, Street No.1, Ward No. 73, Guru Amar Das Colony, Giaspura, Ludhiana.

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Sh. Avdesh Kumar (Alias Udesh Kumar) S/o Sh. Sham Sundar Lal, R/o # H.No. 157/46-J-2, Street No.1, Ward No. 73, Guru Amar Das Colony, Giaspura, Ludhiana.

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Sh. Sansar Nath S/o Sh. Vittan Lal Katiyar, R/o H.No. 155 Street No. 1 C Luxman Nagar, Mundian Khurd Bahamian Kalan, Ludhiana.

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…….Defendants

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Advocates:

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Argued Ms. Jasleen Kaur, Advocate for the applicant (through VC) None for Defendants (Already ex-parte vide order dated 22.05.2026).

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2 OA/475/2025 INDIAN BANK VS M/S SHIKSHA KNITTERS AND OTHERS

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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.26,16,884.00 (Rupees Twenty Six Lacs Sixteen Thousand Eight Hundred and Eighty Four Only). The Original Application has been filed through Authorized Signatory, Sh. Vikas, who is competent to institute the Original Application vide Authorization Letter dated 24.02.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its partners defendant nos. 2 & 3 approached the applicant for grant of Cash Credit Limit of Rs.15,00,000.00 vide Application Form for Micro, Small and Medium Enterprises dated 12.07.2016, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.15,00,000.00 vide Sanction Letter dated 13.09.2016, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant nos. 2 to 4 stood as guarantors.

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Defendant nos. 2 & 3 mortgaged their Immovable Property i.e. Property/Plot No. H.No. bearing MC No. B-XXXI-206/3/35/9/1А measuring 200 Square Yards as per the jamabandi for the year 200809 situated at Village Giaspura, Hadbast No. 261, locality known as Surjit Nagar, Tehsil and District Ludhiana, vide Sale Deed duly registered with the office of Sub-registrar, Ludhiana, vide wasika no. 5036 dated 30.05.2006 along with Letter of Mortgagor confirming Deposit of Title Deeds and Jamabandi, which are Annexures A7 to A9 to this OA.

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Documents executed : Acknowledgement, Demand Promissory Note, Advances against hypothecation of goods and book debts to Partnership Firms, Guarantee Deed, all dated 16.09.2016, which are Annexures A4 to A6 & A10 to this OA; Form of Acknowledgement of Debts, all dated 21.11.2018, 01.12.2019, 01.09.2022, which are Annexures A11 to A13 to this OA; Statement of Account along with certificate, which are Annexures A14 & A15 to this OA.

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3 OA/475/2025 INDIAN BANK VS M/S SHIKSHA KNITTERS AND OTHERS

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.26,16,884.00, 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.

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The defendants were served summons to appear before this Tribunal. Sh. Mukul Ahuja, Advocate appeared on 10.07.2025 on behalf of defendant nos. 1 to 3 and filed his memo of appearance but thereafter, none appeared on behalf of defendants and they were proceeded ex-parte vide order dated 22.05.2026.

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In support of the OA, affidavit of Sh. Vikas, Branch Head, Indian Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendant no. 1 through its partners defendant nos. 2 & 3 approached applicant for availing of the loan facility which was granted to them, defendant nos. 2 to 4 stood as guarantors and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,16,884.00 (Rupees Twenty Six Lacs Sixteen Thousand Eight Hundred and Eighty Four 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.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00%p.a. with monthly rests from 12.02.2025 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

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4 OA/475/2025 INDIAN BANK VS M/S SHIKSHA KNITTERS AND OTHERS

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crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan 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 @08.00%p.a. in the loan account 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,16,884.00 (Rupees Twenty Six Lacs Sixteen Thousand Eight Hundred and Eighty Four Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 mortgaged property of the defendant nos. 2 & 3 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 17.06.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 26.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Indian Bank v. Shiksha Knitters and Others

Case brief

What is this about?

What did the court decide?

Indian Bank v. Shiksha Knitters and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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