Allowed

Yes Bank Ltd. v. M/S Adya Apparels and Others

DRT2 Sept 2026OA/491/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Yes Bank's application for recovery of Rs.88.12 lakhs with interest from M/s Adya Apparels and guarantors. Tribunal fixed uniform interest at 8% p.a. and granted recovery via mortgaged property.

What did the court decide?

Duty to pay Rs.88.12 lakhs with 8% p.a. simple interest, jointly and severally, enforceable via sale of mortgaged property or attachment of personal assets.

Yes Bank Ltd. versus M/S Adya Apparels and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.491/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2026

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DATE OF DECISION: 02.09.2026

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Yes Bank Ltd., a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at Yes Bank House, Western Express Highway, Anand Nagar, Vakola, Santacruz (E) Mumbai - 400055 and one of its Branch Offices amongst other places known as Yes Bank Ltd. situated in SCO No.129-130, 2^nd Floor, Sector 9-C, Near Citco Petrol Pump, Chandigarh - 160009 through its Senior Manager, Sh. Aashiv Bhayana.

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……..Applicant

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Versus

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M/s Adya Apparels through its proprietor Sh. Chirag Adya, 972, Phallan Adhan, Near Daal Bazar, Ludhiana, Punjab - 141008.

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Sh. Chirag Adya S/o Sh. Premjit Adya, proprietor M/s Adya Apparels, R/o House No.972, Near Daal Bazar, Phallan Adhan, Ward No.21, Ludhiana, District Ludhiana, Punjab - 142001.

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Sh. Premjit Adya S/o Sh. Raj Pal, R/o House No.972, Near Daal Bazar, Phallan Adhan, Ward No.21, Ludhiana, District Ludhiana, Punjab - 142001.

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Sh. Ram Krishan S/o Sh. Raj Pal, R/o House No.237B, Satjot Nagar, Dugri Dhandra Road, Ludhiana, District Ludhiana, Punjab - 141116.

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Ms. Geeta Khanna D/o Sh. Raj Pal, R/o 59/60, Block S, Noorwala Road, Basant Vihar, Ludhiana, District Ludhiana, Punjab – 141001.

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…….. Defendants

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2 OA NO.491/2026 YES BANK LTD. VS M/S ADYA APPARELS AND OTHERS

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Advocates:

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Argued by Sh. Sukhwinder Singh Chaudhary, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 29.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.88,12,729.03 (Rupees Eighty Eight Lacs Twelve Thousand Seven Hundred Twenty Nine and Paise Three Only). The Original Application has been filed through Sh. Aashiv Bhayana, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, dated 28.03.2025, 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 a pproached the applicant for grant of Overdraft Limit of Rs.40,00,000.00. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for grant of Working Capital Tem Loan Facility of Rs.7,95,000.00. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for grant of Drop Line Overdraft Facility of Rs.20,00,000.00. Thereafter, the defendant no. 1 through its proprietor defendant no. 2 a pproached the applicant for renewal of Overdraft Limit of Rs.40,00,000.00, Working Capital Term Loan Facility of Rs.7,95,000.00 and Drop Line Overdraft Facility of Rs.18,22,000.00. 3. The applicant sanctioned the Overdraft Limit of Rs.40,00,000.00 vide Credit Facility Letter, dated 08.08.2019, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant nos. 2 to 5 stood as guarantors.

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3 OA NO.491/2026 YES BANK LTD. VS M/S ADYA APPARELS AND OTHERS

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Thereafter, t he applicant sanctioned the Working Capital Term Loan Facility of Rs.7,95,000.00 vide Credit Facility Letter, dated 26.06.2020, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant nos. 2 to 5 stood as guarantors. Thereafter, t he applicant sanctioned the Drop Line Overdraft Facility of Rs.20,00,000.00 vide Credit Facility Letter, dated 27.03.2021, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant nos. 2 to 5 stood as guarantors. Thereafter, t he applicant renewed the Overdraft Limit of Rs.40,00,000.00, Working Capital Term Loan Facility of Rs.7,95,000.00 and Drop Line Overdraft Facility of Rs.18,22,000.00 vide Credit Facility Letters, dated 26.10.2022, 03.11.2022, which are Annexures A21 & A22 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant nos. 2 to 5 stood as guarantors.

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Defendant nos. 3 to 5 mortgaged their I mmovable Property i.e., Residential House No. B.5.972 measuring 65 square yards, situated at Mohalla Hanadaan, Ludhiana, District Ludhiana, vide Gift Deed No. 15076, dated 26.02.2008, along with its translation. This Mortgage was further established and recorded through Memorandum recording past transaction of creation of mortgage by deposit of Title Deeds, dated 28.08.2019, Declaration cum Indemnity, Memorandums of entry for creation of mortgage by first time deposit of Title Deeds and by deposit of Title Deeds by constructive delivery, dated 30.06.2020, along with corresponding Declaration and Undertakings, which are Annexures A14 to A20 to this OA.

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Documents executed: Master Facility Agreement, Demand Promissory Note, Letter of continuity for DP Note, Letter of continuing Guarantee, all dated 08.08.2019, which are Annexures A3 to A6 to this OA; Loan Agreement, Supplemental Deed of Hypothecation, both

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4 OA NO.491/2026 YES BANK LTD. VS M/S ADYA APPARELS AND OTHERS

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dated 26.06.2020, which are Annexures A8 & A9 to this OA; Drop Line Overdraft Facility Agreement, Demand Promissory Note, Letter of Continuity for DP Note, all dated 30.03.2021, which are Annexures A11 to A13 to this OA; Legal Notice, dated 16.02.2026, along with postal receipts, which is Annexure A23 to this OA; Statement of Accounts along with certificates, which are Annexures A24 to A26 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.88,12,729.03, 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 29.08.2026. 7. In support of the OA, affidavit of Sh. Aashiv Bhayana, Senior Manager , Yes Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned 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 A26 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 a pproached applicant for availing of loan facilities which were granted to them, defendant nos. 2 to 5 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 loans 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.88,12,729.03 (Rupees Eighty Eight Lacs Twelve Thousand

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5 OA NO.491/2026 YES BANK LTD. VS M/S ADYA APPARELS AND OTHERS

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Seven Hundred Twenty Nine and Paise Three 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 @11.80%p.a. with monthly rests in Overdraft Facility, interest @9.25%p.a. with monthly rests in WCTL Facility and interest @12.30%p.a. in Drop Line Overdraft Facility, with penal interest @2%p.a., from 30.01.2026 till the realization.

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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 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 uniform simple interest @8.00%p.a. in all 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.88,12,729.03 (Rupees Eighty Eight Lacs Twelve Thousand Seven Hundred Twenty Nine and Paise Three Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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 mortgaged property of defendant nos. 3 to 5 i n 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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6 OA NO.491/2026 YES BANK LTD. VS M/S ADYA APPARELS AND OTHERS

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12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.09.2026.

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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: 02.09.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Yes Bank Ltd. v. M/S Adya Apparels and Others

Case brief

What is this about?

What did the court decide?

Yes Bank Ltd. v. M/S Adya Apparels and Others

Case brief

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What did the court decide?

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