Allowed

Central Bank of India v. M/S Jai Maa Durga Trading Company and Another

DRT22 May 2026OA/492/2024

Case brief

AI extract

What is this about?

, The DRT allowed the applicant’s Original Application for recovery of Rs. 1.04 crores. Finding evidence unrebutted, the court ordered defendants to pay principal plus costs and simple interest at 8% p.a. instead of claimed 11.60%, permitting recovery via sale of mortgaged assets or attachment of personal assets.

What did the court decide?

Recovery certificate issued; Defendants ordered to pay Rs. 1,04,18,766.00 jointly and severally plus costs and interest at 8% p.a. from filing date till realization, enforceable by sale of mortgaged a

Central Bank of India versus M/S Jai Maa Durga Trading Company… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.492/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.04.2024

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DATE OF DECISION: 22.05.2026

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Central Bank of India, a Nationalized Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act no. V of 1970 having its Central Office at Central Bank of India, Chander Mukhi, Nariman Point, Mumbai- 400021; having its Zonal Offices and Regional Offices all over India and amongst others having inter alia one of its Regional Offices at K.P. Complex, Near Hotel Park Plaza, Ludhiana, Punjab- 141001 and having Branches all over India and inter alia one of its Branches at Miller Ganj, District Ludhiana, Punjab represented through Sh. Shamim Khan, Senior Branch Manager, Central Bank of India, Miller Ganj Branch and Holder of Power of Attorney, authorized to sign and file legal proceedings on behalf of applicant

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……..Applicant

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Versus

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M/S Jai Maa Durga Trading Company through its sole Proprietor,

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Sh. Varun Talwar

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Registered Address: Near HDFC Bank, Main Bazzar Hambran Road, Hambran, Ludhiana, Punjab- 141110

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Sh. Varun Talwar, S/o Sh. Ramesh Talwar, sole Proprietor of M/S Jai Maa Durga Trading Company, R/o House no. 614, Street no. 4, Chander Nager, Near K.V.M. School, Ludhiana, Punjab141001

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2^nd Address: House no. 2324, Street no. 2, near Malhi Farmhouse, Aman Vihar, Chander Nager, Ludhiana, Punjab141001

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3^rd Address: Plot no. 47, Abadi Kiran Vihar, Hambran Road, Backside Star Gym, Mullanpur Dhaka, Ludhiana, Punjab141101

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…Defendants

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Advocates:

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Argued by Sh. Aman Sharma, Advocate for applicant (through VC)

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OA/492/2024 CENTRAL BANK OF INDIA VS. M/S JAI MAA DUGRA TRADING COMPANY AND ANOTHER

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None for defendants (already ex-parte vide order dated 20.05.2026)

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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. 1,04,18,766.00 (Rupees One Crore Four Lacs Eighteen Thousand Seven Hundred Sixty Six Only). The Original Application has been filed through Sh. Shamim Khan, Senior Branch Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.03.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 150.00 Lacs vide Loan Application dated 10.12.2022, which is Annexure A2 to this OA. 3. The applicant sanctioned and CC Limit of Rs. 100.00 Lacs vide Sanction Letter dated 31.12.2022, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 2 mortgaged his immovable property i.e. Land measuring 250 Sq. Yards situated at Plot no. 47, Abadi Kiran Vihar, Hambran Road, Backside Star Gym, Mullanpur, Sub-Tehsil Mullanpur Dhaka, Tehsil and District Ludhiana, Punjab vide Valuation dated 12.12.2022 and LSR dated 14.09.2023, which are Annexure A14 and A15 to this OA. Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their all tangible movable property such as products, stock-in-trade and goods vide Agreement of Hypothecation dated 31.12.2022, which is Annexure A4 to this OA. Documents executed: DP Note, Letter of Continuity, Supplementary Agreement and Consent, all dated 31.12.2022, which are Annexures A5 to A10 to this OA; EMR dated 06.01.2023, which is Annexure A11 to this OA; CERSAI Registrations, which are Annexures A12 and A13 to this OA; Legal Notice dated 31.01.2024 along with postal receipts, which are Annexure A16 to A20 to this OA; Publications, which are Annexures A21 and A22 to this OA and Statement of Account with certificate, which is Annexure A23 to this OA.

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3 OA/492/2024 CENTRAL BANK OF INDIA VS. M/S JAI MAA DUGRA TRADING COMPANY AND ANOTHER

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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. 1,04,18,766.00, 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 but no one appeared on behalf of defendants and they were proceeded ex parte vide order dated 20.05.2026.

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In support of the OA, affidavit of Sh. Shamim Khan, Senior Branch Manager, Central Bank of India h as been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by learned counsel (through VC) , 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 A23 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 1,04,18,766.00 (Rupees One Crore Four Lacs Eighteen Thousand Seven Hundred Sixty Six 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.60%p.a. from 14.03.2024 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 mortgaged property/hypothecated

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OA/492/2024

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CENTRAL BANK OF INDIA VS. M/S JAI MAA DUGRA TRADING COMPANY AND ANOTHER

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assets, 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 @8.00% 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.1,04,18,766.00 (Rupees One Crore Four Lacs Eighteen Thousand Seven Hundred Sixty Six Only) jointly and severally, with costs, current and future simple interest @8.00% 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/hypothecated assets of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still

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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 15.06.2026.

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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: 22.05.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Central Bank of India v. M/S Jai Maa Durga Trading Company and Another

Case brief

What is this about?

What did the court decide?

Central Bank of India v. M/S Jai Maa Durga Trading Company and Another

Case brief

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What did the court decide?

What the court decided

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