Allowed

Yes Bank Limited v. Smt. Shivani and others

DRT21 Jul 2026OA/540/2026

Case brief

AI extract

What is this about?

DRT allowed Yes Bank's recovery application against borrowers and a guarantor for an education loan default. The court ordered recovery of Rs.24.36 lakh plus costs and simple interest at 8% p.a., declining the bank's claim for 20% p.a.

What did the court decide?

Recovery of Rs.24,36,690.33 with costs and simple interest @08% p.a. granted; Recovery Certificate issued; matter remanded to Recovery Officer.

Yes Bank Limited versus Smt. Shivani and others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 540/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.04.2026

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DATE OF DECISION: 21.07.2026

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YES BANK LIMITED, a banking company incorporated under the Companies Act, 1956 and carrying on banking business under the Banking Regulation Act, 1949, having its Registered Office at Yes Bank House, Western Express Highway, Santacruz (East), Mumbai–400055, Regional Office: SCO No. 129-130, 2nd Floor, Sector 9-C, near CITCO Petrol Pump, Chandigarh–160009, through Sh. Aashiv Bhayana, Authorized Officer, Legal Department.

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……..Applicant

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Versus

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Smt. Shivani, W/o Sh. Manpreet Singh, R/o Vill. Badalgarh, Post Office Dudian, Near Temple, Tehsil Moonak, District Sangrur, Punjab–148033.

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Sh. Manpreet Singh, S/o Sh. Malkeet Singh, R/o Vill. Badalgarh, Post Office Dudian, Near Temple, Tehsil Moonak, District Sangrur, Punjab–148033.

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Sh. Malkeet Singh, S/o Sh. Sadhu Singh, R/o Vill. Badalgarh, Post Office Dudian, Near Temple, Tehsil Moonak, District Sangrur, Punjab–148033.

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…….Defendants

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Advocates:

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Argued by Sh. SC Prajapati, Advocate proxy for Sh. Nakul Sharma, Advocate for Applicant (through VC)

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None for Defendants (already ex-parte vide order dated 16.07.2026)

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FINAL ORDER

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Present Original Application was instituted by the applicant under

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Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against

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OA/540/2026 YES BANK LIMITED VS. SMT. SHIVANI AND OTHERS

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the defendants for recovery of Rs.24,36,690.33 (Rupees Twenty Four Lac Thirty Six Thousand Six Hundred Ninety and Paise Thirty Three Only). The Original Application has been filed through Sh. Aashiv Bhayana, Authorized Officer, of the Applicant, who is competent to institute the Original Application vide Copy of Power of Attorney dated 28.03.2025, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no. 1 & 2, approached the applicant for grant of Education Loan of Rs.23.00 lacs vide Loan Application dated 06.04.2024, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor. 3. The applicant sanctioned the Education Loan of Rs.23.00 lacs, vide Loan Agreement dated 29.01.2025, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Documents executed: Recall Notice dated 13.08.2025, which is Annexure A4 to this OA; Account Statement, which is Annexure A5 to this OA; Foreclosure Statement, which is Annexure A6 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.24,36,690.33 (Rupees Twenty Four Lac Thirty Six Thousand Six Hundred Ninety and Paise Thirty Three 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.

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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 16.07.2026.

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In support of the OA, affidavit of Sh. Aashiv Bhayana, Authorized Officer , YES B ank Limited, has been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy counsel, through video conferencing, that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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OA/540/2026 YES BANK LIMITED VS. SMT. SHIVANI AND OTHERS

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From the perusal of all the Annexures A1 to A6 to this OA, it is proved that the defendant no. 1 & 2 approached the applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as guarantor. 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, 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.24,36,690.33 (Rupees Twenty Four Lac Thirty Six Thousand Six Hundred Ninety and Paise Thirty 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 @20.00% p.a. plus 2.00% p.a. penal interest with monthly rests from 22.01.2026 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 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.24,36,690.33 (Rupees Twenty Four Lac Thirty Six Thousand Six Hundred Ninety and Paise Thirty Three 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

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OA/540/2026 YES BANK LIMITED VS. SMT. SHIVANI AND OTHERS

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amount. Accordingly, the applicant shall be entitled to recover aforesaid amount by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 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 05.08.2026 15. 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: 21.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Yes Bank Limited v. Smt. Shivani and others

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Yes Bank Limited v. Smt. Shivani and others

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