Allowed

South Indian Bank v. Harsh Medicos

DRT21 Jul 2026OA/567/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by South Indian Bank for recovery of dues amounting to Rs. 48,15,212.85 from the borrowers due to NPA classification, directing payment within 30 days and authorizing recovery from secured assets.

What did the court decide?

Directed repayment of Rs. 48,15,212.85 with interest within 30 days; directed issuance of recovery certificate for enforcement from secured and other assets.

South Indian Bank versus Harsh Medicos — Banking and Recovery | DRT (2026)

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O.A. No. 567 of 2023

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Debts Recovery Tribunal-I, Delhi 4th Floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No.567 of 2023

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South Indian Bank D-215, Vivek Vihar Phase I Vivek Vihar, Delhi-110095

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Applicant

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Versus

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M/s Harsh Medicos

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Through its proprietor C-1, UG-23, Ashiyana Arcade Ahinsa Khand-2, Indirapuram Ghaziabad, UP-201010

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Also at:

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Shop No.10A, Mahagun Mansion Commercial Complex, Vaibhav Khand, Indirapuram Ghaziabad, UP-201014

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Sh.Bhushan Verma s/o Ashok Kumar At: 572-B, Block C, Brij Vihar Ghaziabad, Uttar Pradesh-201011

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Sh.Ashok Kumar

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At: 572-B, Block C, Brij Vihar Ghaziabad, Uttar Pradesh-201011 Defendants

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Present: Shri Navin Kumar, Counsel for the applicant bank

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Date of Reserve: 02.07.2026

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Date of Pronouncement: 21.07.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 09.06.2023 through Sh.Tarsem Chand Goel, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the

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O.A. No. 567 of 2023

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defendants for recovery of Rs.48,15,212.85 (Rupees Forty Eight Lacs Fifteen Thousand Two Hundred Twelve & paisa Eighty Five only) as on 08.06.2023 along with further interest @11.45% for Cash Credit limit, @10.50% for Term Loan limit, @9.25% for ECLGS facility and @11.45% for FITL facility per annum with monthly rests plus penal interest @2% per annum from the date of filing of this application till its realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 as proprietorship concern of defendant no.2, the applicant bank sanctioned Cash Credit facility of Rs.24.00 lacs (Rupees Twenty Four Lacs only) and Term Loan of Rs.8.00 lacs (Rupees Eight Lacs only) on 18.10.2016 @11.50% interest per annum with monthly rests subject to change as per RBI guidelines. The applicant bank enhanced/renewed the Cash Credit facility from Rs.24.00 Lacs to Rs.30.00 lacs (Rupees Thirty Lacs only) along with Term Loan for Rs.7.30 lacs on 11.05.2017 against hypothecation of stocks, book debts and current assets of defendant no.1 and mortgage of property owned by defendant no.3. Further, on the request of defendant no.1, the applicant bank sanctioned Emergency Credit Line Guarantee Scheme (ECLGS) of Rs.6.60 lacs @9.25% interest to be repaid in 36 EMIs of Rs.18,340/- on 12.06.2020 as per RBI guidelines due to Covid-19 pandemic and FITL limit of Rs.1.89 lacs on 10.09.2020. The defendant no.3 stood as guarantor for the credit facilities sanctioned by the applicant in favour of defendant no.1 and 2. In case of default in repayment, the defendants agreed to pay penal interest@2/0 per annum on overdue amount.

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O.A. No. 567 of 2023

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That in order to avail the credit facilities, the defendant no.1 & 2 submitted loan applications and executed Credit Facility Agreement (LD/2112) on 18.10.2016 & 11.05.2017, Demand Promissory Note (LD-2101), Supplement Agreement of Hypothecation (LD/2119) and Agreement of Guarantee (LD/2109) on 11.05.2017 towards the applicant bank.

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That in order to secure the credit facilities, the defendant no.1 the its proprietor hypothecated the stock, book debts and current assets in favour of applicant bank. The defendant no.3 executed Agreement of Guarantee as well as extended the mortgage of his immovable property i.e. Flat No.C-572B, Second Floor, LIG Triple Story, Braj Vihar, Sector-8, THA Ghaziabad, UP in favour of applicant bank on 11.05.2017 in favour of applicant bank by depositing Sale Deed dated 29.07.2004 along with Declaration on Form LD/2222, Deed of Declaration LD/2222-A and Form of Acknowledgement Form LD/2223. The applicant bank also sent letter to Sub-RegistrarII Ghaziabad for noting charge on property on 11.05.2017.

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The Defendant no.1 thru its proprietor executed Acknowledgement of debt and security dated 11.05.2017 acknowledging their debt towards the applicant bank.

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It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to comply with the terms and conditions of sanction and neglected to pay amount due towards interest and instalments and committed various other defaults for keeping the account regular with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 30.04.2021 as per RBI guidelines, hence the applicant bank has approached this tribunal for recovery of its dues.

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SC/—

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O.A. No. 567 of 2023

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 25.05.2021 was issued to the defendants but there was no response.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 04.12.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Tarsem Chand Goel, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Sanction Letters, Credit Facility Agreements, Demand Promissory Note, Supplemental Agreements of Hypothecation, Agreement of Guarantee, Declaration, Deed of Declaration, Form of Acknowledgement to Mortgagor, Copy of Sale Deed, Letter to Sub-Registrar-II Ghaziabad, Acknowledgement of Debt & Security, Application for continuation of Securities in FITL, Demand Notice u/s 13(2) along with Postal Receipts, Statement of Accounts along with Certificate under Section 65B(2) of Indian Evidence Act and u/s 2A(b) of Bankers' Books Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/19.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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O.A. No. 567 of 2023

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.48,15,212.85 (Rupees Forty Eight Lacs Fifteen Thousand Two Hundred Twelve & paisa Eighty Five only) as on 08.06.2023 out of which :

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Rs.36,47,815.68 together with pendentelite and future interest @11.45% in Cash Credit account;

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Rs.2,85,341.63 together with pendentelite and future interest @10.50% in Term Loan account;

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Rs.8,19,710.30 together with pendentelite and future interest @9.25% in ECLGS account and;

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Rs.62,345.24 together with pendentelite and future interest @11.45% in FITL account;

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from the date of filing of this application failing which the aforesaid amount shall be recovered from sale of stock, book debts, current assets of defendant no.1 and mortgaged property being Flat No.C-572B, Second Floor, LIG Triple Story, Braj Vihar, Sector-8, THA Ghaziabad, UP. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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O.A. No. 567 of 2023

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 21.09.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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4 1,6 (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 21.07.2026

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South Indian Bank v. Harsh Medicos

Case brief

What is this about?

What did the court decide?

South Indian Bank v. Harsh Medicos

Case brief

What is this about?

What did the court decide?

What the court decided

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