Allowed

Yes Bank v. G N Transport Company and others

DRT26 May 2026OA/572/2026

Case brief

AI extract

What is this about?

Debt Tribunal allowed Yes Bank Ltd.'s ex-parte OA against M/S G.N. Transport Company and others for recovery of ~Rs. 37.79 lacs. Court reduced claimed interest to 8% p.a. and ordered recovery via hypothecated or personal assets.

What did the court decide?

Recovery certificate issued; Defendants ordered to pay ₹37,79,397.25 with simple interest @8% p.a. from filing date via sale of hypothecated or personal assets.

Yes Bank versus G N Transport Company and others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.572/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.04.2026

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DATE OF DECISION: 26.05.2026

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Yes Bank Ltd., 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, Maharashtra400055 and Regional Office at SCO no. 129-130, 2^nd Floor, Sector 9C, 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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M/S G.N. Transport Company, House no. 99, Upkar Nagar, Factory Area, Tehsil and District Patiala, Punjab- 147001 through its Partners

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Sh. Jatinder Paul Singh, S/o Sh. Balbir Singh, House no. 99, Upkar Nagar, Factory Area, Tehsil and District Patiala, Punjab147001

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Sh. Sukhwinder Pal Singh, S/o Sh. Balbir Singh, R/o House no. 99, Upkar Nagar, Factory Area, Tehsil and District Patiala, Punjab- 147001

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….……Defendants

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Advocates:

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Argued by Sh. S.C. Prajapati, Advocate proxy for Sh. Nakul Sharma, Advocate for applicant

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None for defendants (already ex-parte vide order dated 22.05.2026)

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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,

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OA/572/2026 YES BANK LTD. VS M/S G.N. TRANSPORT COMPANY AND OTHERS

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against the defendants for recovery of Rs. 37,79,397.25 (Rupees Thirty Seven Lacs Seventy Nine Thousand Three Hundred Ninety Seven and Paise Twenty Five 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 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 through its Partner defendant no. 2 approached the applicant for grant of two Commercial Vehicles Loans of Rs. 33.75 Lacs and Rs. 33.75 Lacs vide Loan Application dated 17.10.2020, which is Annexure A4 to this OA. Thereafter, defendant no. 1 through its Partner defendant no. 2 again approached the applicant for grant of Term Loan of Rs. 18,74,990.00. 3. The applicant sanctioned the two Commercial Vehicles Loans of Rs. 34,55,607.00 and Rs. 34,55,607.00 vide Loan Application dated 31.10.2020, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Term Loan of Rs. 18,74,990.00 vide Sanction Letter dated 28.12.2021, which is Annexure A6 to this OA. Defendant no. 3 stood as Partner of defendant no. 1.

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4.	Defendant no. 1 through its Partner defendant no. 2
hypo	thecated their commercial vehicles namely:
i.	Ashok Leyland Ltd. Tipper bearing Registration no. PB11CX7033,
	Engine no. LAPZ2106227 and Chassis no. MB1H3LHD5LPAL295
	vide RC, which isAnnexure A8to this OA;
ii.	Ashok Leyland Ltd. Tipper bearing Registration no. PB11CX5350,
	Engine no. LAPZ106398 and Chassis no. MB1H3LHD5LPAL7507
	vide RC, which isAnnexure A9to this OA;
iii.	Tata LPK 2518 bearing Registration no. PB11BU5350, Engine no.
	B591803251D63433368 and Chassis no. MAT448137F3D07796
	vide RC, which isAnnexure A10to this OA.

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3 OA/572/2026 YES BANK LTD. VS M/S G.N. TRANSPORT COMPANY AND OTHERS

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Documents executed: GST Certificate, which is Annexure A2 to this OA; Partnership Deed dated 06.06.2019, which is Annexure A3 to this OA; Supplementary Loan Application dated 28.12.2021, which is Annexure A7 to this OA; Recall Notices dated 11.12.2025 and 08.01.2026, which are Annexure A11 and A12 to this OA; Account Statements with foreclosures, which are Annexure A13 to A18 to this OA and Judgment dated 05.02.2007, which is Annexure A19 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 loan accounts there was a debit of Rs. 37,79,397.25, 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 22.05.2026. 7. In support of the OA, affidavit of Sh. Aashiv Bhayana, Authorized Officer, Yes Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel 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 Annexure A1 to A19 to this OA, it is proved that the defendant no. 1 through its Partner defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3 stood as Partner of defendant no. 1. Defendants 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, accounts of the defendants were classified as NPA. From the

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OA/572/2026

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YES BANK LTD. VS M/S G.N. TRANSPORT COMPANY AND OTHERS

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documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 37,79,397.25 (Rupees Thirty Seven Lacs Seventy Nine Thousand Three Hundred Ninety Seven and Paise Twenty Five 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.

¶32

In so far as pendente lite and future rate of interest is concerned, the applicant clause 5.11 has claimed interest @20% p.a. plus 2% penal interest with monthly rests from 22.01.2026 till the date of 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 hypothecated assets, 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 simple interest @08.00%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.

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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.37,79,397.25 (Rupees Thirty Seven Lacs Seventy Nine Thousand Three Hundred Ninety Seven and Paise Twenty Five Only) jointly and severally with costs, current and future simple interest @08.00%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 hypothecated assets of the defendant nos. 1 and 2 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by

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5 OA/572/2026 YES BANK LTD. VS M/S G.N. TRANSPORT COMPANY AND OTHERS

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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 17.06.2026. 5. 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: 26.05.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Yes Bank v. G N Transport Company and others

Case brief

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Yes Bank v. G N Transport Company and others

Case brief

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