CENTRAL BANK OF INDIA vs JOGINDER SINGH on 12 January 2026

FINAL ORDER

This original application has been filed by the applicant bank on 10.03.2022 before DRT-III Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts & Bankruptcy Act, 1993 against the defendant for recovery of Rs.95,75,484.98 (Rupees Ninety Five Lacs Seventy Five Thousand Four Hundred Eighty Four & paisa Ninety Eight only) as on 10.03.2022 along with pendentelite and future interest @8.35% per annum with monthly rests plus @2% penal interest from 10.03.2022 till its realization and cost.

2. The brief facts of the case are that on the request of defendant as proprietor of M/s Vashisht Incorporation vide loan application dated 11.01.2013, the applicant bank sanctioned Cash Credit facility of Rs.48.00 lacs as working capital on 31.01.2013 @11.50% interest per annum under Cent Sahyog Scheme of bank covered under CGTMSE for the business of manufacturing of jeans, readymade garments etc. The applicant bank enhanced the limit from Rs.48.00 lacs to Rs.60.00 lacs on 02.08.2014 & further to Rs.78.00 lacs on 20.11.2015 @10.30% interest per annum against hypothecation of stock of jeans, trousers, fixed assets, readymade garments and receivables etc. Further, the applicant bank converted the accumulated interest into FITL loan account amounting Rs.3,86,378/- due to Covid-19 pandemic as per RBI guidelines.

3. That in order to avail the credit facility, the defendant submitted loan application on 11.01.2013 and executed Letters of Interest, Consent Clause Letters, Demand Promissory Notes, Letters of Waiver, Letters of Continuity, Agreements of

Hypothecation to Secure Demand Cash Credit against Goods, Letters of Hypothecation, and Supplementary Agreement dated 31.01.2013, 02.08.2014, 20.11.2015 and 27.03.2018.

4. That in order to secure the loan facilities, the defendant hypothecated the stocks of jeans, trousers, readymade garments etc. towards the applicant bank. The defendant changed their factory from Delhi to Karnal and then to Kunjpura Road, Haryana known as SH-8, Newal Haryana.

5. The defendant acknowledged the outstanding debt on 30.06.2020 towards the applicant bank.

6. It has been submitted that after availing the aforesaid loan facilities, the defendant failed to comply with the sanction terms, not submitted stock statement and financial / relevant papers for renewal of the account despite several notices and visit of officials. The defendant also failed to pay overdue amount and monthly installments in time to the applicant bank. Ultimately, the account was declared NPA on 31.03.2021 as per applicable guidelines but no response from the defendant hence the applicant bank has approached this Tribunal for recovery of their dues.

7. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 07.04.2021 was issued by the applicant bank but no response from the defendant. During factory visit by officials of applicant bank at Kunjpura Road, Haryana also known as SH-8, Newal Haryana, no factory was found running.

8. Notices of this O.A. were issued to the defendant and despite proper service the defendant has chosen to absent sd from the proceedings. As per order dated 10.11.2025, the defendant has been proceeded ex-parte due to non-filing of written statement, evidence and affidavit of assets have been filed.

9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Pawan Kumar Grover, authorized representative of the applicant bank who has proved the documents such as Power of attorney, Loan Application Forms, Sanction Letters, Letters of Interest, Consent Clause Letters, Demand Promissory Notes, Letters of Waiver, Letters of Continuity, Agreements of Hypothecation to Secure Demand Cash Credit against Goods, Supplementary Agreements, Letters of defendant for Change of Address, Request Letters, Acknowledgement of Debt/Security, Recall Notices, Visit Reports, Demand Notice under Section 13(2) along with Postal Receipts, Certified Statement of Accounts under Banker's Book Evidence Act, Calculation Sheet marked as Ex.AW1/1 to Ex.AW1/50.

10. 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 proved.

11. 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.

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

ORDER

I, allow this OA and direct the defendant to pay to the applicant bank, within a period of 30 days, a sum of Rs.95,75,484.98 (Rupees Ninety-Five Lacs Seventy-Five Thousand Four Hundred Eighty Four & paisa Ninety Eight only) as on 10.03.2022 along with pendentelite and future interest @10.35% per annum with monthly rest from 10.03.2022 till the date of realization and costs, failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, receivables etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant. (I) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi. (II) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 12.03.2026. (III) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 12.01.2026