Debts Recovery Tribunals and Appellate Tribunals
BANK OF MAHARASHTRA vs M/S CHANDIGARH PACKAGES AND OTHERS on 10 June 2026
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
TRANSFER APPLICATION NO.12/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.12.2025
DATE OF DECISION: 10.06.2026
Bank of Maharashtra, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
having its Head Office at Lokmangal, 1501, Shivajinagar, Pune- 411005 and Branch Offices amongst others at B.S. Tower, AKS Colony, Patiala Road, Zirakpur, Punjab- 140603 through its General Power of Attorney Holder, Sh. Ashutosh, Branch Manager
……..Applicant
Versus
1. M/S Chandigarh Packages, a Partnership Firm having its Place of Business at Village Bhagwanpur, Barwala Road, Derabassi, District SAS Nagar, Punjab through its Partners
2. Smt. Beena Sharma, W/o Sh. Rakesh Chand Sharma, R/o House no. 666, Dashmesh Nagar, Nayagaon, District Mohali, Punjab- 160103 (Original Partner)
Late Sh. Jaipal Rawat, S/o Sh. Jot Singh Rawat, R/o House no.
52, Sham Nagar, Baltana, Zirakpur, District SAS Nagar, Punjab- 140603 (Deceased Partner)
3. Sh. Rakesh Chand Sharma, S/o Sh. Shabu Prasad Sharma, R/o House no. 666, Dashmesh Nagar, Nayagaon, District Mohali, Punjab- 160103 (Subsequent Partner)
….……Defendants
Advocates:
Argued by Sh. Amit Rishi, Advocate proxy for Ms. Gargi Kumar, Advocate for applicant None for defendants (already ex-parte vide order dated 08.06.2026)
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FINAL ORDER
1. Present Transfer Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 53,21,709.83 (Rupees Fifty
OTHERS
Three Lacs Twenty One Thousand Seven Hundred Nine and Paise Eighty Three Only). The Transfer Application has been filed through Sh. Ashutosh, Branch Manager of the applicant, who is competent to institute the Transfer Application vide Power of Attorney dated 18.09.2025 , which is Annexure A1 to this TA.
2. The brief facts of the TA are that defendant no. 1 through its Partners defendant no. 2 and Sh. Jaipal Rawat (since deceased) approached the applicant for grant of Term Loan- I of Rs. 5.50 Lacs vide Application dated 28.07.2021, which is Annexure A3 to this TA. Thereafter, defendant no. 1 through its Partners defendant no. 2 and Sh. Jaipal Rawat (since deceased) approached the applicant for enhancement of CC Limit from Rs. 15.00 Lacs to Rs. 30.00 Lacs. Thereafter, defendant no. 1 through its Partners defendant no. 2 and Sh. Jaipal Rawat (since deceased) again approached the applicant for grant of Term Loan- II of Rs. 9.60 Lacs and enhancement of CC Limit to Rs. 49.00 Lacs. Thereafter, Sh. Jaipal Rawat (Original Partner of defendant no. 1) passed away on 01.01.2024. Consequent to the demise of Sh. Jaipal Rawat, defendant no. 3 was admitted as a Partner in his place. Thereafter, defendant no. 1 through its Partners defendant nos. 2 and 3 approached the applicant for reduction of CC Limit to Rs. 45.00 Lacs. Thereafter, defendant no. 1 through its Partners defendant nos. 2 and 3 approached the applicant for renewal of CC Limit of Rs. 45.00 Lacs and review of Term Loan- I of Rs. 5.50 Lacs and Term Loan- II of Rs. 9.60 Lacs.
3. The applicant sanctioned Term Loan of Rs. 5.50 Lacs vide Sanction Letter dated 28.07.2021, which is Annexure A2 to this TA and the terms and conditions were duly accepted by the defendant nos. 1 and 2 and Sh. Jaipal Rawat (since deceased). Thereafter, the applicant sanctioned enhancement of CC Limit from Rs. 15.00 Lacs to Rs. 30.00 Lacs vide Sanction Letter dated 03.03.2022, which is Annexure A6 to this TA. Thereafter, the applicant sanctioned Term Loan- II of Rs. 9.60 Lacs and enhancement of CC Limit to Rs. 49.00 Lacs vide Sanction Letter dated 31.12.2022, which is Annexure A10 to this TA. Thereafter, the applicant sanctioned reduction of CC Limit to
OTHERS
Rs. 45.00 Lacs vide Sanction Letter dated 25.04.2024, which is Annexure A20 to this TA. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 45.00 Lacs and review of Term Loan- I of Rs. 5.50 Lacs and Term Loan- II of Rs. 9.60 Lacs vide Sanction Letter dated 30.05.2025, which is Annexure A32 to this TA. Defendant nos. 2 and 3 stood as guarantor in all the loan accounts.
4. Defendant no. 1 through its Partners defendant nos. 2 and 3 and Sh. Jaipal Rawat (since deceased) hypothecated their current assets and movable plant and machinery vide Composite Deed of Hypothecation dated 28.07.2021 and Hypothecation Agreements dated 05.03.2022, 02.01.2023, 25.04.2024, 15.01.2025 and 30.05.2025, which are Annexure A5, A7, A12, A14, A25, A29, A35 and A36 to this TA.
Documents executed: DP Note dated 28.07.2021, which is Annexure A4 to this TA; DP Note and Multi Facility Agreement, both dated 05.03.2022, which are Annexure A8 and A9 to this TA; DP Notes, Multi Facility Agreement and Guarantee Agreements, dated 02.01.2023, 25.04.2024, 15.01.2025 and 30.05.2025, which are Annexure A11, A13, A15 to A17, A21 to A24, A26 to A28, A30, A31, A33, A34 and A37 to this TA; Death Certificate dated 01.01.2024, which is Annexure A18 to this TA; Partnership Deed dated 26.03.2024, which is Annexure A19 to this TA; Notice dated 16.07.2025, which is Annexure A38 to this TA and Statement of Accounts, which are Annexure A39 to A41 to this TA.
5. 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. 53,21,709.83 which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.
6. 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 08.06.2026.
OTHERS
7. In support of the TA, affidavit of Sh. Ashutosh, Branch Manager, Bank of Maharashtra, 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. From the perusal of all the Annexure A1 to A41 to this TA, it is proved that defendant no. 1 through its Partners defendant nos. 2 and Sh. Jaipal Rawat (since deceased) approached the applicant for availing of Term Loan- I, Term Loan- II and CC Limit which were granted to them. Thereafter, Sh. Jaipal Rawat (Original Partner of defendant no. 1) passed away on 01.01.2024. Consequent to the demise of Sh. Jaipal Rawat, defendant no. 3 was admitted as a Partner in his place. Thereafter, defendant no. 1 through its Partners defendant nos. 2 and 3 approached the applicant for reduction of CC Limit and review and renewal of loan facilities. Defendant nos. 2 and 3 stood as guarantors in all the loan accounts. Defendants had executed all the relevant documents in favor 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 documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.53,21,709.83 (Rupees Fifty Three Lacs Twenty One Thousand Seven Hundred Nine and Paise Eighty Three Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of the amount.
10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @12.50% p.a. from the date of filing of application 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 hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of
OTHERS
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 TA till realization of the amount ordered vide this final order. It is ordered accordingly.
11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.53,21,709.83 (Rupees Fifty Three Lacs Twenty One Thousand Seven Hundred Nine and Paise Eighty Three 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 TA 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 defendants 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 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 24.06.2026.
15. Copy of this order be given Dasti to the applicant bank 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: 10.06.2026
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh