Allowed

Uco Bank v. M/S Mehta Rice Industries and Others

DRT22 Oct 2025OA/1099/2025

Case brief

AI extract

What is this about?

DRT allowed an Original Application filed by UCO Bank to recover Rs. 2.22 crores from M/s Mehta Rice Industries and partners. The Tribunal ordered joint and several liability, fixed interest at 8% p.a., and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 2,21,61,788.44 with 8% p.a. interest; Recovery Certificate issued.

Uco Bank versus M/S Mehta Rice Industries and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1099/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2025

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DATE OF DECISION: 22.10.2025

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UCO Bank, a Commercial Bank and a Government of India undertaking, constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 10, BTM Sarani, Kolkata - 700 001 (West Bengal), carrying on its Business of Banking in India and Abroad having its Branch amongst other places at Bahadurgarh Road, Near Bus Stand, Ghanaur, Tehsil Rajpura, District Patiala - 140702 (Punjab) through its Branch Manager Shri Rohit Kalra, who is also the Principal Officer of the Applicant.

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……..Applicant

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Versus

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M/s Mehta Rice Industries, a Partnership Concern, At Shop no.3, Phase 2, New Grain Market, Patiala - 147001 (Punjab) through its Partners Shri Bhuvnesh Mehta son of Shri Satish Mehta and Shri Lovneesh Mehta son of Shri Satish Mehta.

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IInd Address: Village Uksi, Sub Tehsil Ghanaur, Tehsil Rajpura, District Patiala. 140702 (Punjab).

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Shri Bhuvnesh Mehta son of Shri Satish Mehta, Partner of M/s Mehta Rice Industries, Resident of House no.215, Phulkian Enclave, Patiala. 147001 (Punjab).

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Shri Lovneesh Mehta son of Shri Satish Mehta, Partner of M/s Mehta Rice Industries, Resident of House no.215, Phulkian Enclave, Patiala. 147001 (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Sanjay Sagar, Advocate proxy for Sh. Vivek Verma, Advocate for applicant

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Defendants already ex parte

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OA NO.1099/2025 UCO BANK VS M/S MEHTA RICE INDUSTRIES AND OTHERS

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.2,21,61,788.44p (Rupees Two Crore Twenty One Lacs Sixty One Thousand Seven Hundred Eighty Eight & Forty Four Paise Only). The Original Application has been filed through Shri Rohit Kalra, Branch manager, of the applicant, who is competent to institute the Original Application vide Resolution of UCO Bank, 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 partners defendant nos.2 & 3 had approached the applicant for the grant of CC Limit of Rs. 25.00 Lacs for Working Capital requirement and Term Loan of Rs. 2.00 Crore for construction of Rice Mill and Purchase of Machineries vide Loan application dated 01.08.2022, which is Annexure A2 to this OA. Thereafter, the defendant no.1 through its partners defendant nos.2 & 3 approached the applicant for enhancement of the CC Limit to Rs. 50.00 Lacs, Fresh Term Loan of Rs. 22.18 Lacs, Bank Guarantee of Rs. 25.00 Lacs and Review of existing Term Loan of Rs. 2.00 Crore vide Loan application dated 29.08.2024, which is Annexure A15 to this OA. 3. The applicant sanctioned the CC Limit of Rs.25.00 Lacs & Term Loan of Rs. 2.00 Crore vide sanction Letter dated 03.09.2022, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the CC Limit was enhanced by the applicant to Rs. 50.00 Lacs along with sanction of Fresh Term Loan of Rs. 22.00 Lacs and Bank Guarantee of Rs. 25.00 Lacs vide sanction letter dated 04.10.2024, which is Annexure A16 to this OA. 4. Defendant no. 1 through its partners defendant nos. 2 and 3 had hypothecated Plant and Machinery of Rice Sheller, Stock, Work in progress, finished goods, receivables, other current assets, etc. vide

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OA NO.1099/2025 UCO BANK VS M/S MEHTA RICE INDUSTRIES AND OTHERS

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composite deed of hypothecation dated 03.09.2022 and 09.10.2024, which are Annexure A8 and A21 to this OA. The defendant no.1 through its partners defendant nos.2 & 3 has mortgaged its immovable properties detailed as under: - (i)Land measuring 12Bigha situated at village Uksi, Hadbast no. 141, Sub Tehsil Ghanaur, Tehsil Rajpura, District Patiala, Punjab vide equitable mortgage of sale deed no. 2022-23/81/1/150 dated 06.05.2022, along with its translation, which is Annexure A13 to this OA. (ii)Land measuring 06Bigha situated at village Uksi, Hadbast no. 141, Sub Tehsil Ghanaur, Tehsil Rajpura, District Patiala, Punjab vide equitable mortgage of sale deed no. 2022-23/81/1/262 dated 27.05.2022, along with its translation, which is Annexure A14 to this OA. Affidavit dated 23.08.2022, which is Annexure A14-A and Letter of confirmation of extension of mortgage dated 09.10.2024, which is Annexure A24-A.

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Documents executed: - D P Note, Form A47 , Form A-3 , Agreement Relating to Term Loan , Composite Deed of Hypothecation , Form A-21 , Form A-21 , Undertakings from the Borrower, all dated 03.09.2022, which are Annexures A4 to A7 and A9 to A12 to this OA; DP Note , Form A47 , Form A-3 , Agreement Relating to Term Loan, Composite Deed of Hypothecation, Declaration by Borrower, Form A-21 , Addendum Agreement , all dated 09.10.2024, which are Annexures A17 to A20 and A22 to A24 to this OA; Notice dated 16.06.2025 & 25.06.2025, along with postal receipts, which are Annexures A25 & A26 to this OA; Statements of accounts, which are Annexures A27 to A29 to this OA; Demand notice dated 08.07.2025, U/s 13 (2) of SARFAESI Act, which is Annexure A30 to this OA and Valuation report dated 05.12.2023, which is Annexure A31 to this OA.

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OA NO.1099/2025 UCO BANK VS M/S MEHTA RICE INDUSTRIES AND OTHERS

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.2,21,61,788.44p, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex parte 16.10.2025.

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In support of the OA, affidavit of Shri Rohit Kalra, Branch Manager , UCO Bank, has been filed.

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Heard ex-parte arguments and perused record.

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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 Annexures A1 to A31 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they 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 documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.2,21,61,788.44p (Rupees Two Crore Twenty One Lacs Sixty One Thousand Seven Hundred Eighty Eight & Forty Four Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @10.85%p.a. in CC and Term Loan-II and @9.00%p.a. in Term Loan-

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OA NO.1099/2025 UCO BANK VS M/S MEHTA RICE INDUSTRIES AND OTHERS

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I, with 2% penal interest and with monthly rests in all loan accounts from 01.08.2025 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 nature of the mortgaged property/hypothecated assets, 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 uniform simple interest @8.00%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.2,21,61,788.44p (Rupees Two Crore Twenty One Lacs Sixty One Thousand Seven Hundred Eighty Eight & Forty Four Paise Only) jointly and severally, with costs, current and future simple interest @8.00%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 mortgaged properties/hypothecated assets of defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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.

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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OA NO.1099/2025 UCO BANK VS M/S MEHTA RICE INDUSTRIES AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.11.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 22.10.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Uco Bank v. M/S Mehta Rice Industries and Others

Case brief

What is this about?

What did the court decide?

Uco Bank v. M/S Mehta Rice Industries and Others

Case brief

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What did the court decide?

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