Allowed

Union Bank of India v. Messrs Radhe Krishna Enterprises and Another

DRT16 Jan 2025OA/1122/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Union Bank of India against M/s Radhe Krishna Enterprises and Arun Grover. The tribunal decreed recovery of the outstanding loan amount along with costs and uniform simple interest at 8% per annum.

What did the court decide?

Recovery of Rs.41,33,161.00 jointly and severally with costs and simple interest @08% p.a. from filing date till realization.

Union Bank of India versus Messrs Radhe Krishna Enterprises… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1122/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.08.2024

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DATE OF DECISION: 16.01.2025

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Union Bank of India, a Government of India Undertaking incorporated under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head Office at Union Bank Bhavan, 239, Vidhan Bhawan Marg, Backbay Reclamation, Nariman Point, Mumbai, carrying on the business of various places, throughout India including a branch at Kumbra, Sector 68, SAS NAGAR (MOHALI) through Ms. Monica Kohli, Branch Manager/Principal Officer/General Attorney, Union Bank of India Kumbra, Sector 68, SAS NAGAR (MOHALI).

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……..Applicant Versus

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M/s Radhe Krishna Enterprises through its proprietor Mr. Arun Grover having its office at Shop No.4, Village Kumbra, Sector 68, SAS Nagar (Mohali)-140308.

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Mr. Arun Grover proprietor of M/s Radhe Krishna Enterprises R/o H.No.227, Village Kumbra, Sector 68, SAS Nagar.

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…….Defendants

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Advocates: Argued by Sh. Gaurav Chadda, Advocate for the applicant Defendants are ex-parte

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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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.41,33,161.00 (Rupees Forty One Lacs Thirty Three Thousand One Hundred Sixty One Only). The Original Application has been filed through Ms. Monica Kohli, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 26.08.2016, 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 proprietor defendant no.2 had approached the applicant for grant of Two Vehicles Loan of CC Limit of Rs.24.50 Lacs and Term Loan I of Rs.4.25 Lacs and further for Term Loan II of Rs.9.80 Lacs vide Loan Applications dated 10.07.2023 & 09.06.2023, which are Annexures A2 & A26 to this OA.

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The applicant sanctioned CC Limit of Rs.24.50 Lacs and Term Loan I of Rs.4.25 Lacs and further sanctioned Term Loan II of Rs.9.80 Lacs vide Sanction Letters along with Communication of Sanctions dated 24.07.2023, 17.03.2023 & 09.06.2023, which are Annexures

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A3, A4, A15, A16, A27 & A28 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had hypothecated their movable properties i.e.

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(i) Hypothecation of stocks and all book debts etc.

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(ii) Car namely MARUTI SUZUKI ALTOLXI(O) CNG bearing Registration no.PB01D5997, Engine no.F8DN6764951 and Chassis

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no.MA3EUA61S00L25556

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(iii) Car namely MARUTI ERTIGAVXI(O) CNG 1.5L 5MT-ERRCFVI bearing Temporary Registration no. T0723HR3088AW, Engine no.K15CN928787 and Chassis no.MA3BNC62SPG641920 vide Sale Certificate, Invoice, Insurance Cover and Registration Certification dated 17.03.2023 & Invoice, Temporary Certificate of Registration, which are Annexures A23, A24, A25 & A35, A36 to this OA.

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Documents executed:-D.P. Note, Letter of Continuity, Letter of General Lien and Set Off, Hypothecation Agreement of Goods and Debts, Letter of Undertaking not to Alienate Hypothecated Goods, Interest Agreement, Letter of Undertaking from Guarantor all dated 31.07.2023, which are Annexures A5 to A13 to this OA; Quotation dated 14.03.2023, which is Annexure A14 to this OA; D.P. Note, Letter of Continuity, Letter of General Lien and Set Off, Hypothecation Agreement of Vehicles Agreement, Interest Agreement, Letter of Undertaking from Borrower all dated 17.03.2023, which are

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Annexures A17 to A22 to this OA; D.P. Note, Letter of Continuity, Letter of General Lien and Set Off, Hypothecation of Vehicles Agreement, Interest Agreement, Letter of Undertaking from Borrower all dated 07.07.2023, which are Annexures A29 to A34 to this OA; Insurance Cover dated 12.07.2023, which is Annexure A37 to this OA; Recall Notice dated 02.03.2024 & 10.04.2024, which are Annexures A38 to A42 to this OA and Statements of Accounts along with Certificate under Banker’s Book Evidence Act, which are Annexures A43 to A49 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.41,33,161.00, 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 on 08.01.2025.

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In support of the OA, affidavit of Ms. Monica Kohli, Branch Manager, Union Bank of India h as been filed.

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Heard arguments and perused record.

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It was argued by learned 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 A49 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 is entitled to recover a sum of Rs.41,33,161.00 (Rupees

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Forty One Lacs Thirty Three Thousand One Hundred Sixty One 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest CC Limit Loan is @12.20%p.a. along and Term Loan is at @11.30%p.a. with penal interest @2%p.a. with monthly rests from 01.08.2024 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, 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 @08.00%p.a. in 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.41,33,161.00 (Rupees Forty One Lacs Thirty Three Thousand One Hundred Sixty One Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in 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/mortgaged properties of the 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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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.02.2025. 15. 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: 16.01.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. Messrs Radhe Krishna Enterprises and Another

Case brief

What is this about?

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Union Bank of India v. Messrs Radhe Krishna Enterprises and Another

Case brief

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