The Tribunal allowed the Original Application filed by Union Bank of India for recovery of ₹59,60,115.38/- along with interest from defendants who were set ex parte. A Recovery Certificate was issued.
Recovery of ₹59,60,115.38/- with interest, enforcement of hypothecated securities, and issuance of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
ORIGINAL APPLICATION NO.1187 OF 2023
DEBTS RECOVERY TRIBUNAL No.2, MUMBAI
PRESIDING OFFICER: HARISH KUMAR KAUSHIK
ORIGINAL APPLICATION NO.1187 OF 2023
Date of Institution: 29.01.2022 Date of Decision: 10.09.2025
TOTAL CLAIM AMOUNT :
₹ 59,60,115.38/-
Union Bank of India, A body corporate constituted under the Banking Companies Acquisition & Transfer of Undertakings Act V, 1970 having its Head Office at 239, Vidhan Bhavan Marg, Backbay Reclamation, Nariman Point, Mumbai-400 021 and amongst other a Branch Office known as Mahajan Mills Compound, LBS Marg, Mumbai, Maharashtra, 400 079 through its Chief Manager, Prem Shanker Verma
… Applicant
Versus
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ORIGINAL APPLICATION NO.1187 OF 2023
Hgs. Soc. Ltd., Shivaji Nagar, Thane West, Thane, …Defendants Maharashtra-400 606.
APPEARANCES For the Applicant : Ms Akshita Rathudi i/b M/s. Anup Khaitan & Co.- Advocate
For Defendants : None – Advocate
J U D G M E N T
The details of the claim amount are as under: -
| Sr | Nature of |
O/s. as on |
Interest |
|---|---|---|---|
| No | Facility | 31.12.2021 | |
| 1 | Cash Credit |
50,09,261.38 | 11.10% per annum |
| Facility | |||
| 2 | UGECL Facility | 9,50,854 | 7.50% per annum |
| Total Amount | 59,60,115.38 |
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ORIGINAL APPLICATION NO.1187 OF 2023
(3) Defendant no.1, a Proprietorship Firm is the borrower through proprietor Defendant no.2 who approached to the Applicant Bank sought financial assistance by way of Cash Credit Facility and UGECL Facility wherein Defendant no.2 is the guarantor of the said loan. Pursuant to the loan request letter dated 29.08.2016 made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 19.10.2016 for sum of ₹50,00,000/(Rupees Fifty Lakhs Only) for Activity of Construction. Further, vide Sanction Letter dated 04.03.2020. On request of the borrowers the Applicant Bank sanctioned and reduced a loan amount to ₹45,00,000/- (Rupees Forty-Five Lakhs Only) @ 12.25% covered under CGTMSE Scheme. Lastly, on the receipt of the loan application dated 01.06.2020 issued by the borrowers, the Applicant bank sanctioned vide Sanction Letter dated 05.06.2020 under UGECL (Union Guarantee Emergency Credit Line) Facility an amount of ₹9,00,000/- (Rupees Nine Lakhs Only) @ 7.50% Fixed Interest repayable in 36
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ORIGINAL APPLICATION NO.1187 OF 2023
EMIs of monthly ₹27,996/- commencing from June, 2021 which was duly acknowledged by the borrowers on 09.07.2020.
The details of the Sanction amount are as under:-
| Sr N |
Date of Sanction |
Nature of |
Amount (In₹) |
Interest | Security |
|---|---|---|---|---|---|
| o | Facility | ||||
| 1 | 19.10.2016 | Cash Credit |
50,00,000 | - | Hypothecation of Stock at Thane, Chembur and various sites and Book-debts |
| 2 | 04.03.2020 (revised/reduce d) |
Cash Credit |
45,00,000 | @12.25% | Hypothecation of Stock and Book- debts covered under CGTMSE Scheme |
| 3 | 05.06.2020 | UGECL | 9,00,000 | @7.50% | - |
| Total Amount Sanctioned |
54,00,000 | - | - |
The details of the documents executed by the Defendants vide Sanction Letter dated 19.10.2016 are as under: -
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ORIGINAL APPLICATION NO.1187 OF 2023
Defendant No.1;
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ORIGINAL APPLICATION NO.1187 OF 2023
Six Hundred Forty and paisa Twenty-One Only).
The details of the documents executed by the Defendants vide Sanction Letter dated 04.03.2020 are as under: -
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ORIGINAL APPLICATION NO.1187 OF 2023
(g) Stamped Supplementary Agreement (SD06) to Hypothecation Agreement dated 25.06.2020;
(i) Stamped Letter of General Lien and Set off dated 25.06.2020 executed by Defendant No.2 on behalf of Defendant No.1;
(j) Stamped Interest Agreement dated 25.06.2020, whereby the Defendant No.1 agreed to pay interest on the credit facilities availed as per the interest Agreement dated 25.06.2020;
(k) Letter of Confirmation dated 25.06.2020; (l) The Defendant No.1 have executed Simple Debit Balance Confirmation Letters dated 14.07.2020 for ₹37,35,123.75/- (Rupees Thirty Seven Lakhs Thirty Five Thousand One Hundred Twenty Three and paisa Seventy Five Only), 24.07.2020 for ₹44,95,216.15/- (Rupees Forty Four Lakhs Ninety Five Thousand Two Hundred Sixteen and paisa Fifteen Only), 17.10.2020 for ₹44,83,052.13/- (Rupees Forty Four Lakhs Eighty Three Thousand Fifty Two and paisa Thirteen Only) and
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ORIGINAL APPLICATION NO.1187 OF 2023
09.02.2021 for ₹45,91,414.38/- (Rupees Forty Five Lakhs Ninety One Thousand Four Hundred Fourteen and paisa Thirty Eight Only) and have acknowledged the said loan.
The details of the documents executed by the Defendants vide Sanction Letter dated 05.06.2020 are as under: -
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ORIGINAL APPLICATION NO.1187 OF 2023
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ORIGINAL APPLICATION NO.1187 OF 2023
Lakhs Twenty Eight Thousand Two Hundred Eighty Eight Only) as on 31.08.2021 Covid Loan of ₹9,00,000/- (Rupees Nine Lakhs Only) with further interest thereon @ 7.50% per annum within 7 days from receipt of this notice. Despite notice, defendant nos.1 and 2 failed and neglected to pay.
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ORIGINAL APPLICATION NO.1187 OF 2023
in evidence, read, recorded and exhibited.
ORDER
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ORIGINAL APPLICATION NO.1187 OF 2023
allowed with costs.
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ORIGINAL APPLICATION NO.1187 OF 2023
applicant, (ii) defendant and (iii) the Recovery Officer by post and email.
Sd/-
(Harish Kumar Kaushik)
Presiding Officer, DRT-2, Mumbai
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1 issue framed by the court
Whether the Original Application filed by Union Bank of India for recovery of outstanding dues and hypothecated securities deserves to be allowed.
1 provisions across 1 enactments
Union Bank of India
M/s Neha Enterprise
Minal Rajesh Shinde
Harish Kumar Kaushik
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
