Allowed

Union Bank of India v. M/S Gauri Enterprises

DRT19 Jul 2025OA/146/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of dues. The Defendant was directed to pay the sanctioned amount within 30 days or face recovery from hypothecated properties and other assets.

What did the court decide?

Directed payment of Rs. 22,85,110.22/- within 30 days; recovery from hypothecated stocks, DRIC adjustment, and other properties in case of shortfall; issue of recovery certificate.

Union Bank of India versus M/S Gauri Enterprises — Banking and Recovery | DRT (2025)

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O.A. No.146 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 146 of 2023

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Union Bank of India A-51, Village Gokalpur Gokulpur branch Delhi-110094 Applicant

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Versus

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M/s Gauri Enterprises Through its proprietor Sh.Ranju Soni B-99, B Block, Near Ravidas Temple Amar Colony, East Gokalpur Delhi-110094 Defendant

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Present: Shri Prabhash Kumar Jha, Counsel for applicant bank

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Date of Institution: 21.01.2023 Date of Pronouncement: 19.07.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 21.01.2023 before DRT I Delhi through its authorized representative under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.22,85,110.22/- (Rupees Twenty Two Lacs Eighty Five Thousand One Hundred Ten & Paisa Twenty Two only) as on 30.04.2022 together with pendentelite and future interest ©10.45% per annum plus

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0.A. No.146 of 2023

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@2% penal interest with monthly rest from 30.04.2022 till the date of realization and costs.

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The brief facts of the case are that on the request of defendant being proprietorship concern vide their loan application dated 11.01.2018, the applicant bank sanctioned Cash Credit limit of Rs.5.00 lacs on 11.01.2018, Term Loan of Rs.5.00 lacs under Union Progress on 05.02.2020 and Rs.1.80 lacs under Union guarantee Emergency Credit on 04.07.2020. On the request of defendant, Cash Credit limit was enhanced to Rs.18.00 lacs on 17.04.2020 @10.45% interest per annum covered under CGTMSE scheme against hypothecation of stock and book debts and DRIC of Rs.8.00 lacs.

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That in order to avail the said loan facilities, the defendant through its proprietor executed Sanction Letter dated 11.01.2018, Annexure-I, Demand Promissory Note, Letter of Continuity AD-09, Interest Agreement (SD-24), Hypothecation Agreement, General Term Loan Agreement (SD18), Letter of Undertaking AD-12, Letter of Undertaking from Borrower, Simple Interest Agreement AD-02A, Request Letter and Copy of Term Loan Agreement SD-19, Letter of Lien, 09.2017 including Letter of Guarantee dated 30.01.2016 with the applicant bank on 11.01.2018 and 17.04.2020.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to maintain financial discipline as per terms of sanction and committed defaults in repayment of interest. As the defendants failed to regularize the accounts despite notice & personal visits, the applicant bank classified the account as NPA on 29.05.2022 and issued recall notices dated 01.06.2022 and

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O.A. No.146 of 2023

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08.06.2022 but defendant neglected the notice. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendant and despite of proper service the defendant has chosen to absent from the proceedings. As per order dated 21.10.2024, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Sujeet Kumar as authorized representative of the applicant who has proved the documents as Power of Attorney CW-1/1, Letter of Sanctions CW1/2(colly), Annexure-I CW-1/3(colly), Demand Promissory Note CW-1/4, Letter of Continuity CW-1/5(colly), Interest Agreement CW-1/6(Colly), Hypothecation Agreement CW1/7(colly), General Term Loan Agreement CW-1/8(colly), Letter of Undertaking CW-1/9(colly), Letter of Undertaking CW1/10(colly, Simple Agreement CW-1/11(colly), Request Letter CW-1/12(colly), Term Loan Agreement CW-1/13, Letter of Lien CW-1/14, Demand Notice CW-1/15(colly), Statement of Accounts CW-1/16(colly).

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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.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant

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O.A. No.146 of 2023

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bank and the applicant bank has proved its case beyond reasonable doubts.

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

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.22,85,110.22/- (Rupees Twenty Two Lacs Eighty Five Thousand One Hundred Ten & Paisa Twenty Two only) as on 30.04.2022 together with pendentelite and future interest @12.45% per annum with monthly rests from the date of filing of this application till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and adjustment of FDR of Rs.8.00 lacs in the name of defendant and Mrs.Abhisarika Soni. The property in the name of Sh.Ram Narain Soni being Property No.B-99, out of Khasra No.668 at Village Gokalpur in the Abadi of Gali No.2, East Gokalpur, Amar Colony, Delhi is not duly mortgaged with the bank. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 20.09.2025..

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O.A. No.146 of 2023

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(IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost.

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' (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 19.07.2025

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Union Bank of India v. M/S Gauri Enterprises

Case brief

What is this about?

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Union Bank of India v. M/S Gauri Enterprises

Case brief

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