Allowed

Union Bank of India v. M/S Magan Enterprises

DRT8 Aug 2025OA/2055/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India for recovery of Rs. 35,01,314.80 plus interest from M/S Magan Enterprises and the proprietor, who appeared ex parte. The Tribunal validated the loan advance and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 35,01,314.80 with interest from 11.11.2022 granted against joint and several liability of defendants; Recovery Certificate issued. Recovery proceeding to be handled by Recovery Officer

Union Bank of India versus M/S Magan Enterprises — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 2055/2022 Date of Institution: 11.11.2022 Date of Decision: 08.08.2025

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Union Bank of India at 177/1A, Rai Market, Ambala Cantt, Haryana

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……..Applicant

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Vs.

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M/s Magan Enterprises, shop No. 836, Pati Mehar Milap Nagar, Jalbera Road, Ambala City, Haryana

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Smt. Magan Kaushik w/o Sh. CK Kaushik (proprietor) of M/S Magan Enterprises, shop No. 836, Pati Mehar Milap Nagar, Jalbera Road, Ambala City, Haryana

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……….Defendants

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Advocates

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Sh. Iqbal Mohammed, Counsel for the applicant bank. Defendants- ex parte .

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OA for the Recovery of Rs.35,01,314.80/- with interest @10.45% per annum with monthly rests from 11.11.2022.

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ORDER

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Union Bank of India (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.35,01,314.80/- with interest against M/S Magan Enterprises and another (defendants).

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Defendant No. 1 is a Proprietorship firm of defendant No. 2. Bank’s case is that on 07.11.2020, it had granted a loan of Rs.24.00 Lacs to the defendants in the form of C.C Limit and on 05.05.2021, Rs.10.00 Lacs in the form of Term Loan under CGTMSE Scheme for business purpose. Defendant No. 2 stood as guarantor also. The loans were chargeable to

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interest @8.55% per annum with monthly rests. On 30.09.2022, a sum of Rs.35,01,314.80/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 16.06.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 05.12.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Vishnu Dayal Singh, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-26.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.34.00 Lacs and on 30.09.2022, a sum of Rs.35,01,314.80/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.35,01,314.80/- (Rupees Thirty Five Lacs One Thousand Three Hundred Fourteen and Eighty Paisa Only) with interest @10.45% per annum with monthly rests from 11.11.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of hypothecated goods/stocks/assets/book debts etc. as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 19.09.2025, who is directed to distribute the sale proceeds as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated:08.08.2025 Presiding Officer DRT-2, Chandigarh (Additional charge)

Union Bank of India v. M/S Magan Enterprises

Case brief

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What did the court decide?

Union Bank of India v. M/S Magan Enterprises

Case brief

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