Allowed

Uco Bank v. Messrs Vikas Trading Company and Another

DRT28 Jul 2025OA/308/2022

Case brief

AI extract

What is this about?

Indicating recovery of a bank loan classified as NPA, the Tribunal upheld the claim of Rs.21.64 lakhs but modified the interest rate to 8% p.a. exercising discretion, and directed issuance of a Recovery Certificate and attachment of mortgaged assets.

What did the court decide?

Directing recovery of Rs.21,64,200.20 with 8% simple interest and issuance of Recovery Certificate to enforce sale of mortgaged properties or attach personal assets.

Uco Bank versus Messrs Vikas Trading Company and Another — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.308/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2022

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DATE OF DECISION: 28.07.2025

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UCO BANK, a body corporate constituted under the Banking Companies (Acquisition and Transfer of undertaking) Act, 1970 having its Head office at 10, Brabourn Road, Kolkata and its Branches throughout India and amongst other Branches having a Branch Office at Dhandari Kalan, Ludhiana, through its constituted attorney Sh. Chandan Kumar, Branch Manager, UCO Bank, Dhandari Kalan Branch, Ludhiana and 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 Vikas Trading Company through Smt. Tarang Aggarwal being the legal heir of its sole proprietor Late Sh. Vikas Aggarwal S/o Sh. Hari Saror, 4, Street No.2, Ranjit Nagar, Backside ATI College, Gill Road, Ludhiana.

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Smt. Tarang Aggarwal W/o Sh. Vikas Aggarwal, R/o H. No.4632/2, Near Kwality Chowk, Shimlapuri, Ludhiana.

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………. Defendants

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Advocates:

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Present: Sh. Varun Verma, Advocate proxy for Sh. Ashok Kumar Verma, Advocate for Applicant

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Defendants already 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.21,64,200.20p (Rupees Twenty One Lacs Sixty Four Thousand Two Hundred and Paisa Twenty Only). The Original Application has been filed through Sh. Chandan Kumar, Branch Manager, w ho is competent to institute the Original Application vide

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2 OA NO.308/2022 UCO BANK VS. M/S VIKAS TRADING COMPANY AND ANOTHER

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Circular of the Bank dated 20.07.2012, 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 sole proprietor Sh. Vikas Aggarwal (now deceased) had approached the applicant for grant of Cash Credit Limit of Rs.18.00 Lacs vide Loan Application dated 07.01.2015, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. Further, defendant no.1 through its sole proprietor Sh. Vikas Aggarwal (now deceased) again approached the applicant for the renewal of the said Cash Credit Limit of Rs.18.00 Lacs vide Loan Application dated 04.03.2017 and 07.07.2020, which are Annexure A16 and A18 to this OA.

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The applicant sanctioned Cash Credit Limit of Rs.18.00 Lacs and further renewal of the said Cash Credit Limit of Rs.18.00 Lacs and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 and Sh. Vikas Aggarwal (now deceased) had mortgaged their immovable properties i.e. House measuring 200 Sq. yards situated at Village Gill No.1, Hadbast No.263, Abadi Shimla Puri, Tehsil and District Ludhiana, vide equitable mortgage of Sale Deed bearing Vasika No. 5927 dated 03.09.2010 along with its English Translation, which is Annexure A9 to this OA. Documents executed:- DP Note, Letter of waiver A-47, Letter of continuity, Hypothecation of goods, Undertaking regarding misutilization of funds and Letter of Guarantee, Draft of Letter of Undertaking to be obtained from the Applicant, Draft of Letter to be obtained from Mortgagor, all dated 07.03.2015, which are Annexures A3 to A8, A10 and A12 to this OA; Confirming Letter, which is Annexure A11 to this OA; Agreement for changing to MCLR system dated 09.12.2016, which is Annexure A13 to this OA; Annexure-B dated 09.12.2017, which is Annexure A14 to this OA; Letters dated 28.02.2017 & 16.11.2018, which are Annexure A15 & Annexure A17 to this OA; DP Note, Letter of waiver A-47, Letter of Continuity, Agreement of Hypothecation of

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3 OA NO.308/2022 UCO BANK VS. M/S VIKAS TRADING COMPANY AND ANOTHER

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Goods and Letter of Guarantee A-21 all dated 07.07.2020, which are Annexures A19 to A23 to this OA; Notice dated 03.05.2021 u/s 13(2) of SARFAESI Act, which are Annexures A24 to A25 to this OA; Possession Notice dated 06.10.2021, along with publications as well as photographs, which are Annexures A26 to A32 and Certified Statement of Account which is Annexure A33 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.21,64,200.20p, 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 24.07.2025. 7. In support of the OA, affidavit of Sh. Chandan Kumar, Branch Manager, UCO Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A33 to this OA, it is proved that the defendants approached applicant for availing of the loan facility 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,64,200.20p (Rupees Twenty One Lacs Sixty Four Thousand Two Hundred and Paisa Twenty Only) along with interest from the

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4 OA NO.308/2022 UCO BANK VS. M/S VIKAS TRADING COMPANY AND ANOTHER

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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 @08.45%p.a. along with penal interest @2% p.a. with monthly rest from 24.02.2022 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 account 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.21,64,200.20p (Rupees Twenty One Lacs Sixty Four Thousand Two Hundred and Paisa Twenty Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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OA NO.308/2022 UCO BANK VS. M/S VIKAS TRADING COMPANY AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.09.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 28.07.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Uco Bank v. Messrs Vikas Trading Company and Another

Case brief

What is this about?

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Uco Bank v. Messrs Vikas Trading Company and Another

Case brief

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