Allowed

Uco Bank v. Amory Cosmetics Private Limited and Others

DRT26 Jun 2025OA/383/2024

Case brief

AI extract

What is this about?

Allowed the revenue side Original Application to recover a loan of Rs 30,88,720.70 due from the respondents to UCO Bank. Defined the joint and several liability of the respondents and the interest rate for recovery.

What did the court decide?

Recovery of Rs 30,88,720.70 with interest @ 8.00% p.a.; Directions to issue Recovery Certificate.

Uco Bank versus Amory Cosmetics Private Limited and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.383/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.02.2024

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DATE OF DECISION: 26.06.2025

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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-B.T.M., Sarani Kolkata (A Government of India Undertaking) and having one of its Branch situated at SCO 8, Modern Complex, Preet Colont, Zirakpur District SAS Nagar, Mohali, Punjab 140603, through Ms. Shaveta, who is presently working as Senior Manager, Branch Constituted Power of Attorney Holder/ Memorandum of the bank and Principal Officer.

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……..Applicant

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Versus

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1. Amory Cosmetics Private Limited, SCF 1, Hill View Enclave, Peer Muchala, Zirakpur through its Director.

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2.	Shehnaz Yaqoob (deceased)	W/o Sh. Dinesh through her legal
	representative.

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i) Dinesh S/o Sh. Krishan Chand, R/o Flat No. 208, Block-A, Panchkula Heights, Peer Muchala, Zirakpur.

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ii) Sahil S/o Sh. Dinesh S/o Sh. Krishan Chand, R/o Flat No. 208, Block-A, Panchkula Heights Peer Muchala, Zirakpur.

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Dinesh S/o Sh. Krishan Chand, R/o Flat No. 208, Block-A, Panchkula Heights Peer Muchala, Zirakpur.

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	……….Defendants
Advocates:

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Argued by Ms. Neha Arora, Advocate proxy for Sh. Munish Mittal, Advocate for Applicant Defendants are ex-parte

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OA NO.383-2024 UCO BANK VS AMORY COSMETICS PRIVATE LIMITED AND OTHERS

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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.30,88,720.70p (Rupees Thirty Lacs Eighty Eight Thousand Seven Hundred Twenty And Seventy Paisa Only). The Original Application has been filed through Ms. Shaveta, Senior Manager, w ho is competent to institute the Original Application vide resolution letter dated 20.07.2012, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant Cash Credit Limit of Rs.30.00 Lacs vide Loan Application dated 20.02.2020, which is Annexure A2 to this OA.

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The applicant sanctioned Cash Credit Limit of Rs.30.00 Lacs vide Sanction Letter dated 18.02.2020, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had hypothecated its movable properties/assets i.e. Stock, Book Debts and Other Current Assets etc. vide Composite Deed of Hypothecation dated 20.02.2020, which is Annexure A8 to this OA. Documents executed:- Pre sanction visit Report on defendant place of business and place of residence dated 10.01.2020 and 05.02.2020, which are Annexures A3 and A4 to this OA; Statements of Means dated 12.02.2020, which are Annexures A5 & A6 to this OA; Demand Promissory Note, Waive Presentment, Consent regarding interest, Guarantor Agreement all dated 20.02.2020, which are Annexures A9 to A12 to this OA; Under Certificate of posting dated 09.10.2022, which is Annexure A12/A to this OA; Renewal Letter dated 05.05.2023, which is Annexure A13 to this OA; Postal Receipts dated 06.05.2023 and 02.12.2023, which are Annexures A14 and A16 to this OA; Recall Notices dated 30.11.2023 and 31.12.2023, which are Annexures A15

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OA NO.383-2024 UCO BANK VS AMORY COSMETICS PRIVATE LIMITED AND OTHERS

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and A17 to this OA; Account Statement with certificate, which is Annexure A18 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 account there was a debit of Rs.30,88,720.70, 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 defendant no.1 and 3 and legal heirs of deceased defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 24.06.2025. 7. In support of the OA, affidavit of Ms. Shaveta, Senior Manager, UCO Bank h as been filed. 8. Heard 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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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 Housings 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.30,88,720.70 (Rupees Thirty Lacs Eighty Eight Thousand Seven Hundred twenty And Seventy Paisa Only) along with interest from the defendant no.1 and 3 and legal heirs of deceased defendant no.2, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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OA NO.383-2024 UCO BANK VS AMORY COSMETICS PRIVATE LIMITED AND OTHERS

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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 @12.70%p.a. with monthly rest from 01.11.2023 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 defendant no.1, 3 and legal heirs of deceased defendant no.2 are liable to pay to the applicant a total sum of Rs.30,88,720.70 (Rupees Thirty Lacs Eighty Eight Thousand Seven Hundred twenty And Seventy Paisa 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 defendant no.1, 3 and legal heirs of deceased defendant no.2. The applicant is at liberty to enforce the claim through due process of law.

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12.	Any other application pending stands disposed of.
13.	Issue Recovery Certificate accordingly.

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OA NO.383-2024 UCO BANK VS AMORY COSMETICS PRIVATE LIMITED AND

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OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.07.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 26.06.2025

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

Uco Bank v. Amory Cosmetics Private Limited and Others

Case brief

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Uco Bank v. Amory Cosmetics Private Limited and Others

Case brief

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