The Debt Recovery Tribunal allowed the bank's application under Section 19 of the RDBFI Act, 1993 for recovery of Rs. 27,23,311.80p, declaring defendants jointly and severally liable after refusing them the chance to file written statement.
Direction to defendants to pay Rs. 27,23,311.80p with simple interest at 8% p.a. 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.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.410/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 08.02.2024
DATE OF DECISION: 07.03.2025
UCO Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head office at No. at Kolkata and branches throughout India and One of its branch Office at Miller ganj Ludhiana through its constituted attorney Sh.Ravi Parkash Gupta Chief Manager UCO Bank, Miller Ganj Branch Ludhiana and who is also the principal Officer of the plaintiff /applicant.
2nd Address : House No.32, New Punjabi Mata Nagar, Vishal Nagar Jawaddi Takal, Ludhiana Punjab.
….……Defendants
Advocates:
Argued by Sh. Ashok Kumar Verma, Advocate proxy for Sh. Varun Verma, Advocate for Applicant None for Defendants
FINAL ORDER
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| has been filed through Sh. Ravi Parkash Gupta Chief Manager of the applicant bank, who is competent to institute the Original Application vide Circular of Bank dated 20.07.2012, which isAnnexure A1to this OA. |
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| 2. The brief facts of the OA that the defendants had approached the applicant bank for the grant of CC Limit of Rs.25.00 Lacs vide Loan |
| Application dated 01.03.2022, which isAnnexure A2to this OA. |
| 3. The applicant Bank sanctioned the CC Limit of Rs.25.00 Lacs vide Sanction letter dated 29.03.2022, which isAnnexure A3to this OA and the terms and conditions were duly accepted by the defendant. |
| 4. Defendant no.1 had hypothecated its movable assets i.e. all kinds |
| of stocks of Fabric and all other articles, goods, stocks etc. vide |
| Hypothecation of goods to secure demand cash credit all dated |
| 30.03.2022, which isAnnexure A7to this OA |
| Documents executed: -DP Note, Letter of Waiver, Letter of Continuing, |
| all dated 30.03.2022,which areAnnexures A4 to A6to this OA and |
| Statement of account, which isAnnexure A8to this OA. |
| 5. 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.27,23,311.80p, which is recoverable and the defendants were |
| served recall notices but they did not repay the outstanding amount, |
| therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. |
| 6. The defendants were served notices to appear before this |
| Tribunal. Sh. Sanal Kumar, Advocate appeared for defendants and filed |
| his Power of Attorney but did not filed WS within stipulated period. |
| Therefore, opportunity to file WS by defendants was closed and their |
| defense was struck of on 18.02.2025. |
| 7. In support of the OA, affidavit of Sh. Ravi Parkash Gupta Chief |
| Manager,UCO Bank has been filed. |
| 8. Heard arguments of Ld. Counsel for applicant. None appeared for defendants for arguments. Perused record |
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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,23,311.80p (Rupees Twenty-Seven Lacs Twenty Three Thousand Three Hundred Eleven And Eighty Paise Only) Jointly and severally, with
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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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2025. 15. Copy of this order be given Dasti to the applicant bank 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 . Dated: 07.03.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount and interest from the defendants as it is classifiable as an NPA.
Whether the interest rate claimed by the bank should be uniform simple interest at 8% per annum from the date of filing of the Original Application till realization.
2 provisions across 2 enactments
UCO Bank
M/s Golden Fabric Hut
Sh. Devender Pal Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
