Allowed

Union Bank of India v. kiara professional

DRT17 Dec 2025OA/487/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application to recover a term loan defaulting by corporate borrowers and partners. Due to evidence going uncontraddicted, the Tribunal directed payment of principal, interest, and secured enforcement of hypothecated movable assets.

What did the court decide?

Recovery of ₹12,07,538.96 with future interest directed against defendants; enforcement of hypothecated securities; issuance of Recovery Certificate.

Union Bank of India versus kiara professional — Contract and Commercial Disputes | DRT (2025)

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ORIGINAL APPLICATION NO.487 OF 2022

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DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

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PRESIDING OFFICER: HARISH KUMAR KAUSHIK

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ORIGINAL APPLICATION NO.487 OF 2022

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Date of Institution: 14.03.2019 Date of Decision: 17.12.2025

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TOTAL CLAIM AMOUNT :

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₹ 12,07,538.96/-

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Union Bank of India A Body Corporate constituted under the Banking Companies Acquisition & Transfer of Undertakings Act V, 1970 having its Head Office at Union Bank Bhavan, 239 Vidhan Bhavan Marg, Nariman Point, Mumbai-400 021 and amongst other a Branch Office known as Gowalia Tank Branch at 68/70 Jer Mansion, August Kranti Marg, Mumbai-400 036 through its Chief Manager, Mr Praful Bapu Pednekar

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… Applicant

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Versus

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Kiara Professional (Borrower) Through its Partners having their address at Shop No.10, EMP 49 Evershine Halley CHS, Thakur Village, Kandivali East, Mumbai-400 101.

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Bhadresh P Parmar

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Page 1 of 9

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ORIGINAL APPLICATION NO.487 OF 2022

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(Partner/Guarantor) A-1203, Sindhi Society, Chembur Heights, 8^th Road, Near Acers Club, Chembur, Mumbai-400 071

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Falguni Sarvaiya (Partner/Guarantor) C/O Jayantilal T. Sarvaiya, 503, Gokul Vatika CHS, Limited M G Cross Road No.4, Behind Patel Nagar, Kandivali West, Mumbai-400 067 …Defendants APPEARANCES For the Applicant : Ms Akshita Rathudi i/b M/s. Anup Khaitan & Co. - Advocate For Defendants : None

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J U D G M E N T

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(1) This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) to recover ₹12,07,538.96/- (Rupees Twelve Lakhs Seven Thousand Five Hundred Thirty-Eight and paisa Ninety Six Only) with future interest @ 11.90% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 14.03.2019 till payment/realization and to enforce the hypothecated securities.

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Page 2 of 9

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ORIGINAL APPLICATION NO.487 OF 2022

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The details of the claim amount are as under: -

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S	Nature	O/s. amount	Interest	Penal	Total Amount
r	of		accrued	Interes
N	Facility			t
o
1	Term Loan Facility	11,54,694.96/-	50,427/ -	2,417/-	12,07,538.96/-

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(2) It is undisputed fact in the matter that the Defendant nos.1 to 3 were duly served with the summons vide order-sheet dated 26.03.2024. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 20.01.2025.

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(3) Defendant no.1 through its Partners and Guarantors i.e. Defendant No.2 and 3 are the principal borrowers who approached the Applicant Bank and sought financial assistance by way of Term Loan Facility. Pursuant to the loan application vide Loan Application Form dated 14.03.2015 made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 18.03.2016 for a sum of ₹20,00,000/- (Rupees Twenty Lakhs Only) payable in 5 years, in 57 EMIs of ₹35,088/- (Rupees Thirty-Five Thousand Eighty-Eight Only) with interest at the rate of 11.90 % per annum. The said loan is covered under CGTMSE Scheme.

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Page 3 of 9

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ORIGINAL APPLICATION NO.487 OF 2022

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The details of the Sanction amount are as under: -

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Sr	Date of	Amount	ROI	Security
No	Sanction
1	18.03.2016	₹20,00,000/-	11.90 % per annum	hypothecated Plant and Machinery, Furniture, Fixture and Fittings and All the tangible movable machinery and plant of the Borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in cases which are now lying or stored in or about or shall be brought into or be stored or be in or upon or about the Borrower's premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Borrower relating to or pertaining to the Borrower's works at KANDIVALI & MALAD vide Term Loan Agreement (Hypothecation of Movables) dated 18.03.2016
	Total Amount	₹20,00,000/-	-	-

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(4) On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos.5(a) to (g) of the Original Application. Defendants hypothecated Plant and Machinery, Furniture, Fixture and Fittings and All the tangible movable machinery and plant of the Borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in cases which are now lying or stored in or about or shall be

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Page 4 of 9

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ORIGINAL APPLICATION NO.487 OF 2022

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brought into or be stored or be in or upon or about the Borrower's premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Borrower relating to or pertaining to the Borrower's works at KANDIVALI & MALAD vide Term Loan Agreement (Hypothecation of Movables) dated 18.03.2016 to secure the loan. The details of the documents executed by the Defendant are as under: -

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(a) Loan Application Form dated 14.03.2015;

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(b) Accepted Sanction Letter dated 18.03.2016; (c) Declaration of Partnership (AD-07) dated 18.03.2016;

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(d) Term Loan Agreement (SD-18) dated 18.03.2016;

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(e) Partnership Client Note dated (21H Revised) 18.03.2016 for an amount of ₹20,00,000/-;

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(f) Letter of Continuity (AD-09 modified) dated 18.03.2016 for an amount of ₹20,00,000/-;

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(g) Term Loan Agreement (Hypothecation of Movables) (SD-19) dated 18.03.2016;

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(h) Agreement on Rate of Interest (SD-24) dated 18.03.2016;

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(i) Letter of Undertaking from Borrower dated 18.03.2016;

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(j) Debit Balance Confirmation Letter dated 27.12.2018 for an amount of ₹11,54,694.96/-

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ORIGINAL APPLICATION NO.487 OF 2022

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(Rupees Eleven Lakhs Fifty-Four Thousand Six Hundred Ninety-Four and paisa NinetySix Only).

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(5) After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 31.10.2018 as per RBI Guidelines. Therefore, on 18.02.2019, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of 11,91,558.96/(Rupees Eleven Lakhs Ninety-One Thousand Five Hundred Fifty-Eight Only) as on 31.01.2019 alongwith interest @11.90% per annum from 01.02.2019 within 15 days from receipt of this notice. Despite notice, defendant nos.1 to 3 failed and neglected to pay.

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(6) As on 13.03.2019, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹12,07,538.96/- (Rupees Twelve Lakhs Seven Thousand Five Hundred Thirty-Eight and paisa Ninety-Six Only) with future interest @ 11.90% per annum with monthly rest thereon. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

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ORIGINAL APPLICATION NO.487 OF 2022

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(7) Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 14.03.2019.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Sujeet Kumar, Chief Manager and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-20, which are admitted in evidence, read, recorded and exhibited.

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(9) Accordingly, in the Original Application was filed for the recovery of ₹12,07,538.96/(Rupees Twelve Lakhs Seven Thousand Five Hundred Thirty-Eight and paisa Ninety-Six Only) with future interest @ 11.90% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 14.03.2019 till payment/realisation.

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(10) The Tribunal has scrutinised and examined the allegations contained in the Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

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(11) Upon careful scrutiny and the examination of the Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by

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ORIGINAL APPLICATION NO.487 OF 2022

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the applicant bank.

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(12) In view of the observations made hereinabove, Original Application filed by the applicant deserves to be allowed.

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(13) Hence, the following order:

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ORDER

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(A) The Original Application No.487 of 2022 is allowed with costs.

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(B) Defendant no.1 through its Partners and Guarantors i.e., Defendant No.2 and 3 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹12,07,538.96/(Rupees Twelve Lakhs Seven Thousand Five Hundred Thirty-Eight and paisa Ninety-Six Only) with future interest @ 12% per annum simple interest thereon from the date of presentation of the Original Application i.e., 14.03.2019 till payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Plant and Machinery, Furniture, Fixture and Fittings and All the tangible movable machinery and plant of the Borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in cases which are now lying or stored in or about or shall be brought into or be stored or be in or upon or about the Borrower's premises and godowns or

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Page 8 of 9

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ORIGINAL APPLICATION NO.487 OF 2022

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wherever else the same may be or be held by any party to the order or disposition of the Borrower relating to or pertaining to the Borrower's works at KANDIVALI & MALAD vide Term Loan Agreement (Hypothecation of Movables) dated 18.03.2016.

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(D) Defendant no.1 through its Partners and Guarantors i.e. Defendant No.2 and 3 are entitled to redeem the hypothecated properties as per law failing which the applicant has right to proceed to sell the hypothecated properties and recover dues as per law.

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(E) The Applicant is also hereby directed to submit the details of claim amount received from the Central Government since the facility is granted under CGTMSE Scheme and provide with the current status of the hypothecated properties.

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(F) Issue Recovery Certificate.

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(G) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

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Sd/-

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(Harish Kumar Kaushik)

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Presiding Officer, DRT-2, Mumbai

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Page 9 of 9

Union Bank of India v. kiara professional

Case brief

What is this about?

What did the court decide?

Union Bank of India v. kiara professional

Case brief

What is this about?

What did the court decide?

What the court decided

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