Allowed

Union Bank of India v. Chandrabhushan Hinchnarayan Tiwari

DRT1 Sept 2025OA/524/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India for recovery of outstanding dues of Rs. 23,52,984.20 along with future interest at 12% p.a., directing the sale of hypothecated assets if necessary and issuance of a Recovery Certificate.

What did the court decide?

Ordered payment of Rs. 23,52,984.20 plus future interest at 12% p.a.; security over hypothecated vehicle upheld; Recovery Certificate issued.

Union Bank of India versus Chandrabhushan Hinchnarayan Tiwari — Company and Corporate | DRT (2025)

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Presented on: 26.04.2024 Registered on: 09.07.2024 Decided on: 01.09.2025 Duration: Y M D 01 04 05

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 524/2024

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Union Bank of India

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TOTAL CLAIM AMOUNT – Rs. 23,52,984.20/-

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A Body Corporate constituted under the Banking

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companies (Acquisition and Transfer of Undertakings) Act 1970, Having its Registered office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 & having branches amongst the other places at Main Branch, Parbhani, through it’s Power of Attorney holder, Mr. Md. Elyas Ansari s/o Md. Sahud Ansari, (Chief Manager), Age: 42 yrs, Occu.: Service, R/o. Basmat Road, Parbhani 431401

… Applicant

(OA No.524/2024)

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[AMBADAS]

Versus

Mr. Chandrabhushan Hinchnarayan Tiwari Prop. of M/s. Tripathi Enterprises Age: Major, Occu.: Business, R/o.: At Flat No. 101, Chintamani Apartment, Sai Chowk, Nath Nagar, Jintur Road, Parbhani 431401

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AND/OR

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Mr. Chandrabhushan Hinchnarayan Tiwari Prop. of M/s. Tripathi Enterprises Age: Major, Occu.: Business, R/o.: At Tripathi Sadan, Old Pedgaon Road, Shivneri Nagar, Parbhani 431401

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…Defendant

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APPEARANCES For the Applicant Mr. K.D. Pande -Advocate For Defendant Ex-parte

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JUDGMENT Delivered on 01.09.2025

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 23,52,984.20/- (Rupees Twenty Three Lacs, Fifty Two Thousand, Nine Hundred Eighty Four and Twenty Paisa only), along with future interest from the date of

(OA No.524/2024)

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[AMBADAS]

filing of the Original Application, i.e., 26.04.2024, until the date of realization of the entire outstanding dues from the Defendant.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant approached the bank seeking financial assistance in the form of a Term Loan Facility. Upon scrutiny of the documents submitted by the Defendant, the Bank sanctioned a Term Loan Facility of Rs. 19,00,000/- vide sanction letter dated 12.05.2012. The agreed rate of interest was 12.50% per annum with monthly rests. The Defendant also agreed to pay additional interest at the rate of 2% per annum by way of liquidated damages in case of default in repayment.

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Subsequently, the Defendant again approached the Applicant Bank seeking further financial assistance by way of another Term Loan Facility. After examining the necessary documents, the Bank sanctioned a Term Loan Facility of Rs. 3,00,000/- vide

(OA No.524/2024)

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[AMBADAS]

sanction letter dated 12.05.2015. The agreed rate of interest for

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this facility was 11.35% per annum with monthly rests, and the Defendant agreed to pay additional interest at the rate of 2% per annum by way of liquidated damages in the event of default.

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Thereafter, the Defendant once again approached the Bank for financial assistance through a Term Loan Facility. Upon verification of the submitted documents, the Bank sanctioned a Term Loan Facility of Rs. 21,70,000/- vide sanction letter dated 28.10.2020. The agreed rate of interest was 7.40% per annum with monthly rests. As with the previous loans, the Defendant agreed to pay additional interest at the rate of 2% per annum as liquidated damages in case of default in repayment. Subsequently, the Defendant again sought financial assistance from the Applicant Bank in the form of a Term Loan Facility. Upon due scrutiny, the Bank sanctioned a Term Loan Facility of Rs. 7,80,000/- vide sanction letter dated 20.11.2020. The rate of

(OA No.524/2024)

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[AMBADAS]

interest agreed upon was 8.55% per annum with monthly rests,

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and the Defendant consented to pay an additional interest of 2%

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per annum by way of liquidated damages in the event of default in repayment.

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In order to secure the aforesaid loan facilities, the Defendant executed various loan documents in favour of the Applicant

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Bank. These included sanction letters, hypothecation agreements, demand promissory notes, letters of undertaking, letters of continuity, etc in favour of the Applicant Bank.

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The Applicant Bank further contends that, in order to secure the aforesaid loan facilities, the Defendant executed hypothecation agreements on 16.06.2015 & 31.10.2020 thereby hypothecating commercial vehicle i.e. Caterpillar 424 B Backhoe Loader manufacture by Caterpillar India Pvt. Ltd. Bearing Chassis No. IMOP03151225 & Enginer No. 4H32011520311 purchased out of Bank’s finance etc in favour of the applicant bank.

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The applicant bank contended that the defendant has failed to

(OA No.524/2024)

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[AMBADAS]

keep the promise and commitments agreed by him with regard to due repayment of the loan amount. The defendant failed to operate the loan account properly and failed to pay the agreed rate of interest as per terms and conditions of the sanction letter. Thereafter, the applicant bank repeatedly made demand of loan amount and called upon the defendant to pay with the agreed rate of interest thereon, but the defendant failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA on 28.10.2023. Therefore, on 03.01.2024 the applicant bank issued legal notice to the defendant through their advocate. Despite service of Notices, the defendant failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendant failed to appear in matter though he was served through RPAD. Hence, the defendant was proceeded ex-parte as per Order dated 16.01.2025.

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The applicant Bank has filed Claim Affidavit of evidence at Exhibit-4 of Md. Elyas Ansari s/o Md. Sahud Ansari, Chief

(OA No.524/2024)

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[AMBADAS]

Manager of the applicant Bank, and has produced on record the original loan transaction documents as Exh. A-1 to A-40 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendant failed to appear and contest the application, I find no reason to disbelieve the unrebutted evidence of the applicant Bank. Therefore, the applicant Bank is entitled for the reliefs as claimed.

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The applicant Bank has claimed charge over hypothecated properties of the borrower.

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The applicant Bank has claimed future interest @12.50% p.a. on the Term loan Facility from the date of filing i.e. 26.04.2024 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @12% per annum (simple), it would be just

(OA No.524/2024)

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[AMBADAS]

and reasonable rate of interest.

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ORDER

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(A) Original Application No. 524/2024 is allowed with

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costs.

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(B) The defendant shall pay to the applicant Bank a sum of Rs. 23,52,984.20/- (Rupees Twenty Three Lacs Fifty Two Thousand Nine Hundred Eighty Four and Twenty Paisa only), along with future interest @ 12% per annum (simple) from the date of filing of the Original Application i.e. 26.04.2024 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the hypothecated commercial vehicle i.e. Caterpillar 424 B Backhoe Loader manufacture by Caterpillar India Pvt. Ltd. Bearing Chassis No. IMOP03151225 & Enginer No. 4H32011520311 purchased out of Bank’s finance vide hypothecation agreements dated 16.06.2015 & 31.10.2020 at Exhibit A-7 & A-22 in the list of documents Exh. 5

(OA No.524/2024)

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[AMBADAS]

(D) The applicant Bank is entitled to sell the hypothecated

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vehicles/ articles/goods etc., to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and defendant.

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. (Dr. J. R. Chauhan) Place: Aurangabad Presiding Officer Date:.01.09.2025 Debts Recovery Tribunal, Aurangabad

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(OA No.524/2024)

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[AMBADAS]

Union Bank of India v. Chandrabhushan Hinchnarayan Tiwari

Case brief

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Union Bank of India v. Chandrabhushan Hinchnarayan Tiwari

Case brief

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