Allowed

Union Bank of India v. M/S Fakir Industries

DRT14 May 2025OA/583/2024

Case brief

AI extract

What is this about?

The DRT allowed the bank's recovery application filed for an outstanding amount of Rs. 23,10,440.61. The court declared the defendants jointly and severally liable and issued a recovery certificate allowing recovery from hypothecated and personal assets.

What did the court decide?

Recovery certificate issued for Rs. 23,10,440.61 plus future interest at 10% simple interest from 01.03.2024 until realization, recoverable from hypothecated and personal assets.

Union Bank of India versus M/S Fakir Industries — Banking and Recovery | DRT (2025)

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“ORIGINALAPPLICATION” No. 583 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 583 OF 2024

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DATE OF DELIVERY OF ORDER 14.05.2025

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UNION BANK OF INDIA A body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai and having one of its brach at road no. 2, Jai Marg, near over bridge, Alwar, Rajasthan.

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…..Applicant Bank…..

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VERSUS

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1. M/s Fakir Industries , a Proprietorship firm, through its partner, Shri Fakir Chand Garg, having registered office at 160 FT. Road, Neb Housing Board, near nirankari mandir, Alwar, Rajasthan.

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2. Shri Fakir Chand Garg S/o Shri Rameshwar Dayal, R/o Plot No. 5, New Daudpur, Alwar, Rajasthan.

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3. Shri Vikas Garg S/o Shri Fakir Chand Garg, R/o Plot No. 5, New Daudpur, Alwar, Rajasthan.

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……Defendants…..

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Counsel for the Applicant Bank Sh. Nikhil Jain Defendants

Ex parte

OA No. 583 of 2024

JUDGMENT

This Original Application was filed by the applicant bank on 22.03.2024 for recovery of outstanding amount of Rs. 23,10,440.61/- from the Defendants.

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As per the pleadings, Defendant No. 1 is a registered partnership firm and Defendant No. 2 & 3 are partners. The Defendants along with Mr. Naveen Garg (retired partner) approached to the Applicant Bank for availing Cash Credit facility. After due consideration, cash credit facility was sanctioned by the Applicant Bank in favour of Defendants in the year 2010 vide sanction letter dated 17.05.2010 which was subsequently renewed/reduced/modified/enhanced from time to time and lastly renewed for a total sum of Rs.19.00 Lacs. Defendants were also granted term loan under the UGECL scheme by the applicant bank vide sanction letter dated 10.12.2021 for sum of Rs. 2.00 Lacs. Defendants failed to maintain financial discipline and therefore, their loan account was classified as NPA on 18.07.2023. Applicant Bank has therefore, filed this original application for recovery of Rs. 23,10,440.61/against the Defendants along with interest of 9.25% and penal interest of 1.75%.

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Summons were issued to the Defendants on 18.07.2024 vide order dated 15.07.2024 and Sh. Sanjay Kumar Shukla undertook to file Vakalatnama on behalf of defendants, but reply has not been filed by the

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OA No. 583 of 2024

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defendants till today. None appears for the defendants. Defendants have proceeded ex-parte.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit coupled with the recitals in the documents, viz Exhibit A/1 to A/39 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 583 of 2024 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 23,10,440.61/- (Rupees Twenty Three Lac Ten Thousand Four Hundred Forty and Sixty One Paisa only) with future interest @ 10% simple interest from 01.03.2024 till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and properties mentioned in para 3A(iv) – 1) 160 ft. road, NEB Housing Board, near Nirankari Mandir, Alwar, Rajasthan as well as from the personal movable and immovable properties/assets of Defendants. The applicant

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OA No. 583 of 2024

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bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 28.07.2025 .

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Prepare Recovery Certificate accordingly.

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A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 14.05.2025 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Signed and uploaded on 22.05.2025.

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OA No. 583 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 583 OF 2024

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DATE OF DELIVERY OF ORDER 14.05.2025

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

…..Applicant Bank…..

VERSUS

1. M/s Fakir Industries , a Proprietorship firm, through its partner, Shri Fakir Chand Garg, having registered office at 160 FT. Road, Neb Housing Board, near nirankari mandir, Alwar, Rajasthan.

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2. Shri Fakir Chand Garg S/o Shri Rameshwar Dayal, R/o Plot No. 5, New Daudpur, Alwar, Rajasthan.

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3. Shri Vikas Garg S/o Shri Fakir Chand Garg, R/o Plot No. 5, New Daudpur, Alwar, Rajasthan.

……Defendants…..

OA No. 583 of 2024

Recovery Certificate for Rs. 23,10,440.61/-

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In terms of final order dated 14.05.2025 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 23,10,440.61/- (Rupees Twenty Three Lac Ten Thousand Four Hundred Forty and Sixty One Paisa only) with future interest @ 10% simple interest from 01.03.2024 till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets and properties mentioned in para 3A(iv) – 1) 160 ft. road, NEB Housing Board, near Nirankari Mandir, Alwar, Rajasthan as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 28.07.2025 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and

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OA No. 583 of 2024

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Financial Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 14.05.2025.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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OA No. 583 of 2024

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 583 OF 2024

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DATE OF DELIVERY OF ORDER 14.05.2025

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/s Fakir Industries , a Proprietorship firm, through its partner, Shri Fakir Chand Garg, having registered office at 160 FT. Road, Neb Housing Board, near nirankari mandir, Alwar, Rajasthan.

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2. Shri Fakir Chand Garg S/o Shri Rameshwar Dayal, R/o Plot No. 5, New Daudpur, Alwar, Rajasthan.

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3. Shri Vikas Garg S/o Shri Fakir Chand Garg, R/o Plot No. 5, New Daudpur, Alwar, Rajasthan.

……Defendants…..

OA No. 583 of 2024

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	26,000.00
2	Process Fee (Inc. Publication)	354.00
3	Advocate Fee	1,250.00
4	Commission/Receiver/Valuation	NIL
5.	Miscellaneous Charges	NIL
	Total	27,604.00

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 583 of 2024

14.05.2025

Counsel:

Sh. Nikhil Jain, Counsel for Applicant Bank Defendants are exparte

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

OA No. 583 of 2024

14.05.2025

Counsel:

Sh. Nikhil Jain, Counsel for Applicant Bank Defendants are exparte

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The Tribunal vide order dated 14.05.2025 , directed the Registrar to verify the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015.

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The Registrar vide order dated 14.05.2025 verified the Recovery Certificate as per Regulation 24(1) and (2) of Debts Recovery Tribunal Jaipur Regulation 2015. Recovery Certificate is prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

Union Bank of India v. M/S Fakir Industries

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S Fakir Industries

Case brief

What is this about?

What did the court decide?

What the court decided

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