Allowed

Union Bank of India v. M/S T S Warsi Collection

DRT3 Sept 2025OA/621/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues of Rs. 26,18,637.40p accrued from a small business loan. The court remitted the interest rate claimed by the bank to 8% per annum annually from the filing date and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 26,18,637.40p plus simple interest @ 8% p.a. issued; issuance of Recovery Certificate directed.

Union Bank of India versus M/S T S Warsi Collection — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.621/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.05.2025

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DATE OF DECISION: 03.09.2025

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Union Bank of India, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Union Bank Bhawan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra - 400021 and Branch Offices, amongst others at Branch Office, at Sector-32, Ludhiana through its Branch Manager Namely Sh. Manoj Bhatt of the Applicant.

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……..Applicant

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Versus

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M/s T. S. Warsi Collection proprietorship concern of Sh. Mohammad Tosif S/o Sh. Mohammad Iliyas Ahmed having its office at House No. G-5-1285, Ward No. 22, Kabir Nagar, Basti Jhodewal, Street No.0, Near Bal Singh Nagar, Ludhiana – 141007.

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Sh. Mohammad Tosif S/o Sh. Mohammad Iliyas Ahmed proprietor of M/s T. S. Warsi Collection R/o H. No. G-5-1285, Ward No. 22, Kabir Nagar, Basti Jhodewal, Street No.0, Near Bal Singh Nagar, Ludhiana – 141007.

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…….Defendants

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Advocates:

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Argued by Ms. Sandhya Arora, Advocate proxy for Sh. Sandesh Arora, Advocate for the applicant (through VC)

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Defendants already ex-parte

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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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.26,18,637.40p (Rupees Twenty Six Lacs Eighteen Thousand Six Hundred Thirty Seven And Forty Paisa Only). The Original Application has been filed through Sh.

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2 OA NO. 621/2025 UNION BANK OF INDIA VS M/S T S WARSI COLLECTION AND ANOTHER

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Manoj Bhatt, Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.06.2010, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 had approached the applicant for grant of CC Limit of Rs.25.00 Lacs under Union Progress MSME scheme vide Application Form dated 04.07.2023, which is Annexure A3 to this OA and Confidential Credit Information of D-1 & D-2, which are Annexure A4 (Colly), to this OA.

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The applicant sanctioned CC Limit of Rs.25.00 Lacs vide Sanction Letter dated 19.07.2023, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its proprietor defendant no. 2 had hypothecated its movable assets i.e. Hypothecation of Stocks & Book Debts etc. vide Hypothecation Agreement dated 19.07.2023, which is Annexures A10 to this OA. Documents executed :- Aadhar Card and PAN Card of D-2 which are Annexure A2 (Colly), to this OA; DP Note, Letter of Continuity, Letter and Deed of Guarantee all dated 19.07.2023, which are Annexures A6 to A9 to this OA; Interest Agreement, Letter of Undertaking not to alienate hypothecated goods, Letter of Undertaking from Borrower and Letter of Undertaking from Guarantor all dated 19.07.2023, which are Annexures A11 to A14 to this OA; Udyam Registration Certificate of D-1, which is Annexure A15 to this OA; GST Registration Certificate of D-1, which is Annexure A16 to this OA; Balance Sheets dated 31.03.2021, 31.03.2022 31.03.2023 and 30.06.2023, which are Annexure A17 (Colly) to this OA; Letter regarding debit the installment amount from SB/Current A/C, which is Annexure A18 to this OA; Project Report which is Annexure A19 to this OA; Reminder/Notices dated 01.08.2024, 09.08.2024 and 03.09.2024 which are Annexure A20 (Colly), to this OA; Legal

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3 OA NO. 621/2025 UNION BANK OF INDIA VS M/S T S WARSI COLLECTION AND ANOTHER

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Notice dated 21.11.2024, along with postal receipts and track reports which are Annexure A21 (Colly) , to this OA; Statements of Account, which are Annexure A22 (Colly), to this OA and Certificate under Bankers’ Book Evidence Act, which is Annexure A23 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.26,18,637.40p, 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 21.08.2025.

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In support of the OA, affidavit of Sh. Manoj Bhatt, Branch Manager, Union Bank of India h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel through Video Conferencing 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 A23 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 loan as per terms 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.26,18,637.40p (Rupees Twenty Six Lacs Eighteen Thousand Six Hundred Thirty Seven And Forty Paisa Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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4 OA NO. 621/2025 UNION BANK OF INDIA VS M/S T S WARSI COLLECTION AND ANOTHER

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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 @11.05% p.a. along with @2% p.a. with monthly rests from 01.12.2024 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 defendants are liable to pay to the applicant a total sum of Rs.26,18,637.40p (Rupees Twenty Six Lacs Eighteen Thousand Six Hundred Thirty Seven And Forty 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 defendants. 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 29.09.2025.

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5 OA NO. 621/2025 UNION BANK OF INDIA VS M/S T S WARSI COLLECTION AND ANOTHER

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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 . Dated: 03.09.2025

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

Union Bank of India v. M/S T S Warsi Collection

Case brief

What is this about?

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Union Bank of India v. M/S T S Warsi Collection

Case brief

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