Allowed

Union Bank of India v. Messrs v R Fashion and Others

DRT23 Apr 2025OA/869/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Union Bank of India against proprietors of V.R. Fashion for recovery of Rs.21.27 lakh. The Tribunal directed payment of principal, costs, and uniform simple interest at 8% per annum, permitting enforcement via SARFAESI or attachment of personal assets.

What did the court decide?

Directed defendants to pay Rs.21,27,228.75p with costs and interest @8% p.a.; authorized recovery via sale of mortgaged property or attachment of personal assets; issued Recovery Certificate.

Union Bank of India versus Messrs v R Fashion and Others — Company and Corporate | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.869/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.07.2024

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DATE OF DECISION: 23.04.2025

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Union Bank of I ndia, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a Branch Office Interalia at Kesar Ganj, Ludhiana, through its duly authorized person and Power of Attorney holder Sh. Rohit Chhabra, Branch Head

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……..Applicant Versus

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M/s V.R. Fashion, 1672, Street No.6, New Chander Nagar, Civil City, Ludhiana through its Proprietor Sh. Sumit Puri)

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Sh. Sumit Puri S/o Sh. Parveen Puri, R/o House No.2411/A, Street No.1/6, Adadi Chander Nagar, Near Yoga Ashram, Civil City, Ludhiana (sole proprietor of M/s V.R. Fashion)

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Smt. Suman Puri W/o Sh. Parveen Puri, R/o House No.2411/A, Street No.1/6, Adadi Chander Nagar, Near Yoga Ashram, Civil City, Ludhiana

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….……Defendants

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Advocates:

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Present Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, Advocate for the Applicant Defendants are 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,27,228.75p (Rupees Twenty One Lac Twenty Seven Thousand Two Hundred Twenty Eight And Paise Seventy Five Only). The Original Application has been filed through Sh. Rohit Chhabra, Branch Head of the applicant, who is competent to institute the Original Application

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2 OA NO.869/2024 UNION BANK OF INDIA VS M/S V.R. FASHION AND OTHERS

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vide Power of Attorney dated 25.08.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of CC Limit of Rs.25.00 Lacs vide Application Form dated 25.12.2022, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs.25.00 Lacs vide Memorandum of Sanction and Sanction Letter dated 04.01.2013 and 12.01.2023, which are Annexures A4 and A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. Residential House measuring 48 Sq. Yards Situated at Taraf Peeru Banda, Hadbast No.167, Abadi Chander Nagar, Street No.1, Gurbachan Colony, Lalheri Road, Khanna, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.6617 dated 21.06.20211, which is Annexure A16 and A17 to this OA.

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Documents executed:- Udhyam Registration certificate dated 04.01.2021, which is Annexure A3 to this OA; D.P. Note, Letter of Continuity, Hypothecation Agreement of Goods and Book Debts, Letter of Undertaking not alienate Hypothecated goods, AD-02, Deed Guarantee, Letter of Undertaking from Borrower and Guarantors, Memorandum of deposit of Title Deed all dated 12.01.2023, which are Annexures A6 to A10 and A12 to A15 to this OA; Letter of Undertaking Agreement, which are Annexure A11 to this OA; Valuation Report dated 20.12.2022, which is Annexure A18 to this OA; Letter for Adjustment of Overdue Amount dated 07.10.2023, 02.11.2023, 19.02.2024, which are Annexures A19 to A21 to this OA; Demand Notice U/s 13(2) dated 19.03.2024, which are Annexure A22(Colly) to this OA and Statement of Account with certificate, which are Annexures A23 and A24 to this OA.

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3 OA NO.869/2024 UNION BANK OF INDIA VS M/S V.R. FASHION AND OTHERS

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.21,27,228.75p, 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. SH. Balwant Singh, Advocate appeared on behalf of defendants and field 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 02.04.2025.

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

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Heard arguments of Ld. counsel for applicant. None appeared for defendants for arguments. Perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexure A1 to A24 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 applicant. 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.21,27,228.75p (Rupees Twenty One Lac Twenty Seven Thousand Two Hundred Twenty Eight And Paise Seventy Five 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.869/2024 UNION BANK OF INDIA VS M/S V.R. FASHION AND OTHERS

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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 @10.25%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.06.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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 defendant, 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.21,27,228.75p (Rupees Twenty One Lac Twenty Seven Thousand Two Hundred Twenty Eight And Paise Seventy Five Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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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Any other application pending stands disposed of.

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5 OA NO.869/2024

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UNION BANK OF INDIA VS M/S V.R. FASHION AND OTHERS

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 20.05.2025.

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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 .

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Dated: 23.04.2025

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

Union Bank of India v. Messrs v R Fashion and Others

Case brief

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Union Bank of India v. Messrs v R Fashion and Others

Case brief

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