Allowed

Union Bank of India v. M/s Saptal Cater and Decorator and another

DRT6 Nov 2025OA/87/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Union Bank of India against two respondents for recovery of sums due. The court deeming it appropriate, allowed recovery of the principal amount plus simple interest at 8% per annum until realization.

What did the court decide?

Recovery of Rs. 30,79,592.44p jointly and severally with simple interest at 8% p.a. from filing date till realization, enforceable via sale of hypothecated/mortgaged properties.

Union Bank of India versus M/s Saptal Cater and Decorator and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.87/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.01.2025

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DATE OF DECISION: 06.11.2025

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Union Bank of India having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai-400021, having its Branch Office at Union Bank of India (Erstwhile Andhra Bank), Village Dhanas, Chandigarh, 160014, through its Attorney Holder Sh. Pankaj Raj, Branch Manager at Union Bank of India (Erstwhile Andhra Bank) Village Dhanas, Chandigarh, 160014.

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……..Applicant

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Versus

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M/s Satpal Cater and Decorator, through its Proprietor Sh. Satpal Bajwa, situated at House. No. 317 C, Gali No. 13, Village Jujhar Nagar, Behlolpur, SAS Nagar, Mohali, Punjab-160014.

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Sh. Satpal Bajwa Son of Sh. Malik Chand, Proprietor of M/s Satpal Cater and Decorator, Resident of House. No. 317 C, Gali No. 13, Village Jujhar Nagar, Behlolpur, SAS Nagar, Mohali, Punjab- 160014.

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SECOND ADDRESS :- Shop No. 7, First Floor, Janta Market, Jhungian Road, Kharar, SAS Nagar, Punjab-140301.

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………Defendants

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Advocates:

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Argued by Sh. Ravinder Kumar, Advocate for Applicant 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.30,79,592.44p (Rupees Thirty Lacs Seventy Nine Thousand Five Hundred Ninety Two & Forty Four Paise Only). The Original Application has been filed through Sh.

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2 OA NO.87/2025 UNION BANK OF INDIA VS MESSERS SATPAL CATER AND DECORATOR AND ANOTHER

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Pankaj Raj, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of attorney dated 29.11.2017, 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 approached the applicant for grant of CC Limit of Rs. 15.00 Lacs for Working Capital and Term Loan of Rs. 15.00 Lacs for purchase of shop, vide Loan Application dated 07.07.2023, which is Annexure A2 to this OA.

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The applicant sanctioned CC Limit of Rs. 15.00 Lacs and Term Loan of Rs.15.00 Lacs vide Sanction letter dated 11.07.2023, which is Annexure A3 to this OA.

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Defendant no. 1 through its proprietor hypothecated stock 2 had hypothecated stock of tents and catering equipment, etc vide Hypothecation (Goods & Debts) Agreement and Composite Hypothecation Deed, both dated 13.07.2023, which are Annexures A9 and A16 to this OA.

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Defendant no. 2 also mortgaged his Commercial property i.e. Shop No. 7, First Floor, Janta Market, Jhungian Road, Kharar, District SAS Nagar, Punjab vide equitable mortgage of sale deed bearing no. 2023-24/15/1/7039 dated 18.07.2023, along with its translation, which is Annexure A17 and A17A to this OA; Equitable Mortgage by way of Memorandum of Record of Deposit of Title deeds along with Affidavit in support and Declaration dated 20.07.2023, which is Annexure A20 to this OA.

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Title Search Report of property by the panel advocate dated 28.06.2023, which is Annexure A18 to this OA; Valuation Report of property by the panel valuer dated 27.06.2023, which is Annexure A19 to this OA; Lien Confirmation Report by the panel advocate for the property dated 16.08.2023, which is Annexure A21 to this OA; CERSAI, Security Interest Id Based Search Report of the movable property i.e. stocks and CERSAI, Security Interest Id Based Search

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3 OA NO.87/2025 UNION BANK OF INDIA VS MESSERS SATPAL CATER AND DECORATOR AND ANOTHER

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Report of the mortgaged property, both dated 19.09.2023, which are Annexures A22 & A23 to this OA.

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Documents executed :- Demand Promissory Notes, General Term Loan Agreement, Letter of Undertakings, Letters of Continuity, Copy of Letter of Undertaking not to alienate hypothecated Goods, Interest Agreement, Letter of General Lien & Set off, all dated 13.07.2023, which are Annexures A4 to A8, A10 to A15 to this OA; Demand Notice dated 07.09.2024 u/s 13(2) of SARFAESI Act, which is Annexure A24 to this OA and Statement of Accounts with Certificate under Bankers Book Evidence Act, which is Annexure A25 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.30,79,592.44p, which is recoverable and the defendants were served recall notice but defendants 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 notice to appear before this Tribunal. Sh. Bharat Kawal, Advocate appeared on behalf of defendants along with defendant no. 2 on 17.05.2025. Thereafter, no one appeared on behalf of defendants and also no Power of Attorney was filed by any counsel on behalf of defendants and the defendants were proceeded ex-parte on 31.10.2025.

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In support of the OA, affidavit of Sh. Pankaj Raj, 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 counsel 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 A25 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant

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4 OA NO.87/2025 UNION BANK OF INDIA VS MESSERS SATPAL CATER AND DECORATOR AND ANOTHER

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documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,79,592.44p (Rupees Thirty Lacs Seventy Nine Thousand Five Hundred Ninety Two & Forty Four Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @09.30%p.a. 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/hypothecated assets, 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 both the loan accounts 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.30,79,592.44p (Rupees Thirty Lacs Seventy Nine Thousand Five Hundred Ninety Two & Forty Four Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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

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5 OA NO.87/2025 UNION BANK OF INDIA VS MESSERS SATPAL CATER AND DECORATOR AND ANOTHER

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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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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.11.2025.

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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: 06.11.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. M/s Saptal Cater and Decorator and another

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/s Saptal Cater and Decorator and another

Case brief

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