Allowed

Union Bank of India v. M/S Thandi Ram Jai Narain

DRT18 Jan 2025TA/148/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's original application for recovery of dues against defaulting borrowers and guarantors, directing payment and recovery from life insurance policies.

What did the court decide?

Direct defendants to pay Rs. 41,51,303.13 with interest within 30 days; recover shortfall from specified LIC policies and properties; issue recovery certificate.

Union Bank of India versus M/S Thandi Ram Jai Narain — Execution and Attachment | DRT (2025)

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T.A. No.148 of 2022

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 148 of 2022

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Union Bank of India 192, Church Mission Road Khari Baoli, Delhi-110006

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Applicant

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Versus

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M/s Thandi Ram Jai Narain 335, Katra Hussain Bux Khari Baoli, Delhi-110006

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Through its partners: i) Shri Bishan Chand ii) Shri Rakesh Kumar iii) Shri Naresh Kumar

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Shri Bishan Chand s/o late Thandi Ram 335, Katra Hussain Bux Khari Baoli, Delhi-110006

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Shri Rakesh Kumar s/o late Kishan Chand 360, Katra Hussain Bux, Khari Baoli, Delhi-110006

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Shri Naresh Kumar s/o Sh.Bishan Chand 1164, Baradari, Behind Novelty Cinema Delhi-110006

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Mrs.Shashi Garg w/o Sh.Rakesh Kumar D-30, Mahendru Enclave, out of Khasra No.359/3 Village Malikpur (known as Chhawni Enclave) Delhi-110033

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Mrs.Nidhi Garg w/o Sh.Naresh Kumar D-30, Mahendru Enclave, out of Khasra No.359/3 Village Malikpur (known as Chhawni Enclave) Delhi-110033

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T.A. No.148 of 2022

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Sh.Tanay Garg s/o Rakesh Kumar D-30, Mahendru Enclave, out of Khasra No.359/3 Village Malikpur (known as Chhawni Enclave) Delhi-110033

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Sh.Miyush Garg s/o Naresh Kumar D-30, Mahendru Enclave, out of Khasra No.359/3 Village Malikpur (known as Chhawni Enclave) Delhi-110033 Defendants

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Present: Shri Tapan Kumar Jha, Counsel for applicant bank

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Date of Institution: 28.06.2021 Date of Pronouncement: 18.01.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 28.06.2021 before DRT-III, Delhi & then transferred to DRT-I, Delhi through Shri Priyaranjan Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.41,51,303.13 (Rupees Forty One Lacs Fifty One Thousand Three Hundred Three & paisa Thirteen only) as on 31.05.2021 together with pendentelite and future interest @12.35% per annum with monthly rest from 01.06.2021 plus penal interest till the date of realization and costs.

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The brief facts of the case are that on the request of defendant no.1 through its partners / guarantors being defendant no.2 to 4, the applicant bank sanctioned Secured

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T.A. No.148 of 2022

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Loan / SOD against LIC Insurance Policies limit enhanced upto Rs.57,18,000/- (Rupees Fifty Seven Lacs Eighteen Thousand only) on 19.07.2018 @MCLR+4.65% i.e. @13.10% interest per annum against assigned insurance policies in the name of defendants. The defendant no.5 to 8 stood as guarantor for the credit facility sanctioned by the applicant bank.

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That in order to avail the said SOD loan facility, the defendants executed Demand Promissory Notes, Letters to hold securities and consolidation of all accounts (AD-OA), Letters of Undertaking from partners and guarantors (AD-11), Letter of CIBIL Disclosure, Letter of Lien (Deposits) (AD-02), Letter of Continuity(AD-09), Letter of Confirmation of Loan (SD-23A) and Declaration of Partnership (AD-07) on 19.7.2018 in favour of the applicant bank.

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In order to secure the credit facilities, defendant no.1 through defendants / guarantors created charge and assigned the SUD Life Insurance Policies in favour of applicant bank viz.: i) Policy No.994605 of Rs.13.15 lacs fvg. Miyush Garg; ii) Policy No.1089541 of Rs.22.00 lacs fvg. Miyush Garg; iii) Policy No.1041747 of Rs.40.00 lacs fvg. Miyush Garg;

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iv) Policy No.994579 of Rs.6.50 lacs fvg. Tanay Garg;

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v) Policy No.1041866 of Rs.26.50 lacs fvg. Tanay Garg;

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vi) Policy No.1184533 of Rs.14,65,925/- lacs fvg. Naresh Kumar Garg;

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vii) Miyush Garg Policy No.1128728 of Rs.74,16,750/- fvg. Naresh Kumar Garg;

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viii) Policy No.996388 of Rs.11.45 lacs fvg. Ms Nidhi Garg;-

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ix) Policy No.1075681 of Rs.5.79 lacs fvg. Ms Shashi Garg;

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x) Policy No.881319 of Rs.11.00 lacs fvg. Miyush Garg;

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xi) Policy No.958436 of Rs.6.50 lacs fvg. Miyush Garg;

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T.A. No.148 of 2022

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xii) Policy No.879981 of Rs.11.00 lacs fvg. Tanay Garg; xiii) Policy No.925316 of Rs.11.14 lacs fvg Naresh Kumar Garg: xiv) Policy No.904480 of Rs.12.00 lacs fvg Naresh Kumar Garg; xv) Policy No.1005343 of Rs.152.76 lac fvg. Naresh Kumar Garg:

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xvi) Policy No.1075588 of Rs.7,29,600/- fvg. Naresh Kumar Garg.

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Out of the above, Policies no.10 to 16 already been realized and appropriated.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to maintain financial discipline and committed breach of conditions of terms of sanction by making default in adjustment of excess / overdue amount in the account. The defendants failed and ignored the repayment obligations towards applicant bank despite various reminders. As the defendants failed to regularize the accounts despite notice & personal visits, the applicant bank classified the account as NPA on 31.03.2019 as per RBI guidelines and issued recall notice on 01.04.2019 but neglected by the defendants. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 21.08.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Priyaranjan Kumar as authorized representative of the applicant who has proved the

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57~-

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T.A. No.148 of 2022

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documents as Power of Attorney Ex.AW-1/1, Loan Application Ex.AW-1/2, Sanction Letter Ex.AW-1/3, Demand Promissory Note Ex.AW-1/4, Letter to hold Securities and Consolidation of Accounts Ex.AW-1/5, Letter of Undertaking Ex.AW-1/6 & AW1/7, Letter of CIBIL Disclosure Ex.AW-1/8, Letter of Lien (Deposits) Ex.AW-1/9, Letter of Continuity Ex.AW-1/10, Letter of Confirmation of Loan Ex.AW-1/11, Declaration of Partnership Ex.AW-1/12, Life Insurance Policies / Bonds Ex.AW-1/13(colly), NPA Intimation Ex.AW-1/14, Recall Notice Ex.AW-1/15, Statement of Account Certified under Banker's Books Evidence Act Ex.AW-1/16.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant' bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30 days, a sum of Rs.41,51,303.13 (Rupees Forty One Lacs Fifty One Thousand Three Hundred Three & paisa Thirteen only)

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T.A. No.148 of 2022

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together with pendentelite and future interest ©12.35% per annum with monthly rests from 01.06.2021 till the date of realization, failing which the aforesaid amount shall be recovered from the following SUD Life Insurance Policies:

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i) Policy No.994605 of Rs.13.15 lacs fvg. Miyush Garg;

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ii) Policy No.1089541 of Rs.22.00 lacs fvg. Miyush Garg; iii) Policy No.1041747 of Rs.40.00 lacs fvg. Miyush Garg;

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iv) Policy No.994579 of Rs.6.50 lacs fvg. Tanay Garg;

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v) Policy No.1041866 of Rs.26.50 lacs fvg. Tanay Garg;

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vi) Policy No.1184533 of Rs.14,65,925/- lacs fvg. Naresh Kumar Garg;

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vii) Miyush Garg Policy No.1128728 of Rs.74,16,750/- fvg. Naresh Kumar Garg;

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viii) Policy No.996388 of Rs.11.45 lacs fvg. Ms Nidhi Garg:

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ix) Policy No.1075681 of Rs.5.79 lacs fvg Ms.Shashi Garg.

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In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 19.03.2025.

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(IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost.

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5'4 (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 18.01.2025

Union Bank of India v. M/S Thandi Ram Jai Narain

Case brief

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Union Bank of India v. M/S Thandi Ram Jai Narain

Case brief

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