Allowed

Union Bank of India v. M/S Krishna Polymers

DRT28 Mar 2025TA/3082/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues after the defendant was absent. The court directed payment of the principal sum along with interest and costs within 30 days and authorized execution against hypothecated assets.

What did the court decide?

Directing the defendant to pay Rs.32,13,560.22 plus interest and costs within 30 days, to be recovered from hypothecated stock and other properties on default.

Union Bank of India versus M/S Krishna Polymers — Specific Performance | DRT (2025)

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T.A. No. 3082 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.3082 of 2022

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Union Bank of India Sachdeva Public School Building FP Block, Maurya Enclave Pitampura, Delhi-110088 Applicant

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Versus M/s Krishna Polymers Through its Proprietor Mr. Gaurav Sharma 258, Pocket-K, Sector-3, DSIIDC Bawana Industrial area Bawana, Delhi-110039 Defendant

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Present: Shri Awanish Kumar, Counsel for the applicant bank Date of Institution: 14.05.2019 Date of Pronouncement: 28.03.2025

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FINAL ORDER

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This original application has been filed by the applicant bank before DRT-III, Delhi and then transferred to DRT-I Delhi on 14.05.2019 through Mr. Gaurav Rai, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.32,13,560.22 (Rupees Thirty Two Lacs Thirteen Thousand Five Hundred Sixty and paisa Twenty Two only) along with pendentelite and future

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T.A. No. 3082 of 2022

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interest @12.15% per annum from the date of filing this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant, the applicant bank sanctioned Term Loan facility for a sum of Rs.10,00,000/- (Rupees Ten Lacs only) @12.40% interest and Cash Credit Limit of Rs.25,00,000/- (Rupees Twenty Five Lacs only) on 12.04.2017 @12.15% interest per annum for business of grinding of plastic waste material against hypothecation of stock covered under CGTMSE scheme.

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That in order to avail the credit facilities, the defendant submitted loan application and executed DP Note, Letter of Continuity, Letter of Undertaking, Composite Hypothecation Deed, Hypothecation Agreement of Goods & Debts, General Term Loan Agreement, Interest Agreement and Letter of Undertaking in favour of the applicant bank on 12.04.2017.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and failed to regularize the account. Ultimately, the applicant bank classified the account as NPA on 30.04.2019 as per RBI guidelines due to non-adherence to financial discipline by the Defendant. The applicant bank issued recall notice on 01.05.2019 to defendant but failed to pay the dues, hence the applicant bank has approached this tribunal for recovery of its dues.

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 31.05.2024, the

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T.A. No. 3082 of 2022

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defendant has been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendarl..

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In order to prove its case, the applicant bank has submitted documents such as General Power of Attorney of Authorized Signatory, Sanction Advice dated 12.04.2017, General Term Loan Agreement (SD-18), Hypothecation Agreement of Goods & Debts (SD-06), Composite Hypothecation Deed (SD-20), Demand Promissory Note, Interest Agreement (SD-24) MCLR New, Letter of Undertaking (AD-12), Letter of Continuity AD-09(M), NPA Certificate, Certified Statement of Accounts, Copy of Recall Notice dated 01.05.2019 alongwith Postal Receipts marked Page no.1 to 61.

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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 approved.

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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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T.A. No. 3082 of 2022

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.32,13,560.22 (Rupees Thirty Two Lacs Thirteen Thousand Five Hundred Sixty and Paisa Twenty Two only) together with pendentelite and future interest @12.15% per annum from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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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 27.05.2025.

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

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

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(Dictated and pronounced in open court) Dated: 28.03.2025

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Union Bank of India v. M/S Krishna Polymers

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S Krishna Polymers

Case brief

What is this about?

What did the court decide?

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