Allowed

Union Bank of India v. M/S Pavitra Milk Products Pvt. Ltd.

DRT19 Jul 2025TA/72/2023

Case brief

AI extract

What is this about?

This is an appeal against an order of the Debts Recovery Tribunal. The T, Tribunal allowed the Original Application filed by the applicant bank for recovery of dues. The court directed the defendants to pay the principal amount along with interest and authorised the issuance of a Recovery Certificate.

What did the court decide?

Payment of Rs.19,23,14,848.10/ along with pendentelite and future interest at 12% per annum from 01.08.2017 till realization, recoverable from sale of hypothecated assets and properties.

Union Bank of India versus M/S Pavitra Milk Products Pvt. Ltd. — Specific Performance | DRT (2025)

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T.A. No.72 of 2023

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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. 72 of 2023

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Union Bank of India (e-Corporation Bank) F-14, Dilshad Colony Delhi-110095 Applicant

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Versus

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M/s Pavitra Milk Products Pvt.Ltd. Through its directors H-83, H-1-103, H-1-104, EPIP Neemrana Industrial Estate Neemrana, Dist. Alwar, Rajasthan-301705

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Also at: 104 & 103, First Floor Times Square Building Sushant Lok-1, Gurgaon, Haryana-122002

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Sh.Sri Bhagwan s/o Ramjas H.No.5, VPO Chakarpur, Opp. Siddhi Ganesh Mandir Near Mother's Pride School DLF Phase 4, Gurgaon, Haryana-122002

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Ms. Guneeta w/o Sri Bhagwan H.No.5, VPO Chakarpur, Opp. Siddhi Ganesh Mandir Near Mother's Pride School DLF Phase 4, Gurgaon, Haryana-122002

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Also at: H.No.130, Village Mohamadpur Ahir Tehsil Tauru, Dist. Mewat Haryana-122105

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Ms. Dayawati Yadav w/o Harikesh H.No.43, Village Chakarpur, Gurgaon, Haryana-122002 Also at:

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T.A. No.72 of 2023

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B-333, Sector-28, Gurgaon

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Haryana-122002

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Sh.Harkesh Yadav s/o Raj Singh H.No.43, Village Chakarpur, Gurgaon, Haryana-122002

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Also at:

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H.No.5, Near Ganesh Mandir Chakarpur, Gurgaon, Haryana-122002

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Also at:

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H.No.4016, DLF-IV, Village Chakarpur Gurgaon, Haryana-122002 Defendants

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Present: Shri Sandeep Soni, Counsel for applicant bank

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Date of Institution: 27.09.2017 Date of Pronouncement: 19.07.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 27.09.2017 before DRT-III, Delhi & then transferred to DRT-I, Delhi through Shri Vasantha Bhat, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 read with Rule 8 of the Debts Recovery Tribunal Rules 1993 against the defendants for recovery of a sum of Rs.19,23,14,848.10/(Rupees Nineteen Crores Twenty Three Lacs Fourteen Thousand Eight Hundred Forty Eight & paisa Ten only) as on 31.07.2017 together with pendentelite and future interest ©13.40% per annum with monthly rest from 01.08.2017 till the date of realization and costs. Further, the name of Sh.Naresh Kumar was substituted as authorized representative

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T.A. No.72 of 2023

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in place of Sh.Vasantha Bhat and Sh.Prasanna M.P., erstwhile ARs for the applicant bank.

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The brief facts of the case are that defendant no.1 being limited company carrying out the business of Milk Processing plant at Neemrana and defendant no.2 to 5 being directors and guarantors availed Term Loan facility of Rs.1500.00 lacs on 27.12.2013 ©12.50% interest per annum against hypothecation of movable assets, current assets, book debts and equitable mortgage of two properties owned by defendant no.1, 4 and 5. The applicant bank sanctioned additional Cash Credit loan facility of Rs.650.00 Lacs to meet working capital requirements on 22.12.2015 @10.90% interest per annum. The defendants agreed for charging of ©2% penal interest in case of default in repayment of monthly interest and installments on due date over normal rate of interest. Both the limits were sanctioned as per Board Resolution of defendant no.1 dated 30.12.2013 and 31.12.2015.

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That in order to avail the aforesaid loan facilities, the defendants executed Account Opening Form, Agreement for Term Loan, Guarantee Agreements, Common Deed of Hypothecation, Common Deeds of Hypothecation of Movables / Assets / Debts, Letter of Undertaking, Request for CC Facility, Demand Promissory Note, Take Delivery Letter to DPN, General Power of Attorney of Book Debts and Supply Bills, Letter of Continuity on 30.12.2013 and 31.12.2015 in favour of applicant bank.

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In order to secure the credit facilities availed by defendant no.1, the defendant no.1, 3 and 4 created equitable mortgage of following properties by Memorandum of deposit of title

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T.A. No.72 of 2023

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deeds with the applicant bank on 30.12.2013 and extended on 31.12.2015:

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I) Factory land & building at Plot No. H-83 (area 809 sq.meters), H-1-103 (area 500 sq.meters) and H-1104 (area 500 sq.meters), situated in Industrial Area EPIP, Neemrana, Tehsil Behroad, Dist. Alwar, Rajasthan in the name of defendant no.1;

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II) Plot No.333-P, admeasuring 83.60 sq.meters situated in Residential Colony, Sector-28, Urban Estate, Gurgaon Haryana in the name of defendant no.4 & 5.

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The defendants acknowledged their debt by executing Acknowledgement of Debt on 16.12.2016 in favour of applicant bank.

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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, committed defaults in repayment of installments, interest, penal interest and other charges as per banking norms due to which applicant bank classified the account as NPA on 31.03.2016 as per prudential norms and RBI guidelines. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 17.06.2016 for outstanding dues of Rs.16,43,16,295.10/- was issued by applicant bank but the defendants neglected to clear outstanding, the applicant bank took symbolic possession of mortgage property on 05.05.2017.

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T.A. No.72 of 2023

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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 26.11.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Prasanna M.P., authorized representative of the applicant bank who has proved the documents as Power of Attorney, CSI dated 27.12.2013, Board Resolutions, Agreement for Term Loan, Guarantee Agreement, Common Deeds of Hypothecation of Movables/Assets/Debts, Letter of Undertaking, Memorandum of Deposit of Title Deeds, CSI dated 19.06.2015 and 22.12.2015, Account Opening Form, Request for CC facility, Demand Promissory Note, Take Delivery Letter to DPN, Guarantee Agreement, Letter of Undertaking, General Power of Attorney, Letter of Continuity, Acknowledgment of Debt, Title Deeds, Demand Notice, Possession Notice, Statement of Account, marked as Ex AW1/1 to Ex AW-1/28.

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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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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which

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T.A. No.72 of 2023

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is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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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.19,23,14,848.10 (Rupees Nineteen Crores Twenty Three Lacs Fourteen Thousand Eight Hundred Forty Eight & paisa Ten only) as on 31.07.2017 together with pendentelite and future interest ©12.00% per annum with monthly rests from 01.08.2017 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, current assets, book debts and mortgaged properties as per following:

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A) Factory land & building at Plot No. H-83 (area 809 sq.meters), H-1-103 (area 500 sq.meters) and H-1-104 (area 500 sq.meters), situated in Industrial Area EPIP,

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T.A. No.72 of 2023

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Neemrana, Tehsil Behroad, Dist. Alwar, Rajasthan in the name of defendant no.1;

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B) Plot No.333-P, admeasuring 83.60 sq.meters situated in Residential Colony, Sector-28, Urban Estate, Gurgaon Haryana in the name of defendant no.3 & 4.

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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 20.09.2025.

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

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(Dictated and pronounced in open court) Dated: 19.07.2025