Allowed

Union Bank of India v. M/S Redani Industries and Others

DRT12 Aug 2026OA/1667/2025

Case brief

AI extract

What is this about?

This was an ex-parte disposal of a recovery application filed by Union Bank of India against M/s Redani Industries and others for recovery of an outstanding loan amount of Rs.20.53 lakhs classified as NPA, granting interest at 8% per annum.

What did the court decide?

Declaration of liability to pay Rs.20,53,928.41 with simple interest at 8% p.a.; issuance of Recovery Certificate.

Union Bank of India versus M/S Redani Industries and Others — Insurance | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1667/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 28.11.2025

¶5

DATE OF DECISION: 12.08.2026

¶6

Union Bank of India, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Union Bank Bhawan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra - 400021 and Branch Offices, amongst others at Branch Office at Shakti Nagar, Pakhowal Road, Ludhiana through its Branch Manager namely Sh. Brijesh Ranjan Pratap of the Applicant Bank.

¶7

……..Applicant

¶8

Versus

¶9

M/s Redani Industries through its proprietor Sh. Raj Kumar S/o Sh. Kasturi Lal through its LR's namely (i) Sh. Kasturi Lal (Father) (ii) Smt. Sakshi W/o Raj Kumar (iii) Smt. Krishna Kalra (Mother) (iv) Sh. Rohit Kalra S/o deceased Sh. Raj Kumar having its office at #161, 1^st , 2^nd , 3^rd Floor, Street no. 4, Near Radha Swami Satsang Road, Bahadur Ke Road, Banda Bahadur Nagar, Ludhiana 141008.

¶10

Late Sh. Raj Kumar S/o Sh. Kasturi Lal proprietor of M/s Redani Industries through its LR's namely (i) Sh. Kasturi Lal (Father) (ii) Smt. Sakshi W/o Raj Kumar (iii) Smt. Krishna Kalra (Mother) (iv) Sh. Rohit Kalra S/o deceased Sh. Raj Kumar having its office at #161, 1^st , 2^nd , 3^rd Floor, Street no. 4, Near Radha Swami Satsang Road, Bahadur Ke Road, Banda Bahadur Nagar, Ludhiana 141008.

¶11

Sh. Kasturi Lal (Father) being LR of Sh. Raj Kumar deceased proprietor of M/s Redani Industries, R/o 3314/A Street no. 6, Shakti Vihar Colony, Haibowal Kalan, Ludhiana. Second Address:- B-32, Street no. 3, Plot no. 249/250, New Azad Nagar, Bahadur Ke Road, Ludhiana.

¶12

2 OA NO.1667/2025

¶13

UNION BANK OF INDIA VS M/S REDANI INDUSTRIES AND OTHERS

¶14

Smt. Sakshi W/o Sh. Raj Kumar being LR of deceased proprietor of M/s Redani Industries i.e. Sh. Raj Kumar R/o 3314/A Street no. 6, Shakti Vihar Colony, Haibowal Kalan, Ludhiana. Second Address:- B-32, Street no. 3, Plot no. 249/250, New Azad Nagar, Bahadur Ke Road, Ludhiana.

¶15

Smt. Krishna Kalra (Mother) being LR of Sh. Raj Kumar deceased proprietor of M/s Redani Industries R/O 3314/A Street no. 6, Shakti Vihar Colony, Haibowal Kalan, Ludhiana. Second Address:- B-32, Street no. 3, Plot no. 249/250, New Azad Nagar, Bahadur Ke Road, Ludhiana.

¶16

Sh. Rohit Kalra (Son) being LR of deceased Sh. Raj Kumar R/o 3314/A Street no. 6, Shakti Vihar Colony, Haibowal Kalan, Ludhiana. Second Address:- B-32, Street no. 3, Plot no. 249/250, New Azad Nagar, Bahadur Ke Road, Ludhiana. …….. Defendants

¶17

Advocates: Argued by Sh. Sandesh Arora, Advocate for the applicant (through VC) None for Defendants (Already ex-parte vide order dated 10.08.2026).

¶18

FINAL ORDER

¶19

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.20,53,928.41 (Rupees Twenty Lacs Fifty Three Thousand Nine Hundred Twenty Eight and Paise Forty One Only). The Original Application has been filed through Sh. Brijesh Ranjan Pratap, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 06.08.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 through its proprietor Sh. Raj Kumar (Since deceased) approached the applicant for grant of Cash Credit Limit of Rs.20,00,000.00 vide

¶20

3 OA NO.1667/2025 UNION BANK OF INDIA VS M/S REDANI INDUSTRIES AND OTHERS

¶21

Application Form for MSMEs dated 26.06.2024, which is Annexure A2 to this OA.

¶22

The applicant sanctioned the Cash Credit Limit of Rs.20,00,000.00 vide Sanction Letter dated 02.07.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor Sh. Raj Kumar (Since deceased). Sh. Raj Kumar (Since deceased) stood as guarantor. 4. The defendant no. 1 through its proprietor Sh. Raj Kumar (Since deceased) hypothecated its Stocks and Book Debts vide Hypothecation (Goods & Debts) Agreement dated 02.07.2024, which is Annexure A11 to this OA.

¶23

Documents executed: Specimen Signature Card, AD-02A, Demand Promissory Note EBLR Linked, Demand Promissory Note, Letter of Undertaking from Borrower, Letter of Undertaking Not to alienate Hypothecated Goods, Interest Agreement, Deed of Guarantee, Letter of Undertaking from Guarantor, Letter of Continuity, all dated 02.07.2024, which are Annexures A4 to A10, A12, A13 & A16 to this OA; Udyam Registration Certificate, dated 25.06.2024, which is Annexure A14 to this OA; Balance Sheets 31.03.2022, 31.03.2023, 31.03.2024, which are Annexure A15(Colly) to this OA; Networth Certificate, dated 04.06.2024, which is Annexure A17 to this OA; CMA Data, dated 03.10.2023, which is Annexure A18 to this OA; Recall Notice, dated 03.07.2025, which is Annexure A19 to this OA; Death Certificate dated 11.12.2024, which is Annexure A20 to this OA; Legal Notice, dated 26.07.2025, along with postal receipts, which is Annexure A21 to this OA; Statement of Account along with Certificate, which are Annexures A22 & A23 to this OA.

¶24

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.20,53,928.41, 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.

¶25

4 OA NO.1667/2025 UNION BANK OF INDIA VS M/S REDANI INDUSTRIES AND OTHERS

¶26

The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 10.08.2026. 7. In support of the OA, affidavit of Sh. Brijesh Ranjan Pratap, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

¶27

From the perusal of all the Annexures A1 to A23 to this OA, it is proved that the defendant no. 1 through its proprietor Sh. Raj Kumar (Since deceased) approached applicant for availing of loan facility which was granted to them, Sh. Raj Kumar (Since deceased) stood as guarantor and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.20,53,928.41 (Rupees Twenty Lacs Fifty Three Thousand Nine Hundred Twenty Eight and Paise Forty One Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

¶28

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. with monthly rests, with penal interest @2% from 01.09.2025 till the realization.

¶29

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 hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

¶30

5 OA NO.1667/2025 UNION BANK OF INDIA VS M/S REDANI INDUSTRIES AND OTHERS

¶31

exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum of Rs.20,53,928.41 (Rupees Twenty Lacs Fifty Three Thousand Nine Hundred Twenty Eight and Paise Forty One Only), along with interest, 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 shall be entitled to recover aforesaid amount from the sale of hypothecated stocks and book debts of defendant no. 1 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 defendant no. 1 and by attachment and sale of personal assets of the defendant nos. 3 to 6, to the extent, they inherited from the properties of Sh. Raj Kumar (Since deceased). The applicant is at liberty to enforce the claim through due process of law.

¶32

12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.08.2026. 15. 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. Pronounced by me in the open Tribunal . Dated: 12.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. M/S Redani Industries and Others

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S Redani Industries and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Sh. Jasveer Singh

Icici Bank Limited versus Sh. Vikram Singh

Hdfc Bank Limited versus Late Sh. Gurpreet Singh and Others

State Bank of India versus Sh. Nirmal Singh

Capital Small Finance Bank Limited versus Sh. Harmeet Singh and Others

Canara Bank versus Smt. Narinderjit Kaur and Another