The Debts Recovery Tribunal allowed the bank's application for recovery of an NPA of approx. Rs. 36.76 Lakhs. The court reduced the claimed interest rate to 8% p.a. and issued a Recovery Certificate.
Recovery of Rs. 36,75,662.95 with future interest at 8% p.a. from hypothecated assets; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 1721/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 09.12.2025
DATE OF DECISION: 04.08.2026
Union Bank of India, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai and having a Branch Office inter-alia at Basant City, Ludhiana, Punjab through its duly Authorized Person, Sh. Simranjeet Singh, Branch Manager
……..Applicant
Versus
…..Defendants
Advocates:
Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R.K. Chauhan, Advocate for applicant
None for defendants (already ex-parte vide order dated 29.07.2026)
FINAL ORDER
2 OA NO. 1721/2025 UNION BANK OF INDIA VS. M/S RIHAAN ENTERPRISES AND OTHERS
Lacs Seventy Five Thousand Six Hundred Sixty Two and Paise Ninety Five Only). The Original Application has been filed through Sh. Simranjeet Singh, Branch Manager of the applicant, who is competent to institute the Original Application vide Authority Letter dated 31.10.2025, which is Annexure A1 to this OA.
3 OA NO. 1721/2025 UNION BANK OF INDIA VS. M/S RIHAAN ENTERPRISES AND OTHERS
on ROI, Deeds of Guarantee, all dated 06.03.2024, which are Annexure A7, A9 to A11 and A13 to A21 to this OA; e-Banking Facility and Declaration, both dated 14.03.2024, which are Annexure A22 and A23 to this OA; Quotation of Machines dated 03.04.2024, which is Annexure A25 to this OA; Terms and Conditions, DP Note, Letter of Continuity, Term Loan Agreement, Declaration of Partnership, AD-02A, Letters of Undertaking, Agreement on ROI, Deeds of Guarantee, all dated 24.04.2024, which are Annexure A27 to A39 to this OA; Letters dated 13.03.2025 and 06.06.2025, which are Annexure A42 (Colly) to A45 to this OA; Legal Notices, both dated 03.07.2025, which are Annexure A46 (Colly) and A47 (Colly) to this OA and Statement of Accounts with certificate, which are Annexure A48 to A51 to this OA.
From the perusal of all the Annexure A1 to A51 to this OA, it is proved that defendant no. 1 through its Partners defendant nos. 2 and
4 OA NO. 1721/2025 UNION BANK OF INDIA VS. M/S RIHAAN ENTERPRISES AND OTHERS
3 approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant 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. 36,75,662.95 (Rupees Thirty Six Lacs Seventy Five Thousand Six Hundred Sixty Two and Paise Ninety Five 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.
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 loans 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 @8.00% 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.
5 OA NO. 1721/2025 UNION BANK OF INDIA VS. M/S RIHAAN ENTERPRISES AND OTHERS
future simple interest @8.00% 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 assets of 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.
12. Any other application pending stands disposed of .
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the defendants are liable to repay the outstanding loan amount and interest to the applicant bank.
Whether it is just and appropriate to grant a uniform reduced rate of interest given the economic context.
What relief is due including recovery from hypothecated assets.
2 provisions across 2 enactments
Union Bank of India
M/S Rihaan Enterprises
Sh. Sajan Vig
Smt. Aarika Vig
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
