Allowed

Union Bank of India v. M/S v B . Exports and Another

DRT10 Apr 2026OA/2149/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act for recovery of Rs. 30,08,824.64 plus interest. The court exercised discretion to fix interest at 8% p.a. and ordered issuance of a recovery certificate under the SARFAESI Act.

What did the court decide?

Recovery of Rs. 3.00 crores with 8% p.a. interest; Recovery Certificate issued; Enforcement under SARFAESI Act.

Union Bank of India versus M/S v. B . Exports and Another — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 2149/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2022

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DATE OF DECISION: 10.04.2026

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Union Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfers of Undertaking) Act 1970, having its Head Office at 239, Vidhan Bhawan Marg, Nariman Point, Maharashtra-400021 and one of its Branch Offices, situated at 0340Ludhiana Main Branch, BXV-295/B, 295/C, Near Oswal Street, Miller Ganj Branch, Ludhiana, erstwhile known as Andhra Bank and now marged with Union Bank of India, through its Power of Attorney holder namely Mr. Ashok Kumar, Chief Manager of the Applicant Bank.

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……Applicant Versus

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M/s V.B. Exports having its Office at 1915, 1^st Floor, ¼, Chander Nagar Civil Lines, Ludhiana-141001, through its proprietor Mr. Victor Beri.

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Second Address: 22D, Ashok Vihar, Rishi Nagar, Ludhiana.

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Mr. Victor Beri, Proprietor of M/s V.B. Exports, having its Office at 1915, 1^st Floor, ¼ Chander Nagar Civil Lines, Ludhiana-141001. Second Address: 22D, Ashok Vihar, Rishi Nagar, Ludhiana. Third Address: House No. 230-C, Model Town Extn, Ludhiana 141002.

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.……Defendants

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Advocates:

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Argued by Sh. Sandesh Arora, Advocate for the applicant ( Through Vc) None for Defendants (already ex-parte vide order dated 30.01.2026).

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2 OA/2149/2022 UNION BANK OF INDIA VS M/S V.B. EXPORTS AND ANOTHER

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.30,08,824.64 (Rupees Thirty Lacs Eight Thousand Eight Hundred Twenty Four and Paise Sixty Four Only). The Original Application has been filed through Mr. Ashok Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 09.09.2009 which is Annexure A1 to this OA.

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The brief facts of the OA that the Defendant No. 1, through its proprietor Defendant No. 2, approached the applicant for the grant Cash Credit Limit of Rs.50.00 Lacs under CGTMSE Scheme.

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The applicant sanctioned the Cash Credit Limit of Rs.50.00 Lacs under CGTMSE Scheme vide Sanction Letter dated 18.09.2020, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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the Defendant No. 1, through its proprietor Defendant No. 2, hypothecated its Stocks and Book Debts vide Hypothecation Agreement dated 18.09.2020, which is Annexure A5 to this OA. The CC Limit was covered under CGTMSE Scheme.

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Documents executed:- Interest Agreement, Letter of Undertaking, both dated 18.09.2020, which are Annexures A3 & A4 to this OA; Stock Statement, Udyog Aadhar, GST Registration Certificate, PAN card & Aadhar Card of D-2, which are Annexures A6 to A9(colly) to this OA; Annexure-I, Letter of Continuity, D.P. Note, Simple Agreement, Undertaking form Borrower, all dated 18.09.2020, which are Annexures A10 to A14 to this OA; Audit Report and Balance Sheet dated 31.02.2020, which is Annexure A15(colly) to this OA; Recall Notice dated 04.02.2022, which is Annexure A16(colly) to this OA; Application to ICICI bank dated 310.08.2021, which is Annexure A17 to this OA; Legal Notice & Postal Receipts, Return Parcel, Cheque Memo,

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3 OA/2149/2022 UNION BANK OF INDIA VS M/S V.B. EXPORTS AND ANOTHER

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Legal Notice with Postal Receipts, which are Annexures A18 to A19 (colly) to this OA; Statement of Account with certificate, which are Annexures A20 & A21 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.30,08,824.64 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal and after service upon defendants, Ms. Deepsikha Gupta, Advocate, appeared on behalf of defendants on 08.05.2024 and filed her Power of Attorney on behalf of defendants. Paper book was supplied to her. WS was filed on 14.10.2024. Ms. Deepshikha Gupta, Advocate on behalf of defendants, appeared on 22.05.2025 and submitted that an NOC has been issued in favour of defendant no. 2 as the case has been withdrawn from her. No one appeared on behalf of defendants thereafter and they were proceeded ex-parte vide order dated 30.01.2026. 7. In support of the OA, affidavit of Authorized Signatory Mr. Ashok Kumar chief Manage r, Union Bank of India, h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel through Video Conferencing, that in view of the documentary evidence brought on record, the applicant had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendants approached applicant for availing of the loan facility, which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum

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4 OA/2149/2022 UNION BANK OF INDIA VS M/S V.B. EXPORTS AND ANOTHER

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of Rs.30,08,824.64 (Rupees Thirty Lacs Eight Thousand Eight Hundred Twenty Four and Paise Sixty Four Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.45% p.a. plus @2.00% penal interest with monthly rests from 01.08.2022 till the realization.

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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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant simple interest @08.00% 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum Rs.30,08,824.64 (Rupees Thirty Lacs Eight Thousand Eight Hundred Twenty Four and Paise Sixty Four Only) jointly and severally, with costs, current and future simple interest @08.00% 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 assets of the 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.

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12. Any other application pending stands disposed of.

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OA/2149/2022

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UNION BANK OF INDIA VS M/S V.B. EXPORTS AND ANOTHER

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.04.2026

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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 .

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Dated: 10.04.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Union Bank of India v. M/S v B . Exports and Another

Case brief

What is this about?

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Union Bank of India v. M/S v B . Exports and Another

Case brief

What is this about?

What did the court decide?

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