Allowed

Union Bank of India v. M/S Hybrid Elevators and Lift and Another

DRT7 Apr 2026OA/262/2026

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant's plea for recovery of outstanding dues of Rs. 24,17,286.61 against borrowers who defaulted on term loans and credit card limits. The Tribunal issued a recovery certificate.

What did the court decide?

Recovery Certificate issued; Applicants entitled to recover Rs. 24,17,286.61 along with costs and simple interest @08% p.a. from defendants' assets.

Union Bank of India versus M/S Hybrid Elevators and Lift and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 262/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.02.2026

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DATE OF DECISION: 07.04.2026

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Union Bank of India, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Central Office at 239, Vidhan Bhawan Marg, Nariman Point, Mumbai- 400021 and inter alia a Branch Office at 41/2 Walia Complex, Dugri Road, Ludhiana, Punjab- 141003 through its Branch Manager/ Authorized Officer, Sh. Gaurav Mishra.

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……..Applicant

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Versus

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M/S Hybrid Elevators & Lift, Aman Homeo Clinic, Near Shivala Mandir, Village Gill, Ludhiana, Punjab- 141116, through its Proprietor, Smt. Davinderjit Kaur

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Smt. Davinderjit Kaur, W/o Sh. Ranjit Singh, Proprietor M/S Hybrid Elevators & Lift, R/o Bulara, Village Gill, Ludhiana, Punjab141116

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate for applicant

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None for defendants (already ex-parte vide order dated 30.03.2026)

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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. 24,17,286.61 (Rupees Twenty Four Lacs Seventeen Thousand Two Hundred Eighty Six and Paise Sixty One Only). The Original Application has been filed through Sh. Gaurav Mishra, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 10.12.2018, which is Annexure A1 to this OA.

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2 OA/262/2026 UNION BANK OF INDIA VS. M/S HYBRID ELEVATORS AND LIFT AND ANOTHER

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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 grant of CC Limit of Rs. 15.00 Lacs and Term Loan of Rs. 9.00 Lacs vide Loan Application dated 04.01.2024, which is Annexure A2 to this OA. 3. The applicant sanctioned the CC Limit of Rs. 15.00 Lacs and Term Loan of Rs. 9.00 Lacs vide Sanctioned Letter dated 05.01.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and book debts vide Composite Hypothecation Deed and Hypothecation Agreement, both dated 05.01.2024, which are Annexure A14 and A16 to this OA. Documents executed: Term Loan Agreement, DP Notes, Interest Agreement, Letters of Continuity, AD-02 A, Letter of Undertaking not to alienate Hypothecated Goods, Letter of Undertaking from Borrower(s), Letter of Undertaking from Guarantor(s) and Deed of Guarantee, all dated 05.01.2024, which are Annexure A4 to A13, A15, A17 and A18 to this OA; Notice dated 01.08.2025 along with postal receipts, which is Annexure A19 to this OA and Statement of Accounts along with certificate, which are Annexure A20 and A21 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 24,17,286.61 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. 6. 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 30.03.2026.

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3 OA/262/2026 UNION BANK OF INDIA VS. M/S HYBRID ELEVATORS AND LIFT AND ANOTHER

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In support of the OA, affidavit of Sh. Gaurav Mishra, Branch Manager , Union Bank of India has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexure A1 to A21 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached the 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.

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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 the applicant is entitled to recover a sum of Rs. 24,17,286.61 (Rupees Twenty Four Lacs Seventeen Thousand Two Hundred Eighty Six and Paise Sixty 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 accounts.

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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 @11%p.a. plus 2% penal interest with monthly rests from 01.12.2025 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 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 @08.00%p.a. in

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4 OA/262/2026 UNION BANK OF INDIA VS. M/S HYBRID ELEVATORS AND LIFT AND ANOTHER

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum Rs.24,17,286.61 (Rupees Twenty Four Lacs Seventeen Thousand Two Hundred Eighty Six and Paise Sixty One Only) jointly and severally with costs, current and future simple interest @08.00%p.a. in 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 the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 27.04.2026. 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: 07.04.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. M/S Hybrid Elevators and Lift and Another

Case brief

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Union Bank of India v. M/S Hybrid Elevators and Lift and Another

Case brief

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