Allowed

Union Bank of India v. M/S Jass Enterprises and Another

DRT12 Mar 2026OA/520/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India against M/s Jass Enterprises and the proprietor for recovery of a term loan. The Tribunal directed payment of the principal amount along with uniform interest at 8% per annum.

What did the court decide?

Application allowed. Respondents declared liable to pay Rs. 22,83,563.45 with interest @ 8% p.a. Recovery Certificate issued.

Union Bank of India versus M/S Jass Enterprises and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.520/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2025

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DATE OF DECISION: 12.03.2026

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Union Bank of India, a body corporate, constituted under Banking Companies (Acquisition & 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 Old Jail Road, Field Ganj, Ludhiana, through its duly Authorized Person and Power of Attorney Holder Sh. Ashish Kumar, Branch Manager.

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……..Applicant

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Versus

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M/s Jass Enterprises, Registered Office at Shop no.30, Shiv Market, Overlock Road, Ludhiana 2^nd Address: Plot no. E-348, Phase-6, Focal Point, Ludhiana141010

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(Through its Proprietor Sh. Gurwinder Pal Singh)

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Sh. Gurwinder Pal Singh s/o Sh. Kultar Singh, R/o House No. 62-B, Shaheed Karnail Singh Nagar, Phase-2, Pakhowal Road, Ludhiana- 141012

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(Proprietor of M/s Jass Enterprises)

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……….Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. R K Chauhan, Advocate for the applicant

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Defendants already ex-parte vide order dated 12.01.2026

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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.22,83,563.45 (Rupees Twenty Two Lacs Eighty Three Thousand Five Hundred Sixty Three and Paise Forty Five only). The Original Application has been filed through Sh. Ashish Kumar, Branch Manager of the applicant who is competent

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OA NO. 520/2025

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UNION BANK OF INDIA VS. M/S JASS ENTERPRISES AND ANOTHER to institute the Original Application vide General Power of Attorney dated 17.08.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 approached the applicant for grant Term Loan of Rs.24.50 Lacs vide Loan Application Form dated 08.11.2023, which is Annexure A2 to this OA.

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The applicant sanctioned Term Loan of Rs.24.30 Lacs vide Memorandum of Sanction and Sanction Advice dated 08.11.2023, which are Annexures A7 and A8 to this OA; Sanction Letter dated 15.11.2023, which is Annexure A9 to this OA; Credit Report & Due Diligence Report, both dated 08.11.2023, which are Annexures A5 & A6 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated machinery, stock etc. vide Term Loan agreement (hypothecation of moveables) dated 15.11.2023, which is Annexure A13 to this OA.

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Documents executed: GST Registration Certificate dated 14.10.2020, which is Annexure A3 to this OA; Udyam Registration Certificate dated 31.12.2022, which is Annexure A4 to this OA; DP Note, Letter of Continuity, General Term Loan Agreement, Agreement AD-02A, Letter of Undertaking not to alienate hypothecated goods, Undertaking from borrower, Letter of Undertaking, all dated 15.11.2023, which are Annexures A10 to A12, A14 to A17 to this OA; Application for Disbursement of Loan dated 16.11.2023, which is Annexure A18 to this OA; Letter for Adjustment of Overdue by Bank dated 30.01.2024 with postal receipts, which are Annexure A19(Colly) to this OA; Legal Notice dated 24.09.2024, along with Postal Receipts, which are Annexure A20 (Colly) to this OA and Statement of Account with certificate, which are Annexure A21 & A22 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

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OA NO. 520/2025

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UNION BANK OF INDIA VS. M/S JASS ENTERPRISES AND ANOTHER

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debit of Rs.22,83,563.45, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 12.01.2026.

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In support of the OA, affidavit of Sh. Ashish Kumar, 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 proxy 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 Annexures A1 to A22 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 of Rs.22,83,563.45 (Rupees Twenty Two Lacs Eighty Three Thousand Five Hundred Sixty Three and Paise Forty 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 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 @11.80%p.a. with 2% penal interest and monthly rests from 01.04.2025 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 mortgaged property/hypothecated

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OA NO. 520/2025 UNION BANK OF INDIA VS. M/S JASS ENTERPRISES AND ANOTHER

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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 uniform 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 of Rs.22,83,563.45 (Rupees Twenty Two Lacs Eighty Three Thousand Five Hundred Sixty Three and Paise Forty Five 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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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.04.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 12.03.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. M/S Jass Enterprises and Another

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Union Bank of India v. M/S Jass Enterprises and Another

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