Allowed

Union Bank of India v. M/S P.M. Enterprises and Others

DRT17 Jun 2026OA/539/2025

Case brief

AI extract

What is this about?

The DRT allowed the application filed by Union Bank of India against respondents for recovery of debt. The court declared the defendants liable to pay the principal amount with simple interest at 8% per annum from the filing date.

What did the court decide?

Recovery Certificate issued for Rs. 51,79,439.00 with principal and simple interest at 8% p.a. Recovery from sale of secured assets or attachment of personal assets.

Union Bank of India versus M/S P.M. Enterprises and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 539/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.04.2025

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DATE OF DECISION: 17.06.2026

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Union Bank of India, a Body Corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai- 400021 and one of its Branches at Model Town Extension, Ludhiana, Punjab through Sh. Atul Kumar Singh, Branch Manager, Principal Officer and Constituted Attorney

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……..Applicant

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Versus

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M/S P.M. Enterprises, Near Brick Kilin, Uchi Mangli, Ramgarh, Airport Road, Chandigarh Road, Ludhiana, Punjab through its Proprietor, Smt. Amanpreet Kaur

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Smt. Amanpreet Kau r , W/o Sh. Ganga Sagar, Proprietor M/S P.M. Enterprises, N ear Brick Kilin, Uchi Mangli, Ramgarh, Airport Road, Chandigarh Road, Ludhiana, Punjab

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2^nd Address: House no. 1396, MIG Flat, Sector 32, Chandigarh Road, Ludhiana, Punjab

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Sh. Ganga Sagar, R/o H ouse no. 1396, MIG Flat, Sector 32, Chandigarh Road, Ludhiana, Punjab

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…..Defendants

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Advocates:

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Argued by Sh. R.V. Mehra, Advocate for applicant (through VC) None for defendants

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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. 51,79,439.00 (Rupees Fifty One Lacs Seventy Nine Thousand Four Hundred Thirty Nine Only). The Original Application has been filed through Sh. Atul Kumar Singh, Branch Manager of the applicant, who is competent to institute the

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2 OA NO. 539/2025 UNION BANK OF INDIA VS. M/S P.M. ENTERPRISES AND OTHERS

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Original Application vide Power of Attorney dated 10.04.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 40.00 Lacs and Term Loan of Rs. 10.00 Lacs vide Loan Application dated 04.05.2022, which is Annexure A2 to this OA.

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The applicant sanctioned CC Limit of Rs. 40.00 Lacs and Term Loan of Rs. 10.00 Lacs vide Letter of Sanction dated 24.05.2022, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Defendant no. 3 stood as guarantor.

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Defendant no. 2 mortgaged her immovable property i.e. Land measuring 286 Sq. Yards situated at Village Mangali Uchi, Tehsil and District Ludhiana, Punjab vide Registered Mortgage Deed dated 11.01.2022 along with its translation, which are Annexure A12 and A13 to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and book debts vide Hypothecation Agreement dated 24.05.2022, which is Annexure A5 to this OA. Documents executed: DP Note, Letter of Continuity, Composite Hypothecated Deed, Interest Agreement, Simple Agreement, Letters of Undertaking and Agreement of Guarantee, all dated 24.05.2022, which are Annexure A4, A6 to A11, A15 and A16 to this OA; Memorandum of Entry dated 25.05.2022, which is Annexure A14 to this OA; Notice dated 07.03.2025 along with postal receipts, which are Annexure A17 to A21 to this OA and Statement of Accounts, which are Annexure A22 and A23 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs. 51,79,439.00, 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 summons to appear before this

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Tribunal and after service upon defendants, Ms. Ravisha, Advocate

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3 OA NO. 539/2025 UNION BANK OF INDIA VS. M/S P.M. ENTERPRISES AND OTHERS

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proxy for Sh. Sahil Khunger, Advocate appeared on behalf of the defendants on 11.12.2025 and filed Memo of Appearance. Paper book was supplied to him but neither Power of Attorney nor WS was filed. Therefore, opportunity to file WS by defendants was closed and defence was struck off vide order dated 15.06.2026.

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In support of the OA, affidavit of Sh. Atul Kumar Singh, Senior Manager, Union Bank of India has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel (through VC) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

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From the perusal of all the Annexure A1 to A23 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3 stood as guarantor. Defendants 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 bank is entitled to recover a sum of Rs. 51,79,439.00 (Rupees Fifty One Lacs Seventy Nine Thousand Four Hundred Thirty Nine 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. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.80%p.a. including @2% penal interest p.a. with monthly rests from the date of filing of the application 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/mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill

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4 OA NO. 539/2025 UNION BANK OF INDIA VS. M/S P.M. ENTERPRISES AND OTHERS

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in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant 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.

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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.51,79,439.00 (Rupees Fifty One Lacs Seventy Nine Thousand Four Hundred Thirty Nine Only) jointly and severally, with costs, current and 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 defendant nos. 1 and 2 and mortgaged property of defendant no. 2 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2026. 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: 17.06.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Union Bank of India v. M/S P.M. Enterprises and Others

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Union Bank of India v. M/S P.M. Enterprises and Others

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