Allowed

Union Bank of India v. Messrs Honey Enterprises

DRT22 May 2026OA/547/2026

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 Honey Enterprises and Honey Singh Sandhu for recovery of Rs. 43,94,873.23. The Tribunal exercised discretion to award simple interest at 8% p.a. and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 43,94,873.23 with costs and simple interest at 8% p.a. from the date of filing. Issuance of Recovery Certificate. Liberty to attach and sell personal assets if dues remain unsatisfied.

Union Bank of India versus Messrs Honey Enterprises — Execution and Attachment | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.547/2026

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 07.04.2026

¶5

DATE OF DECISION: 22.05.2026

¶6

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 Village Phullanwal, Tehsil and District Ludhiana, Punjab through duly Authorized Person and Attorney Holder, Sh. Jagmohan Singh, Branch Manager

¶7

… …..Applicant

¶8

Versus

¶9

M/S Honey Enterprises, Shop no. 10, Ludhiana East, Guru Amar Dass Nagar, Ludhiana, Punjab- 141116, through its Proprietor, Sh. Honey Singh Sandhu

¶10

Sh. Honey Singh Sandhu, S/o Sh. Amarjit Singh, r/o House no. 298, Block B, Satjot Nagar, Dhandra Road, Near Jain Public School, Ludhiana, Punjab- 141116

¶11

2nd address: Plot no. 9, Lucky Enclave, Near Manav Rachna School, Village Thakkarwal, Ludhiana, Punjab (Proprietor of M/S Honey Enterprises)

¶12

…Defendants

¶13

Advocates:

¶14

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

¶15

None for defendants (already ex-parte vide order dated 20.05.2026)

¶16

FINAL ORDER

¶17

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. 43,94,873.23 (Rupees Forty Three Lacs Ninety Four Thousand Eight Hundred Seventy Three and Paise

¶18

2 OA/547/2026 UNION BANK OF INDIA VS. M/S HONEY ENTERPRISES AND ANOTHER

¶19

Twenty Three Only). The Original Application has been filed through Sh. Jagmohan Singh, Attorney Holder of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.08.2022, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 15.00 Lacs vide Application Form dated 17.08.2023, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 35.00 Lacs vide Request for Enhancement of Limit vide dated 06.12.2024, which is Annexure A20 to this OA.

¶21

The applicant sanctioned enhancement of CC Limit of Rs. 15.00 Lacs vide Memorandum and Sanction Letter, both dated 19.08.2023, which are Annexure A5 and A6 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of CC Limit of Rs. 35.00 Lacs vide Memorandum of Sanction and Sanction Letter, both dated 13.12.2024, which are Annexures A21 and A22 to this OA.

¶22

Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and book debts vide Hypothecation Agreement dated 21.08.2023 and 13.12.2024, which are Annexure A12 and A25 to this OA.

¶23

Documents executed: GST Registration Certificate dated 23.03.2023, which is Annexure A3 to this OA; Udyam Registration Certificate dated 01.04.2029, which is Annexure A4 to this OA; Terms and Conditions of Sanction, Annexure II and VI, all dated 19.08.2023, which are Annexure A7 to A9 to this OA; DP Note, Letter of Continuity, Letter of Undertaking not to alienate

¶24

Hypothecated Goods, Annexure-1, Agreement of Rate of Interest, AD02A, Letter of Undertaking, Letter of Guarantee and Annexure II, all

¶25

3 OA/547/2026 UNION BANK OF INDIA VS. M/S HONEY ENTERPRISES AND ANOTHER

¶26

dated 21.08.2023, which are Annexure A10, A11 and A13 to A19 to this OA; DP Note, Letter of Continuity, Letter of Undertaking not to alienate Hypothecated Goods, Annexure 1, AD-02 A, Deed of Guarantee and Annexure II, all dated 13.12.2024, which are Annexure A23, A24 and A26 to A31 to this OA; Legal Notice dated 21.07.2024 along with postal receipts, which is Annexure A32 (Colly) to this OA; Recall Notice dated 02.02.2026 along with postal receipts, which is Annexure A33 (Colly) to this OA; Statement of Account with certificate, which are Annexure A34 and A35 to this OA.

¶27

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs. 43,94,873.23, 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.

¶28

The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on vide order dated 20.05.2026.

¶29

In support of the OA, affidavit of Sh. Jagmohan Singh, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record.

¶30

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.

¶31

From the perusal of all the Annexures A1 to A35 to this OA, it is proved that the defendant no. 1 through it Proprietor defendant no. 2 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between

¶32

4 OA/547/2026 UNION BANK OF INDIA VS. M/S HONEY ENTERPRISES AND ANOTHER

¶33

the parties. Subsequently, the 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. 43,94,873.23 (Rupees Forty Three Lacs Ninety Four Thousand Eight Hundred Seventy Three and Paise Twenty Three 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.

¶34

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.55%p.a with @2% penal interest with monthly rests from 01.03.2026 till the realization.

¶35

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 @8.00% 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.

¶36

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.43,94,873.23 (Rupees Forty Three Lacs Ninety Four Thousand Eight Hundred Seventy Three and Paise Twenty Three Only) jointly and severally, with costs, current and future simple interest @8.00% 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

¶37

5 OA/547/2026 UNION BANK OF INDIA VS. M/S HONEY ENTERPRISES AND ANOTHER

¶38

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.

¶39

12. Any other application pending stands disposed of.

¶40

Issue Recovery Certificate accordingly.

¶41

Parties to appear before Learned Recovery Officer of this

¶42

Tribunal on 15.06.2026.

¶43

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.

¶44

Pronounced by me in the open Tribunal .

¶45

Dated: 22.05.2026

¶46

(MRIDULESH KUMAR SINGH)

¶47

Presiding Officer,

¶48

DRT-III, Chandigarh

Union Bank of India v. Messrs Honey Enterprises

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Messrs Honey Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Sh. Pyara Singh

Punjab National Bank versus M/S Ggp Buildtech (P) Limited and Another

Punjab National Bank versus Sh. Pusa Singh @ Baljit Singh

State Bank of India versus Sh. Varinder Singh

Punjab National Bank versus M/S Pooja Woolen Industries and Others

Canara Bank versus M/S Parveen Collections and Another