Allowed

Union Bank of India v. Karan

DRT29 May 2026OA/687/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an original application filed by Union Bank of India for recovery of dues aggregating 29.31 lakhs along with interest. Proceeding ex-parte due to the unpaid defendant's absence, the Tribunal directed payment within 30 days and issuance of a recovery certificate to the Recovery Officer.

What did the court decide?

Directed defendant to pay 29,31,617/- with interest to applicant within 30 days; recovery certificate issued to Recovery Officer; assets subject to sale in case of default.

Union Bank of India versus Karan — Contract and Commercial Disputes | DRT (2026)

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O.A. No.687 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 687 of 2023

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Union Bank of India

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Asset Recovery Branch M-35, 1st Floor, Connaught Circus New Delhi-110001

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Applicant

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Versus

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Shri Karan Singh s/o Yashvir Singh R/o 79, Hemkunt Colony Greater Kailash-1, New Delhi-110048

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Also at:

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Shri Karan Singh s/o Yashvir Singh Village Sobhan Majra PO Panjehra, Tehsil Nalagarh Solan, Himachal Pradesh-173212

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Defendant

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Present: Mr. Manoj Kumar Mishra, counsel for applicant bank

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Date of Reserve: 13.05.2026 Date of Pronouncement: 29.05.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 06.07.2023 through Shri Shashank Daksha, authorized representative of the applicant bank, under Section 19(1) of read with Section 19(25) of the Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.29,31,617/- (Rupees Twenty Nine Lacs Thirty One Thousand Six Hundred Seventeen only), out of which,

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O.A. No.687 of 2023

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Rs.26,58,629/- together with interest @9.90% plus @2% penal interest from 01.06.2023 in Auto Loan account; Rs.2,29,065/- together with interest @ contractual rate @2.95% per month from 26.06.2023 in Credit Card account;

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Rs.43,923/- together with interest @9.90% per annum plus @2% penal interest from 15.04.2023 in TOD account;

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till the date of realization and costs.

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The brief facts of the case are that at the request of defendant vide loan application dated 18.10.2020 with KYC documents, the applicant bank sanctioned Auto Loan of Rs.34,00,000/- (Rupees Thirty Four Lacs only) on 20.10.2020 under Union Miles scheme and disbursed the amount to M/s Rama Motor Services (P) Ltd. together with @7.40% interest to be repaid in 84 EMIs of Rs.51,982/- in order to purchase Ford Endeavour 2.0L 4X4 car duly insured by Bharti AXA General Insurance Co.Ltd. dated 21.10.2020. The defendant was also issued Credit Card bearing No.6529)0000(XXX4208 and availed Overdraft credit facility to repay the instalments for the credit facilities.

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That in order to avail the aforesaid loan facilities, the defendant submitted loan application with KYC documents and executed Hypothecation of Vehicle Agreement, Interest Agreement, Letter of Undertaking, Letter of General Lien and Disbursal of Loan on 20.10.2020 towards the applicant bank.

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That in order to secure the credit facilities, the defendant hypothecated the Ford Endeavour 2.0L 4X4 Car bearing Registration No.HP95-9666, Engine No.LL60670, Chasis

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SCE

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O.A. No.687 of 2023

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No.MAJMONRWALL60670 in favour of applicant bank duly registered with RTO.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions and despite several requests and reminders, the defendant failed to pay the outstanding dues and monthly installments in time to the applicant bank. The applicant bank declared the accounts as Non-Performing Asset on 16.05.2023 but defendant neglected, hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 03.06.2023 was issued upon defendants to liquidate the outstanding liability but neglected.

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Notices of this O.A. were issued to the defendant and despite proper service, the defendant chose to absent from the proceedings and none appeared on behalf of defendant, hence proceed ex-parte. As per order dated 06.01.2026, the defendant has been proceeded ex-parte due to nonappearance, non filing of written statement, evidence and affidavit of assets before this Tribunal.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Shashank Daksha, authorized representative of the applicant bank who has proved the documents as Authority Letter Exhibit P-1, Loan Application Exhibit P-2, Copies of PAN Card, Voter ID Card, Driving Licence Mark-A to C, Sanction Letter Exhibit P-3, Hypothecation of Vehicle Agreement Exhibit P-4, Interest

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O.A. No.687 of 2023

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Agreement Exhibit P-5, Letter of Undertaking Exhibit P-6, Letter of General Lien Exhibit P-7, Disbursement of Loan Amount Exhibit P-8, Tax Invoice & Insurance Cover Mark-D to E, Letter dated 09.06.2021 Exhibit P-09, Letter dated 15.04.2023 MarkG, Demand Notice Exhibit P-10, Statement of Accounts Exhibit P-11 to P-13.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions and documents on record, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within 30 days, a sum of Rs.29,31,617/(Rupees Twenty Nine Lacs Thirty One Thousand Six Hundred Seventeen only), out of which,

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Rs.26,58,629/- together with pendentelite and future interest ©11.90% interest per annum from 01.06.2023 in Auto Loan account;

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Rs.2,29,065/- together with pendentelite and future interest @18% from 26.06.2023 in Credit Card account;

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O.A. No.687 of 2023

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Rs.43,923/- together with pendentelite and future interest @11.90% per annum from 15.04.2023 in TOD account;

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and costs, failing which the aforesaid amount shall be recovered from sale of Ford Endeavour 2.0L 4X4 Car bearing Registration No.HP95-9666, Engine No.LL60670, Chasis No.MAJNOWIRWALL60670. In case of default/shortfall, the same shall be recovered from the sale of movable and immovable assets of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 28.07.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 29.05.2026

Union Bank of India v. Karan

Case brief

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What did the court decide?

Union Bank of India v. Karan

Case brief

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What did the court decide?

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