Allowed

Union Bank of India v. M/S Guru Gym 1.2 and Another

DRT25 Aug 2026OA/860/2026

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 29.10 lakhs plus interest. The court directed a uniform simple interest rate of 8% per annum and authorized sale of hypothecated assets under the SARFAESI Act.

What did the court decide?

Recovery of Rs. 29,10,852.72 with simple interest at 8% p.a. from filing date; liberty to execute via sale of hypothecated or personal assets.

Union Bank of India versus M/S Guru Gym 1.2 and Another — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 860/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2026

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DATE OF DECISION: 25.08.2026

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Union Bank of India (erstwhile Andhra Bank), Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Union Bank Bhawan, 239, Vidhan Bhawan Marg, Nariman Point, Mumbai, Maharashtra400021 and having one of its Branch situated at A S Senior Secondary, Samrala Road, Khanna, District Ludhiana, Punjab through Sh. Priyank Srivastav, Branch Manager

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……..Applicant

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Versus

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M/S Guru Gym 1.2 situated at 5^th Floor, City Towers, Amloh Road, GTB Market, GT Road, Khanna, District Ludhiana, Punjab141401 through its Proprietor, Smt. Bhupinder Kaur

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Smt. Bhupinder Kaur, W/o Sh. Satwinder Singh, R/o House no. 216, Ward no. 18, Gurcharan Colony, Khanna, District Ludhiana, Punjab

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…..Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for applicant

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None for defendants (already ex-parte vide order dated 18.08.2026)

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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. 29,10,852.72 (Rupees Twenty Nine Lacs Ten Thousand Eight Hundred Fifty Two and Paise Seventy Two Only). The Original Application has been filed through Sh. Priyank Srivastav, Branch Manager of the applicant, who is competent to institute the Original Application vide Letter of Authority, which is Annexure A1 to this OA.

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2 OA NO. 860/2026 UNION BANK OF INDIA VS. M/S GURU GYM 1.2 AND ANOTHER

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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. 0.76 Lac and Term Loan- I of Rs. 18.24 Lacs vide Loan Application dated 04.01.2024, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Term Loan- II of Rs. 15.95 Lacs vide Loan Application Form dated 07.12.2024, which is Annexure A9 to this OA.

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The applicant sanctioned CC Limit of Rs. 0.76 Lac and Term Loan- I of Rs. 18.24 Lacs vide Sanction dated 01.02.2024, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Term Loan- II of Rs. 15.95 Lacs vide Letter of Sanction dated 07.12.2024, which is Annexure A10 to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and machines vide Hypothecation Agreements and Composite Hypothecation Deeds dated 02.02.2024 and 07.12.2024, which are Annexure A6, A7, A13 and A14 to this OA.

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Documents executed: DP Note, Letter of Continuity and Term Loan Agreement, all dated 02.02.2024, which are Annexure A4, A5 and A8 to this OA; DP Note, Letter of Continuity and Interest Agreement, Term Loan Agreements and Deed of Guarantee, all dated 07.12.2024, which are Annexure A11, A12 and A15 to A18 to this OA; Recall Notices dated 09.05.2025 and 30.09.2025, which is Annexure A19 to this OA; Legal Notices dated 12.05.2025, 26.11.2025 and 17.01.2026, which are Annexure A20 and A20A to this OA and Statement of Accounts, which are Annexure A21 and A22 to this OA.

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The Term Loan- I and II 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. 29,10,852.72, 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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3 OA NO. 860/2026 UNION BANK OF INDIA VS. M/S GURU GYM 1.2 AND ANOTHER

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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 18.08.2026. 7. In support of the OA, affidavit of Sh. Priyank Srivastav, Branch Manager, Union Bank of India has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel 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 A22 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 and for that they 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. 29,10,852.72 (Rupees Twenty Nine Lacs Ten Thousand Eight Hundred Fifty Two and Paise Seventy Two 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 @10.75%p.a. in Term Loan- I Account and @10.25% p.a. in Term Loan- II Account plus 2% penal interest with monthly rests from 31.12.2025 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

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4 OA NO. 860/2026

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UNION BANK OF INDIA VS. M/S GURU GYM 1.2 AND ANOTHER

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just and appropriate to grant uniform 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,10,852.72 (Rupees Twenty Nine Lacs Ten Thousand Eight Hundred Fifty Two and Paise Seventy Two 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 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 . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 09.09.2026. 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: 25.08.2026

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

Union Bank of India v. M/S Guru Gym 1.2 and Another

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Union Bank of India v. M/S Guru Gym 1.2 and Another

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