Allowed

Uco Bank v. M/S Sameer Enterprises and Others

DRT19 Mar 2026OA/899/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by UCO Bank for recovery of Rs.23,05,647.78 from Sameer Enterprises and other defendants. The court declined the bank's claim for penal interest and adjusted the rate to 8% p.a., ordering joint and several liability with a direction for recovery via SARFAESI proceedings.

What did the court decide?

Direct recovery of Rs.23,05,647.78 plus costs and simple interest @8% p.a. from sale of hypothecated/mortgaged assets and personal assets of defendants.

Uco Bank versus M/S Sameer Enterprises and Others — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.899/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.06.2025

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DATE OF DECISION: 05.03.2026

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UCO Bank, a body corporate constituted under the banking companies (Acquisition & Transfer of undertakings) act 1970, having its Head Office at 10, BTM Sarni Kolkata, and one of its branches, known as Mangat Branch, Ludhiana through its Constituted Attorney Smt. Kamaljeet Kaur, Branch Manager, UCO Bank, Mangat Branch, Ludhiana who is the also the Principal Officer of the plaintiff bank.

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……..Applicant

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Versus

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M/s Sameer Enterprises, through its sole proprietor Ms. Rahil W/o Sh. Shameen Khan, House No. 3680, Ward No. 58, Street No. 11, New Shivaji Nagar, Ludhiana, Punjab-141008.

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Ms. Rahil W/o Sh. Shameen Khan, sole proprietor M/s Sameer Enterprises, House No. 3679/80, Ward No. 58, Street No. 11, New Shivaji Nagar, Ludhiana, Punjab-141008.

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Sh. Tehsim Ahmad, S/O Sh. Abdul Raheem, House No.3679/80 Ward No. 58, Street No. 11, New Shivaji Nagar, Ludhiana, Punjab.

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.. ……Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma, Advocate for applicant.

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Defendants already ex-parte vide order dated 22.01.2026.

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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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.23,05,647.78 (Rupees Twenty Three Lacs Five Thousand Six Hundred Forty Seven & Paise Seventy Eight Only). The Original Application has been filed through

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OA NO.899/2025 UCO BANK VS M/S SAMEER ENTERPRISES AND OTHERS

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Ms. Kamaljeet Kaur, Branch Manager, of the Applicant, who is competent to institute the Original Application vide Circular of bank dated 20.07.2012, 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 the grant of Cash Credit Limit of Rs. 19.00 Lacs for the business purpose vide Loan application dated 22.10.2018, which is Annexure A2 to this OA. Defendant no. 3 stood as guarantor. Later, the Defendant No.1 through its Proprietor Defendant No.2 again approached the applicant for the grant of Ad-hoc Limit of R.1.90 Lacs to overcome impact of COVID-19 vide Loan application dated 13.05.2020, which is Annexure A10 to this OA and thereafter, again approached for additional Term Loan of Rs.3.70 Lacs. Thereafter, the Defendant No.1 through its Proprietor Defendant No.2 again approached the applicant to restructure the said CC limit into CC Limit of Rs.18.00 lacs and Working Capital Term Loan of Rs.1.00 Lac vide loan application dated 29.06.2021, which is Annexure A18 to this OA and for additional Working Capital Term Loan of Rs.1.89 Lacs under GECL 4.0 vide loan application dated 29.06.2021, which is Annexure A25 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.19.00 Lacs and terms and conditions were duly accepted by defendants. Thereafter, the applicant sanctioned Term Loan of Rs.1.90 Lacs vide under COVID-19 relief and thereafter, additional Term Loan of Rs.3.70 Lacs. Thereafter, the applicant restructured of the Cash Credit Limit into CC Limit of Rs.18.00 Lacs and Working Capital Term Loan of Rs.1.00 Lac. The applicant also sanctioned Working Capital Term Loan of Rs.1.89 Lacs under GECL vide sanction letter dated 30.06.2021, which is Annexure A26 to this OA.

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Defendant No.1 through its Proprietor Defendant No.2 hypothecated stock and book debts vide Agreement of Hypothecation

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OA NO.899/2025 UCO BANK VS M/S SAMEER ENTERPRISES AND OTHERS

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of goods to secure demand cash credit dated 15.11.2018, which is Annexure A6 to this OA; Composite Deed of hypothecation dated 19.06.2020 and 30.06.2021, which are Annexures A16 & A22 to this OA.

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Defendant no. 3 mortgaged his immovable property i.e. Residential property measuring 200 sq. yards situated at Village Kulewal, Hadbast No.178, Abadi, Street No. 1, Baba Jiwan Singh Nagar, Near Bhola Colony, Tehsil and District Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no. 2200 dated 29.04.2013, along with its translation, which is Annexure A8 to this OA. Draft to letter of undertaking to obtained from the applicant for advance against immovable property dated 15.11.2018, which is Annexure A9 to this OA; Draft letter of deposits of tittle deeds obtained from mortgagor dated 13.05.2020, which is Annexure A13 to this OA.

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Documents executed: DP Note dated 15.11.2018, which is Annexure A3 to this OA, Letter of waiver dated 15.11.2018, which is Annexure A4 to this OA, Letter of continuity dated 15.11.2018, which is Annexure A5 to this OA, Letter of guarantee dated 15.11.2018, which is Annexure A7 to this OA, Agreement relating to term loan dated 13.05.2020, which is Annexure A11 to this OA; Letter of Guarantee dated 13.05.2020, which is Annexure A12 to this OA; Demand Promissory Note dated 19.06.2020, which is Annexure A14 to this OA; Letter of waiver dated 19.06.2020, which is Annexure A15 to this OA; Agreement relating Term Loan dated 19.06.2020, which is Annexure A17 to this OA; Agreement on

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rescheduling/rephrasing of TL dated 30.06.2021, which is Annexure A19 to this OA; DP note dated 30.06.2021, which is Annexure A20 to this OA; Letter of waiver dated 30.06.2021, which is Annexure A21 to this OA; Agreement relating to term loan dated 30.06.2021, which

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OA NO.899/2025 UCO BANK VS M/S SAMEER ENTERPRISES AND OTHERS

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is Annexure A23 , Agreement with Guarantor on rescheduling/rephasing of TL dated 30.06.2021, which is Annexure A24 to this OA; DP note dated 30.06.2021, which is Annexure A27 to this OA; Letter of waiver dated 30.06.2021, which is Annexure A28 to this OA; Agreement relating to term loan dated 30.06.2021, which is Annexure A29 to this OA; S-14 dated 10.05.2023, which is Annexure A30 to this OA; Recall notice dated 30.07.2024, which is Annexure A31 to this OA; Notice dated 17.07.2024 u/s 13(2) of SARFAESI Act, which are Annexures A32 & A33 to this OA and Statements of accounts with certificate, which are Annexures A34 to A38 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.23,05,647.78, 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 22.01.2026.

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In support of the OA, affidavit of Smt. Kamaljeet Kaur, Branch Manager, UCO Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A38 to this OA, it is proved that the defendants 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

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OA NO.899/2025 UCO BANK VS M/S SAMEER ENTERPRISES AND OTHERS

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the loans as per terms and conditions of the agreement between the parties. Subsequently, the 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.23,05,647.78 (Rupees Twenty Three Lacs Five Thousand Six Hundred Forty Seven & Paise Seventy Eight Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @9.95%p.a. with 2% penal interest and monthly rests from 19.06.2025 till 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 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 just and appropriate to grant uniform simple interest @8.00%p.a. in all 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.23,05,647.78 (Rupees Twenty Three Lacs Five Thousand Six Hundred Forty Seven & Paise Seventy Eight Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled

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OA NO.899/2025 UCO BANK VS M/S SAMEER ENTERPRISES AND OTHERS

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to recover aforesaid amount from the sale of mortgaged properties/hypothecated assets of 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2026. 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: 19.03.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Uco Bank v. M/S Sameer Enterprises and Others

Case brief

What is this about?

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Uco Bank v. M/S Sameer Enterprises and Others

Case brief

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