Allowed

Union Bank of India v. M/S Pansy Inc. and Others

DRT3 Mar 2026OA/942/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's claim for recovery of Rs. 63,37,298 from respondents who failed to repay sanctioned loans. The Tribunal granted uniform simple interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 63,37,298 with costs and uniform simple interest at 8% p.a. from filing date till realization. Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.942/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.04.2021

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DATE OF DECISION: 03.03.2026

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Union Bank of India, a body corporate under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head Office at 239, Vidhan Bhavan Marg, Nariman Point Mumbai, and one of its branches at Ludhiana, through its Authorized Officer/ Branch Manager.

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……..Applicant

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Versus

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M/S Pansy Inc, 50, Vivek Nagar, Civil Lines, Ludhiana (Punjab) through its proprietor Sh. Ajay Gupta.

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Sh. Ajay Gupta S/o Sh. Ashok Kumar, H. No.50, Street No.2, Civil Line, Vivek Nagar, Ludhiana Punjab-141013.

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M/S Parry Industries (through their partners Sh. Taranjit Singh & Smt. Arvinder Kaur), Flat No.101, 330-R, Model Town, Ludhiana141002.

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Sh. Taranjit Singh S/o Sh. Mohinder Singh, R/o Flat No.101,330R, Model Town, Ludhiana-141002.

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Smt. Arvinder Kaur W/o Sh. Taranjit Singh, R/o Flat No.101, 330R, Model Town, Ludhiana-141002.

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…….Defendants

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Advocates:

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Argued by Sh. Ajay Singla, Advocate for the applicant

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Defendants already ex parte vide order dated 04.12.2025

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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 Rs.63,37,298.00 (Rupees Sixty Three Lacs Thirty Seven Thousand Two Hundred Ninety Eight Only). The Original Application has been filed through Sh. Manpreet Singh,

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OA NO.942/2022 UNION BANK OF INDIA VS. M/S PANSY INC. AND OTHERS

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Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 06.10.2009, which is Annexure A15 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 grant Cash Credit Limit of Rs.40.00 Lacs and Term Loan of Rs.50.00 Lacs. Defendant nos. 3 to 5 stood as guarantors.

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The applicant sanctioned the Cash Credit Limit of Rs.40.00 Lacs and Term Loan of Rs.50.00 Lacs vide Sanction Letter dated 24.10.2016, which is Annexure A1 to this OA and the terms and conditions were duly accepted by the defendants vide acceptance of terms and conditions of sanction dated 24.1.2016, which is Annexure A3 to this OA.

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated Plant and Machinery purchased out of Bank Finance, Stock and Book Debts etc. vide Composite Agreement dated 24.10.2016, which is Annexure A4 to this OA; Supplement to composite agreement dated 24.1.2016, which is Annexure A7 to this OA.

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Defendant no. 3 through its partners mortgaged its immovable property i.e. Plot No. 15-15A, measuring 250 Sq. Yards, situated at Village Bhattian, Hadbast No. 89, Abadi Hazuri Bagh Colony, Tehsil and District Ludhiana, Punjab through equitable mortgage of Sale Deed bearing vasika No.21370 dated 21.12.2004.

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Title deed of property along with its translation filed on 09.02.2026 vide diary no. 262 in compliance to order dated 09.01.2026.

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Letter dated 21.10.2016, which is Annexure A8 to this OA; List of Documents of title deeds dated 24.10.2016, which is Annexure A9 to this OA.

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OA NO.942/2022 UNION BANK OF INDIA VS. M/S PANSY INC. AND OTHERS

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Documents executed: D.P Note, General Form of Guarantee, CIBIL Consent Letter, List of Documents all dated 24.10.2016, which are Annexures A2, A5, A6, to this OA; Demand Notice dated 01.10.2018 u/s 13(2) of SARFAESI Act with postal receipts, which is Annexure A10 to this OA; Notice to Borrower dated 22.04.2019, which is Annexure A11 to this OA; Amalgamation Notification dated 04.03.2020, which is Annexure A12 to this OA; Statement of Accounts with Certificate, which is Annexure A13 and A14 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 loan accounts there was a debit of Rs.63,37,298.00 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 04.12.2025

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In support of the OA, affidavit of Sh. Manpreet Singh, Chief Manager, Union Bank of India h as been filed.

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Heard ex-parte arguments and perused record.

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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 A15 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 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

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OA NO.942/2022 UNION BANK OF INDIA VS. M/S PANSY INC. AND OTHERS

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that applicant is entitled to recover a sum of Rs.63,37,298.00 (Rupees Sixty Three Lacs Thirty Seven Thousand Two Hundred Ninety 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.10%p.a. with 2% penal interest from 01.07.2020 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 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 @08.00%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.63,37,298.00 (Rupees Sixty Three Lacs Thirty Seven Thousand Two Hundred Ninety Eight Only), jointly and severally, with costs, current and future simple interest @08.00%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/mortgaged properties 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

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OA NO.942/2022 UNION BANK OF INDIA VS. M/S PANSY INC. AND OTHERS

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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 20.03.2026. 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: 03.03.2026.

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

Union Bank of India v. M/S Pansy Inc. and Others

Case brief

What is this about?

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Union Bank of India v. M/S Pansy Inc. and Others

Case brief

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What did the court decide?

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