Allowed

Union Bank of India v. M/S Bawa Appliances P Ltd.

DRT3 Jan 2026TA/1598/2022

Case brief

AI extract

What is this about?

The DRT-I Delhi allowed the bank applicant's application for recovery. The court directed the defendants to pay the outstanding principal amount along with interest at 12% per annum, ordering recovery from the sale of remaining mortgaged properties.

What did the court decide?

Defendants to pay Rs.13.23 crores plus interest at 12% p.a. from 01.03.2018; recovery certificate issued for enforcement against remaining mortgaged and other properties.

Union Bank of India versus M/S Bawa Appliances P Ltd. — Banking and Recovery | DRT (2026)

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T.A. No.1598 of 2022

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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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T.A. No. 1598 of 2022

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ynion Bank of India

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(p-Corporation Bank) Asset Recovery Branch M-35, First Floor, Connaught Circus New Delhi-110001 Applicant

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lifersus

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M/s Bawa Appliances P Ltd. Through its Directors

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A-16, Khasra no.29/10, Ground Floor Near Shiv Mandir, Libaspur Delhi-110042

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Iso at:

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/s Bawa Appliances P Ltd.

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4/1333, Kishanpura, Saharanpur War Pradesh-274001

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Also at:

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/s Bawa Appliances P Ltd. -3/804, 8TH Floor, Tulip Grand kbarpur Barota, Sector-35, onipat, Haryana-131001

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Sh. Sanjeev Kapoor s/o Kuldeep Singh Kapoor 14/1333, Kishanpura, Saharanpur Vttar Pradesh-274001

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Iso at:

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h. Sanjeev Kapoor s/o Kuldeep Singh Kapoor -3/804, 8th Floor, Tulip Grand kbarpur Barota, Sector-35, onipat, Haryana-131001

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Ms. Pooja Kapoor d/o Sh. Balbir Chand Sethi 14/1333, Kishanpura, Saharanpur Uttar Pradesh-274001

T.A. No.1598 of 2022

Also at:

Ms. Pooja Kapoor d/o Sh. Balbir Chand Sethi B-3/804, 8th Floor, Tulip Grand Akbarpur Barota, Sector-351

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Sonipat, Haryana-131001

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Ms. Geeta Kapoor d/o Sh. Om Prakash Lotan 14/1333, Kishanpura, Saharanpur Uttar Pradesh-274001

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. Sh. Sanjeev Sharma s/o Sh. Harish Chand Sharma /5972, Madho Nagar

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aharapur, Uttar Pradesh

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Also at:

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h. Sanjeev Sharma s/o Sh. Harish Chand Sharma A-16, Khasra no.29/10, Ground Floor Near Shiv Mandir, Libaspur, Delhi-110042 Defendants

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P resent: Shri Samarendra Kumar, Counsel for applicant bank

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Date of Reserve: 10.12.2025

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Date of Pronouncement: 03.01.2026

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FINAL ORDER

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This original application has been filed by the applicant bank before DRT-III, Delhi on 31.03.2018 & then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act 1993 against the cefendants for recovery of a sum of Rs.13,23,33,839.53 (Rupees Thirteen Crores Twenty Three Lacs Thirty Three housand Eight Hundred Thirty Nine and paisa Fifty Three nly) as on 28.02.2018, out of which Rs.9,51,89,941.53 in Cash credit facility @14.75% pendentelite interest, Rs.2,56,27,288/-

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LC Cum BG facility @16.95% pendentelite interest and s.1,15,16,637/- in Term Loan facility @15.35% pendentelite interest from 01.03.2018 till its realization in full. Further, the ame of Sh. Uma Sharma has been substituted as authorized presentative of the applicant bank in place of erstwhile ARs of the applicant bank.

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T.A. No.1598 of 2022

The brief facts of the case are that at the request of defendant no.1 being private limited company along with r spondent no.2 to 4 as guarantors/mortgagor dealing in anufacturing and trading of LPG stove & parts and various kitchen appliances, the applicant bank sanctioned Cash Credit facility of Rs.500.00 lacs @12.85% interest to meet working Oapital requirements, LC cum BG facility of Rs.200.00 lacs and Term Loan facility of Rs.150.00 lacs @13.45% interest per nnum with monthly rests. Further, the applicant bank sanctioned Working Capital Demand Loan facility for a sum of

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s.200.00 Lacs on 29.09.2015 and enhanced / renewed the ash Credit facility to Rs.825.00 Lacs, Inland/Import LC cum I3G facility to Rs.500.00 lacs and renewed Term loan facility to Rs.141.65 Lacs on 10.11.2015. The defendants also agreed to pay penal interest @2% per annum in case of default or delay in repayment of interest or installment.

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That in order to avail the credit facilities, the defendants submitted loan applications and executed CSI dated 31.01.2014, Board Resolution dated 10.11.2015, Request for QD/CC facility, Demand Promissory Note, Take Delivery Letter t• DPN, Guarantee Agreement, Common Deed of Hypothecation of Moveable/ Assets, Letter of Undertakings um Declaration, General Power of Attorney, Agreement for I suance of Bank Guarantee, Counter Guarantee, Application urn Counter Guarantee for opening irrevocable Inland ocumentary Credit, Inland/Foreign Bills Document, greement for Term Loan and Letters of Continuity on 03.12.2015.

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That in order to secure the various credit facilities, the efendant no.1 hypothecated the entire stocks, receivables and ther current assets and mortgaged the following properties by

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T.A. No.1598 of 2022

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xecuting Memorandum of deposit of title deeds and letter of continuity:

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Khasra no.396/1 Min, Village Gopalpura, Mazra Dara Kottala Bairun, Behat Road, Saharanpur, UP owned by defendant no.3 & 4;

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Residential Flat no.B3/804, 8th^{Floor, Tulip Grand,} Akbarpur Barota, Sec-35, Sonipat, Haryana owned by defendant no.3;

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Residential building bearing Eastern part of Plot no.11, Khasra no.608/2 (M), Wake Dara Milkana Baroon Mohit Vihar Colony, near Madho Nagar and New Madho Nagar in the close vicinity of Company Garden, M S Degree College, Nymaish Camp, Sahranpur, Uttar Pradesh owned by defendant no.2;

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Commercial Complex having shop on Ground Floor, Basement Floor without Roof Rights bearing MPL no.213/212, Shop No.20, Mission Market on main Court Road near Taj Hotel, V Mart, Gill Colony, Saharanpur, UP owned by defendant no.2.

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. It has been submitted by the applicant bank that after wailing the loan facilities, the defendants failed to comply with the terms and conditions despite several requests and efendants failed to pay the outstanding dues and monthly cinstallments in time to the applicant bank. The applicant bank lassified the account as NPA on 30.061017 as per RBI uidelines but defendants neglected to regularize the account, ence, the applicant bank has approached this Tribunal for covery of their dues.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 was issued demand notice dated 21.07.2017

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T.A. No.1598 of 2022

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f( r Rs.12,08,30,518.55 u/s 13(2) of SARFAESI Act. The a pplicant bank auctioned the following mortgaged properties and issued sale certificates to successful auction purchaser and appropriated the amount in the account of defendant no.1. the detail of properties auctioned are as follows:

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Flat no.B3/804, 8th Floor, Tulip Grand, Akbarpur Barota, Sec-35, Sonipat, Haryana for Rs.28.25 lacs on 08.06.2021; Residential building bearing Eastern part of Plot no.11, Khasra no.608/2 (M), Wake Dara Milkana Baroon Mohit Vihar Colony, near Madho Nagar, Saharanpur, Uttar Pradesh for Rs.22.05 lacs on 19.12.2019;

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Khasra no.396/1 Min, Village Gopalpura, Mazra Dara Kottala Bairun, Behat Road, Saharanpur, UP for Rs.95.50 lacs on 27.05.2021.

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Notices of this O.A. were issued to the defendants and despite proper service through publication in newspapers, the l i^{efendants have chosen to absent from the proceedings. As} er order dated 31.01.2020, the defendants have been proceeded ex-parte as not appeared before the Tribunal and ror evidence and affidavit of assets have been filed.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.K.Venkateswaralu and Ms yma^{Sharma, authorized representatives of the applicant bank}

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ho have proved the documents such as Power of Attorney, SIs Letters, Board Resolution, Request for OD/OC Facility, errand Promissory Note, Take Delivery Letter to DPN, uarantee Agreement, Common Deed of Hypothecation, Letter of Undertakings cum Declaration, General Power of Attorney, Agreement for Issuance of Bank Guarantee, Counter Guarantee,. Inland/Foreign Bills Letter, Agreement for Term

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oan, Memorandum of Deposit of Title Deeds, Letters of ontinuity, Title Deeds, Demand Notice & Postal Receipts, Certificate for Rate of Interest marked as Ex.AW-1/1 to Ex.AW1/35 (Colly).

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T.A. No.1598 of 2022

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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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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which

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analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank

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India Vs. Ravindra & Others. Taking stock of all the c rcumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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11.^{The case filed by the applicant bank gone unrebutted and} there is no question of disbelieving the case of the applicant

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ank and the applicant bank has proved its case beyond r asonable doubts.

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12.^{In the light of the above discussions and documents on} cord, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants tc pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.13,23,33,839.53 (Rupees Thirteen Crores Twenty Three Lacs Thirty Three Thousand Eight Hundred Thirty Nine and Paisa Fifty Three only) as on 28.02.2018 along with pendentelite and future interest @12% per annum with

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T.A. No.1598 of 2022

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onthly rest from 01.03.2018 till the date of realization and c sts failing which the aforesaid amount shall be recovered from sale of remaining mortgaged property viz. Commercial omplex having shop on Ground Floor, Basement Floor without roof rights bearing MPL no.2B/212, Shop no.20, Mission Market

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ain Court Road near Taj Hotel, V Mart, Gill Colony, aharanpur, Uttar Pradesh. In case of shortfall, the same shall be recovered from the sale of movable/immovable properties of the defendants.

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