The Debt Recovery Tribunal allowed UCO Bank to recover Rs.38,32,837.95 with interest from a loan defaulter. The bank proved its case despite ex parte proceedings, and a recovery certificate and directions for sale of mortgaged property were issued.
Recovery of Rs.38,32,837.95 with interest allowed; recovery certificate issued; sale of mortgaged property directed.
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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH
BEFORE: A S NARANG, PRESIDING OFFICER
TA No: 252/2023
Date of Institution: 31.10.2020 Date of Decision: 04.07.2026
UCO Bank, B/o Budshah Chowk, Srinagar.
…Applicant
Vs.
…Defendants
Advocates
Mr. Nonish Kumar, Counsel for the Applicant Bank. Defendants – ex parte.
TA for the Recovery of Rs.38,32,837.95/- with interest @10.20% per annum with monthly rests from 31.10.2020.
ORDER
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used for manufacturing of juices and other items lying in the factory premises, and office etc. Defendant No.2 also mortgaged his land measuring four Kanals having a factory shed constructed thereon falling under Khasra No.1076min, Khewat No.118 and Khata No.618min situated at Mouza Zakura Tehsil Srinagar North and District Srinagar (fully detailed in para No.3 of the plaint). Vide sanction bearing No. JZO/CAD/2014-15/3807 dated 31.03.2015.
i. Cash Credit limit of Rs.25.00 lacs was reduced to Rs.12.50 lacs.
ii. Working Capital Term Loan facility of Rs.25.00 lacs was approved.
Further on 18.08.2015, at the request of defendant No.1, through defendant Nos.2 and 3, bank had restructured / enhanced Cash Credit limit facility of Rs.12.50 lacs and Working Capital Term Loan of Rs.25.00 lacs (Annexure No.2). To secure the same, defendant had hypothecated all stocks of apple juices, machineries used for manufacturing of juices and other items lying in the factory premises, and office etc., and mortgaged land measuring four Kanals having a factory shed constructed thereon falling under Khasra No.1076min, Khewat No.118 and Khata No.318min situated at Mouza Zakura Tehsil Srinagar North and District Srinagar (fully detailed in para No.3 of the plaint). The Cash Credit facility was chargeable to interest @12.20% per annum with monthly rests. The Working Capital Term Loan was chargeable to interest @11.20% per annum with monthly rests. On 30.09.2020, a sum of Rs.38,32,837.95/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this suit.
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put in appearance. Vide order dated 28.04.2025, they were proceeded ex parte .
| 4. In order to prove its case, the Bank has placed on record the affidavit of Mr. Furqan Shafi Kar, Sr Manager along with the loan and original security documents. |
|---|
| 5. I have perused the evidence on the record. I am of the considered |
| view that the Bank has proved its case that it had advanced the above said facilities and on 30.09.2020 a sum of Rs.38,32,837.95/- was due. |
| 6. Accordingly, the application of the bank for the recovery of |
| Rs.38,32,837.95/- (Rupees Thirty-Eight Lacs Thirty-Two Thousand Eight |
| Hundred Thirty-Seven and Paise Ninety-Five Only) with interest @10.20% per annum with monthly rests from 31.10.2020, till the date of payment is |
| hereby allowed with costs. Bank can recover its dues by the sale of |
| hypothecated and mortgaged property fully detailed in para-No.3 of the plaint as well as from the personal movable and immovable property(ies) of the defendant. 7. Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. |
| 9. Parties are directed to appear before Recovery Officer on |
| 04.08.2026,who is directed to distribute the sale proceeds of the mortgaged property as per the provisions of Section 19(20-AB) of the Act. |
| 10. A Copy of this order along with Recovery Certificate be sent to the |
| Recovery Officer as well as the parties. |
| Pronounced in the open court. (A S Narang) Dated: 04.07.2026 Presiding Officer DRT-1, Chandigarh HARSH |
1 issue framed by the court
Whether the applicant bank is entitled to recovery of due amount with interest.
1 provisions across 1 enactments
UCO Bank
M/s Chowdhary Brothers Co.
Chowdhary Mohammad Ishaq Khan
Chowdhary Mohammad Shahid Khan
A S Narang
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
