UNION BANK OF INDIA vs M/S FRESHPAY IT SOLUTIONS PVT LTD on 30 January 2026

FINAL ORDER

This original application has been filed by the applicant b nk on 08.02.2021 before DRT-III, Delhi and then transferred t DRT-1 under Section 19 of Recovery of Debts and B nkruptcy Act, 1993 against the defendants for recovery of P

Rs.5,75,36,696/- (Rupees Five Crores Seventy Five Lacs Thirty ix Thousand Six Hundred Ninety Six only) as on 19.06.2020 long with pendentelite and future interest @16.85% from 0.06.2020 till the date of realization along with costs.

2. The brief facts of the case are that the applicant bank ntered into a contract dated 11.07.2012 with defendant no.2 tp execute the work of setting up automotive bill payment collection machines at different locations of Delhi Jal Board C_ffice for facilitating DJB consumers in bill payment through Cheque and Cash modes. The applicant bank in turn entered into a contract dated 11.07.2012 with defendant no.1 who is gistered as Other Service Provider (OSP) acting as 'Payment cilitator'. It was agreed that the Freshpay will make arrangements to deposit the cash in the e-Corporation bank's account for any number of times in a day as per the exigencies at Kiosks without any charge.

3. In order to function, defendants executed Contracts d ted 11.07.2012, 24.01.2017, 21.08.2018, 23.08.2018 b tween Applicant Bank and defendant no.1 and 2. 4 . It has further been submitted that defendant no.2 in eeting dated 16.03.2020 pointed out pendency in conciliation of collection through &Kiosk, through various e- ail communications and Minutes of dated 27.03.2020 pointed t that an amount of Rs.14.21 Crores was found not deposited the designated accounts of Delhi Jal Board from 23.03.2019 d applicant bank pointed out that an amount of Rs.15.21 ores were credited between 23.03.2019 to 31.03.2019. rther, as per discussion on 17.04.2020, after reconciliation the collection through E-Kiosks against the payment made y the defendant and the applicant bank difference of s.14,41,92,105/- arrived as on 31.03.2020. It has further been submitted that the applicant bank ade several attempts to persuade the defendant no.1 to ake good the difference who replied that an amount of s.5.69 Cr is pending by way of remuneration from defendant 0.2 and Rs.1.90 Cr is pending from defendant no.2 by way of muneration in respect of spot billing. The defendant no.1 bmitted payment schedule on 19.06.2020 promising to clear t e dues of Rs.6.88 crore in 5 months' time and applicant bank i formed defendant no.2 on 18.06.2020 but defendant no.1 f iled to adhere the payment schedule. It has also been submitted that the applicant bank had c osed the FDR and credited the proceeds of Rs.88,41,407/- to c•Ilection account of defendant no.2. Hence, the total amount a•justed towards the collection difference is Rs.1,12,76,877/- a•ainst the total of Rs.6,88,13,573/-. Further, the applicant nk issued legal demand notice dated 23.11.2020 but d fendants neglected to clear the dues and hence the applicant

b. nk has approached this Tribunal for recovery of their dues.

7. Notices of this O.A. were issued to the defendants and d spite of proper service, the defendants have chosen to assent from the proceedings. As per order dated 14.09.2022, t e defendants have been proceeded ex-parte as not appeared b fore the Tribunal. I.A. No.936/2024 was filed by M/s Aurrum E Payments Ltd. for making proper party in the application which was smissed in non-prosecution on 09.07.2025.

The defendant no.2 filed IA No.1223/2024 for setting side ex-parte order dated 14.09.2022 which was dismissed ide order dated 09.07.2025 in view of the fact that defendant o.2 was served properly and were aware of the present roceedings and received certified copy of order dated 6.06.2023.

0. In order to prove its case, the applicant bank has filed its vidence by way of affidavit of Sh.Lekh Raj Sidhu, authorized representative of the applicant bank, who has proved the ocuments as Gazette notification, Power of Attorney, various 1.1 ontracts, Letters, Demand Notice alongwith Postal Receipts arked as Ex.AW-1/1 to Ex.AW-1/12 (Colly).

1. The applicant bank has fully corroborated the averments ade in the O.A. Even otherwise the whole case of the pplicant bank is based on the documents and the same have een duly approved. 1 2. The case filed by the applicant bank gone unrebutted and t ere is no question of disbelieving the case of the applicant ank and the applicant bank has proved its case beyond r asonable doubts.

13. As per the provision of Section 19(20) of the Recovery of ebts Due to Banks and Financial Institution Act, 1993 which analogous to Section 34 of CPC, on filing of the suit/claim, t e contract between the parties comes to an end and the ourt/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been I. id down by the Hon'ble Apex Court in the case of Central Bank India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in ates of interest globally and domestically, I am of the opinion hat interest of justice will be served if the interest at the rate f 14% p.a. is awarded. l

4. In the light of the above discussions, the Original pplication deserves to be allowed. I, allow this OA and direct the defendants to pay to the pplicant bank, jointly or severally, within a period of 30 days, sum of Rs.5,75,36,696/- (Rupees Five Crores Seventy Five acs Thirty Six Thousand Six Hundred Ninety Six only) together ith pendentelite and future interest @14.00% per annum f om 20.06.2020 till the date of realization along with costs; failing which the aforesaid amount shall be recovered from the ale of personal assets of the defendants. I) The recovery certificate be issued forthwith and be sent the Recovery Officer, Debt Recovery Tribunal-I, Delhi. (i II) Parties are directed to appear before the Recovery fficer, DRT I, Delhi on 01.04.2026. V) Copies of final order as well as Recovery Certificate be nt to all concerned free of cost. 5C/

(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI ictated and pronounced in open court) ated: 30.01.2026

ORDER