UNION BANK OF INDIA vs M/S S.S. ENTERPRISES & ORS on 8 May 2026

FINAL ORDER

This original application has been filed by the applicant on 26.10.2021 before DRT-III Delhi and then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.29,95,330/- (Rupees Twenty Nine Lacs Ninety Five Thousand Three Hundred Thirty only) as on 25.08.2021 together with pendentelite and future interest @8.75% per annum for Cash Credit and @7.50% for Term Loan facility with monthly rest along with @2% penal interest from 25.08.2021 along with costs.

2. The brief facts of the case are that on the request of defendant no.1 through its proprietor defendant no.2 vide their loan application, the applicant bank sanctioned Cash Credit facility of Rs.24,95,000/- (Rs. Twenty Four Lacs Ninety Five Thousand Only) on 17.01.2018 @10.20% floating interest to meet working capital requirements for trading in wholesale and retail sale of sugar. The defendant no.3 stood as guarantor for the credit facility sanctioned in favour of defendant no.1 and 2 by the applicant bank. In addition, the applicant bank sanctioned GECL loan facility of Rs.4.98 lacs (Rupees Four lacs Ninety Eight Thousand only) on 30.07.2020 @7.50% interest to be repaid in 36 EMIs to meet Covid liquidity mismatch. Both the facilities were sanctioned against hypothecation of stock and LIC policy.

3. In order to avail the aforesaid credit facilities, the defendants submitted request for overdraft facilities and executed Sanction Letters, Proprietorship Letter dated 29.03.2016 and Take Delivery Letter to DPN, Demand 5d

Promissory Note, Common deed of Hypothecation, Guarantee Agreement and Third Party letter of assignment of Life Insurance Policies of LIC on 17.01.2018. The defendants further executed Undertaking Letter, Demand Promissory Note, Letter of Continuity, Term Loan Agreement, Interest Agreement, Letter of Undertaking, Letter of Continuity and Letter of Declaration on 30.07.2020 in favour of applicant bank.

4. It has been submitted by the applicant that after availing both the loan facilities, the defendants failed to comply with the terms and conditions and despite of several requests and reminders, the defendants have failed to regularize the loan account with applicant Bank. Ultimately, the Applicant Bank declared the account as NPA on 30.06.2021 as per RBI guidelines and issued loan recall notice on 14.12.2020 & 03.05.2021 calling upon the defendants to clear the entire dues to the applicant bank but the defendants did not clear the dues.

5. Notices of this O.A. were issued to the defendants and despite proper service including publication in newspaper, the defendants have chosen to absent from the proceedings. As per order dated 09.12.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Saurabh Pathak, authorized representative of the applicant who has proved the documents as Power of Attorney, Sanction Letters with Credit Information, Asset & Liability Form, Request for Overdraft Facilities, Take Delivery Letter to DPN, Demand Promissory Notes, Common Deeds of Hypothecation, Guarantee Agreement, Proprietorship Scl -

Letter, Third Party Letter of Assignment of LIC Policies, Undertaking Letters, Letters of Continuity, Letters of Declaration, Term Loan Agreement, Interest Agreement, Letter of Undertaking, Loan Recall Notice, Certified Statement of Account under Banker's Books Evidence Act.

7. 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.

8. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

9. In the light of the above discussions, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank, within 30 days, jointly or severally, a sum of Rs.29,95,330/- (Rupees Twenty Nine Lacs Ninety Five Thousand Three Hundred Thirty only) as on 25.08.2021 along with pendentelite and future interest @10.75% per annum with costs from 25.08.2021 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks / goods etc. and LIC policies assigned in favour of applicant bank. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants. sd-

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi. (III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 07.07.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 08.05.2026