UNION BANK OF INDIA vs M/S M K LININGS AND ORS on 16 May 2026

FINAL ORDER

This original application has been filed by the applicant bank on 22.09.2022 filed before DRT-III, Delhi & 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.22,39,131/- (Rupees Twenty Two Lacs Thirty Nine Thousand One Hundred Thirty One only) as on 5d-

30.04.2022 along with pendentelite and future interest @9.50% for UGECL account and @11.45% per annum for Cash Credit account till the date of realization with costs.

2. The brief facts of the case are that the defendant no.1, proprietorship concern was doing regular business with applicant bank since year 2005 submitted loan application dated 22.06.2020 with KYC documents and the applicant bank sanctioned WCTL under UGECL of Rs.3.50 lacs (Rupees Three Lacs Fifty Thousand only) on 22.06.2020 @7.50% interest per annum to meet liquidity crunch to be repaid in 36 EMIs of Rs.9,723/- against hypothecation of goods & book debts and collateral security covered under ECLGS scheme. Further, on the request of defendant no.1, the applicant bank sanctioned Cash Credit facility of Rs.18,90,000/- (Rupees Eighteen Lacs Ninety Thousand only) on 18.03.2021 @EBLR+1.75% rate of interest on 18.03.2021 for trading of inter-lining cloths. The defendant no.2 stood as guarantor for the credit facilities availed by the defendant no.1 from the applicant bank.

3. That in order to avail the credit facilities, the defendants executed Term Loan Agreement, Composite Hypothecation Deed, Letters of Guarantee by defendant no.2, Demand Promissory Note, Hypothecation of Goods Agreement etc. on 22.06.2020 and 22.03.2021 in favour of applicant bank.

4. In order to secure the loan facilities, the defendant No.2 created equitable mortgage of Flat No. F-2, Plot No.B-195, Block B, Shalimar Garden Extn-II„ Sahibabad, Ghaziabad, UP admeasuring 400 sq.ft. by depositing sale deed dated 29.01.2005 towards the applicant bank on 05.02.2005.

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to comply with the terms and conditions despite of several requests. The defendants failed to pay the interest and installments as per terms of sanction and neglected to clear the outstanding dues in time with the applicant bank. The applicant bank classified the account as NPA on 30.04.2022 and issued recall notice dated 15.09.2022 but defendants neglected to clear the dues, hence the applicant bank has approached this tribunal for recovery of its dues.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 08.07.2022 issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank.

7. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 09.09.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor filed written statement, evidence and affidavit of assets.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Rajeev Ranjan, authorized representative of the applicant bank who has proved the documents such as Authority Letter of authorized officer, Gazette Notification, Loan Applications with KYC documents, Sanction Letters, Term Loan Agreement, Composite Hypothecation Deeds, Letters of Guarantee, Demand Promissory Note, Hypothecation of Goods Agreement, Letter of Deposit of Title Deed, Copy of Title Deed, Notice u/s 13(2), 5d-

Legal Notice, Recall Notice with Postal Receipts, Certified Statement of Account with Certificate u/s 2A(b) of Bankers Books Evidence Act and Section 65-B(2) of Indian Evidence Act, marked as Ex.AW-1/1 to Ex.AW-1/19.

9. 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.

10. 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.

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

ORDER

I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30 days, a sum of Rs.22,391131/- (Rupees Twenty Two Lacs Thirty Nine Thousand One Hundred Thirty One only) as on 30.04.2022 with pendentelite and future interest @11.45% per annum with monthly rests from 01.05.2022 with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debt and mortgaged property i.e. Flat No. F-2, Plot No.B-195, Block B, Shalimar Garden Extn-II, Sahibabad, Ghaziabad, UP. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to Recovery Officer, Debt Recovery Tribunal-I, Delhi. (III) Parties are directed to appear before the Recovery Officer, DRT-I, Delhi on 15.07.2026. (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: 16.05.2026