UNION BANK OF INDIA vs Shri Nepal Singh on 15 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 18.03.2016 under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.3,16,60,068/- (Rupees Three Crores Sixteen Lacs Sixty Thousand Sixty Eight only) as on 18.03.2016 @12.75% interest per annum with monthly rests from 18.03.2016 till the date of realization plus @2% penal interest with costs. Further, the name of Sh.Pawan Kumar was substituted as authorized representative in place of erstwhile ARs for the applicant bank.

2. The brief facts of the case are that on the request of defendant no.1 as sole proprietor of M/s Bhumika Plaster vide their loan application and KYC documents dated 05.01.2012, the applicant bank sanctioned Cash Credit facility of Rs.2,50,00,000/- (Rupees Two Crores Fifty Lacs only) which was enhanced to Rs.2,90,00,000/- (Rupees Two Crores Ninety Lacs only) @13.35% interest per annum on 23.09.2013. the defendant no.2 to 4 stood as guarantors offered their personal guarantee and mortgaged their properties in favour of applicant bank. In case of default in repayment of interest or installments, the defendant agreed to pay @2% penal interest to the applicant bank.

3. That in order to avail the credit facility, the defendant no.1 submitted loan application dated 05.01.2012 with relevant documents and executed Letter of Proprietorship, Request for 50(

Overdraft /Cash Credit facility, Demand Promissory Note, Take Delivery Letter to Demand Promissory Note, Common Deed of Hypothecation of Movables/Assets/Debts, Letter of Undertaking / Declaration, General Power of Attorney for Book Debts & Supply Bills on 05.01.2012 and 05.10.2013 alongwith Guarantee Agreements from defendant no.2 to 4.

4. That in order to secure Cash Credit facility, the defendant No.2 to 4 created mortgage of their respective properties by executing Memorandum of Deposit of Title Deeds by depositing chain of documents in favour of applicant bank on 05.01.2012, 11.01.2012 & 15.06.2012 respectively and also executed Continuity Letter dated 05.10.2013 on account of enhancement of limit in favour of defendant no.1 by the applicant bank viz.: Residential building no.E-45-46A, out of Khasra No.15/3, Village Matiala, Block-E, Mansa Ram Park, Uttam Nagar, New Delhi owned by defendant no.2; Building bearing No.E-74, land measuring 100 sq.yds, out of Khasra No.15/8, Mansa Ram Park, Uttam Nagar, New Delhi owned by defendant no.3; Plot of land bearing no.88, measuring 200 sqa.yds, Village Hastsal, South Extension, Uttam Nagar, New Delhi owned by defendant no.4.

5. It has been submitted by the applicant bank that after availing the credit facility, the defendant no.1 miserably failed to maintain financial discipline in the account and not operated as per sanction terms of loan agreement and neglected to pay the interest in the account, stopped operations since 14.07.2015. The defendant no.1 had availed vehicle loan facility of Rs.20.00 lacs in the year 2012 against guarantee of S4 -- defendant no.2 which also became irregular due to non deposit of monthly installments and therefore both the account were classified on 27.09.2014 by the applicant bank as per RBI guidelines.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 read with Section 13(3) of SARFAESI Act dated 27.09.2014 was issued and duly served to the defendants to clear the outstanding dues but they neglected nor replied to the said notice nor complied with requisition made therein to repay the dues.

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 27.03.2018, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Pawan Kumar, authorized representative of the applicant bank who have proved the documents such as Power of Attorney, Letters of Proprietorship, Request for Overdraft Facility, Demand Promissory Notes, Taken Delivery Letters to DP Note, Common Deeds of Hypothecation, Guarantee Agreements, Letter of Undertakings/ Declarations, Memorandums of Deposit of Title Deeds, Letter for Enhancement of Limit, Credit Sanction Intimation, General Power of Attorney, Sale Deeds with chain of documents, Letters of Continuity, Affidavits, Wills, Receipts, Demand Notice u/s 13(2) read with Section 13(3), Delivery Book, Postal Receipts, Statement of Account and Accrued Sd-

Interest duly Certified under Bankers' Books Evidence Act, marked as Exh.AW-1/1 to Exh.AW-1/69.

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 to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.3,16,60,068/- (Rupees Three Crores Sixteen Lacs Sixty Thousand Sixty Eight only) as on 18.03.2016 @12.75% interest per annum with monthly rests from 18.03.2016 till the date of realization and costs, failing which the aforesaid amount shall be recovered from sale of mortgaged properties of defendant no.2 to 4 viz: Residential building no.E-45-46A, out of Khasra No.15/3, Village Matiala, Block-E, Mansa Ram Park, Uttam Nagar, New Delhi owned by defendant no.2; Building bearing No.E-74, land measuring 100 sq.yds, out of Khasra No.15/8, Mansa Ram Park, Uttam Nagar, New Delhi owned by defendant no.3;

Plot of land bearing no.88, measuring 200 sqa.yds, Village Hastsal, South Extension, Uttam Nagar, New Delhi owned by defendant no.4. In case of shortfall, the same shall be recovered from sale of movable and immovable properties of the defendants. (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 17.08.2026. (IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost. (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated 15.06.2026