UCO BANK vs M/S CHOWDHARY BROTHERS CO. on 4 July 2026

ORDER

1. On 31.10.2020, UCO Bank filed the suit for the recovery of Rs.38,32,837.95/- with interest against M/s Chowdhary Brothers Co. and others (defendants) in the Court of Additional District Judge, (Bank Cases), Srinagar. However, vide order dated 22.11.2022, this suit was transferred by the Court of Additional District Judge, (Bank Cases), Srinagar, to DRT-1, Chandigarh.

2. Bank’s case is that it had granted a Cash Credit limit of Rs.25.00 lacs, Working Capital Term Loan facility of Rs.3.81 lacs, another Working Capital Term Loan facility of Rs.1.35 lacs to defendant No.1, a partnership firm comprising defendant Nos.2 and 3 for business purpose. To secure the same, Defendants had hypothecated all stocks of apple juices, machineries 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.

3. On 04.05.2023, summonses were sent to the defendants by registered post, which were duly served. However, the defendants did not 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