UNION BANK OF INDIA vs M/S MAJAHAR JARIR HOUSE on 13 March 2026

Order

13.03.202 Office action with date and dated Signature of parties when necessary Order with Signature Counsel for the padies: Ms. Smruti Rekha Mishra, Ld. Advocate for the applica Bank. None for the defendants. I4./516 ot 2020 (arising out of o.A.tg21 of 2018) is allowed and disposed of. Final Order / Judgment is in separate sheet of 6 pages File be consigned to record room. Order be uploaded on the Tribunal,s website /-.....-..1-1 fr', (Arbind Madhav) Presiding Officer DRT-2, Kotkata

r.4.t516 of 2020 - DRT-2/Kot DEBTS RECOVERY TRIBUNAL .2, KOLKATA Jeevan Sudha Bldg. 07th Floor,42tC, J.L. Nehru Road, Kolkata _7OOO71 re Shri Arbind M hav P idin cer T.A. No.51 6 ot 2O2O (Arising out of O.A.1921 ot 2018) ln the matter of- Union Bank of India (erstwhile corporation Bank), a body corporate duly constituted under the Banking companies (Acquisition and rransfer of Undetaking) Act, 1970, having its Head office at 239, vidhan Bhawan Marg, Nariman point, Mumbai -400021, and carrying on business, inter-alia, having its numerous branches including one at Amtala Branch, N.D. Road, p.o.- Kanya Nagar, p.s.- Bishnupur, Dist.- south 24- Parganas, Pin - 743503. West Bengal. Applicant Bank -Versus- M/s Majahar Jarir House, proprietor: Sri Majahar sekh, having its principal place of business at Village - chak Banshberia, post office - Dongaria, police station - Nodakhali, District - South 24 parganas, pin - 74331g, West Bengal. sri Majahar sekh, Proprietor of M/s Majahar Jarir, having its residence at Village - chak Banshberia, Post office - Dongaria, police station - Nodakhali, District - South 24 Parganas, Pin -743318, West Bengal. sabina Bibi, having its residence at village - chak Banshberia, post office - Dongaria, Police station - Nodakhali, District - south 24 parganas, pin - 74331g, West Bengal. Defendants

Counsel for parties: For the Applicant Bank For the Defendants : Ms. Smruti Rekha Mishra : Ex-Pafte F L ORDER / JUDGMENT Delivered on 13.03.2026 Applicant (Union Bank of lndia), erstwhile Corporation Bank instituted the present Application being the original Apptication No.921 of 2018 filed in DRT-S; Kolkata on 09.11.2018 against three Defendants under section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.18,42,900.00' (Rupees eighteen lacs forty two thousand nine hundred) which includes unrealized interest and other charges as calculated upto 30.06.2018 together with interest pendenti lite and further interest from 01 .07.2018, till realization of the -ntire due in full.

T.4./516 of 2020 _ DRT_2/Kot subsequently, the instant case has been transferred to DRT-2, Korkata vide the Hon,ble chairperson DRAT, Korkata's direction vide retter No.4/6/DRAT/KorJ2018(pt.) dated 16.09.2019, such has been recorded vide Ld. Registrar, Korkata DffT-3,s order dated 13.11.2019 and the same has been renumbered as T.4./516 of 2o2o vide Ld. Registrar,s order dated 21.10.2020. 2' Corporation Bank has been merged / amalgamated into Union Bank of India vide Gazefte Notification dated March 04,2o2o in G.S.R. 154(E), issued by the Government of lndia published under Extraordinary partJl, Section 3, sub-section (i) in exercise of the power conferred in terms of Section 9 of the Banking companies (Acquisition and Transfer of undertaking) Act, 1970 (s of i970) and Section 9 of the Banking companies (Acquisition and rransfer of Undertaking) Act, 1 9go (40 of 19g0). ln view of the merger / amalgamation of corporation Bank into Union Bank of lndia, the applicant name in this case should be read / inserted as Union Bank of lndia instead of corporation Bank.

3. ln accordance with the Notice dated 30.07.2020 of this Tribunzl, Ld. Advocate for Union Bank of lndia has fited a petition being t.A./1512 ot2o22dated 10.11.2022praying for amendment of cause Tifle in view of amalgamation of corporation Bank with Union Bank of lndia vide G.O.l. Notification dated 04..03.2020; and in accordance with the. direction of the Tribunal necessary amendment in cause tifle has been carried out by Ld. Advocate of the applicant Bank on 24.01.2024, such has been recorded in Ld. Registra/s order dated 20.03.2024.

4. The brief facts of the case as set out by the applicant Bank in its original . Application, as under:

(i) The Defendant No.1 M/s Majahar Jarir House is the proprietorship business of Defendant No.2, sri Majahar Sekh and Defendant No.3, sabina Bibi is the guarantor. The defendant No.1 through its Proprietor, Sri Majahar sekh approached the applicant Bank for financial assistance vide an application dated 09.10.2015. At the request of defendant No.1, applicant Bank was pleased to grant / sanotion a Cash Credit facility to the limit of Rs.15,00,000/- (Rupees fifteen lacs) in favour of the defendants -No.1 & 2 vide sanction. lefter dated 17.10.2015. The defendants duly acknowledged and accepted the said sanction. copy of loan Application dated 09.1o.2ols and sanction letter dated 17.10.2015 are annexed and marked as Annexure 'A-1' &,A-2' respectively.

(ii) ln consideration of the aforesaid facility granted, the defendant executed and delivered the following loan documents all dated 17.10.201s in favour of applicant Bank:

(a) Request for Overdraft Facility;

(b) Letter of Proprietorship;

(c) Common Deed of Hypothecation;

(d) Demand Promissory Note for Rs.15,00,000/-; (e) Take Delivery Letter; (f) Letter of Undertaking / Declaration from the Borrowe(s). a

T.4.t516 ol 2020 - DRT-2/Kot copy of said documents are annexed and marked as Annexure "A-3", a-4", "A-s,, "A-6', .A-7" and A-8" respectively.

(iii) To secure the aforesaid cash credit facility of Rs.15.00 lacs granted to the defendant No.'l (proprietorship business of defendant No.2) visited the Bank's premises and equitable mortgage was dury been created in respect of immovabre properties, . morefully described in schedule 'x-1' &'x-2'at page 23 and para 3A at page g & g of the original application, by depositing two originar Gift Deeds (a) being No.300g for the year 2014, stand in favour of shabina Bibi, the defendant No.3 herein and (b) being No.2633 for the year 2013, stand in favour of sk. Majahar, the defendant No2 herein, registered before Additional District Sub-Registrar, ADSR Budge Budge, west Bengal. copy of the aforesaid two Deeds being No.3009 ot 2014 and No.2633 of 2013 are annexed and marked as Annexure'A-9'&'A-10'. The defendant No.1 (proprietorship business of . defendant No.2) confirmed the creation of equitable mortgage by deposit of aforesaid two Deeds being No.3009 ol 2014 and No.2633 of 2013 by executing two Memorandum of deposit of ritle Deeds daled 17.10.2015 in favour of applicant Bank, and the said defendant has executed the Acknowledgement of Debt / Security on dated 26.0s.2017 in' favour of applicant Bank. copies of aforesaid two Memorandum of deposit of riile Deeds daled 17.10.2015 and Acknowledgement of Debts dated 26.05.2017 are annexed and marked as Annexure 'A-11','A-12' & ,A-13,.

(iv) Applicant Bank got valued the mortgaged secured property through its empanelled valuer and the said valuer submitted its report of Deed No.2633 for the year of 20.13 to theapplicantBank. copyof saidvaluationreportforDeedNo.2633 of 2ol3isannexed and marked as Annexure 'A-14'.

5. Applicant Bank through the said branch had disbursed the loan amount to borrowe(s) Account. The Defendants / borrower(s) enjoyed and utilized the said credit facility by opening Account in Bank's Amtala Branch, p.O.- Kanya Nagar, p.S._. Bishnupur, Dist.- south 24-Parganas. However, the defendants failed and neglected to abide by the terms and conditions of the facility. The Defendants did not repay the outstanding Bank's dues and overdue interests in loan Account. since the defendants did not pay any aftention to regularize the Account inspite of ,.p""tJ requests made by applicant Bank, the Account became out of order and was classified as N.p.A. on 29.0'1.2018. Considering aforesaid default and violation of the terms and conditions of the credit facility, the applicant Bank was compelled to issue recall, demand and Notice . dated 20.10.2018 upon the defendants demanding to repay the outstanding Bank's dues, but the defendants has failed and neglected to comply with the said notice; copy of said notice dated 20.10.2018 is annexed and marked with Annexure 'A-15'. Certified copies of Statement of Account along with Certificate under Bankers' Books of Evidence Act, ' with interest calculation sheet, have been filed to show and prove the dues (Annexure 'A- 16'), together with interest pendenti lite and further interest from 01 .07.201 8, till

T.A.tS16 ot 2020 _ DRT_2/Kot realization of the entire due in full, has been prayed. Applicant Bank submitted that their claim in the Application is within limitation.

6. The notices / summons had sent to the Defendants No.1 , 2 & 3 by the Tribunar. rt is seen from the S/R on affidavit dated 15.05.2024 and its enclosures that service of Notices / summons upon the Defendants by postar service has been successfufly effected, such has been recorded vide Ld. Registrar,s orderdated 16.0r.2024. Despite service, the defendants did not appear nor fired the written statement; thus, ail the defendants were ordered to be procee ded ex-parte vide order dated 02.0g.2025. Applicant Bank has fired the English translation copy of Bengali Deeds by way of an Affidaviit dated 26.04.2022. Ld. Advocate of the applicant Bank has submifted argument on 02.Og.2025.

Applicant Bank has fired the evidence-on-affidavit affirmed by Shyamarendu sardar, Branch Manager of erstwhire Bank's Amtara Branch, N.D. Road, Amtara, p.o.- Kannyanagar, Dist.- south z4-parganas arong with the copy of originar documents executed by the Defendants. originar documents have been produced by appricant Bank; the same have been verified with copies of the documents annexed with o.A., and after verification the original documents have been returned to Sri Swarup Halder, Asstt. Manager of Bank's Amtara Branch, N.D. Road, p.o.- Kannyanagar, Dist.- south 24- Pargana on 25.03.2021, such has been recorded in Ld. Registrar-in-charge,s order dated 25.03.2021. The documents produced by applicant Bank are exhibited and annexed as Exhibit 'A-1 ' to 'A-16'. I have heard the Ld. Advocate ofthe applicant Bank and perused the records.

8. Evidence-on-affidavit, filed by applicant Bank, has remained unchallenged, un- rebutted and its veracity cannot be put to dispute. Applicant Bank has corroborated the averments made in the o.A. Applicant Bank has proved the sanction of cash credit facility to the limit of Rs.'15.00 lakhs vide sanction letter dated 17.10.201s. Applicant Bank has proved the creation of equitable mortgage of immovable properties; described in schedule 'x-1' & 'x-2' at page 23 and para 3A at page g & 9 of the original application.

9. on the point of limitation, Loan has been sanctioned on 11.10.2015; loan / security documents have been executed on 17.10.201s; original Application has been filed on

09. '11.2018. Further, the defendants / borrowe(s) executed and delivered the. Acknowledgement of Debt / Liability dated 26.0s.2017 in favour of applicant Bank acknowledging the outstanding balance in loan account. As such, the original Application appears to have been filed well within the period of limitation. {0. Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of accrued interest and other charges as calculated upto 30.06.2018) for a sum of Rs.18,42,900.00 (Rupees eighteen lacs forty two thousand nine hundred) as on 30.06.2018, which is the amount claimed by applicant Bank in the original Application, and the defendants No.1, 2 & 3 are, jointly and/or severally, liable to repay the said ' amount to the applicant Bank with pendente tite and future interest, till realization. I allow u ,.4./516 of 2o2o - DRT-2/Kor the claim as made by appricant Bank in the originar Apprication. Appricant Bank has prayed further interest pende nti lite and future from 01 .ol .201g @ 1o.7so/o per annum, till realization of the entire due in full, while in Demand promissory Note dated 1l.1o.zo1s the same rate of interest, i.e. @ 10.750/o per annum, has been mentioned. Therefore, the pendente /ife & future rate of interest @ 1o.lso/o per annum, with quarterly rests, from . 01.07.2018, is allowed.

11. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved its claim made in the_o.A. The original application being T.4./516 of 2020 (arising out ot o.A.1921 of 201g) deserves to be allowed ; hence allowed.

12. ln view of the above, I pass the following order:_ o RDER (D T.A./516 ot 2020 (arising out of o.A.1921 of 2o1B), fited by applicant Bank, is aflowed and debt is determined with cost against the Defendants No.1, 2 & 3. lt is hereby ordered that the Defendants No.1, 2 & 3 are hereby directed to pay, joinfly and / or severally the totai debt amount of Rs.18,42,900.00 (Rupees eighteen lacs forty two thousand nine hundred) due and payable, inclusive of interest and other charges as calculated upto 30.06.2018; and interest for the period pendente lite and future rate @ 10.7i% per annum, with quarterly rests from 01.07.2010, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan accounts or amount, if any, recovered by the applicant Bank after filing of the original Application, the same may be. taken into account while arriving at the exact amount of duevdebt payable by the Defendants. Accordingly, the pendente lite and future interest shall be calculated on the reduced amount.

(iii) Defendants are debarred from transferring, alienating, encumbering or disposing . of the mortgaged immovable properties, described in Schedule ,X-1' &,X-2'at page 23 and para 34 at page 8 & 9 of the original application: Mortqaqed lmmovable Properties: "ALL THAT land measuing total Touzi No.353, J.L.No.8, R.S. No.33, Buz Buz poura Sabha Mouza, Mouza -12 No., Dharamatal Road By lane, L.R. No.l120, RS-l345, Hat LR No.1713, Dag - Doba, total land measuing 1 Satak out of 14 safalq R.S No.1358,2 Satak out of 28 satak, R.S. No.7363 No. Dag-LR No.1733, 0.50 Satak out of 14 Satak, total measuino .50 Satak Lan registercd and recorded vide Book-\, CD Volume no.-9, pages-l553 to 1562, Being No.3009 for the year 2014, registered in favour of Shabina Bibi before Additional Distict Sub Registrar of ADSR Budge Budge, West Bengal." - and "ALL THAT land measuing total land-l1 Satak, District-24 Parganas South, Police Station- Nodakhali, Registry Office- Buz Buz, Balia No.-389 under Touzi, J.L No.-51 , Gram Panchayat-Satgachia, Mouza- Chak Bans Beia, Jami Jama-L.R No.84, Khatian Bhukto, R.S. No.-12 dag, Hal L.R. No.-13 Sali - 62 Satak, registered and recoded vide Book-|, CD Volume No-8, Pages- 2913 to 2921, Being No.2633 for the year 2073 and stand in favour of Sk, Majahar."

1. A.1516 o1 2020 - DRT-ZKoI . The Defendants are arso debarred from transferring, arienating, encumbering or disposing of any other property(s) either movable or immovable and assets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants No.1, 2&3.

(iv) The defendants No. t, 2 & 3 are given a time of sixty days from the date of this Final order / Judgment for repayment of the above mentioned dues, so intimated to them. ln case the Defendants fail to pay the dues within the above mentioned time, the applicant Bank is entitled to recover its dues by sale of secured properties, as aforesaid. Applicant Bank is also entitled to proceed against personal properties of the Defendants No.1,2 & 3 both moveable and immoveable and also proceed against the Defendants No.2 & 3 personally to recover the dues, in accordance with law.

(v) Let the certificate of Recovery be drawn up by Ld. Registrar forthwith in terms of Final order / Judgment for issuance of the same against the Defendants No.1, 2 & 3 in favour of applicant Bank under section 19(22) ot lhe Recovery ot oeuts and Bankruptcy Act, 1993 (amended from time to time) and put up the same for signature for issuance.

(vi) Ld. Recovery officer shall realize the amoqnt as per the Recovery certificate from the Defendants No.1, 2 & 3, in accordance with law.

(vii) Ld. Registrar of this Tribunal is directed to place Recovery Certificate in terms of this Final Order / Judgment under section 19(22) ofthe Act of 1993. Accordingly, the originar Apprication, being T.AJ516 of 2o2o (arising out of O.A.l921of 2018) is allowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the 13th day of March, 2026. copy of the Final order / Judgment be uproaded in the Tribunars website. tj,7' 2-4 (Arbind Madhav) Presiding Officer DRT-2, Kolkata kb