UNION BANK OF INDIA vs M/S MONDAL NURSERY on 20 March 2026

Order

20. o3.2026 Office action with date and dated Signature of parties when necessary Order with Signature Counsel for the parties: Ms. Smruti Rekha Mishra, Ld. Advocate for the applicant Bank. None for the defendants. T.A.1523 of 2020 (arising out of O.A./835 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. (Arbind Madhav) Presiding Ofiicer DRT-2, Kolkata

T.A.t523 ot 2020 - ORT-2IKo! DEBTS RECOVERY TRIBUNAL .2, KOLKATA Jeevan Sudha Bldg. 07th Floor,42lC, J.L. Nehru Road, Kolkata -ZOOOll Before Shri Arbind Madhav, Presidinq Officer T.A. No. 523 ot 202O (arising out of O.A./835 of 2018) ln the matter of - Union Bank of lndia (erstwhile corporation Bank), a body corporate duly constituted under the Banking companies (Acquisition and rransfer of Undertaking) Act, 1970, having , its Head Office at 239, Mdhan 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 Mondal Nursery, Proprietor Smt. Tina Mondal, having its principal place of . business at Vill.- Barkalikapur, P.O. - Bakhrahat, P.S.- Bishnupur, Dist.- South 24- Parganas, Pin -743377, West Bengal. SmL Tina Mondal, Proprietor of M/s Mondal Nursery, having its residence at Vill.- Barkalikapur, P.O. - Bakhrahat, P.S.- Bishnupur, Dist.- South 24-parganas, pin - , 743377, West Bengal. Sri Tridip Mondal, having its residence at Vill.- Barkalikapur, Pin - Bakhrahat, p.S.- Nodakhali , Dist.- South 24-Parganas, Pin-743377, West Bengal. Defendants

Counsel for parties: For the Applicant Bank For the Defendants : Ms. Smruti Rekha Mishra : Ex-Pade

FINAL ORDER

'

JUDGMENT

Delivered on 20.03.2026 Applicant (Union Bank of lndia), erstwhile Corporation Bank instituted the present Application being the Original Application No.835 of 2018 filed in DRT-3, Kolkata on 15.10.2018 against three Defendants under Section 19(1) of the Rdcovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.17,03,292.50 (Rupees seventeen lacs three thousand two hundred ninety two and paise fifty) includes unrealized interest and other charges as calculated upto 24.04.2018 together with interest pendenti lite and further interest trom 25.04.2018, till realization of the entire due in full. Subsequently, the instant case has been transferred to DRT-2, Kolkata vide the Hon'ble Chairperson DRAT, Kolkata's direction vide letter I{o.4/6/DRAT/KOL/2018(pt.) dated

T.A./523 of 2020 - DRT-2/Kol 16.09.2019, such has been recorded vide Ld. Registrar, Kolkata DRT-3's order dated 11.10.2019 and the same has been renumbered as T.A./523 ot2o2o vide Ld. Registrar,s order dated 21.10.2020.

2. corporation Bank has been merged / amalgamated into Union Bank of lndia vide ' Gazette Notification dated March 04,2020 in G.s.R. 154(E), issued by the Government of lndia published under Extraordinary part-ll, section 3, sub-section (i) in exercise of the power conferred in terms of Section g of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) and section 9 of the Banking companies (Acquisition and rransfer of Undertaking) Act, 1 980 (40 of 1 980). 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 accordanee with the Notice dated go.ol.2o2o of this Tribunal, Ld. Advocate for Union Bank of lndia has filed a Petition being l.A.z57 of 2022 along with put-up l.A.z56 of 2t022dated 13.05.2022prayingforamendmentof causeTifleinviewof 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 10.07 .2024, such has been recorded in Ld. Registrar's order dated 10.07.2024.

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

(i) The defendant No.2. Smt. Tina Mondal being the proprietor of M/s Mondat Nursery, . the defendant No.1 approached the applicant Bank for financial assistance in the nature of cash credit facility vide Application dated 15.02.2012. At the request of defendant No.1, applicant Bank was pleased to grant / sanction an Agricultural Cash Credit facility to the limit of Rs.10,00,000/- (Rupees ten lacs) in favour of the defendants No.1 & 2, vide ' sanction letter dated 21.02.2012 on certain terms and conditions as contained therein. Copy of loan Application dated 15.02.2012 sanction letter dated 21.02.2012 are annexed and marked as Annexure'A-1' &'A-2' respectively.

(ii) ln order to avail the aforesaid credit facility of Rs.10.00 lakhs, the defendant No.2 being the proprietor of defendant No.1 executed and delivered the following loan / security documents all dated 21 .02.2012 in favour of applicant bank:

(a) Lefter of Proprietorship;

(b) Demand Promissory Note for Rs.10,00,000/-;

(c) Take Delivery Letterfor Rs.10.00 lacs; (d) Common Deed of Hypothecation; (e) Agreement for covering Hypothecated Crop; (f) Letter of Undertaking / Declaration from the Borrower(s). Copies of said documents are annexed and marked as Annexure 'A-3' to 'A-8' respectively,

T.A./523 of 2020 - DRT-2/Ko|

(iii) ln consideration of of the applicant having agreed to grant the aforesaid limit of Rs.10.00 lakhs to the defendants No.1 & 2, the defendant No.3 exec-uted and delivered Guarantee Agreement dated 21.02.2012 duly guaranteed due repayment of all sums that would become due and payable by defendant No.1, proprietorship business of defendant No.2 and declared that the said guarantee would be a continuing Guarantee. copy of the , aforesaid Guarantee Agreement dated 21.02.2012 is annexed and marked as Annexure 'A-9'.

(iv) To secure the aforesaid credit facility of Rs.10.00 lacs granted to the defendant No.:|, the defendant No.2 was duly been created equitable mortgage in respect of ' immovable property(s), morefully described in Schedule ,X-1, &,X-2'at page 26 and para 3A at page 8 to 10 of the original application, by depositing two sale Deeds (a) being No.1739 forthe year2010 and (b) being No.5266 forthe year2010, stand in favourofsri Tridip Mondal, the defendant No.3 herein. copy of said aforesaid two Deeds being No.1739 and No.5266 for the year 2010 are annexed and marked as Annexure'A-10' & A-1 1'. The defendant No.2, Tina Mondal has confifmed the creation of equitable rnortgage by deposit of aforesaid Deeds vide a Memorandum of deposit of rifle Deeds dated ' 21.02.2012 in favour of applicant Bank. copy of said Memorandum of deposit of rifle Deeds dated 21.02.2012 is annexed and marked as Annexure'A-12'.

(v) ln acknowledgement of the aforesaid credit limit of Rs.10.00 lakhs in favour of . defendant No.1 (proprietorship business of defendant No.2), the defendants / borrower(s) executed and delivered the Acknowledgement of Debt / Liability dated 16.01.2015 and 22.12.2017 in favour of the applicant Bank acknowledging the outstanding balance in loan account. Copy of said Acknowledgement of Debt / Liability OateO tO.Ot.Z015 and 22.12.2017 are annexed and marked as Annexure'A-13' & 'A-14' respectively.

(vi) Applicant Bank got valued the mortgaged secured property(s) through its empanelled valuer and the said valuer has submitted its Valuation Report to the applicant , Bank. Copy of valuation report dated 06.03.2017 is annexed and marked as Annexure 'A- 15'.

5. Applicant Bank through the said branch had disbursed the loan amount to borrower(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 repeated requests made by applicant Bank, theAccount became out of order and was classified as N.P.A. on 01.03.2017. Considering aforesaiddefaultandviolationofthetermsandconditionsofthecreditfacility,theapplicant' Bank was compelled to issue recall I demand Notice dated 04.102018 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 demand notice dated

r.4.1523 ot 20zO - ORT-2/Ko| . u.10.2018 is annexed and marked with Annexure 'A-16'. 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-17,), and together with interest pendenti lite and further interest from 25.04.2018, till 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 & J by the Tribunal. lt is seen from the S/R on affidavit dated 21.12.2024 and its enclosures that service of Notices / summons upon the Defendants by postal service has been successfully effected, such has been recorded vide Ld. Registrar's ordeidated 1g.og.zo2s. Despite service, the . defendants did not appear nor filed the written statement; thus, all the defendants were ordered to be proceeded ex-paile vide order dated 05.01.2026. Applicant Bank has filed the English translation copy of Bengali Deeds by way of an application dated 30.01.2023. Applicant Bank has filed the written notes of argument on dated 05.01.2026 thereby stated . the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank has submitted argument on23.02.2026.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by S$ramalendu Sardar, Branch Manager of erstwhile Bank's Amtala Branch, N.D. Road, Amtala, p.O.- Kannyanagar, Dist.- South 24-Parganas along with the copy of original documents executed by the Defendants. Original documents have been produced by applicant 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 Sandip Bakshi, Manager of Bank's Amtala Branch, N.D. Road, Dist.- South 24-Pargana on 27 .04.2022, subh has been recorded in Ld. Registrar's order dated 27 .04.2022. The documents produced by applicant Bank are exhibited and annexed as Exhibit'A-1'to'A-17'. 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 hds corroborated the averments made in the O.A. Applicant Bank has proved the sanction of Agricultural cash credit facility to the limit of Rs.'l0.00 lakhs vide sanction letter dated 21 .02.2012. Applicant Bank has proved the creation of equitable mortgage of immovable property(s); described . in Schedule 'X-1 ' & 'X-2' at page 26 and para 3A at page 8 to 10 of the original application.

9. On the point of limitation, Loan has been sanctioned on 2'l.02.2012; loan / security documents have been executed on21.02.2012; original Application has been filed on

15. '10.2018. Further, the defendants / borrower(s) executed and delivered the. Acknowledgement of Debt / Liability dated'16.01.2015 and 22.12.2017 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 ol limitation.

f .AJ523 ot 2O2O - DR7-2lKol

10. Applicant Bank has stated that the outstanding balance in cash credit Account (inclusive of accrued interest and other charges as calculate d uplo 24.04.201g) for a sum of Rs.17,03,292.50 (Rupees seventeen lacs three thousand two hundred ninety two and paise fifty) as on 24.04.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1, 2 & 3 are, joinfly and/or severally, liable to . repay the said amount to the applicant Bank with pendente lite and future interest, till realization. I allow the ctaim as made by applicant Bank in the original Application. Applicant Bank has prayed further interest pendenti lite and future from 2s.o4.2o1}till . realization of the entire due in full, while in Demand promissory Note dated 21.02.2012 the rate of interest @ 12.25% per annum, has been mentioned. Therefore, the pendente lfte & future rate of interest @ 12.25o/o per annum, with quarterly rests, from 2i.04.201g, is allowed.

11. The matter also falls within the tenitorial as well as pecuniary jurisdiction of this Tribunal. Applicant Bank has proved to claim made in the O.A./T.A. The original application being T.A./523 of 2o2o (arising out of o.A./835 of 2018) deserves to be altowed; hence . allowed.

12. ln view of the above, I pass the following order :-

ORDER

0 T.A./523 ot2020 (arising out of O.A./835 of 2018), filed by applicant Bank, is allowed 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, jointly and / or severally the total debt amount of Rs.17,03,292.50 (Rupees seventeen lacs th-ree thousand two hundred ninety two and paise fifty) due and payable, inclusive of interest and other charges as calculated upto 24.04.2018; and interest for the period pendente lite and future rate @ 12.25% per annum, with quarterly rests from 25.(i4.2}18,till realization of the eniire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan account or amount, if any, recovered by applicant Bank after filing of the Original Application, the same may be taken into account while aniving at the exact amount of dues/debt payable by the Defendants. . Accordingfy, the pendente lite and future interest shall be calculated on the reduced amount.

(iii) The defendants No.1, 2 & 3 are debarred from transferring, alielating, encumbering or disposing of the mortgaged immovable properties; morefully described in Schedule 'X- 1' &'X-2'at page 26 and para 3A at page 8 to 10 of the original application, as under- "All That land measuing total land measwing 8 Safak out of 16 Satak land, J.L. No.49, Touzi No.392, under the Patheberia, Jai Chandipur Gnm Pannchayat, Mouza

- Bar Kalikapur, Dlsf.- South 24-Parganas, L.R. No.922, Khatian, registered and recorded vide Book -1, Volume No.6, Pages- 1105 to 1116, Being No.1739 forthe year 2010 and stand in favour of Si Tidip Mondal; and

1.4.1523 ot 2O2O - DRT-ZKo| ' The Defendants is also debarred from transferring, alienating, encumbering or disposing of any other property(s) either movable or immovable and Essets belonging to them till the aforesaid adjudicated debt amount are recovered from the Defendants No.1, 2 &3.

(iv) The defendants No.1, 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 fgnhwith 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) of the Recovery of Debts 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 amount 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. Accordingty, the Original Application, being T.AJ523 ot 2O2O (arising out of O.AJ835 ol 20181is allowed and stands disposed of. This order is dictated and corrected by the undersigned and pronounced on this the 20h day of March, 2026. Copy of the Final Order / Judgment be uploaded in the Tribunal's Website. All That land measuing total land measuing I Satak out of 16 Satak, Touzi No.392, J.L. No.49, Dag No.522, L.R. No.229, under the Patherbeia, Jai Chandipur Gram Pannchayat, Mouza - Bar Kalikapur, Dist.- South 24-Parganas, registered and recorded . vide Book -1, Volume No.l6, Pages - 1355 to 1368, Being No.S266 for the year 2010 and and both the Sale Deeds stand in favour of Si Tridip Mondal;, hE l{il (- { (Arbind Madhav) Presiding Officer DRT-2, Kolkata tb