UNION BANK OF INDIA vs M/S SOVANA DRESSES on 11 July 2025

1. 1. **M/s Sovana Dresses**, Proprietor: Nabi Ali Mondal, having its principal place of business at Vill.- Dakshina Khanberia, P.O.- Ashuti, Police Station – Maheshtala, Dist.- 24-Parganas South, Pin – 700141, West Bengal.

2. 2. **Sri Nabi Ali Mondal**, Proprietor of M/s Sovana Dresses, having its residence at Vill.- Dakshina Khanberia, P.O.- Ashuti, Police Station – Maheshtala, Dist.- 24-Parganas South, Pin – 700141, West Bengal.

3. 3. **Meherjon Mondal**, having its residence at Vill.- Dakshina Khanberia, P.O.- Ashuti, Police Station – Maheshtala, Dist.- 24-Parganas South, Pin – 700141, West Bengal.

..... Defendants

Counsel for parties:

For the Applicant Bank : Ms. Smruti Rekha Mishra.

For the Defendants : Ex-Parte

**FINAL ORDER / JUDGMENT**

Delivered on 11.07.2025

Applicant (Union Bank of India), erstwhile Corporation Bank instituted the present Application being the Original Application No.888 of 2018 filed in DRT-3, Kolkata on 05.11.2018 against three Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.11,21,886.00 (Rupees eleven lacs twenty one thousand eight hundred eighty six) and other charges as calculated as on 30.06.2018 with further interest @ 12.25% per annum, 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 No.4/6/DRAT/KOL/2018(pt.) dated 16.09.2019, such has been 

recorded vide Ld. Registrar, Kolkata DRT-3's Order dated 13.11.2019 and the same has been renumbered as T.A./ 666 of 2020 vide Ld. Registrar's order dated 09.12.2020.

2. Corporation Bank has been merged / amalgamated into Union Bank of India vide Gazette Notification dated March 04, 2020, issued by the Government of India published under Extraordinary Part-II, Section 3, sub-section (i) in the Gazette of India in terms of Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970. In view of the merger / amalgamation of Corporation Bank into Union Bank of India, the Applicant Name in this case should be read / inserted as Union Bank of India instead of Corp[oration Bank].

3. In accordance with the Notice dated 30.07.2020 of this Tribunal, Ld. Advocate for Union Bank of India has filed an I.A. being I.A./414 of 2022 alongwith put-up I.A./418 of 2022 dated 15.03.2022 praying for amendment of Cause Title in view of amalgamation of Corporation Bank with Union Bank of India vide G.O.I. Notification dated 04.03.2020; and in accordance with the direction of the Tribunal necessary amendment in cause title has been carried out by Ld. Advocate for applicant Bank on 13.04.2022, such has been recorded in Ld. Registrar's order dated 13.04.2022.

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

(i) The Defendants No.1 is the borrower; and defendants No.2 & 3 are the guarantors. The defendant No.1, *M/s Sovana Dresses* through its proprietor, Nabi Ali Mondal (defendant No.2) approached and applied the applicant Bank for financial assistance vide application dated 25.07.2012. Upon consideration of loan application, applicant Bank was pleased to grant / sanction a Cash Credit facility to the limit of Rs.10,00,000/- (Rupees ten lacs) in favour of the defendant No.1 vide sanction letter dated 07.08.2012 against the hypothecation of entire stock and book debts and equitable mortgage of immovable property as a collateral security upon the terms and conditions mentioned in the said sanction letter; copies of loan application dated 25.07.2012 and sanction letter dated 07.08.2012 are annexed and marked as Annexure 'A-1' & 'A-2' respectively.

(ii) In acknowledgement of granting the said cash credit facility to the defendant No.1, the defendant No.2, proprietor of defendant No.1 executed and delivered the following security documents all dated 07.08.2012 in favour of applicant Bank:

- (a) Common Deed of Hypothecation;

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

- (c) Take Delivery Letter;

- (d) Letter of Undertaking / Declaration from the borrower(s).

Copies of said documents are annexed and marked as Annexure 'A-3', 'A-4', 'A-5' & 'A-6' respectively.

(iii) In consideration of the aforesaid credit facility granted to defendants No.1 & 2, the defendant No.3 duly guaranteed due repayment of all sums that would become due and payable by M/s Sovana Dresses (defendant No.1), a proprietorship business of Sri Nabi Ali Mondal (defendant No.2) by executing and delivering a Guarantee Agreement dated 07.08.2012 in favour of applicant Bank; copy of said guarantee agreement dated 07.08.2012 is annexed and marked as Annexure 'A-7'.

(iv) To secure the aforesaid cash credit facility of Rs.10.00 lakhs, the defendant No.2 being the sole proprietor of defendant No.1 visited the Bank's premises and duly been created equitable mortgage in respect of immovable properties, morefully described in Schedule 'X-1' at page 24 and para 3A at page 8 & 9 of the original application, by depositing Gift Deed being No.1380 for the year 1985 and Sale Deed being No.3882 for the year 1974 in favour of applicant Bank, and registered in favour of Nabi Ali Mondal. Copies of said Gift Deed No.1380 for the year 1985 and Sale Deed being No.3882 for the year 1974 are annexed and marked as Annexure 'A-8' & 'A-9' respectively. Further, the defendant No.1, proprietorship concern of defendant No.2 confirmed the creation of equitable mortgage by deposit of aforesaid Gift Deed and Sale Deed in favour of applicant Bank vide one Memorandum of deposit of Title Deeds dated 07.08.2012. Further, the applicant Bank got valued the mortgaged secured property through its empanelled valuer and the valuer submitted its report to the applicant Bank. Copy of said Memorandum of deposit of Title Deeds dated 07.08.2012 are annexed and marked as Annexure 'A-10' & 'A-11' respectively.

(v) In consideration and in acknowledgement of the said credit limit in favour of the defendant No.1, proprietorship concern of defendant No.2, the defendants executed and delivered Acknowledgement of Debt / Liability dated 09.09.2014 and 08.09.2017 in favour of applicant Bank; copy of said two Acknowledgement of Debt/Liability are annexed and marked as Annexure 'A-12' & 'A-13'.

5. The Defendants enjoyed the aforesaid cash credit facility by opening Account in Defendant No.1's name (M/s Sovana Dresses) in Bank's Amtala Branch, N.D. Road, P.O.-Kanya Nagar, Dist.- South 24-Parganas. However, the defendants failed and neglected to abide by the terms and conditions of the term loan facility. The Defendants did not repay the outstanding Bank's dues and overdue interests in the loan Account. Inspite of repeated requests and personal contact made by the applicant Bank, the defendants failed to regularize the loan Account. Since the defendants did not pay any attention to regularize the Account, the Account became out of order and was classified as N.P.A. on 29.06.2017. Considering the default and violation of the terms and conditions of the credit facility, applicant Bank issued a re-call / demand notice dated 20.10.2018 through its Ld. Advocate calling upon the defendants to repay the outstanding Bank's dues, but the defendants did not comply with the said notice; copy of notice dated 20.10.2018 is annexed and marked as Annexure 'A-14'. Certified copies of Statement of Accounts along with Certificate under Bankers' Books of Evidence Act, with interest calculation sheet, have been filed to show and prove the dues (Annexure 'A-15'), and future interest from 01.07.2018 along with interest @ 12.25% per annum, 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 were sent to the Defendants No.1, 2 & 3 by the Tribunal; service of Notices / summons upon all the Defendants by postal service has been successfully completed, such has been recorded vide Ld. Registrar's order dated 22.11.2022. Despite service, the defendants did not appear nor filed the written statement; thus, all the defendants are hereby ordered to be proceeded *ex-parte*. Applicant Bank has filed the English translated copy of Bengali Deeds on 16.09.2022. Applicant Bank has filed the brief notes of arguments on dated 09.06.2025 wherein stated the brief facts of the case as has been narrated in the original application. Ld. Advocate of the applicant Bank submitted arguments on 12.06.2025.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Shyamalendu Sardar, Branch Manager of applicant Bank's Amtala Branch, N.D. Road, Amtala, P.O.- Kanya Nagar, Dist.- South 24-Parganas along with copy of original documents executed by the Defendant. Original documents have been produced by the applicant Bank; the same have been verified with copies of the documents annexed with O.A. and the original documents have been returned to Mr. Naqui-Imam, Branch Manager of Bank's Amtala Branch, P.O.- Kanya Nagar, Dist.- South 24-Parganas on 12.04.2022, such has been recorded in Ld. Registrar's order dated 13.04.2022. The documents produced by the Applicant Bank are exhibited and annexed at 'A-1' to 'A-15'.

I have heard the Ld. Advocate of the 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 of Rs.10.00 lakhs vide sanction letter dated 07.08.2012. Applicant Bank has proved the creation of equitable mortgage of immovable property, morefully described in Schedule 'X-1' at page 24 and para 3A at page 8 & 9 of the original application.

9. On the point of limitation, Loan has been sanctioned on 07.08.2012; documents have been executed on 07.08.2012; original Application has been filed on 05.11.2018. Further, the defendants executed and delivered two 'Acknowledgement of Debt / Liability' dated 09.09.2014 & 08.09.2017 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.

10. 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) is **Rs.11,21,886.00** (Rupees eleven lacs twenty one thousand eight hundred eighty six) as on 30.06.2018, which is the amount claimed by the applicant Bank in the original Application, and the defendants No.1, 2 & 3 are liable to pay, jointly-and/or severally, the said amount to the applicant Bank with *pendente lite* and future interest, till realization of the entire due in full. I allow the claim as made by the applicant Bank in the original Application. Applicant Bank has prayed future interest @ 12.25% per annum, while in sanction letter and Demand Promissory

Note dated 07.08.2012 the same rate of interest, i.e. @ 12.25% per annum has been mentioned. Therefore, in my view, the *pendente lite* & future rate of interest @ 12.25% 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. Applicant Bank has proved to claim made in the O.A./T.A. The T.A. being T.A./666 of 2020 (arising out of O.A./888 of 2018) deserves to be allowed; hence allowed.

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

ORDER

(i) T.A./666 of 2020 (arising out of O.A./888 of 2018), filed by the applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 to 3. It 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.11,21,886.00** (Rupees eleven lacs twenty one thousand eight hundred eighty six) 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 @ 12.25% per annum, with quarterly rests, from 01.07.2018, till realization of the entire sum due and recoverable.

(ii) Amount, if any, paid by the Defendants in the loan account 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 dues/debt payable by the Defendants. Accordingly, the *pendente lite* and future interest shall be calculated on the reduced amount.

(iii) The defendants No.1 to 3 are debarred from transferring, alienating, encumbering or disposing of the mortgage immovable property; described in Schedule 'X-1' at page 24 and para 3A at page 8 & 9 of the original application, as under –

"ALL THAT land measuring total 20 Satak Bastu, Mouza – Khanberia, J.L. No.32, Khatian No.345 and total land registered before Additional District Sub-Registrar, Behala, 24-Parganas and Recorded vide Book – I, CD Volume No.23, Pages 497 to 501, Gift Deed being No.1380 for the year 1985 and further registered and recorded vide Deed Being No.3882 for the year 1974 and stand and registered in favour of Nabi Ali Mondal, at Sub-Registrar of Alipore at Behala."

The Defendants No.1, 2 & 3 are also debarred from transferring, alienating, 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 to 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. In 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 to 3 both moveable and immovable 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) 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) of the Act of 1993.

**Accordingly, the Original Application, being T.A./666 of 2020 (arising out of O.A./888 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 11^th day of July, 2025.

Copy of the Final Order / Judgment be uploaded in the Tribunal's Website.

(Arbind Madhav) Presiding Officer DRT-2, Kolkata

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