UNION BANK OF INDIA vs MALAY MONDAL on 5 December 2025

1. 1. **Malay Mondal**, proprietor of M/s New Mondal Nursery, Khastika, Barah Mandir, Vill. & P.O.- Bakhrahat, P.S.- Bishnupur, Jamira, Dist.- South 24-Parganas, Pin – 743377, West Bengal.

2. 2. **Ajit Kumar Mondal**, Khastika, Barah Mandir, Vill. & P.O.- Bakhrahat, P.S.- Bishnupur, Jamira, Dist.- South 24-Parganas, Pin – 743377, West Bengal.

..... Defendants

Counsel for parties:

<table style="width: 100%; border: none;"> <tr> <td style="width: 40%;">For the Applicant Bank</td> <td style="width: 5%;">:</td> <td>Sri Sailesh Mishra</td> </tr> <tr> <td>For the Defendants</td> <td>:</td> <td><i>Ex-Parte</i></td> </tr> </table>

FINAL ORDER / JUDGMENT

Delivered on 05.12.2025

Applicant (Union Bank of India), erstwhile Corporation Bank instituted the present Application being the Original Application No.843 of 2018 filed in DRT-3, Kolkata on 15.10.2018 against two Defendants under Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993 (amended from time to time) for recovery of Rs.18,52,888.00 (Rupees eighteen lacs fifty two thousand eight hundred eighty eight) as on 24.04.2018 with interest thereon @ 12.55% per annum with monthly rests on and from 25.04.2018, till repayment of the entire due. 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 11.10.2019 and the same has been renumbered as T.A./595 of 2020 vide Ld. Registrar's order dated 26.11.2020.

2T.A./595 of 2020 - DRT-2/Kol

2. Corporation Bank has been merged / amalgamated into Union Bank of India vide Gazette Notification dated March 04, 2020 in G.S.R. 154(E), issued by the Government of India published under Extraordinary Part-II, 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 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 (40 of 1980). 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 Corporation Bank.

3. In accordance with the Notice dated 30.07.2020 of this Tribunal, Ld. Advocate for Union Bank of India has filed a Petition being I.A./940 of 2021 along with put-up I.A./939 of 2021 dated 03.09.2021 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 of the applicant Bank on 06.09.2021, such has been recorded in Ld. Registrar-in-Charge's order dated 06.09.2021.

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 proprietor of M/s New Mondal Nursery approached the applicant Bank for Agricultural Credit facility in the nature of cash credit vide Application dated 12.01.2013. Copy of loan application dated 12.01.2013 is annexed and marked with Letter 'A-1'. At the request of defendant No.1, 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 letter of sanction dated 08.02.2013 on certain terms and conditions as contained therein. Copy of sanction letter dated 08.02.2013 is annexed and marked with Letter 'A-2'.

(ii) In order to avail and enjoy the aforesaid credit facility of Rs.10.00 lakhs availed by Defendant No.1, the defendants executed and delivered the following loan / security documents all dated 08.02.2013 in favour of applicant bank:

- (a) Guarantee Agreement;

- (b) Agreement for covering hypothecated crops under national agricultural insurance scheme;

- (c) Unattested deed of hypothecation of crops/stocks (including live / non-live stocks) to secure demand cash credit account;

- (d) Undertakings by borrower by way of letter dated 08.02.2013;

- (e) Demand Promissory Note for Rs.10,00,000/- plus interest;

- (f) Letter to Take Delivery to Demand Promissory Note for Rs.10.00 lacs;

- (g) Request for overdraft facilities / cash credit limit to the extent of Rs.10.00 lacs plus interest;

- (h) Memorandum of deposit of Title Deed(s) dated 08.02.2013 to the extent of Rs.10,00,000/-;

- (i) Letter of Proprietorship for Rs.10,00,000/-.

Copies of said documents are annexed and marked as Annexure 'A-3' to 'A-11' respectively.

(iii) To secure the aforesaid credit facility of Rs.10.00 lacs granted to the defendant No.1 by the applicant Bank, the defendant No.2 created equitable mortgage in respect of immovable property, morefully described in Schedule I & II at page 61 and para 3A at page 3 & 4 of the O.A., by executing Memorandum of deposit of Title Deed(s) dated 08.02.2013, with the applicant Bank. Copy of said Memorandum of Deposit of Title Deed(s) dated 08.02.2013 is annexed and marked as Annexure 'A-10'.

(iv) The defendants / borrower(s) executed and delivered an Acknowledgement of Debt / Liability dated 28.01.2015 in favour of the applicant Bank acknowledging the outstanding balance in loan account. Copy of said Acknowledgement of Debt / Liability dated 28.01.2015 is annexed and marked as Annexure 'A-12'.

5. Applicant Bank through the said branch had disbursed the loan amount to borrower(s) Account on 08.02.2013. 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 attention to regularize the Account inspite of repeated requests made by applicant Bank, the Account became out of order and was classified as N.P.A. on and from 01.03.2017. Considering aforesaid default and violation of the terms and conditions of the credit facility, the applicant Bank was compelled to issue demand Notice U/s 13(2) of the Sarfaesi Act, 2002 dated 21.04.2017 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 21.04.2017 is annexed and marked with Annexure 'A-13'. 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-14'), and future interest @ 12.55% per annum 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 by the Tribunal. It is seen from the affidavit of service dated 11.08.2022 that service of Notices / summons upon both the Defendants by postal service has been successfully completed, such has been recorded vide Ld. Registrar's order dated 11.08.2022. Despite service, the defendants did not appear nor filed the written statement; thus, both the defendants are hereby ordered to be proceeded *ex-parte*. Applicant Bank

has filed the written notes of argument on dated 14.06.2024 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 on 03.11.2025.

7. Applicant Bank has filed the evidence-on-affidavit affirmed by Shyamalendu Sardar, Branch Manager of erstwhile Bank's Amtala Branch, Nibaran Dutta 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 Amit Paul, Asstt. Manager of Bank's Amtala Branch, N.D. Road, Dist.- South 24-Pargana on 06.06.2022, such has been recorded in Ld. Registrar's order dated 06.06.2022. The documents produced by applicant Bank are exhibited and annexed at 'A-1' to 'A-13'.

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, unrebuted 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 credit facility to the limit of Rs.10.00 lakhs vide letter of sanction dated 08.02.2013. Applicant Bank has proved the creation of equitable mortgage of immovable property; described in Schedule I & II at page 61 and para 3A at page 3 & 4 of the original application.

9. On the point of limitation, Loan has been sanctioned on 08.02.2013; loan documents have been executed on 08.02.2013; original Application has been filed on 15.10.2018. Further, The defendants / borrower(s) executed and delivered an Acknowledgement of Debt / Liability dated 28.01.2015 in favour of the 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 Loan Account (inclusive of accrued interest and other charges as calculated upto 24.04.2018) for a sum of **Rs.18,52,888.00** (Rupees eighteen lacs fifty two thousand eight hundred eighty eight) as on 24.04.2018, which is the amount claimed by the applicant Bank in the original Application; and the defendants No.1 & 2 are, jointly and/or severally, liable to repay the said amount to the applicant Bank with *pendente lite* and future interest, till realization. I allow the claim as made by applicant Bank in the original Application. Applicant Bank has prayed future interest @ 12.55% per annum, while in Demand Promissory Note dated 08.02.2013 the rate of interest @ 11.85% per annum, has been mentioned. Therefore, the *pendente lite* & future rate of interest @ 11.85% per annum, with quarterly rests, from 25.04.2018, is allowed.

11. The matter also falls within the territorial as well as pecuniary jurisdiction of this Tribunal. The Applicant Bank has proved to claim made in the O.A./T.A. The T.A. being T.A./595 of 2020 (arising out of O.A./843 of 2018) deserves to be allowed; hence allowed.

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

**ORDER**

(i) T.A./595 of 2020 (arising out of O.A./843 of 2018), filed by applicant Bank, is allowed and debt is determined with cost against the Defendants No.1 & 2. It is hereby ordered that the Defendants No.1 & 2 are hereby directed to pay, jointly and / or severally the total debt amount of **Rs.18,52,888.00** (Rupees eighteen lacs fifty two thousand eight hundred eighty eight) 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 @ 11.85% per annum, with quarterly rests from 25.04.2018, 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 & 2 are debarred from transferring, alienating, encumbering or disposing of the mortgaged immovable property(s); morefully described in Schedule I & II at page 61 and para 3A at page 3 & 4 of the original application, as under –

"EMG of the vacant Land in the name of Ajit Kr. Mondal, situated at Mouza – Bakhrahat, J.L. No.46, Khatian No.222, 946, Dag No.299, 280, Touzi No.1070/2634. Land having area 31 Satak. Vill. + P.O.- Bakhrahat, P.S.- Bishnupur, Dist.- 24-Parganas (South).

Boundary –

<table> <tbody> <tr> <td>North :</td> <td>Land of Upendra Nath Mondal</td> </tr> <tr> <td>South :</td> <td>Land of Mahamaya Halder</td> </tr> <tr> <td>East :</td> <td>Partly 6" – 0" passage. Partly Pond</td> </tr> <tr> <td>West :</td> <td>Land of Probodh Chandra Mondal."</td> </tr> </tbody> </table>

The Defendants is 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 & 2.

(iv) The defendants No.1 & 2 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 & 2 both moveable and immoveable and also proceed against the Defendants No.1 & 2 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 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, 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./595 of 2020 (arising out of O.A./843 of 2018) is allowed and stands disposed of.**

This order is dictated and corrected by the undersigned and pronounced on this the 05^th day of December, 2025.

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

(Arbind Madhav) 5.12.25 Presiding Officer DRT-2, Kolkata

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