UCO BANK vs KHUSHI ATTA MILL THROUGH ITS PROP ABDUL KERIM AND ANR on 5 October 2026

J U D G M E N T

1. This is an application under section 19 of the Recovery of Debts and Bankruptcy Act, 1993, filed by the applicant bank against the defendants seeking issuance of Certificate of Recovery for realization of a sum of Rs.92,16,816.10/- (Rupees Ninety Two Lac Sixteen Thousands Eight Hundred Sixteen And Paise Ten) only [Rs. 44,07,000.43 (CC) + Rs. 37,41,945.67p (SSI General) + Rs. 10,80,870.00 (GECL)] with interest calculated upto 12.07.2023 and further interest thereon from 13.07.2023 @10.80% p.a. with monthly rests for cash credit account and SSI General account and @7.50% p.a. with monthly rests for GECL account till realization of the entire amount along with injunction restraining the defendants from disposing of and/or alienating and/or encumbering the personal charged and uncharged assets and also costs.

2. The facts in brief, giving rise to the present application as pleaded are that considering the application of the defendants dated 14.02.2019, the applicant Bank sanctioned a Term Loan under the SSI-GENERAL Scheme to the tune of Rs 61,14,000/- (Rupees Sixty One Lakhs Fourteen Thousand Only) & a Cash Credit Agriculture loan to the tune of Rs 48,27,000/- (Forty-Eight Lakhs and Twenty Seven Thousand) only, vide RAKESH PATI TIWARI

TIWARI Date: 2026.10.06 18:50:38 +05'30'

(Contd…)

sanction letter dated 17.06.2019.The defendants on 17.06.2019 executed Demand Promissory Note, Deed of Hypothecation of Movable Plant and Machinery, Hypothecation of Goods, Composite Deed of Hypothecation, Hypothecation cum Agreement for Agricultural Loans and Guarantee Agreement. In order to secure the availed Credit Facilities the defendants deposited with the applicant bank the Title Deeds of Land and Building having total area 75 Satak in the name of Abdul Kerim being Deed no 1/6368 dated 04.06.2015 Khatian no 620, hal 1155, Dag no 112., JL No 58 Mouza Piasala, P.O Damadam P.S Suri District Birbhum 731121 butted and bounded by North - Agricultural Land of Sk Anis, South - Agricultural Land of Sk Rafik, East - 15 Ft Road, West - Agricultural Land of Faijul Haque. Thereafter considering the application of the defendants, the applicant Bank sanctioned an Additional Working Capital Term Loan Facility of Rs 15.69 lacs in favour of the Respondent No.1, vide sanction letter dated 30.12.2020. The defendants on 31.12.2020 executed Demand Promissory Note and Deed of Hypothecation of Movable Plant and Machinery. The Credit facilities availed by the defendants were from time to time, at request, were reviewed/or and enhanced and/or further sanctioned, lastly on 03.03.2022. The defendants executed Debit Balance Confirmations from time to time and lastly executed on 28.12.2022. After availing the loan, the defendants failed to repay the dues of the loan accounts and as such the loan accounts were classified as N.P.A. on 31.03.2023 as per guidelines of RBI and thereafter the Applicant Bank on 25/04/2023 served Demand notice upon the defendants. After giving credits for all sums of moneys paid by and/or realized on behalf of the defendants a sum of Rs.92,16,816.10/- (Rupees Ninety Two Lacs Sixteen Thousands Eight Hundred Sixteen And Paise Ten) only inclusive of interest calculated upto 12.07.2023 was due against the defendants.

3. Despite the service of summons upon the defendants through speed post, the defendants did not put their appearance before this Tribunal and hence the matter is proceeding ex-parte against the defendants, vide order dated 06.08.2026.

4. The Applicant Bank in support of its case has filed evidence by way of affidavit as affirmed by Sri Saurabh Kumar Srivastava, the Legal Manager of the applicant Bank and also relied upon the following documents:-

RAKESH PATI TIWARI

TIWARI Date: 2026.10.06 18:50:50 +05'30'

(Contd…)

Sl. No. Name of the documents Exhibits No.

1. Loan Form for Micro & Small Enterprises A (MSE'S) dated 14.02.2019 alongwith KYC documents

2.

3. Demand Promissory Note for Rs 61,14,000/- (Rupees Sixty-One Lakhs Fourteen Thousand Only) in respect of the Term Loan dated 26.07.2019

4. Demand Promissory Note for Rs 48,27,000/- (Rupees Forty-Eight Lakhs Twenty-Seven Thousand Only) in respect of the Cash Credit Facility dated 26.07.2019

5. Deed of Hypothecation of Movable Plant and Machinery to secure a Term Loan dated 26.07.2019

6. Hypothecation of Goods to secure a Demand Cash Credit dated 26.07.2019

7. Composite Deed of Hypothecation for Rs 1,09,41,000/- (Rs One Crore Nine Lakhs and Forty-One thousand only dated 26.07.2019

8. Hypothecation cum Agreement for Agricultural Loans dated 26.07.2019

9. Guarantee Agreement by Defendant No.2 dated 26.07.2019

10. Title Deeds, English Translation & Cersai Report

11.

12. Demand Promissory Note for Rs 15.69 lacs dated 30.12.2020

13. Deed of Hypothecation of Movable Plant and Machinery to Secure a Term Loan dated 30.12.2020

14.

15. Two Debit Balance Confirmations dated 28.12.2022

16. Demand Notice dated 25/04/2023 with postal receipt

17. The statement of Accounts for Account no. LAN 14570510006030, LAN 14570610025260 &LAN 14570610016732 evidencing such due of the Applicant Bank certified under the Banker's Book of Evidence

5. I have heard the learned counsel for the applicant bank and perused the documents and evidence adduced by the applicant bank. The applicant bank has adduced documentary evidences which are marked as Exhibits-‘1’to ‘17’. The sanction of loan has been proved by producing Sanction Letter dated 17.06.2019, 30.12.2020 & 30.12.2020 (Exhibits- ‘2’, ‘11’& ‘14’). The execution of required documents like Loan Form, Demand Promissory Note, Deed of Hypothecation of Movable Plant and Machinery, RAKESH PATI TIWARI

TIWARI Date: 2026.10.06 18:51:05 +05'30'

(Contd…)

Hypothecation of Goods, Composite Deed of Hypothecation, Hypothecation cum Agreement, Guarantee Agreement, Title Deeds, Debit Balance Confirmations etc. have been proved by exhibiting the same at‘1’, ‘3’ to ‘10’, ‘12’, ‘13’& ‘15’respectively. By filing the Statement of Account (Exhibit-‘17’),the applicant bank has proved the total outstanding dues along with interest 12.07.2023 to the tune of Rs.92,16,816.10/- (Rupees Ninety Two Lacs Sixteen Thousands Eight Hundred Sixteen And Paise Ten) only against the defendants.

6. Taking into account of the execution of Debit Balance Confirmations on 28.12.2022, the limitation available is for 3 (three) years and as such the claim of the applicant bank is within limitation.

7. The applicant bank has got valid cause of action to file this case as after taking the loan the defendants failed to make payment as per the terms and conditions of the sanction letter agreed by the defendants.

8. There is nothing available on the record to contradict the version of the applicant bank and thus the applicant bank has sufficiently proved its case by exhibiting all relevant documents. In the above circumstances, following order is passed ;

O R D E R

(i) T.O.A. No. 51/2026 arising out of O.A. No. 297/2023 filed by the applicant bank is allowed against the defendants No. 1 & 2 jointly and severally with costs and it is hereby ordered that the applicant bank is entitled to recover the total dues debt amount of Rs.92,16,816.10/- (Rupees Ninety Two Lacs Sixteen Thousands Eight Hundred Sixteen And Paise Ten) only with interest calculated upto 12.07.2023 and further interest thereon @10.40% p.a. with monthly rests from 13.07.2023 till realization of entire balance from the defendants along with cost amount.

(ii) Amount, if any, paid by the defendants in the loan account or amount recovered by the applicant bank, if any, made towards the loan accounts after filing of the O.A be taken into account while arriving at the exact amount of outstanding payable by the defendants.

(iii) Hypothecation of Machineries/equipment and other furniture and fixture to be purchased out of banks loan & Hypothecation of Inventories and other current assets, Book Debts Present and Future, as mentioned in Schedule ‘Part 1’ of the original RAKESH PATI TIWARI

TIWARI Date: 2026.10.06 18:51:17 +05'30'

(Contd…)

application and Mortgaged property being Land and Building having total area 75 Satak in the name of Abdul Kerim having Deed no 1/6368 dated 04.06.2015 Khatian no 620, hal 1155, Dag no 112., JL No 58, Mouza Piasala, P.O Damadam, P.S Suri, District Birbhum, 731121, which is butted and bounded by North - Agricultural Land of Sk Anis, South - Agricultural Land of Sk Rafik, East - 15 Ft Road, West - Agricultural Land of Faijul Haque, as mentioned in Schedule ‘Part 2’ of the original application, shall remain charged to the applicant bank and the applicant bank shall have paramount charge thereon.

(iv) The defendants are debarred from transferring; alienating, encumbering or disposing of the hypothecated/mortgaged properties or any other property and assets belonging to the defendants till the aforesaid adjudicated debt amount is recovered from the defendants.

(v) The defendants are given a time of thirty days from the date of this judgment for repayment of the above decreed debt amount with interest failing which the applicant bank is entitled to recover its dues by sale of the hypothecated/mortgaged property as aforesaid and is also entitled to proceed against the said defendants personally and/or personal properties to recover the dues in accordance with law.

(vi) Let the certificate of Recovery be drawn up by the Learned Registrar forthwith in terms of judgment for issuance of the same against the defendants in favour of applicant bank under Sub-Section 22 of Section-19 of The Recovery of Debts and Bankruptcy Act, 1993and put up the same for signature and issuance.

(vii) Learned Recovery Officer is directed to realize the dues amount from the defendants as per the Recovery Certificate in accordance with law.

(viii) Let this judgment be uploaded on website of the tribunal and the Registry is directed to serve/send copy of this judgment to the parties free of cost.

(ix) Record is consigned to the record room along with the judgment.

The judgment is signed and pronounced in the open Tribunal on 5th day of October, 2026.

(RAKESH PATI TIWARI) Presiding Officer DRT, Siliguri.

RAKESH PATI TIWARI

TIWARI Date: 2026.10.06 18:51:31 +05'30'