UNION BANK OF INDIA vs M/S MARWARHI TRADING PVT LTD AND ORS on 28 October 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 09.09.2020 before DRT-III, Delhi & then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts and *sd-*

Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.2,90,01,633.26 (Rupees Two Crores Ninety Lacs One Thousand Six Hundred Thirty Three & paisa Twenty Six only) as on 30.06.2020 together with pendentelite and future interest @10.90% per annum plus @2% penal interest with monthly rest from 01.07.2020 till the date of its realization and costs.

2. The brief facts of the case are that defendant no.1 being limited company engaged in trading business of agro products and defendant no.2 & 3 being directors / guarantors. On the request of defendant no.1 through its directors vide application dated 11.10.2017 along with documents of their antecedents and worthiness, the applicant bank sanctioned Cash Credit Union Trade limit of Rs.325.00 lacs (Rupees Three Crores Twenty Five lacs only) on 23.10.2017 @10.85% interest per annum against hypothecation of stocks and book debts in trade and collaterally secured by mortgage of property bearing land area measuring 2420 sq.yds, Khewat No.157 min., Khatoni No.328, Musttil & Kila No.20/20 (8-0), Village Kutana, Tehsil & District Rohtak, Haryana owned by defendant no.2 by deposit of title deeds. That defendant no.1 vide its Board Resolution dated 17.10.2017 accorded to avail credit facility from applicant bank and authorizing defendant no.1 to present proposal and execute agreements, deeds, documents & writings as required and further resolve that company seal would be affixed in present of defendant no.2 as required by applicant bank.

3. That in order to avail the credit facility, the defendants accepted the terms of sanction and executed Demand Promissory Notes (SD-21G), Hypothecation Agreement of Goods and Debts (SD-06), Letter of Undertaking not to Alienate Sd-

Hypothecated Goods (AD-12), Letters of Undertaking, Letter of Continuity AD-09(M), Letter of Confirmation SD-23A, Interest Agreement (SD-24) (MCLR New), Undertaking, Letters from Directors (AD-10), Letters of Guarantees (SD-01) by defendant no.2 and 3 in favour of application bank on 23.10.2017.

5. In order to secure the credit facilities availed by defendant no.1, the defendant no.2 created equitable mortgage of his property bearing Land area measuring 2420 sq.yds, Khewat No.157 min., Khatoni No.328, Musttil & Kila No.20/20 (8-0), Village Kutana, Tehsil & District Rohtak, Haryana by depositing original title deeds along with chain of documents i.e. Sale deed dated 17.04.1970, 20.04.1970, Khasra/Khatoni, Sale Deed dated 19.09.2005 and Photocopy of Intkal No.2922 with the applicant bank on 10.11.2017 and Memorandum of deposit (AD-13) of title deed was drawn on 14.11.2017.

4. It has been submitted by the applicant bank that after availing the cash credit facility, the defendants failed to maintain financial discipline, committed defaults in repayment of interest, penal interest and other charges as per banking norms despite personal visits and various letters etc. The account of defendant no.1 became irregular and the applicant bank classified the account as NPA on 30.04.2019 as per prudential norms and RBI guidelines but defendants neglected to clear the outstanding, hence, the applicant bank has approached this Tribunal for recovery of their dues.

5. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 01.05.2019 for outstanding dues of Rs.3,35,79,291.53 as of 30.04.2019 was issued by applicant Sd- bank. On the request of defendant no.1, the applicant bank sanctioned OTS proposal for Rs.335.00 lacs in favour of defendant no.1 but failed to deposit as per sanction terms. The applicant bank issued possession notice dated 13.02.2020 and took symbolic possession of mortgaged property on 20.02.2020. The defendant no.2 again approached for settlement for Rs.255.00 lacs on 15.02.2020 along with applicant interest and sought permission to sell the mortgaged property. The applicant bank submitted that an amount of Rs.86,68,210/- has been realized after classification of account as NPA from the defendants.

6. Notices of this O.A. were issued to the defendants and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 01.10.2026, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Chandan Kumar Verma, authorized representative of the applicant bank who has proved the documents as General Power of Attorney Ex.AW1/1, Board Resolution Ex.AW1/2, Sanction Letter Ex.AW1/3, Demand Promissory Note Ex.AW1/4, Hypothecation Agreement of Goods & Debts Ex.AW1/5, Letter of Undertaking Not to Alienate Hypothecated Goods Ex.AW1/6, Letter of Undertaking Ex.AW1/7 to Ex.AW1/9, Letter of Continuity Ex.AW1/10, Letter of Confirmation Ex.AW1/11, Interest Agreement Ex.AW1/12, Undertaking Ex.AW1/13, Letter from Directors Ex.AW1/14 & Ex.AW1/15, Letters of Guarantee Ex.AW1/16 & 17, Copies of Title Deeds Ex.AW1/18(Colly), *Sd-*

Demand Notice under Section 13(2) with Postal Receipts Ex.AW1/19(Colly), Settlement Letter Ex.AW1/20, Possession Notice Ex.AW1/21(Colly), Statement of Accounts duly Certified under Bankers' Book Evidence Act 1891 Ex.AW1/22, Statement of Accrued Interest Ex.AW1/23.

8. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

9. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts

10. In the light of the above discussions, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants, jointly or severally, to pay to the applicant bank within a period of 30 days, a sum of Rs.2,90,01,633.26 (Rupees Two Crores Ninety Lacs One Thousand Six Hundred Thirty Three & paisa Twenty Six only) as on 30.06.2020 together with pendentelite and future interest @12.90% per annum with monthly rests from 01.07.2020 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts etc. of defendant no.1 as well as sale of mortgaged property bearing land area measuring 2420 sq.yds, Khewat No.157 min., Khatoni No.328, Musttil &

Sd/-

Kila No.20/20 (8-0), Village Kutana, Tehsil & District Rohtak, Haryana owned by defendant no.2. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 29.12.2026.

(IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost.

*Sd -*

**(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court)

Dated: 30.10.2026