Debts Recovery Tribunals and Appellate Tribunals

UNION BANK OF INDIA vs VED TIN STORE on 2 November 2026

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**Debts Recovery Tribunal-I, Delhi

4<sup>th</sup> Floor, Jeevan Tara Building, Parliament Street, New Delhi**

**Presiding Officer: Shri Govind Ballabh Sharma**

**T.A. No. 1093 of 2023**

Union Bank of India

Asset Recovery Branch

6<sup>th</sup> Floor, Konnectus Tower

Opp. New Delhi Railway Station,

Bhav Bhuti Marg, Ajmeri Gate, New Delhi

Applicant

**Versus**

1. M/s Ved Tin Store

Through its Proprietor - Sh. Saajan Arora H.No.4/230, Subhash Nagar Tihar – 1, New Delhi

2. Sh.Akshay Arora

H.No.4/230, Subhash Nagar Tihar-I

New Delhi-110027

3. Sh.Anil Arora

H.No.4/230, Subhash Nagar Tihar-I

New Delhi-110027

4. M/s Ved Tin Store

Shop no.2179/2, Basti Julhan,

Veer Gali, Sadar Bazar, Delhi-110006

Respondents

Present: Shri Tushar Mishra, Counsel for the applicant bank Date of Reserve: 30.09.2026

Date of Pronouncement: 02.11.2026

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**FINAL ORDER**

This original application has been filed by the applicant bank on 22.11.2017 before DRT-III, Delhi and then transferred *sd-*

to DRT-I Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the respondents for recovery of a sum of Rs.86,42,988/- (Rupees Eighty-Six Lacs Forty-Two Thousand Nine hundred and Eighty-Eight only) as on 01.11.2017 together with pendentelite and future interest @12.95% per annum from 01.11.2017 till the date of its realization with costs.

2. The brief facts of the case are that on the request of the responder: no.1 being proprietorship concern of Sh.Saajan Arora vide loan application dated 15.09.2014 with relevant documents, the applicant bank sanctioned Cash Credit Facility of Rs.95,00,000/- (Rupees Ninety-Five Lacs only) on 22.10.2014 @10.95% rate of interest with monthly rests against hypothecation movable/immovable assets, stocks, book debts and mortgage of property at House No.2/430, 3<sup>rd</sup> Floor, Subhash Nagar, Tihar-I, New Delhi owned by defendant no.2 and Sh.Saajan Arora. The defendant no.2 and 3 stood as guarantors for the credit facility sanctioned in favour of defendant no.1. In case of default in repayment of interest, the respondents agreed to pay penal interest @2% over existing rate of interest to the applicant bank.

3. That in order to avail the credit facility, the respondent no.1 submitted loan application and executed Sanction Letter with Terms & Conditions, Letter of Undertaking, Agreement for Hypothecation of Stocks and Book Debts, Agreement on Rate of Interest as well as Letter of Guarantee by defendant no.2 on dated 22.10.2014 with the applicant bank.

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4. That in order to secure the credit facility, the respondents hypothecated the movable/immovable assets, stocks and book debts in favour of applicant bank on 22.10.2014.

5. It has been submitted by the applicant bank that after availing he aforesaid loan facility, the respondents failed to maintain financial discipline and pay the interest as per terms of sanction. Ultimately, the applicant bank classified the account as NPA on 31.03.2017 and issued demand notice under Section 13(2) on 30.07.2017 in respect of House No.2/430, 3<sup>rd</sup> Floor, Subhash Nagar, Tihar-I, New Delhi to pay entire outstanding by invoking the guarantee of respondents but the respondents neglected to regularize the account. Hence, the applicant Bank was constrained to approach this Tribunal for recovery of dues.

6. Notices of this O.A. were issued to the respondents and despite of proper service, the respondents have chosen to absent from the proceedings. As per order dated 11.05.2022, the respondents have been proceeded ex-parte as the respondents have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

7. In order to prove its case, the applicant bank has filed its evidence by filing the copies of the documents such as Loan Application Form, Agreement for Hypothecation of Stocks, Book-Debt, Letter of Guarantee, Agreement on Rate of Interest, Sanction Letter, Memorandum to Management Committee/Credit approval committee, Title Search Report, Lease Deed, Demand Notice u/s 13(2), Possession Notice u/s 13(4), General Power of Attorney, Statement of Account marked as Page no.1 to 94.

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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 unrebuted 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 respondents to pay to the applicant bank within a period of 30 days, a sum of Rs.86,42,988/- (Rupees Eighty-Six Lacs Forty-Two Thousand Nine hundred and Eighty-Eight only) as on 01.11.2017 together with pendentelite and future interest @12.95% per annum from 01.11.2017 till the date of its realization with costs, failing which the aforesaid amount shall be recovered from the sale of hypothecated movable/immovable assets, stocks and book debts as well as mortgaged property i.e. House No.2/430, 3<sup>rd</sup> Floor, Subhash Nagar, Tihar-I, New Delhi. In case of shortfall, the same shall be recovered from the personal properties of the respondents.

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

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 04.01.2027.

*SA*

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

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

(Dictated and pronounced in open court) Dated: 02.11.2026

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