BANK OF INDIA vs SHREE BALAJI ENTERPRISES on 30 March 2026

J U D G M E N T

1. 1. This is an application under Section 19(1) of Recovery of the Debt and Bankruptcy Act, 1993 (for short, 'the 1993 Act') to recover Rs.2,05,09,295.96/- with future interest thereon from the date of presentation of the Transfer Original Application till payment/realisation.

2. 2. The Defendants were granted a Cash Credit Limit for a sum of Rs.40 Lakhs vide sanction letter dated 12.11.2013 and Term

Loan of Rs.210 Lakhs vide sanction letter dated 24.06.2014 as specified in para no.5 (B) and 5(D) of the Transfer Original Application and on them executing loan and security documents.

1. 3. Defendants had mortgaged the property viz., Shop No.19 and 20 in the building known as "Gayatri Satsang", behind Vishnu Mall, Thakur Village Kandivali (East) constructed on Plot of land bearing CTS No.809-A/1/1/1, 809A/1/1/5 (P) of revenue village situate, lying and being at Village Poisar, Taluka-Borivali in the Registration District and Sub District of Mumbai Suburban to secure the loan.

2. 4. Despite the undertaking effected by Defendants they had failed to regularise the account and service interest in the account. So the account remained out of order since long time resulting in it to be declared as NPA on 30.09.2017.

3. 5. Despite issuance of letters, personal visits, telephonic conversation and reminders the Defendants had failed to regularise the account. So the Applicant had caused the issuance of lawyer notice to Defendants to pay up the dues with interest.

4. 6. Since defendants failed to make the repayment, the applicant was left with no other alternative other than to file the Transfer Original Application which was presented on 27.08.2018. Defendants were duly served with the summons through paper publication for appearance on 19.07.2024.

A handwritten signature in black ink, consisting of several overlapping strokes and a long diagonal line extending from the bottom right towards the top left.

Despite receipt of summons, the defendants did not appear. They had remained absent without any representation for them and so, they were set at exparte.

1. 7. The applicant filed an affidavit (exhibit-19) in lieu of examination in chief through Mr. John Justus, Chief Manager of the bank, who had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-32.

2. 8. Accordingly, the Transfer Original Application was filed for the recovery of Rs.47,89,325.50 under Cash Credit with further interest @ 13.75% p.a. and Rs.1,57,19,970.46 under Term Loan with further interest @ 14.25% p.a. and other expenses for the period from the date of filing of this T.O.A. till payment/realization.

3. 9. A scrutiny of the averments in the Transfer Original Application and an analysis of the evidence adduced by the applicant, which has gone unchallenged, uncontroverted and unrebuted, shows that there is no reason to reject the claim made by the applicant bank.

4. 10. In view of the observations made hereinabove, Transfer Original Application filed by the applicant deserves to be allowed.

5. 11. Hence, the following order is passed:

A handwritten signature or mark, possibly initials, written in black ink. It consists of a stylized 'H' or 'M' shape followed by a long diagonal line extending from the bottom left towards the top right.

ORDER

1. a. T.O.A. stands allowed with cost and the Defendant No. 1 to 3 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.47,89,325.50 under Cash Credit with further interest @ 13.75% p.a. and Rs.1,57,19,970.46 under Term Loan with further interest @ 14.25% p.a. from the date of filing of this O.A. till the date of realization; failing which the aforesaid amount shall be recovered from the sale of mortgage property viz., Shop No.19 and 20 in the building known as "Gayatri Satsang", behind Vishnu Mall, Thakur Village Kandivali (East) constructed on Plot of land bearing CTS No.809-A/1/1/1, 809A/1/1/5 (P) of revenue village situate, lying and being at Village Poisar, Taluka-Borivali in the Registration District and Sub District of Mumbai Suburban and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendants.

2. b. Defendants are directed to declare, on oath, to the Recovery Officer, Debts Recovery Tribunal - I, Mumbai, both their moveable and immovable assets for the purpose of attachment and sale for realizing the shortfall, if any.

3. c. Let a Recovery Certificate be issued with a memo of cost immediately u/s 19(22) of The Recovery of Debts and Bankruptcy Act, 1993 together with the details of the properties, if any.

4. d. The Defendants are restrained from depleting, transferring, encumbering, alienating or in any way dealing with their

- properties/assets without first paying the claim of the Applicant Bank.

- e. Copies of this judgment be sent to the parties free of cost and file be consigned to the record room.

- f. Give under my hand and the seal of this Tribunal on this date : 30.03.2026.

(Dated to my Stenographer, transcribed by her corrected and signed by me and pronounced in open forum on 30.03.2026)

Place:- Mumbai Date: 30.03.2026

Presiding Officer, DRT-1, Mumbai (Sreockala Suresh)