PUNJAB NATIONAL BANK vs M/S R B S COMMTRADE PRIVATE LIMITED on 30 April 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.12,57,30,250.84 with future interest thereon from the date of presentation of the Transfer Original Application till payment/realization and to enforce the mortgaged securities.

2. 2. The Defendants were granted the Cash Credit Hypothecation of stocks facility for Rs.9,00,00,000/- and Inland letter of Credit/Foreign Letter of credit/bank guarantee limit of Rs.2,50,00,000/- within the existing of working capital limit of Rs.900 Lakhs only as specified in para no. 5.5 of the Transfer Original Application and on them executing loan and security documents.

3. Defendants created a hypothecation and mortgage to secure the loan. Following is the list of the mortgage properties and hypothecation goods:-

- a. Flat No. 14, 1 floor, C-Wing, Building No.1, Kalapataru Estate Complex, Opp. Fantasy Land, Near Majas Depot, Jogeshwari Vikhroli Link Road, Andheri (East), Mumbai-400 093 admeasuring 851 sq.ft carpet area alongwith exclusive one car parking space belonging to Defendant Nos. 4, 5 and 7.

- b. Office No. A-205, A Wing, 2nd floor, Everest Grande Commercial Premises CSL, Mahakali Caves Road, Near Ahura Centre, Shanti Nagar, Andheri (East), Mumbai 400 093, admeasuring 1152 sq.ft carpet area, together with one open car parking space no. 60 belonging to Defendant No.5 and

- c. Flat No. 13, 1st floor, C-Wing, Building No.1, Kalpataru Estate Complex, Opp. Fantasy Land, Near Majas Depot, Jogeshwari Vikhroli Link Road, Andheri (East), Mumbai - 400 093 admeasuring 857 sq.ft carpet area alongwith exclusive one car parking space belonging to Defendant Nos.5 and 6.

- d. Hypothecated assets and properties, goods, book debts and receivables.

A handwritten signature or mark, possibly initials, consisting of a stylized 'V' or 'Y' shape with a vertical line through it.

1. 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 it to be declared as NPA on 30.06.2014.

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

3. 6. Since the 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 02.03.2016. Defendants were duly served with the summons for appearance on 01.03.2017 & 05.02.2018 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.

4. 7. The applicant filed an affidavit (exhibit-21) in lieu of examination in chief through Mr.Dakshinesh Iyer, Authorised officer of the bank, had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-22.

5. 8. Accordingly, the Transfer Original Application was filed for the recovery of Rs.12,57,30,250.84 alongwith further interest @ 14.10% p.a with monthly rests and other expenses from the date of filing of this T.O.A. till the date of realization.

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 unrebutted, shows that there is no reason to reject the claim made by the applicant bank.

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

11. Hence, the following order is passed.

ORDER

a. T.A. stands allowed with cost and Defendant No. 1 to 7 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.12,57,30,250.84 alongwith further interest @ 14.10% p.a and other expenses from the date of filing of this T.O.A. till the date of realization; failing which the aforesaid amount shall be recovered from the sale of mortgage property and hypothecated goods viz.,

- i. Flat No. 14, 1 floor, C-Wing, Building No.1, Kalapataru Estate Complex, Opp. Fantasy Land, Near Majas Depot, Jogeshwari Vikhroli Link Road, Andheri (East),

A handwritten signature, possibly initials, written in black ink at the bottom right of the page.

Mumbai-400 093 admeasuring 851 sq.ft carpet area alongwith exclusive one car parking space belonging to Defendant Nos. 4, 5 and 7.

- ii. Office No. A-205, A Wing, 2nd floor, Everest Grande Commercial Premises CSL, Mahakali Caves Road, Near Ahura Centre, Shanti Nagar, Andheri (East), Mumbai 400 093, admeasuring 1152 sq.ft carpet area, together with one open car parking space no. 60 belonging to Defendant No.5 and

- iii. Flat No. 13, 1st floor, C-Wing, Building No.1, Kalpataru Estate Complex, Opp. Fantasy Land, Near Majas Depot, Jogeshwari Vikhroli Link Road, Andheri (East), Mumbai - 400 093 admeasuring 857 sq.ft carpet area alongwith exclusive one car parking space belonging to Defendant Nos.5 and 6 and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendants.

b. The defendants are directed to declare, on oath, to the Recovery Officer, Debts Recovery Tribunal – I, Mumbai, both their moveable and immoveable assets for the purpose of attachment and sale for realizing the shortfall, if any.

c. Let a Recovery Certificate be issued with 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.

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 :30.04.2026.

(Dictated to my Stenographer, transcribed by him corrected and signed by me and pronounced in open forum on 30.04.2026)

Place:- Mumbai Date:- 30.04.2026

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