UNION BANK OF INDIA vs THE OFFICIAL LIQUIDATOR OF NIMBUS COMMUNICATIONS LTD on 26 May 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.32,03,95,159/- with future interest thereon from the date of presentation of the Transfer Original Application till payment/realization and to enforce the securities.

2. 2. The Defendants were granted a Term Loan facility of Rs.75,00,00,000/- vide the sanction letter dated 27.09.2011 as specified in para no.5.5 of the Transfer Original Application and on them executing loan and security documents.

3. 3. It is also stated that vide letter dt.05.07.2012, the defendants were granted the restructuring of the said loan and required to repay the outstanding short term loan of Rs.64.80 Crores within 12 months to the applicant. And the same was defaulted by the defendants and the same is recorded in letter dt.10.10.2012.

4. 4. Further on request of the Defendant no.1 vide letter dt.24.12.2012, the applicant adjusted the Fixed Deposit for a sum of Rs.26.40 Crores which is lying with the applicant bank.

5. 5. 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.

6. 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.

7. Since defendants failed to make repayment, the applicant was left with no other alternative other than to file the Original Application before the Tribunal. D2 to D5 had filed WS. but a petition is seen filed as I.A. No.142/15, by D1 to set aside this exparte order which is stated to be passed on 29.04.2014.

8. Apart from filing the said petition no representation is made on the said petition by D1 till date. So now the said petition is being disposed off. Further D1 is seen to filed WS on 10.02.2015. But the roznama dated 02.11.2017 shows that as per order in I.A. No.636/17, the official liquidator for D1 is brought on record.

9. The written statements of all defendants as D1 to D5 raise the following grounds in common, which in brief are as follows; The applicant bank who was in custody of the amount that belong to D1 which is double the amount owed by defendants should have adjusted against the amount now claimed. The short term loan was restructured and there is no cause of action now disclosed for the present proceedings. The applicant had appropriated money from the fixed deposit for repayment of instalments under the short term loan.

10. It is stated in the WS of D2 that the property pledged by D5 is the residential premises, jointly owned by D5 and his wife and there never was an intention to sell the property.

11. D3 and D4 state in their written statement that, they are adopting the statements offered by D2. All the defendants are uniform in their statements that, the applicant is making false and frivolous contentions on the basis of unreliable claims, and request to dismiss the application. As stated above, as pleadings in written statement will not be sufficient to consider the matter as substantiated by defendants, the only possible course now open to the Tribunal is, to proceed in the matter accepting the written arguments and contentions of the applicant.

12. Perusal of the roznama from filing of the written statement shows that nothing is offered by defendants to substantiate their pleadings in any manner. Since 09.12.2021, though the Tribunal had posted for filing written arguments by both sides, no written arguments have been filed by defendants till date. It is seen that the defendants had remained absent without any representation for them on all the subsequent posting dates.

13. Mere pleadings in the written statement filed by defendants will not be evidence or matter that can be considered by the Tribunal to dispose off the matter. It was for the defendants to satisfy the Tribunal as to how their pleadings in the written statement can be substantiated.

14. Nothing in that direction is seen attempted by defendants despite the repeated postings given by the Tribunal on 27.05.2022, 30.08.2022, 02.12.2022, 16.12.2022, 01.09.2025 and 01.10.2025. On all these posting dates the defendants had remained absent without any representation.

15. The applicant filed an affidavit (exhibit-29) in lieu of examination in chief through Mr. G. K. Sudhakar Rao, 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-39.

16. Accordingly, the Original Application was filed for the recovery of Rs.32,03,95,159/- under Term Loan with further interest @15.50% p.a alongwith @2% penal interest and other expenses for the period from the date of filing of this T.O.A. till payment/realization.

17. 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.

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

19. Hence, the following order is passed:

ORDER

- a. T.O.A. stands allowed with cost and the Defendant No. 1 to 5 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.32,03,95,159/- under Term Loan with further interest @15.50% p.a alongwith @2% penal interest 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 the movable and immovable properties of the Defendants.

- b. 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 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.

- 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 :26.05.2026.

(Dictated to my Stenographer, transcribed by him corrected and signed by me and pronounced in open forum on 26.05.2026)

Place:- Mumbai Date:- 26.05.2026

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