STATE BANK OF INDIA vs The Official Liquidator of Max Energy Ltd. on 21 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.13,25,85,260.61/- 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 a Credit Facilities of Rs.14.15 Crores vide the sanction letter dated 08.03.2005 and subsequently the said facilities renewed/enhanced from the existing aggregate limit of Rs.14.15 Crores to Rs.19.10 Crores vide sanction letter dt.24.08.2005, and also the said facilities are renewed from the existing aggregating limit of Rs.19.10 Crores to Rs.19.80 Crores vide sanction letter dt.07.10.2006 the detail as under; and as specified in para no.5.4, 5.7 and 5.13 of the Transfer Original Application and on them executing loan and security documents.

(in Crores)

<table border="1"><thead><tr><th>Limits</th><th>Existing</th><th>Proposed</th></tr></thead><tbody><tr><td>DCC (Stocks &amp; Book Debts)</td><td>1.90</td><td>2.75</td></tr><tr><td>Sublimit DCC (Book-Debts)</td><td>(1.10)</td><td>(1.60)</td></tr><tr><td>Term Loan I</td><td>2.50</td><td>2.50</td></tr><tr><td>Term Loan II</td><td>2.75</td><td>2.75</td></tr></tbody></table>

<table border="1"> <tr> <td>Term Loan New</td> <td>—</td> <td>3.10</td> </tr> <tr> <td>Letter of Credit<br/>(Import/Inland)</td> <td>0.50</td> <td>1</td> </tr> <tr> <td>Bank Guarantee</td> <td>0.50</td> <td>1</td> </tr> <tr> <td>One Time BG</td> <td>6</td> <td>6</td> </tr> <tr> <td>Total</td> <td>14.15</td> <td>19.10</td> </tr> </table>

3. Defendants created hypothecation and mortgaged the properties viz.,

1. a. All the current Assets such as stock of raw materials, finished goods and packing material and other inventories belonging to defendant No.1 and all other movables, both and present and future and other assets lying and being at the premises, godowns of the Defendant No.1 at Nashik or any where else.

2. b. All moveable Assets including Plant and Machinery, plant equipments, Bills Receivables and Book-Debts receivables etc and book debts/receivables (present and future)

3. c. Flat No.26, situated at Rupeshree Apartment, Dindori Road, at Nashik CTS No.6065+6066+ 6067+ 6069+ 6070+ 6071+6072 admeasuring 960 Sq. Ft.

4. d. Flat No.28, situated at Rupeshree Apartment, Dindori Road, at Nashik CTS No.6065+ 6066 + 6067+6069+ 6070+ 6071+6072 admeasuring 885 Sq. Ft.

5. e. Immoveable property being all that piece and parcel of Lease hold land & building situated lying and being at

Village Makhamalabad, Taluka and District Nashik bearing Survey No.30/3/2 admeasuring 16750 sq.meters within the limits of Nashik Municipal Corporation.

f. Shop No.1 admeasuring 600 sq.ft in the Building "Vijay Avenue Apartment" situated at Bhadrakali Market, Nasik-422 009 constructed on Plot bearing C.T.S.No.2027-C and 2026-A, within the local limits of Nashik Municipal Corporation.

g. Shop No.2 admeasuring 600 sq.ft in the Building "Vijay Avenue Apartment" situated at Bhadrakali Market, Nasik-422 009 constructed on Plot bearing C.T.S.No.2027-C and 2026-A, within the local limits of Nashik Municipal Corporation.

h. PROPERTIES BELONGING TO DEFENDANT NO.4: "All that piece and parcel of land bearing Plot No.254, Survey No.31/3, A/254 of Village Makhamalabad, Dist Nashik) within the village limits of Makhamalabad. Dist. Nashik and within Registration and Sub Registration Dist. Nashik admeasuring 343.00 sq. meters or thereabout."

i. PROPERTIES BELONGING TO DEFENDANT NO.5: "All that piece and parcel of Non Agricultural land bearing S.No.938/4 (formerly known as 1201/4) within the village limits of Sinnar and Tal. Sinnar, Dist. Nashik and within Registration and Sub Registration Dist. Nashik admeasuring 6 H. 55 R or thereabout."in favour of the Applicant to secure the loan.

4. It is further stated by the Applicant that they release the mortgage created by the Defendant no.1 of Company's properties i.e Defendant No.1. Applicant Bank vide release deed dt.18.04.2007 released the mortgage of following properties upon repayment of Rs.7.80 Crores against the term loan facility sanctioned to Defendant No.1.

- a. Properties bearing- Plot No.F-23, MIDC and Plot No.F-24 MIDC, Satpur, Nashik Industrial Area.

- b. Land bearing Plot No.4 & 5 in Nashik Industrial Area Village Satpur within the limits of Nashik and

- c. Plot No.5/1 in Nashik Industrial Area Village- Satpur, within the limits of Nashik and Satpur Area.

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 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

21.01.2011. Defendant No.1 to 5 were duly served with the summons for appearance on 22.03.2011 and transfer notice through paper publication 29.08.2024 despite receipt of summons and transfer notices, the defendants did not appear. Though the Vakalatnama filed by the D2 on 13.05.2011 thereafter no one is appearing for D2 till date. They had remained absent without any representation for them and so, they were set at exparte.

8. The applicant filed an affidavit (exhibit-90) in lieu of examination in chief through Mr. Milind S. Hardikar, Chief Manager of the bank, had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-96.

9. Accordingly, the Transfer Original Application was filed for the recovery of Rs.13,25,85,260.61 with further interest @12.75% p.a. monthly rests and other expenses for the period from the date of filing of this O.A. till payment/realization.

10. 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.

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

12. Hence, the following order is passed:

ORDER

a. T.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.13,25,85,260.61 with further interest @12.75% 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 hypothecated goods and stocks and mortgage properties viz.,

1. i. Flat No.26, situated at Rupeshree Apartment, Dindori Road, at Nashik CTS No.6065+6066+ 6067+ 6069+ 6070+ 6071+6072 admeasuring 960 Sq. Ft.

2. ii. Flat No.28, situated at Rupeshree Apartment, Dindori Road, at Nashik CTS No.6065+ 6066 + 6067+6069+ 6070+ 6071+6072 admeasuring 885 Sq. Ft.

3. iii. Immoveable property being all that piece and parcel of Lease hold land & building situated lying and being at Village Makhamalabad, Taluka and District Nashik bearing Survey No.30/3/2 admeasuring 16750 sq.meters within the limits of Nashik Municipal Corporation.

- iv. Shop No.1 admeasuring 600 sq.ft in the Building "Vijay Avenue Apartment" situated at Bhadrakali Market, Nasik-422 009 constructed on Plot bearing C.T.S.No.2027-C and 2026-A, within the local limits of Nashik Municipal Corporation.

- v. Shop No.2 admeasuring 600 sq.ft in the Building "Vijay Avenue Apartment" situated at Bhadrakali Market, Nasik-422 009 constructed on Plot bearing C.T.S.No.2027-C and 2026-A, within the local limits of Nashik Municipal Corporation.

- vi. PROPERTIES BELONGING TO DEFENDANT NO.4: "All that piece and parcel of land bearing Plot No.254, Survey No.31/3, A/254 of Village Makhamalabad, Dist Nashik) within the village limits of Makhamalabad. Dist. Nashik and within Registration and Sub Registration Dist. Nashik admeasuring 343.00 sq. meters or thereabout."

- vii. PROPERTIES BELONGING TO DEFENDANT NO.5: "All that piece and parcel of Non Agricultural land bearing S.No.938/4 (formerly known as 1201/4) within the village limits of Sinnar and Tal. Sinnar, Dist. Nashik and within Registration and Sub Registration Dist. Nashik admeasuring 6 H. 55 R or thereabout." and in case of shortfall, the same shall be recovered from the A handwritten signature or scribble is located at the bottom right of the page. It consists of several overlapping, somewhat angular lines that form a stylized, abstract shape, possibly a signature or a mark.

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 immovable 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 :21.05.2026.

(Dictated to my Stenographer, transcribed by him corrected and signed by me and pronounced in open forum on 21.05.2026)

Place:- Mumbai Date:- 21.05.2026

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