Debts Recovery Tribunals and Appellate Tribunals
BANK OF INDIA vs CLASSIC ENTERPRISES AND ORS on 31 July 2026
Date of filing : 01.02.2020
Decided on : 31.07.2026
**IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI
TRANSFER ORIGINAL APPLICATION NO. 373 of 2023**
BANK OF INDIA, a body Corporate
Constituted under the Banking Companies
(Acquisition and Transfer of Undertakings)
Act-1970, having their Head Office at Star House, C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400
051, and one of their Branch amongst
other known as Breach Candy Branch
situated at "Sky-Scraper", A, 4/679,
Bhulabhai Desai Road, Mumbai - 400 026,
through its Constituted Attorney Mr.
Brajesh Chandra) Chief Manager of the
Applicant.
...Applicant
VERSUS
1. M/S. CLASSIC ENTERPRISES A
Partnership Firm having address at ,2111, Bhandup Industrial Estate, Pannalal Compound, Bhandup (West), Mumbai -400
078.
2. MR. P.V. HARIHARANPUTHARAN S/o
Mr. Vishwanathan, Partner of M/s. Classic Enterprises having address at 501, Lok Nilgiri Everest CHS Ltd., J. S. Doosa Road, Mulund, Mumbai-400 080.
3. MS. SHAILA SAJU D/O of Mr.
Parmeshwar Nair Partner of M/s. Classic
Enterprises. having address at Swastik
Park, Village Road, Bhandup, Mumbai-
400 078.
...Defendants.
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Counsel for the Applicant : Advocate Prashant Shinde i/b Anant, Shinde and Co.
Counsel for the Defendants : NIL- Defendants Ex -parte
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J U D G M E N T
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.1,28,36,006.34/- with future interest thereon from the date of presentation of the Transfer Original Application till payment/realization.
1. 2. The Defendants were granted a Cash Credit Limit (Hypothecation of Stocks) of Rs.100 Lakhs and Cash Credit Limit (Hypothecation of Books Debts) of Rs.75 Lakhs maximum Aggregating to Rs.100 Lakhs vide sanction letter dt.30.12.2013 as specified in para no.5 (B) of the Transfer Original Application and on them executing loan and security documents.
2. 3. Defendants created the hypothecation of stocks of movable assets/Stock of raw materials and finished goods such as Metallic Joints, Heat Shrink Sleeves, Cable Accessories, Termination Kits Accessories, Book Debts etc. in favour of the applicant to secure the loan.
3. 4. Despite the undertaking effected, Defendants 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 14.11.2017.
4. 5. Despite issuance of letters, personal visits, telephonic conversation and reminders the Defendant has failed to regularise the account. So the Applicant had caused the issuance of lawyer notice to Defendants to pay up the dues with interest.
5. 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
01.02.2020. Defendants were duly served with the summons for appearance on 04.10.2021 and Transfer Notice on 29.04.2024. Despite receipt of summons and Transfer Notice, 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-17) in lieu of examination in chief through Mr. Manoj Kumar Chaudhary, 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-16.
2. 8. Accordingly, the Transfer Original Application was filed for the recovery of Rs.1,28,36,006.34/- with further interest @13.70% p.a. with monthly interest along with @2% p.a. penal interest 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 unrebutted, 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.
11. Hence, the following order is passed:
ORDER
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.1,28,36,006.34/- with further interest @13.70% p.a. along with @2% p.a. 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 hypothecated stocks of movable assets/Stock of raw materials and finished goods such as Metallic Joints, Heat Shrink Sleeves, Cable Accessories, Termination Kits Accessories, Book Debts etc and in case of shortfall, the same 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 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 :31.07.2026.
(Dictated to my Stenographer, transcribed by him, corrected and signed by me and pronounced in open forum on 31.07.2026).
Place:- Mumbai Date:- 31.07.2026
Presiding Officer, DRT-1, Mumbai (Sreekala Suresh)