CENTRAL BANK OF INDIA vs A.K. PACKAGING INDUSTRIES on 10 August 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.7,02,47,926.16/- 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 Cash Credit (hypothecation) Facility of Rs.5,00,00,000/- sub limit within Cash Credit ODBD Facility of Rs.1,00,00,000/- vide the sanction letter dated 31.03.2012 as specified in para no.5.3 of the Transfer Original Application and on them executing loan and security documents.

3. 3. Defendants create hypothecation of all the stocks, goods, machineries, shed and equipments and also mortgaged the properties viz., Plot No. 31-L, MIDC Chikalthana Industrial Area, Chikalthana, Aurangabad - 431 210 (hereinafter for brevity's sake referred to and described as the "said Plot No. 31-L") and all part of parcel of Bunglow No. M-10, N-5-M, CIDCO, Near Bajrang Chowk, Aurangabad - 431 001

(hereinafter for brevity's sake referred to and described as the "said Bunglow") in favour of the Applicant to secure the loan.

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 in it to be declared as NPA on 30.04.2013.

2. 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.

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 27.05.2015. Defendants were duly served with the summons for appearance on 30.09.2015 and 13.11.2017 through paper publication.

4. 7. On 17.04.2018 Defendant No.1 to 6 were set at ex-parte and on 14.05.2018, Defendant No.1, to 5 filed vakalatnama and filed IA No.276 of 2018 for setting aside ex-parte order. Apart from filing the said petition, subsequently, after 14.05.2018 to till date there was no representation of defendants at any point of time on the said IA 276 of 2018. So ~~that~~ said petition as IA 276 of 2018 is not being considered. As stated above, no contentions are urged by defendants on the said IA 276 of

2018 at any point of time, till date on their contentions in the petition. So the said petitions as IA 276 of 2018 is dismissed.

1. 8. The applicant filed an affidavit (exhibit-13) in lieu of examination in chief through Mr. Duryodhan Muriduiya, Manager of the bank, had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-17.

2. 9. Accordingly, the Transfer Original Application was filed for the recovery of Rs.7,02,47,926.16/- with further interest @13.75% p.a. with monthly rests and @2% p.a. Penal interest and other expenses for the period from the date of filing of this O.A. till payment/realization.

3. 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.

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

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

A handwritten signature or mark, possibly initials, written in black ink. It consists of a vertical line with a horizontal stroke across it, and a diagonal line extending from the bottom right towards the top right.

ORDER

a. T.O.A. stands allowed with cost and the Defendant No. 1 to 6 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.7,02,47,926.16/- with further interest @13.75% p.a. with monthly rests and @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 goods and mortgage properties viz., Plot No. 31-L, MIDC Chikalthana Industrial Area, Chikalthana, Aurangabad - 431 210 and all part of parcel of Bunglow No. M-10, N-5-M, CIDCO, Near Bajrang Chowk, Aurangabad - 431 001 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 :10.08.2026.

(Dictated to my Stenographer, transcribed by him corrected and signed by me and pronounced in open forum on 10.08.2026)

Place:- Mumbai Date:- 10.08.2026

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