IDBI BANK vs M/s. Crystal Collection on 18 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.1,51,84,612/- with future interest thereon from the date of presentation of the Transfer Original Application till payment/realization.

2. 2. The Defendant no.1 was granted a Cash Credit Facility for a sum of Rs.35 Lakhs vide letter of intent dt.23.09.2008, Defendant No. 2 is the sole proprietor of Defendant No.1,

Defendant No.3 is the Guarantor. The applicant also enhanced Cash Credit Facility (Enhanced Facility-I) from Rs.35 Lakhs to Rs.70 Lakhs vide sanction letter dt.02.09.2009, again the applicant enhanced Cash Credit Facility (Enhanced Facility-II) from Rs.70 Lakhs to Rs.125 Lakhs vide sanction letter dt.17.09.2010. The applicant also renew cum restructure their working capital facility/revised of Cash Credit Facility from Rs.125 Lakhs to Rs.129 Lakhs (Cash Credit Limit of Rs.65 Lakhs, WCTL of Rs.60 Lakhs, & FITL of Rs.4 Lakhs) vide sanction letter dt.29.03.2014 as specified in para no.5.2, 5.3, 5.6, 5.10 & 5.18 of the Transfer Original Application and on them executing loan and security documents.

3. Defendants created the Hypothecation of Stocks, Office Equipments and Book Debts and created mortgage the property viz., Shop No.57A, on 1st Floor, adm. 10.26 sq. mtrs. (Built up area) of the building known as "Nakshtra", situated at Ranade Road, Dadar, Mahim Division, Mumbai, F.P. No. 50(Pt), in favour of the applicant to secure the loan.

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 30.06.2015.

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.

1. 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 27.05.2016. Defendants were duly served with the summons for appearance on 11.08.2017 and Transfer Notice on 03.11.2025. 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.

2. 7. The applicant filed an affidavit (exhibit-10) in lieu of examination in chief through Mr. Ajit Anand, Deputy General Manager of the bank, had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-57.

3. 8. Accordingly, the Transfer Original Application was filed for the recovery of Rs.1,51,84,612/- with further interest @12.40% p.a. 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.

4. 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, 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.1,51,84,612/- with further interest @12.40% 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, Office Equipments and Book Debts and mortgaged property viz., Shop No.57A, on 1st Floor, adm. 10.26 sq. mtrs. (Built up area) of the building known as "Nakshtra", situated at Ranade Road, Dadar, Mahim Division, Mumbai, F.P. No. 50(Pt), and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendants.

A handwritten signature, possibly initials, written in dark ink. It consists of a vertical stroke followed by a diagonal stroke that curves upwards and to the right.

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 :18.08.2026.

(Dictated to my Stenographer, transcribed by him, corrected and signed by me and pronounced in open forum on 18.08.2026).

Place:- Mumbai Date:- 18.08.2026

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