ASREC India Limited vs Transactional Documents India Pvt. Ltd. on 29 August 2025

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.2,47,53,630/- with future interest thereon from the date of presentation of the Original Application till payment/realization and to enforce the mortgaged securities.

2. 2. The Defendants were granted a Cash Credit of Rs.3 Crores, Term Loan-I of Rs.5.96 Crores and Term Loan-II of Rs.3 Crores aggregating a sum of Rs.11.96 Crores as specified in para no. E-(i) of the Transfer Original Application and on them executing loan and security documents.

3. 3. Defendants created a hypothecation of goods and assets on 26.07.2005 and the same is mentioned in Annexure-A of the Transfer Original Application to secure the loan. Defendant Nos. 2 and 3 are the Directors inter alia Guarantors of the Defendant no.1 company, and Defendant No. 4 extended its corporate guarantee securing the credit facilities sanctioned in favour of Defendant No.1.

4. Applicant stated that on 10.11.2006, on the request of Defendant No.1 the repayment schedule of the term loan was realigned and a revised repayment schedule as well as interest rates were issued and accepted and also on request of the Defendant No.1 on 03.04.2007 the applicant bank renewed the cash credit limit.

5. Applicant also stated that on 13.03.2009, the FBWC limit was converted into a WCTL in furtherance of which a fresh agreement of hypothecation was executed on 29.10.2009. The three existing term loan accounts of the defendant no.1 were clubbed and consolidated into a single facility on 30.12.2010.

6. 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 31.05.2011.

7. Since 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 24.12.2013. Defendant Nos.1 to 4 were duly served with the summons for appearance on 10.09.2024. Despite receipt of summons, the defendants did not appear. They had remained absent without any representation for them and so, they were set at exparte.

8. Despite issuance of letters, personal visits, telephonic conversation and reminders the Defendants have failed to regularise the account. So the Applicant had caused the issuance of lawyer notice dt.01.11.2013 to Defendants to pay up the dues with interest.

9. The applicant filed an affidavit (exhibit-15) in lieu of examination in chief through Harshad Garuda, Authorised Officer of the bank, had produced documents, which were admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-18.

10. Accordingly, the Transfer Original Application was filed for the recovery of Rs.2,47,53,630/- with further interest @ 15.75% p.a. and other expenses for the period from the date of filing of this T.O.A. till payment/realization.

11. A scrutiny of the averments in the 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.

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

13. Hence, the following order is passed:

ORDER

- a. T.O.A. stands allowed with cost and the Defendant No. 1 to 4 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.2,47,53,630/- with further interest @ 15.75% 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 assets as per annexure-A of the Transfer Original Application 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 immoveable assets for the purpose of attachment and sale for realizing the shortfall, if any.

- c. Let a Recovery Certificate be issued with 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 A handwritten signature or mark in blue ink, consisting of a stylized 'J' or 'U' shape followed by a long diagonal stroke extending towards the bottom right.

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 record room.

- f. Give under my hand and the seal of this Tribunal on this date : 29.08.2025.

Place:- Mumbai Date:- 29.08.2025

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