CANARA BANK vs M/S.BHASKAR MILK & MILK PRODUCTS on 28 April 2026

J U D G M E N T

This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the

Act’) to recover aggregate sum of ₹9,82,57,309.00/- (Rupees Nine Crores Eighty- Two Lakhs Fifty-Seven Thousand Three Hundred Nine Only) wherein a sum of ₹8,63,97,104/- (Rupees Eight Crores Sixty-Three Lakhs Ninety-Seven Thousand One Hundred Four Only) is due with future interest @ 17.95% per annum plus penal interest @ 2% per annum under the OCC Facility and a sum of ₹1,18,60,205.00/- (Rupees One Crore Eighteen Lakhs Sixty Thousand Two Hundred Five Only) under Term Loan is due with future interest @ 16% per annum plus penal interest @ 2% per annum thereon from the date of presentation of the Transferred Original Application i.e. 22.04.2014 till payment/realization and to enforce the hypothecated and mortgaged securities.

The details of the claim amount are as under:- Sr No Nature of Facility O/s. amount Uncharged interest from 01.04.2014 to 21.04.2014 Penal interest @ 2% per annum Total Amount

OCC/OB D & ADHOC CREDIT A/c. ₹8,54,16,68 5.00/- ₹8,82,132.0 0/- ₹98,287.00 /- ₹8,63,97,104.0 0/-

Term Loan ₹1,17,10,05 9.00/- ₹1,33,463.0 0/- ₹16,683.00 /- ₹1,18,60,205.0 0/-

Total Amount - - - ₹9,82,57,309. 00/-

It is undisputed fact in the matter that the Defendant nos.1 and 2 were duly served with the summons vide order-sheet dated 26.10.2015. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 25.06.2025.

Defendant no.1, a proprietor acting through its proprietor i.e. defendant no.2 are the borrowers who approached the Applicant Bank seeking financial assistance by way of OCC/OBD & ADHOC Credit and Term Loan Facilities. Pursuant to the loan application made by defendants, the

Applicant sanctioned the loan vide Sanction Letter dated 10.07.2009 bearing Ref. No.CBCM/ADV/CR-2010 in sum of ₹5,00,00,000/- (Rupees Five Crores Only) under OCC/ODBD Credit Facility and a sum of ₹1,83,75,000/- (Rupees One Crore Eighty-Three Thousand Seventy-Five Thousand Only) payable with interest at the rate of 13.25% per annum. The entire Term Loan to be repaid in 72 monthly installments Moratorium period of 6 months. Repayment to start from February 2010 and 71 monthly installments of ₹2,55,210.00/- per month and last installment of ₹2,55,090.00/-. On 25.06.2010, a sum of ₹1,00,00,000/- payable with interest @ 15.25% per annum (floating) under Adhoc Limit. Further, time and again the said loan was enhanced.

The details of the Sanction amount are as under:- S r N o Date o f Sanction Nature of Facility Amo unt ROI Security Col lateral

10.07 .20

OCC /ODB D Credit Fac ility ₹5,00 ,00 ,000 /- 13 .25 % per annum H ypothecatio n of stock and inve ntories H ypothecatio n of entire Book Debts. A ge of Book debts-not to exceed days EMT of proper ty s ituated at Pro perty No 1513, Final Plo t No 161 , D warka Restaurant Ne ar S.T. Bus stand, Old Panvel Dist. Raigad ad measuring 2484.33 sq. feet, out of super Built-up ar ea is 18 02 sq. fee t and unutilised FSI is sq. fee t v alued at ₹516 .17 lac s as per valuation repor t.

Ter m Loan ₹1,83 ,75 ,000 /- 13 .50 % per annum H ypothecatio n of Plant & Machiner y to be acquired and now EMT of proper ty s ituated at Proper ty No 1513 . Final Plot No 161 , D warka Restaurant Near ST.

m achiner ies from proposed Term loan, v alued at ₹229 .27 lak hs (₹183 .27 lak hs + ₹ 46 .00 lak hs) As per v aluation repor t dated 06 .07 .2009 ;

EMT of land and Factor y Bu ild ing s ituated at Gut No 1381 , o f Pos t P ingali Taluka -Man D ist Satara, ad measuring

Gunthe land with build ing , P lant & Machiner ies, built up ar ea RCC 4636 .03 s q. feet and Non RCC 720.00 sq. fe et, total 5356.03 sq. fe et valued ₹66.07 lak hs as per v aluation repor t dated 06 /07/2009 Bus stand, Old Panvel Dist. Raigad ad measuring 2484.33 sq. fe et out of super Built-up ar ea is 1802 s q fee t and unutilised FSI is s q. fee t, v alued at ₹516 .17 lak hs as per v aluation repor t

To tal Amo unt - ₹ 6, 83,7 5,000 /- - - -

25.06 .20

Ad hoc ODBD limit ₹1 cror e 15 .25 % per annum (floati ng) - -

To tal Amo unt - ₹ 1 crore - - -

31.03 .20

OCC /ODB D ₹5,00 ,00 ,000 /- 13 .50 % per annum floatin g Pr ime For Working Cap ital:

1 .Hypothecati on of Stock and Book Deb ts valued at ₹118904 lac s / BD only as per Stock & BD Statemen at 28-2 2011 .

Pr ime- T erm Loan i.Hypothecati on of Plant and Machiner y v alued at Rs :18327 per VR d t. 06 .7.2009

2 .EMT of 1 . Continuing EMT of proper ty No 1513. Final Plot No.161 D warka Restaur ent. Ne ar ST Bus Stand O ld P anvel Dist Raig ad admeasuring 2484.33 sq. feet and u nutilized FSI is so feet s tanding in the name of Mr . Kapil D. Raiput valued at ₹ 406 40 lak hs as per v aluation repor t s ecur ity for M /S D warka M ilk & Milk Produc t of Ranade and As soc iates dated 31-07-2009 (com mon Pvt. Ltd.) 21.

2 .Pr imar y Secur ity to T erm Loan s hall continue as continuing collateral s ecur ity to WC lim it

Land & F actor y Bu ild ing s ituated at Gat No. 1381 , at Po Pinguli Tal Man Dis t Satara ad measuring

Gunthe land w build ing Bu lt on Area RCC 4636.03 so fe et and Non RCC

Et v alued at Re G R 07 lac s as Per v aluation repor t dated 06-07-2009 . and v ice ver sa.

Ter m Loan Present liability of ₹1,33 ,41 ,00,000/ - to continue till cle aranc e. - - -

To tal amoun t - ₹ 6, 33,4 1,00,00 0/- - - -

04.01 .20

OCC /ODB D ₹5,00 ,00 ,000 /- 14 .75 % per annum (BR + 4%) I .E. 10 .75 +4 .00) floatin g . For Working Cap ital:

H ypothecatio n of Stock and Book Deb ts valued at ₹1189 .94 lac s (BD only) as per Stock & BD Statement as at 28 .2 .2011.

Continuing EMT of proper ty No. 1513, F inal Plot No. 161, D warka Res taur ant, Ne ar S.T. Bus Stand, O ld P anvel, Dis t. Raig ad admeasuring 2484.33 sq. feet and u nutilized FSI is sq. feet s tanding in the name of Mr . Kapil D. Rajput valued at ₹406 .40 lak hs as p er v aluation repor t of Ranade and Associate s d ated 31- 07-2009 . (common s ecur ity for M /S D warka M ilk & Milk Produc t P vt. Ltd .)

Ter m Loan ₹107 .89 Liability to continue till cle aranc e @ 14 .75

per annum (Bas e rate + 4 .11 i.e. 10 .75 + 4 .00) floatin g . For T erm Loan

1 .Hypothecati on of Plant and Machiner y v alued at ₹183 .27 Lac as per VR d t.06 .7.2009 .

2 .EMT of Land & F actor y Bu ild ing s ituated at Gat No. 1381 , at Pos t P inguli, Tal. Man, Dis t. Satara, ad measuring

Gunthe land with build ing , Bu ilt up Ar ea RCC 4636 .03 s q fee t and

Non RCC 720 s q F t valued at ₹66 .07 lac s as Per v aluation repor t dated 06-07-09.

To tal Amo unt - ₹ 607. 89 /- - - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5 (iii) to (xxiii) of the Transferred Original Application. Defendants hypothecated stock and inventories and entire Book Debts (Age of Book debts-not to exceed 90 days) and Plant & Machinery to be acquired and now machineries from proposed Term loan, valued at ₹229.27 lakhs (₹183.27 lakhs + ₹46.00 lakhs) As per valuation report dated 06.07.2009 and Stock and Book Debts valued at ₹1,18,904/- BD only as per Stock & BD Statement at 28-2 2011 and Hypothecation of Plant and Machinery valued at ₹183.27 Lakhs as per VR dated 06.07.2009 and Hypothecation of Stock and Book Debts valued at ₹1189.94 lakhs (BD only) as per Stock & BD Statement as at 28.02.2011 and mortgaged Land and Factory building at Gat No.1381 at Post Pingali Taluka Man, District Satara admeasuring 87 gunte land with building Plant & Machinery, built up area RCC 46.36.03 sq. ft. and non RCC 720 sq. ft. total 5356.03 sq. ft. and Property No.1513, Plot 161, Dwarka Restaurant, Near S.

T. Bus Stand, Old Panvel District Raigad admeasuring 2484.33 sq. ft. out of Super built up area in 1802 sq. ft. and unutilized FSI is 1079 sq. ft. to secure the loan.

The details of the documents executed by the Defendants are as under:- (A) Sanction Lette dated 10.07.2009; (B) Request for Overdraft facilities dated 20.08.2009; (C) Pronote dated 20.08.2009; (D) Deed of Hypothecation RE: Machinery dated 05.05.2010; (E) Term Loan Agreement dated 27.12.2010; (F) Common Hypothecation Agreement dated 20.08.2009; (G) Letter of Undertaking re: Loans/Advances dated 20.08.2009; (H) Simple Mortgage Deed dated 25.11.2009; (I) Sanction Letter dated 25.06.2010; (J) Pronote dated 25.06.2010; (K) Letter dated 25.06.2010; (L) Link Letter dated 25.06.2010; (M) Supplemental Hypothecation common Hypothecation Agreement dated 25.06.2010; (N) Sanction letter dated 31.03.2011; (O) Request of Overdraft facility dated 27.04.2011;

(P) Letter of Renewal dated 27.04.2011; (Q) Acknowledgement of Debt dated 27.04.2011; (R) Sanction Letter dated 04.01.2012; (S) Letter of Renewal dated 05.01.2012; (T) Acknowledgement of debts dated 11.01.2012; (U) Request for Overdraft facility dated 05.01.2012; (V) Pronote dated 05.01.2012; (W) Undertaking dated 05.01.2012; (X) Supplemental Hypothecation common Hypothecation Agreement dated 05.01.2012; (Y) Guarantee Agreement dated 05.01.2012; (Z) LEDTD be used where additional limit created on the very security already mortgaged by Kapil S Rajput dated 02.08.2012; (AA) LEDTD be used where additional limit created on the very security already mortgaged by M/s Dwarka Milk & Milk dated 02.08.2012.

After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 28.05.2012 as per RBI Guidelines. Therefore, on 11.03.2014, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹9,55,51,675.00/-

(Rupees Nine Crores Fifty Lakhs Fifty-One Thousand Six Hundred Seventy-Five Only) as on 09.03.2014 and further interest from 01.03.2014 till payment and/or realization within 7 days from receipt of this notice. Despite notice, defendant nos. 1 and 2 failed and neglected to pay.

As on 21.04.2014, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹9,82,57,309.00/- (Rupees Nine Crores Eighty-Two Lakhs Fifty-Seven Thousand Three Hundred Nine Only) wherein a sum of ₹8,63,97,104/- (Rupees Eight Crores Sixty-Three Lakhs Ninety-Seven Thousand One Hundred Four Only) is due with future interest @ 17.95% per annum plus penal interest @ 2% per annum under the OCC Facility and a sum of ₹1,18,60,205.00/- (Rupees One Crore Eighteen Lakhs Sixty Thousand Two Hundred Five Only) under Term Loan is due with future interest @ 16% per annum plus penal interest @ 2% per annum thereon. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Transferred Original Application which was presented on 22.04.2014.

The applicant has filed affidavit (exhibit-11) in lieu of examination in chief of Ms Nilam, Manager and list of documents (exhibit-12) thereby adducing in evidence the documents at AW-1 to AW-34, which are admitted in evidence, read, recorded and exhibited.

Accordingly, in the Transferred Original Application was filed for the recovery of recover aggregate sum of ₹9,82,57,309.00/- (Rupees Nine Crores Eighty-Two Lakhs Fifty-Seven Thousand Three Hundred Nine Only) wherein a sum of ₹8,63,97,104/- (Rupees Eight Crores Sixty-Three Lakhs Ninety-Seven Thousand One Hundred Four Only) is due with future interest @ 17.95% per annum plus penal interest @ 2% per annum under the OCC Facility and a sum of ₹1,18,60,205.00/- (Rupees One Crore Eighteen Lakhs Sixty Thousand Two Hundred Five Only) under Term Loan is due with future interest @ 16% per annum plus penal interest @ 2% per annum thereon from the date of presentation of the Transferred Original Application i.e. 22.04.2014 till payment/realisation.

The Tribunal has scrutinised and examined the allegations contained in the Transferred Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

Upon careful scrutiny and the examination of the Transferred Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

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

Hence, the following order:

ORDER

(A) The Transferred Original Application No.1792 of 2016 in Original Application No.211 of 2015 is allowed with costs. (B) Defendant nos.1 and 2 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹9,82,57,309.00/- (Rupees Nine Crores Eighty-Two Lakhs Fifty-Seven Thousand Three Hundred Nine Only) wherein a sum of ₹8,63,97,104/- (Rupees Eight Crores Sixty- Three Lakhs Ninety-Seven Thousand One Hundred Four Only) is due with future simple interest @ 12% per annum under the OCC Facility and a sum of ₹1,18,60,205.00/- (Rupees One Crore Eighteen Lakhs Sixty Thousand Two Hundred Five Only) under Term Loan is due with future simple interest @ 12% per annum thereon from the date of presentation of the Transferred Original

Application i.e. 22.04.2014 till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002 or any other amount paid by the borrowers after filing of this Transferred Original Application No.1792 of 2016 in Original Application No.211 of 2015. (C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, stock and inventories and entire Book Debts (Age of Book debts-not to exceed 90 days) and Plant & Machinery to be acquired and now machineries from proposed Term loan, valued at ₹229.27 lakhs (₹183.27 lakhs + ₹46.00 lakhs) As per valuation report dated 06.07.2009 and Stock and Book Debts valued at ₹1,18,904/- BD only as per Stock & BD Statement at 28-2 2011 and Hypothecation of Plant and Machinery valued at ₹183.27 Lakhs as per VR dated 06.07.2009 and Hypothecation of Stock and Book Debts valued at ₹1189.94 lakhs (BD only) as per Stock & BD Statement as at 28.02.2011. (D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged immovable properties, that is, Land and Factory building at Gat No.1381 at Post Pingali Taluka Man, District Satara admeasuring 87 gunte land with building Plant & Machinery, built up area RCC 46.36.03

sq. ft. and non RCC 720 sq. ft. total 5356.03 sq. ft. and Property No.1513, Plot 161, Dwarka Restaurant, Near S. T. Bus Stand, Old Panvel District Raigad admeasuring 2484.33 sq. ft. out of Super built up area in 1802 sq. ft. and unutilized FSI is 1079 sq. ft. (E) Defendant nos.1 and 2 are entitled to redeem the hypothecated properties and mortgage properties as per law failing which the applicant has right to proceed to sell the hypothecated properties and mortgage properties and recover dues as per law. (F) Issue Recovery Certificate. (G) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

Sd/-

(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai