CENTRAL BANK OF INDIA vs TECHNOMAG CONCAST PVT LTD on 8 May 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 1993 Act’) to recover ₹5,26,26,473/- (Rupees Five Crores Twenty-Six Lakhs Twenty-Six Thousand Four Hundred Seventy-Three Only) with future interest @ 13.25% (at present @ 14.70% ) per annum thereon from the date of presentation of the Transferred Original Application i.e. 03.05.2016 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. am ou nt inclusiv e of appli cab le i nterest

Credit Faci lit y ₹5,26, 26,473/ -

Total A m ou nt ₹5,26,2 6,47 3/-

It is undisputed fact in the matter that the Defendant nos.1 and 2 were duly served with the summons vide order-sheet dated 18.07.2017. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 16.11.2021.

Defendant no.1 is the principal borrower who approached the Applicant Bank and sought financial assistance by way of Credit Facility wherein Defendant no.2 and 3 are the promoters, directors and guarantors of the defendant no.1 company. Pursuant to the loan application made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 29.08.2012 in sum of ₹1,00,00,000/- (Rupees One Hundred Lakhs Only) payable with interest at the rate of Base rate + 1% (10.50 + 1 = 11.50%) under CENT SAHYOG.

The details of the Sanction amount are as under: - Sr No Date of Sanction Amount ROI Secu rity Collateral

29.08. 2012 ₹1,00, 00,000/ - Base rate + 1% (10.50 + 1 = 11.50% ) un der CENT SAHYOG. Hy pothecati o n of Entir e Stock, WIP, Tool, Tackles an d Book- debts, Inventori es, Machin ery, Receivables, Advance t o the Supplier s. The sai d l oan is cover ed un der CGTMS E Scheme.

Total Amount ₹1,00,0 0,00 0/- - - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. V (5) to (9) of the Original Application. Defendants hypothecated Entire Stock, WIP, Tool, Tackles and Book-debts, Inventories, Machinery, Receivables, Advance to the Suppliers and mortgaged Unit No.1007, 10th floor, Crescent Royale, Off. New Link Road, B/68, Veer Industrial Estate, Oshiwara, Andheri (West), Mumbai-400

to secure the loan.

The details of the documents executed by the Defendants are as under: - (a) Sanction letter dated 29.08.2012;

(b) Extract of Resolution passed by the board of directors at its meeting held on 24.07.2012;

(c) Agreement of hypothecation (plant & machineries, book-debts and other movable assets) dated 29.08.2012;

(d) Demand Promissory Note dated 29.08.2012;

(e) Letter of Continuity for Demand Promissory Note dated 29.08.2012;

(f) Letter of Waiver for Presentment of Demand Promissory Note dated

29.08.2012;

(g) Consent Clause in Loan Agreement dated 29.08.2012;

(h) Sanction Letter dated 29.03.2013;

(i) Extract of Resolution passed by the board of directors at its meeting held on 30.03.2013; (j) Memorandum of Entry dated 30.03.2013;

(k) Agreement of Hypothecation dated 30.03.2013;

(l) Agreement of Book-debts dated 30.03.2013;

(m) Demand Promissory Note dated 30.03.2013;

(n) Letter of Continuity dated 30.03.2013;

(o) Letter of Waiver dated 30.03.2013;

(p) Supplementary Agreement dated 30.03.2013;

(q) Assignment of Book-debts executed by the defendant no. dated 30.03.2013;

(r) Form of Guarantee for advances & credits dated 30.03.2013;

(s) Consent Clause in the loan documents to be executed by borrower dated 30.03.2013.

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 29.06.2014 as per RBI Guidelines. Therefore, on 07.03.2015, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹47,78,883.65/- (Rupees Forty-Seven Lakhs Seventy-Eight Thousand Eight Hundred Eighty-Three and paisa Sixty-Five Only) with further applicable interest within 7 days from receipt of this notice. Despite notice, defendant nos. 1 to 3 failed and neglected to pay.

The Applicant further states that the applicant had issued 13(2) read with Rule of the SARFAESI Act, 2002 notice on 28.08.2014 and a possession notice on 22.12.2014 and had taken the physical possession of the said property on 09.03.2015.

As on 03.05.2016, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹5,26,26,473/- (Rupees Five Crores Twenty-Six Lakhs Twenty-Six Thousand Four Hundred Seventy-Three Only) with future interest @ 13.25% (at present @ 14.70% ) 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 Original Application which was presented on 03.05.2016.

The applicant has filed affidavit (exhibit-30) in lieu of examination in chief of Mr Swapna Kumar Das, Authorised Officer and list of documents (exhibit-31) thereby adducing in evidence the documents at AW-1 to AW-26, which are admitted in evidence, read, recorded and exhibited.

Accordingly, in the Original Application was filed for the recovery of ₹5,26,26,473/- (Rupees Five Crores Twenty-Six Lakhs Twenty-Six Thousand Four Hundred Seventy-Three Only) with future interest @ 13.25% (at present @ 14.70% ) per annum thereon from the date of presentation of the Original Application i.e. 03.05.2016 till payment/realisation.

The Applicant states in their Claim Affidavit dated 08.08.2022 (Exhibit-30) and in their Further Claim Affidavit on behalf of the Applicant dated 09.08.2023 (Exhibit-32) that the abovementioned mortgaged property i.e. Flat No.1007, 10th floor, Crecent Royale, Oshiwara, Veera Desai Road, Andheri (West), Mumbai-400 053 was sold for an amount of ₹1,06,25,000/- (Rupees One Crore Six Lakhs Twenty-Five Thousand Only) on 31.08.2016

in e-auction to the highest auction purchasers namely Ms Shaila Tanna and Mr Subhash R Choudhary. After appropriation a sum of ₹4,20,01,473/- (Rupees Four Crores Twenty Lakhs One Thousand Four Hundred Seventy-Three Only) is due and payable.

The Tribunal has scrutinised and examined the allegations contained in the 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 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, Original Application filed by the applicant deserves to be allowed.

Hence, the following order:

ORDER

(A) The Original Application No.1223 of 2016 in Original Application No.613 of 2016 is allowed with costs. (B) Defendant nos.1 to 3 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹5,26,26,473/- (Rupees Five

Crores Twenty-Six Lakhs Twenty-Six Thousand Four Hundred Seventy-Three Only) with future simple interest @ 12% per annum thereon from the date of presentation of the Original Application i.e. 03.05.2016 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 T.O.A. No.1223 of 2016. (C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Entire Stock, WIP, Tool, Tackles and Book- debts, Inventories, Machinery, Receivables, Advance to the Suppliers. (D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged immovable property, that is, Unit No.1007, 10th floor, Crescent Royale, Off. New Link Road, B/68, Veer Industrial Estate, Oshiwara, Andheri (West), Mumbai-400 053. (E) Defendant nos.1 to 3 are entitled to redeem the mortgaged and hypothecated properties as per law failing which the applicant has right to proceed to sell the mortgaged and hypothecated properties and recover dues as per law. (F) The Applicant is also hereby directed to submit the details of claim amount received from the Central Government since the facility is granted under CGTMSE Scheme. (G) Issue Recovery Certificate. (H) 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.

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