STATE BANK OF INDIA vs M/S FLEET CONTAINER LINE PVT LTD on 16 June 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 ₹6,86,94,807.13/- (Rupees Six Crores Eighty-Six Lakhs Ninety-Four Thousand Eight Hundred Seven and paisa Thirteen Only) as on 11.05.2015 with future interest @ 3.75% above base rate with minimum of 13.75% per annum with monthly rest on Cash Credit, WCDL & TOD thereon from the date of presentation of the Transferred Original Application i.e. 12.05.2015 till payment/realization and to enforce the hypothecated and mortgaged securities.

The details of the claim amount are as under: - Sr N o Nat ure of Facil it ies O/s . as on 11.0 5.2 015 I nteres t @ 3. 75 % abo ve base ra te wi th m in im um o f 13.7 5% p e r annum w i th monthly res t from

01. 06.2 01 3 to 1 1.0 5.2 015 Tota l Amo unt

Cas h Credit (A/c. 3048 552

₹ 4,49, 99, 999 .68 /- ₹ 1,36, 61, 572 .78 /- ₹ 5,86, 61, 572 .46 /-

Working Capital Dema nd L oan F acility (A/c. 3282 143

₹ 60,00 ,000 .00 /- ₹ 18,19 ,026 .97 /- ₹ 78,19 ,026 .97 /-

TOD (A/c. 3308 545

₹ 16,99 ,092 .00 /- ₹ 5,15, 115 .70 /- ₹ 22,14 ,207 .70 /-

Tota l Amoun t - - 6,86, 94, 80 7.13 / -

It is undisputed fact in the matter that the Defendant nos.1 to 4 were duly served with the summons vide order-sheet dated 15.12.2021. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 04.12.2025.

Defendant no.1, a Private Limited Company through its Directors and Guarantors i.e. Defendant nos.2 and 3 are the principal borrowers who approached the Applicant Bank sought financial assistance by way of DCC (Working Capital) Facility. Pursuant to the loan application made by defendants, the Applicant sanctioned the loan vide Letter of Arrangement dated 09.09.2008 for a sum of ₹4,00,00,000/- (Rupees Four Crores Only) payable with interest at the rate of 15.25% per annum. As per Letter of Arrangement dated 25.05.2010 a sum of ₹3,00,00,000/- (Rupees Three Crores Only) payable with interest at the rate of 14.25% per annum. Further again on the request made by the defendants the applicant sanctioned further amounts as given in the table below.

The details of the Sanctioned amounts are as under: - S r N o D ate of Sanct ion Nat ure of Facil ity Amoun t R OI Secu ri ty Second ar y Secu ri ty

09.09 .20 08 DC C (Working Capital) F acility ₹ 4,00, 00, 000 /- @ 15.25 % p er annu m. Hyp otheca tion of Co mpa ny’s Bo ok. M ortgaged Flat N o.2 01, 2nd F lo or, Ele co n Arcade Premis es Socie ty Ltd ., Andheri (Eas t), Mumbai - 400 059 and Fl at No.3 01, 3rd F loor, Elec on Arcade Premis es Socie ty Ltd ., Andheri (Eas t), Mumbai - 400

059. Guarant eed by Mr B .S Ghaisa s, Mr. Vishw apriya Shriv astav a, Sumi Vishw apriya Shriv astav a .

Tota l amoun t - ₹ 4,00, 00,0 00 / - - - -

25.05 .20 10 DC C ₹ 3,00, 00, 000 /- @ 14.25 % p er annu m w ith mon t hly rests . Hyp otheca tion of Co mpa ny’s Bo ok deb ts, prese nt and future receiv ables and all other current asset s. M ortgaged Flat N o.2 01, 2nd F lo or, Ele co n Arcade Premis es Socie ty Ltd ., Andheri (Eas t), Mumbai - 400

059. Guarant eed by Mr. Vishw apriya Shriv astav a, Sumi Vishw apriya Shriv astav a and Mr Rav indra Bhat .

Tota l amoun t - ₹ 3,00, 00,0 00 / - - - -

19.04 .20 11 Cas h Credi t ₹ 4,50, 00, 000 /- @ 6.75 % abov e Base rate of 8.25 % eff ect iv e rate @ 15.00 % p er annu m. Hyp otheca tion charge ov er the units entire prese nt and future receiv ables , book- debt s claims and all other current asset s. EM of Off ice si tua ted at No.2 01, 2 n d floor , Elec on Arcade, M V Road, (A K Road), Andheri ( E) and Exte nsio n of EQM o f Fl at No.1 8A, 18 T H F loor , T hakur Village, Kandiv ali ( E), Mumbai.

Guarant eed by Mr. Vishw apriya Shriv astav a, Sumi Vishw apriya Shriv astav a , Mr Rav indra Bhat a nd Corp orat e Guarant ee of VTI C heru Pharma Pv t. Ltd .

Tota l amoun t - ₹ 4,50, 00,0 00 / - - - -

12.07 .20 11 Ho me L oan (Term L oan) ₹ 55,00 ,000 /- @ 11.75 % p er annu m floati ng rate of inter est Flat No.1 8A, on the 18th F loor adm sq. fts . Carpet area in Tow er N o. B of Vicer oy Park CHS Ltd at Thakur Village, Kandiv ali (Eas t), Mumbal - 400101

- situated at land bearing S No . 27 , 29, 30, 31 8 38, CTS N o. 782/ 8, 792/ 7,

& 792/ 9(N ew ) Equita ble Mortgage of that proper ty/la nd w ith original set of docu men ts.

Tota l Amoun t - ₹ 55,00 ,00 0/ - - - -

04.01 .20 13 Cas h Credi t ₹ 4,50, 00, 000 /- 13.50 % p er annu m. Hyp otheca tion charge ov er the units entire prese nt and future receiv ables , book- debt s claims and all other current asset s. EM of Off ice si tua ted at No.2 01, 2 n d floor , Elec on Arcade, M V Road, (A K Road), Andheri ( E) and Exte nsio n of EQM o f Fl at No.1 8A, 18 T H F loor , T hakur Village, Kandiv ali ( E), Mumbai.

Guarant eed by Mr. Vishw apriya Shriv astav a, Sumi Vishw apriya Shriv astav a , Mr Rav indra Bhat a nd Corp orat e Guarant ee of VTI C heru Pharma Pv t. Ltd .

Tota l Amoun t - ₹ 4,50, 00,0 00 / - - - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.3 to 5.10.3 of the Transferred Original Application. Defendants hypothecated Stock, Book debts, receivables and Company’s Book debts, present and future receivables and all other current assets and mortgaged Flat No.201, 2nd Floor, Elecon Arcade Premises Society Ltd., Andheri (East), Mumbai - 400 059, Flat No.301, 3rd Floor, Elecon Arcade Premises Society Ltd., Andheri (East), Mumbai - 400 059 and Flat No.18A, on the 18th Floor adm 1333 sq. fts. Carpet area in Tower No. B of Viceroy Park CHS Ltd at Thakur Village, Kandivali (East), Mumbal-400101 situated at land bearing S No. 27, 29, 30, 31 838, CTS No. 782/8, 792/7, 792/8 & 792/9(New) Equitable Mortgage of that property/land with original set of documents to secure the loan.

The details of the documents executed by the Defendants are as under: - (a) Letter of Arrangement dated 09.09.2008;

(b) Agreement of Loan cum Hypothecation dated 09.09.2008;

(c) Guarantee Agreement dated 09.09.2008 alongwith letter dated 01.06.2010;

(d) Memorandum by the Applicant Bank on

09.09.2008 alongwith Letter of Confirmation for creation of mortgage by Deposit of Title deeds dated 09.09.2008; (e) Memorandum for recording extension of Mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limits and enhanced limit and additional facilities dated 04.02.2009 alongwith letter of confirmation for extension of mortgage by deposit of title deeds covering enhanced limit and/or creation of equitable mortgage on additional properties for securing the existing limits and/or enhanced limits and additional facilities dated 06.02.2009 alongwith agreement for sale dated 30.10.2003;

(f) Letter of Arrangement dated 25.05.2010;

(g) Guarantee Agreement dated 25.05.2010;

(h) Letter of Arrangement dated 19.04.2011;

(i) Supplemental Agreement of Loan cum Hypothecation dated 19.04.2011;

(j) Guarantee Agreement dated 19.04.2011;

(k) Sanction letter dated 12.07.2011;

(l) Letter of Arrangement dated 04.01. 2013; (m) Letter dated 04.02.2013 alongwith Board resolution dated 05.02.2013 and Letter of arrangement dated 22.02.2013; (n) Supplemental Agreement of Loan cum

Hypothecation dated 22.02.2013;

(o) Guarantee Agreement dated 22.02.2013;

(p) Memorandum for recording extension of Mortgage by deposit of title deeds covering enhanced limits and/or creation of equitable mortgage on additional properties for existing limits and enhanced limit and additional facilities. dated 22.02.2013 alongwith letter of confirmation dated 25.02.2013 and Agreement for sale dated 23.04.2004.

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 28.06.2013 as per RBI Guidelines. Therefore, on 04.03.2014 and 20.03.2014, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹5,80,81,983.70/- (Rupees Five Crores Eighty Lakhs Eighty-One Thousand Nine Hundred Eighty-Three and paisa Seventy Only) plus unapplied interest @ 14.55% from 01.03.2014 with monthly rests within 7 days from receipt of the notice. Despite notice, defendant nos. 1 to 4 failed and neglected to pay.

As on 11.05.2015, there was owing, due and

payable by defendants to the applicant the aggregate sum of ₹6,86,94,807.13/- (Rupees Six Crores Eighty-Six Lakhs Ninety-Four Thousand Eight Hundred Seven and paisa Thirteen Only) with future interest @ 3.75% above base rate with minimum of 13.75% per annum with monthly rest on Cash Credit, WCDL & TOD 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 12.05.2015.

The applicant has filed affidavit (exhibit-17) in lieu of examination in chief of Mr Sanjay Gawhale, Authorised Officer and list of documents (exhibit-

18) thereby adducing in evidence the documents at AW-1 to AW-16, which are admitted in evidence, read, recorded and exhibited.

Accordingly, in the Transferred Original Application was filed for the recovery of ₹6,86,94,807.13/- (Rupees Six Crores Eighty-Six Lakhs Ninety-Four Thousand Eight Hundred Seven and paisa Thirteen Only) as on 11.05.2015 with future interest @ 3.75% above base rate with minimum of 13.75% per annum with monthly rest on Cash Credit, WCDL & TOD thereon from the date of presentation of the Transferred Original Application i.e. 12.05.2015 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.1208 of 2016 in Original Application No.435 of 2016 is allowed with costs. (B) Defendant nos. 1 to 4 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹6,86,94,807.13/- (Rupees Six Crores Eighty-Six Lakhs Ninety-Four Thousand Eight Hundred Seven and paisa

Thirteen Only) with future interest @ 12% per annum on Cash Credit, WCDL & TOD thereon from the date of presentation of the Transferred Original Application i.e. 12.05.2015 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.1208 of 2016. (C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Stock, Book debts, receivables and Company’s Book debts, present and future receivables and all other current assets. (D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged immovable property, that is, Flat No.201, 2nd Floor, Elecon Arcade Premises Society Ltd., Andheri (East), Mumbai - 400 059, Flat No.301, 3rd Floor, Elecon Arcade Premises Society Ltd., Andheri (East), Mumbai - 400 059 and Flat No.18A, on the 18th Floor adm 1333 sq. fts. Carpet area in Tower No. B of Viceroy Park CHS Ltd at Thakur Village, Kandivali (East), Mumbal-400101 situated at land bearing S No. 27, 29, 30, 31 838, CTS No. 782/8, 792/7, 792/8 & 792/9(New) Equitable Mortgage of that property/land with original set of documents. (E) Defendant nos. 1 to 4 are entitled to redeem the hypothecated and mortgaged properties as per law failing which the applicant has right to proceed to sell the hypothecated and mortgaged 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.

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