PHOENIX ASSET RECONSTRUCTION COMPANY PVT LTD vs MS SHAH KANTILAL TOKARSHI AND COMPANY on 3 September 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 ₹13,70,441/- (Rupees Thirteen Lakhs Seventy Thousand Four Hundred Forty-One Only) with future interest @ 18% per annum thereon from the date of presentation of the Transferred Original Application i.e. 04.02.2015 till payment/realization.

The details of the claim amount are as under: - S r No Na tu re o f F a c i li ty O / s . a m ou n t a s on 0 4 .0 2 .2 0 1 5 I n te re s t @ 1 4 % T ota l A m ou n t

P e r s o n a l L o a n F a c il i ty (A c c o u n t n o . 0 0 0 00 3 30 8 55 4 ) ₹ 9 , 7 2 , 71 9 / - ₹ 3 , 9 7 , 72 2 / - ₹ 1 3 ,7 0 ,4 4 1 / -

It is undisputed fact in the matter that the Defendant nos.1 to 5 were duly served with the summons vide order-sheet dated 11.05.2015. The present O.A. was transferred from DRT-I, Mumbai due to change in jurisdiction on 16.11.2018 and the transferred notice was served on all the defendants vide order dated 24.06.2022. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 17.02.2026.

Barclays Bank Plc (Assignor Bank) transferred all its rights, title and interest to the Applicant vide Deed of Assignment dated 06.11.2012.

Defendant no.1 is the borrower who approached the Assignor Bank and sought financial assistance by way of Personal Loan Facility (Account no.000003308554) wherein Defendant nos.2 to 5 are the partners of the said Partnership Company. Pursuant to the loan application dated 28.04.2009 made by defendants, the Applicant sanctioned the loan vide Sanction Letter for a sum of ₹17,70,631/- (Rupees Seventeen Lakhs Seventy Thousand Six Hundred Thirty-One Only) payable in 60 EMIs of ₹45,931/- (Rupees Forty-Five Thousand Nine Hundred Thirty-One Only) with interest at the rate of 19% per annum. The 1st instalment was to be paid on 05.06.2009 and last instalment on 05.03.2012.

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.6 to 5.8 of the Transferred Original Application. Defendants issued postdated cheques to secure the loan.

The details of the documents executed by the Defendants are as under: - (a) Loan Application dated 28.04.2009;

(b) Personal Loan Documentation;

(c) Demand Promissory Note;

(d) Assignment Agreement dated 06.11.2012.

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 irregular as per RBI Guidelines. Therefore, on 15.06.2013 the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹11,00,834/- (Rupees Eleven Lakhs Eight Hundred Thirty-Four Only) as on 15.06.2013 with further interest at the rate of 2% p.m. within 1 week from receipt of the notice. Despite notice, defendant nos. 1 to 5 failed and neglected to pay.

As on 04.02.2015, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹13,70,441/- (Rupees Thirteen Lakhs Seventy Thousand Four Hundred Forty-One Only) with future interest @ 18% 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 04.02.2015.

The applicant has filed affidavit (exhibit-17) in lieu of examination in chief of Mr Sunil Suryavanshi, Authorised Signatory and list of documents (exhibit-18) thereby adducing in evidence the documents at Annexure-1 to Annexure-7, which are admitted in evidence, read, recorded and exhibited.

Accordingly, in the Transferred Original Application was filed for the recovery of ₹13,70,441/- (Rupees Thirteen Lakhs Seventy Thousand Four Hundred Forty-One Only) with future interest @ 18% per annum thereon from the date of presentation of the Transferred

Original Application i.e. 04.02.2015 till payment/realisation.

The Tribunal has scrutinised and examined the averments 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.397 of 2018 in Original Application No.80 of 2015 is allowed with costs. (B) Defendant nos.1 to 5 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹13,70,441/- (Rupees Thirteen Lakhs Seventy Thousand Four Hundred Forty-One Only) with future simple interest @ 12% per annum thereon from the date of presentation of the Transferred Original Application i.e.

04.02.2015 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. 397 of 2018. (C) The Ld. Recovery Officer is hereby directed to proceed against the borrower’s any available property/ies for recovery of the said due. (D) Issue Recovery Certificate. (E) 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