BANK OF MAHARASHTRA vs Unity Appliances Limited on 6 August 2021

O R D E R

1. This application has been filed under Sec.19(1) of the RDDBFI Act by the Applicant Bank to recover from the Defendants a sum of Rs.61,58,29,518/-, towards the Cash Credit Facility, together with the date of application till the date of realization and by sale of mortgaged properties, more fully described in Schedule of the application and with cost.

2. The brief averments of the application filed by the Applicant Bank are as follows:- D-1 Company approached the Applicant Bank through its official by executing the loan and security documents, in favour of the Applicant Bank on 11.01.2016, in order to avail Credit Facilities for the development of its business. After verification of the documents submitted by D-1 Company, the Applicant Bank sanctioned the said loan to a tune of Rs.157.50 crores (Cash Credit of Rs.30 crores and Term Loan of Rs.100 crore and Letter of Credit of Rs.27.50 crores) vide its Sanction Letter on the said date. In consideration of the said loans, D-1 Company executed the following Documents on 12.01.2016, in favour of the Applicant Bank such as,

Request for making Credit Facility, Demand Promissory Notes for Rs.30 crores and for Rs.100 crores, Agreement for Term Loan and Power of Attorney. Deed of Hypothecation of All Facilities by hypothecating the movable properties, wherein 1st pari-pasu charge was created, on all current assets of the D-1 Company, in respect of, the Cash Credit Loan and the 2nd pari-pasu charge was created, on all current assets of the D-1 Company, in respect of the Term Loan and they have also agreed to repay the said facilities as per the Repayment Schedule such as, Repayment Schedule 16-17 17-18 18-19 19-20 20-21 21-22 No. of Quarterly installment

Rs. in Crores (Yearly)

20.00 20.00 20.00 20.00 20.00

Whereas each quarterly installment will be of Rs.5.00 crores with monthly basis interest.

Further, D-2 executed Deed of Guarantee dated 12.01.2016 and D-3 and D-4 have also executed Deed of Guarantee dated 14.01.2016, in favour of the Applicant Bank and stood as Guarantors for the repayment of the above said facilities availed by D-1 Company. In order to secure the said loans, D-1 Company has deposited its Title Deeds with an intention to create equitable mortgage over its movable and immovable properties as security by executing the MOD on 13.06.2016 and the same was registered as Doc. No.1157/2016, in favour of the Applicant Bank. Wherein, 1st pari- pasu charge was created on the land and Building which belonging to the D- 1 Company in respect of the Term Loan and the 2nd pari-pasu charge was created on the land and Building of the D-1 Company in respect of the Cash Credit Loan along with the Goods under the said Letter of Credit, in favour of the Applicant Bank.

Though the Applicant Bank disbursed the entire loan as per the loan agreements/documents, the D-1 Company did not take any steps to repay the aggregate loan amount and D-2 to D-4 who have agreed to stand as Guarantor have also failed to abide by the repayment schedule in terms of the Sanctioned Letter issued by the Applicant Bank in favour of them. As such, the Applicant was constrained to classify the loan account as NPA on 26.12.2017, in accordance with the RBI Guidelines. In view of the Defaults committed by the D-1 Company, Demand Notice dated 05.01.2018 was issued, calling upon the D-1 Company and the Guarantors to discharge their entire liabilities of Rs.153,77,79,403.20ps/- along with interest from 05.01.2018 within 60 days. Even after receipt of the said notice, D-1 Company and other Defendants failed and neglected to repay the outstanding loan dues. Therefore, Possession Notice dated 19.05.2018 was issued under Sec.13(4) and the Physical Possession of the Secured Assets was also taken by a Board Resolution dated 17.05.2018. All the efforts took by the Applicant Bank, to recover the aggregate loan amount from the Defendants is in vain. Hence, the Applicant Bank has filed this OA for recovery of Rs.178,88,49,291/-, due as on 26.12.2018 with interest and costs.

3. The Defendants were set ex-parte.

4. The Applicant Bank, in order to prove its claim, has filed Proof Affidavit executed by one Mr. Rohit Sahasrabudhe, who is the Chief Manager of the Applicant Bank and marked the documents as Exh. A-1 to A-20, in support of its claim in the OA. A cumulative analysis of both the Proof Affidavit and documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA. Therefore, this Original Application is allowed. The Applicant Bank is entitled for a final order on the following lines:- The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.61,58,29,518/-, towards the Cash Credit Facility, together with the date of application till the date of realization and also the costs.

5. The Defendants are directed to pay, jointly and severally, a sum of Rs.61,58,29,518/-, towards the Cash Credit Facility, together with the date of application till the date of realization and also the costs. On failure to pay the above said debt to the Applicant Bank, the Applicant Bank is directed to bring the mortgaged properties, more fully described in Schedule of the application, for sale to realize its dues and costs.

6. The Registry is directed to prepare DRC in terms of this final order. The Applicant Bank shall file memo of costs within 15 days from the date of this order. Registry is directed to communicate the copy of this order to both parties as provided in Rule 16 of the Debts Recovery Tribunal (Procedure) Rules, 1993. Dictated to Steno(MM), taken down, transcribed, typed by her, corrected and pronounced by me through video conference in this the 06th August, 2021. Sd/-

Mortgage Asset (Description of immovable properties)

All that and parcel of land known as Plot No(s) C1 Pt., B1 Pt., B2 Pt., B3 Pt., B7 and Plot in Housing Colony and C9, C10, C11, E2, E7, C23 measuring 93.95 acres in the SIPCOT Industrial Complex at Manamadurai within the village limit of Soorakulam Group, Konnakkulam Village and Taluk of Manamadurai and K.K.Pallam Group, Kattuudaikulam Village and Taluka of Manamadurai Sub Registration District of Manamadurai in Sivaganga Revenue District containing by admeasurement of 93.95 acres or thereabouts bearing Survey Nos.222/1 (part) and 318/1 (part) and bounded.

Boundaries of Plot No.C1 Pt., B1 Pt., B2 Pt., B3 Pt., and Housing Colony Pt.

– 58.51 Acres On the North by Plot No.C1 Pt On the South by SIPCOT Road On the East by

B1 Pt, B2 Pt, B3 Pt and Housing Colony Pt On the West by SIPCOT Road Linear measurements East to West on the North 300.00 Metre East to West on the South 280.00 Metre North to South on the East 810.40 Metre North to South on the West 810.40 Metre Boundaries of Plot No.B7 – 12.76 Acres On the North by Plot No.A1 On the South by Plot No.B6 On the East by

SIPCOT Road On the West by

Green Belt Area

Linear measurements East to West on the North

342.40 Metre East to West on the South

253.45 Metre North to South on the East

175.00 Metre North to South on the West

194.80 Metre

Boundaries of Plot No.C9, C10, C11, E2, E7 – 17.68 Acres On the North by SIPCOT Road On the South by Plot No.E1 & E6 On the East by

Plot No.C8, C7, C6, C5 On the West by

SIPCOT Road

Linear measurements East to West on the North

87.60 Metre East to West on the South

88.50 Metre North to South on the East

486.10 Metre

North to South on the West

486.50 Metre

Boundaries of Plot No.C23 – 5 Acres On the North by Plot No.C24 On the South by Plot No.C1 Pt On the East by

Private Land On the West by

SIPCOT Road

Linear measurements East to West on the North

215.00 Metre East to West on the South

272.00 Metre North to South on the East

96.50 Metre North to South on the West

86.20 Metre

Together with all the fixtures and furniture. Sd/-

LIST OF DOCUMENTS FILED BY THE APPLICANT BANK S. No. Date Description of document Exhibits

1. 11.01.2016 Sanction Letter Ex.A-1

2. 11.01.2016 Board Resolution Ex.A-2

3. 11.01.2016 Power of Attorney by 1st Defendant to execute Documents in favour of the Applicant Bank Ex.A-3

4. 12.01.2016 Request for making credit facility Ex.A-4

5. 12.01.2016 Demand Promissory Note – Rs.30 crores Ex.A-5

6. 12.01.2016 Demand Promissory Note – Rs.100 crores Ex.A-6

7. 12.01.2016 Deed of Hypothecation of all facilities Ex.A-7

8. 12.01.2016 Term Loan Agreement Ex.A-8

9. 12.01.2016 Power of Attorney Ex.A-9

10. 11.01.2016 power of Attorney by the 2nd Defendant to execute the Guarantee Agreement in favour of the Applicant Bank Ex.A-10

11. 12.01.2016 Deed of Guarantee by the 2nd Defendant Ex.A-11

12. 14.01.2016 Deed of Guarantee by the 3rd Defendant Ex.A-12

13. 14.01.2016 Deed of Guarantee by the 4th Defendant Ex.A-13

14. 13.06.2016 Memorandum of Deposit of Title Deeds – vide Document No.1157 of 2016 Ex.A-14

15. 24.10.2013 Lease deed vide No.3802 of 2013 Ex.A-15

16. 05.01.2018 Demand/Recall Notice Ex.A-16

17. 19.05.2018 Possession Notice u/s.13(4) of SARFAESI Act,

Ex.A-17

18. 17.05.2018 Board Resolution of the 1st Defendant to hand over the possession of the OA Schedule property Ex.A-18

19. 27.12.2018 Statement of Accounts Ex.A-19

20. 27.12.2018 Certificate under the Bankers Book Evidence Act Ex.A-20

Sd/-