CFM ASSET RECONSTRUCTION PRIVATE LIMITED vs MR MOHAMED RAFEEK on 10 August 2026

: - FINAL ORDER- :

1. This Original Application is filed on 27.01.2021 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 7, jointly and severally for recovery of a total sum of Rs.9,39,28,386.94p (Rupees Nine Crores Thirty Nine Lakhs Twenty Eight Thousand Three Hundred Eighty Six And Ninety Four Paise only) as follows:

(i) A sum of Rs.63,32,963.74p due in respect of Term Loan (A/c No.510003474260) repayable together with further interest @ 10.70% p.a. with monthly rests from the date of Application till the date of realization in full;

(ii) A sum of Rs.2,21,22,684.16p due in respect of Medium term Loan (A/c No.510003481125) repayable together with further interest @ 9.70% p.a. with monthly rests from the date of Application till the date of realization in full;

(iii) A sum of Rs.1,38,41,421.19p due in respect of Overdraft Loan (A/c No.650014046440) repayable together with further interest @ 10.70% p.a. with monthly rests from the date of Application till the date of realization in full;

(iv) A sum of Rs.4,64,88,339.89p due in respect of Export

Packing Credit Loan (A/c No.800014026676) repayable together with further interest @0.00% p.a. the date of Application till the date of realization in full;

(v) A sum of Rs.51,42,977.95p due in respect of Interest Receivable Trade (A/c No.890000004890) repayable together with further interest @ 16.25% p.a. with monthly rests from the date of Application till the date of realization in full; for sale of immovable properties morefully mentioned in Schedule A and B to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.141 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.141 of 2021 stood transferred to this Tribunal and renumbered as TA No.401 of 2023. Brief Facts of the case:

3. The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

4. It is the case of the applicant institution that they are the Assignee of the debt due from the defendants to the assignor M/s IndusInd Bank Ltd., along with the underlying securities under an Assignment Agreement dated 09.12.2020 registered as Doc No.8120 of 2020 on the file of the Sub-Registrar office, Pammal. As such the applicant has stepped into shoes of the assignor M/s IndusInd bank and fully entitled to recover the entire out-standings dues from the defendant herein including the enforcement of security interest as a financial institution under Section 2(h) (1a) of the RDB Act, 1993.

5. The applicant submits that the 1st defendant is the Sole Proprietor of M/s Nabisha Leathers, who had availed the credit facilities from M/s IndusInd Bank Ltd. The other defendants are guarantors to the facilities availed by the 1st defendant. All the defendants are closely related to each other and family members.

6. It is submitted by the applicant that the 1st defendant was enjoying credit facilities with M/s Jammu and Kashmir Bank Ltd. In the year 2015, the 1st defendant approached M/s IndusInd Bank Ltd seeking for takeover of the credit facilities from Jammu and Kashmir Bank. The defendants 1 to 5 along with their mother Mrs. Nabeesha Beevi had offered to be the guarantors and also offered to create mortgage over the Immovable properties owned by them independently.

7. The applicant submits that considering the request made by the defendants 1 to 5 and the said Mrs. Nabeesha Beevi, the Indusind Bank sanctioned the under mentioned credit facilities vide Sanction Letter dated 23.03.2015:

Facility Limits Sanctioned (Rs in Lakhs)

Existing Revised Cash credit - 50.00 Pre Shipment export credit (EPC/PCFC) - 225.00 Foreign bills purchased/discounted (FBP/FBD/PSFC) Advance against bills on collection - 150.00 Long term loan - 525.00 Foreign Currency term loan (FCTL) (sub limit of Long TL) - 525.00 TOTAL FB -

Inland letter of credit - 50.00 Counter Bank guarantee (Sub limit of pre-shipment export credit) - 425.00 TOTAL NFB - 50.00 TOTAL FB+NFB - 1000.00 Forward cover limit - 225.00 Interest rate swap facility- to be used to hedge the FCTL loan availed from IBL

525.00

8. The applicant submits that the defendants 1 to 5 and the Mrs. Nabeesha Beevi acknowledged receipt of the said sanction letter accepting to the various terms and conditions stated in the sanction letter. On the same day the 1st defendant as the borrower and the defendant 2 to 5 and the Mrs. NabeeshaBeevi as a guarantors availed the said facilities. TO secure the said facilities and in consideration of the same loan documents were executed by defendants.

9. The applicant further submits that on 23.03.2015 defendants 1 to 5 had also given a letter to M/s IndusInd Bank ltd that after closing of their loans with Jammu and Kashmir bank, they would receive the deposited title deeds from the bank and would deposit the same with M/s IndusInd bank ltd thereby creating mortgage over the property. Accordingly, defendants 1 to 5 collected the original title deeds from Jammu and Kashmir bank and deposited the same with M/s IndusInd Bank on 25.04.2015 thereby creating mortgage over their respective properties owned by them independently. The 1st defendant, as absolute owner of the properties mentioned in schedule A and B to the OA had executed Declaration of Mortgage on 28.09.2015 and Memorandum of Entry for deposit of title deeds was also recorded on the same day in the presence of Bank officers who had received the title deeds. On 14.10.2015 the 1st defendant executed Memorandum of deposit of title deeds, which was also recorded on the same day in the presence of bank officers. On 14.10.2015 the 1st defendant executed Memorandum of Deposit of Title Deeds confirming the deposit of title deeds relating to the schedule A and B mentioned properties with M/s IndusInd Bank ltd and executed a Memorandum of deposit of title deed that was registered as Doc No. 7927 of 2015 on the file of the Sub Registrar Office, Pammal.

10. The applicant submits that the Sanction Letter dated 23.03.2015 stipulated the entire terms and conditions as to the facility availed by defendants 1 to 5 and Mrs. NabeeshaBeevi including the rate of interest, period of sanction the margin to be maintained etc which defendants 1to 5 and Mrs. Nabeesha Beevi accepted. At the request of the said defendants M/s IndusInd Bank issued an Addendum dated 09.11.2015 to the Sanction Letter dated 23.05.2015 modifying few of the terms.

11. It is submitted that, having enjoying the said facilities defendants 1

to 5 and Mrs. NabeeshaBeevi requested for renewal of the facilities and submitted an application dated 05.09.2016. Considering the said request, M/s Indusind Bank issued a renewal sanction of credit limits however reducing the limits as hereunder. Facility Limits sanctioned (Rs. in lakhs)

Existing Revised Cash credit –standalone 50.00 50.00 Cash credit @ (Sublimit to EPC) 0.00 50.00 Export packing credit/packing credit in foreign currency 375.00 375.00 Post shipment in foreign currency/Indian rupees 375.00 375.00 Term loan fresh 525.00 486.35 FCNRB loan I (Sublimit to Working capital term loan) 525.00 486.35 SUB TOTAL-A 950.00 911.35 Non Fund Based

Inland letter of credit (Interchangeable with cash credit) 50.00 50.00 SUB TOTAL-B 50.00 50.00 TOTAL (A+B) 1000.00 961.35

12. The applicant further submits that defendants 1 to 5 and Mrs. Nabeesha Beevi acknowledged the said Renewal Sanction Letter and accepted to the terms and conditions stated therein. The said defendants had availed renewed facility on 06.10.2016 and executed Supplemental Agreement and Letter of Acknowledgement of Debt extending the securities and confirming that the documents are in full force. At the request of the said defendants, M/s IndusInd Ltd had also issued an Addendum dated 18.10.2016 to the renewed Sanction Letter dated 22.09.2016 modifying certain terms and conditions.

13. It is submitted by the applicant that the 1st defendant submitted a letter dated 05.10.2017 to M/s IndusInd Bank ltd, requesting for renewal cum enhancement of credit facilities. They also requested for renewal cum enhancement of credit facilities. They also requested for discharging the personal guarantee of Mrs. NabeeshaBeevi and accept the personal guarantees of the 6th and 7th defendants herein. The defendants also wanted the immovable properties standing in the name of defendants 2 to 5 and Mrs. NabeeshaBeevi to be released from mortgage. Considering the request of the defendant herein in and by a sanction of renewed credit limits dated28.10.2017, M/s IndusInd bank ltd enhanced the credit limits and the details are as hereunder: Facility Limits sanctioned (Rs. in lakhs)

Existing Revised Cash credit –standalone 50.00 50.00 Cash credit @ (Sublimit to EPC) (50.00) (50.00) Export packing credit/packing credit in foreign currency 375.00 375.00 Post shipment in foreign currency/Indian rupees 375.00 375.00 Term loan –1 existing 486.35 402.28 FCNRB loan I (Sublimit to Working capital term loan) (486.35) (402.28) Term loan –2 Fresh 0.00 100.00 SUB TOTAL-A 911.35 952.28 Non Fund Based

Inland letter of credit (Interchangeable with cash credit) 50.00 50.00 SUB TOTAL-B 50.00 50.00 TOTAL (A+B) 961.35 1002.28 Derivative limits

PFE on IRS to FCNRB Loan. 78.75 44.25 SUB TOTAL-C 78.75 44.25 TOTAL (A+B+C) 1040.10 1046.23

14. It is submitted that under the said sanction letter the immovable properties mortgage by defendants 2 to 5 were discharged and the 2 properties described in the schedule A and B to the OA and absolutely owned by the 1st defendant continue to be the security for the above said enhanced facilities. Also that the Personal Guarantee of Mrs. Nabeesha Beevi was discharged and defendants 6 and 7 were accepted as guarantors who had assured the prompt repayment of the facilities availed by the borrower. The said renewal Sanction Letter also stipulated various terms and conditions to be followed by the borrower and guarantors as to the repayment interest to be paid and purpose for availing each facility. The defendants herein had received the said sanction letter, acknowledged the same, accepting to the various terms and conditions stated in the said sanction letter.

15. The applicant submits that the defendants herein availed the facility on 08.11.2017 and in consideration of the facilities availed and to secure the same, the defendants have executed the following loan documents on 08.11.2017 in favour of M/s IndusInd Bank Ltd.: i. Term loan agreement dated 08.11.2017 entered into between 1st defendant and the assignor of the applicant bank. ii. Supplemental agreement dated 08.11.2017 entered into between 1st defendant and assignor of the applicant bank.

iii. Supplemental deed of hypothecation dated 08.11.2017 executed by the 1st defendant in favour of the applicant bank. iv. Letter for continuing guarantee dated 08.11.2017 executed by the defendants in favour of the assignor of the applicant bank. v. Supplemental memorandum of entry dated 08.11.2017 executed by the 1st defendant infavour of assignor of the applicant bank. vi. Declaration for extension of mortgage by way of constructive delivery dated 08.11.2017 executed by the 1st defendant infavour of the assignor of the applicant bank. vii. Declaration for extension of mortgage by way of constructive delivery dated 08.11.2017 executed by the 1st defendant in favour of the assignor of the applicant bank. viii. Declaration letter dated 08.11.2017 executed by the 1st defendant in favour of assignor of the applicant bank. ix. Undertaking letter dated 08.11.2017 executed by the 1st defendant in favour of assignor of the applicant bank x. Letter of undertaking (Unhedgedforex exposure) dated 08.11.2017 executed by the 1st defendant in favour of assignor of the applicant bank. xi. Undertaking while issuing post dated cheques executed by the 1st defendant in favour of assignor of the applicant bank. xii. Letter for acknowledgement of debt dated 08.11.2017 executed by the all defendant in favour of assignor of the applicant bank.

16. The applicant submits that the defendants availed the facility and were enjoying the same to their satisfaction. However the repayment of the dues by the defendants shrinked over the period of time and the operations of the facilities were not satisfactory. The movables that were hypothecated to M/s IndusInd bank ltd were reduced and have become that they would not satisfy the outstanding amount as even the interest portion was not serviced by the defendants. The loan account of the 1st defendant had to be classified as Non-Performing Asset (NPA) on 13.04.2020 as per the guidelines of RBI. Pursuant to that the loan account of the 1st defendant being the debt due with underlying securities was assigned by M/s IndusInd bank in favour of the applicant herein under an Assignment Agreement dated 09.12.2020 registered as Doc.No.8120 of 2020 on the file of the SRO, Pammal.

17. The applicant further submits pursuant to the said assignment agreement the applicant herein has stepped into shoes of M/s Indusind Bank Ltd, and has become entitled to proceed against the defendants herein for realization the entire outstanding dues from them and also to enforce the securities for recovering the outstanding dues.

18. It is submitted that however there was no repayment by the defendants. Hence the applicant herein sent Demand Notice dated 07.01.2021 to the defendants calling upon them to clear the entire outstanding dues. Inspite of the demand notice, the defendants failed to respond. The total amount outstanding in the loan accounts of the 1st defendant due and repayable by all the defendants jointly and severally is Rs.9,39,28,386.94/- together with interest and costs. Despite repeated requests and demands, as defendants did not come forward to repay the dues, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

19. After the filing of the OA, summons were sent to the Defendants 1 to 7 through Registered Post with Acknowledgment Due, which were duly served. Although one Advocate Mr. John had undertaken to file Vakalat for defendants during the first hearing on 29.09.2021, did not file any vakalat despite availing two adjournments. When OA was taken up on 02.12.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 7 were placed ex-parte on 02.12.2021. Heard the submissions of Applicant Bank and perused the records.

20. To prove the case of the Applicant Bank, M/s. Karthiyk Viswanathan, Vice president of the Applicant, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-33.

21. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-33 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

22. The defendants were set ex-parte on 02.12.2021, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

23. With regard to the amount advanced, the interest applied the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

: O R D E R :

24. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 7 jointly and severally, for a total sum of Rs.9,39,28,386.94p (Rupees Nine Crores Thirty Nine Lakhs Twenty Eight Thousand Three Hundred Eighty Six And Ninety Four Paise only) as follows:

(i) A sum of Rs.63,32,963.74p due in respect of Term

Loan (A/c No.510003474260) repayable together with further interest @ 10.70% p.a. with monthly rests from the date of Application till the date of realization in full;

(ii) A sum of Rs.2,21,22,684.16p due in respect of Medium term Loan (A/c No.510003481125) repayable together with further interest @ 9.70% p.a. with monthly rests from the date of Application till the date of realization in full;

(iii) A sum of Rs.1,38,41,421.19p due in respect of Overdraft Loan (A/c No.650014046440) repayable together with further interest @ 10.70% p.a. with monthly rests from the date of Application till the date of realization in full;

(iv) A sum of Rs.4,64,88,339.89p due in respect of Export Packing Credit Loan (A/c No.800014026676) repayable together with further interest @0.00% p.a. the date of Application till the date of realization in full;

(v) A sum of Rs.51,42,977.95p due in respect of Interest Receivable Trade (A/c No.890000004890) repayable together with further interest @ 16.25% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule A and B mentioned immovable properties morefully detailed in the OA schedule.

(c) OA Schedule A and B shall be appended to this final order.

(d) If the sale proceeds of the immovable properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

25. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 10th day of August, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. Karthik Viswanathan, Vice president of the Applicant.

Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. Board resolution A-1

2. 23.02.2015 Loan application submitted by the defendants by the defendants 1 to 5 and Mrs.Nabeesha Beevi to the assignor of the applicant A-2

3. 23.02.2015 Sanction letter issued by the assignor of the applicant in favour of the defendants 1 to 5 and Mrs. Nabeesha Beevi A-3

4. 23.02.2015 Letter issued by the defendants 1 to 5 infavour of the assignor of the applicant A-4

5. 14.10.2015 Memorandum of deposit of title deed executed by the 1st defendant in favour of the applicant and also registered as Doc.No. 7927 of 2015 on the files of the Sub registrar office pammal A-5

6. 09.11.2015 Addendum sanction letter issued by the assignor of the applicant in favour of the defendants 1 to 5 and Mrs. Nabeesha Beevi A-6

7. 05.09.2016 Request letter of renewal of facilities issued by the defendants 1 to 5 and Mrs. Nabeesha Beevi in favour of the assignor of the applicant bank A-7

8. 22.09.2016 Renewal sanction letter issued by the assignor of the applicant in favour of the defendants 1 to 5 and Mrs. Nabeesha Beevi A-8

9. 06.10.2016 Letter for acknowledgement of debt issued by the defendants 1 to 5 and Mrs. Nabeesha Beevi in favour of the assignor of the applicant A-9

10. 18.10.2016 Addendum sanction letter issued by the assignor of the applicant in favour of the defendants 1 to 5 and Mrs. Nabeesha Beevi A-10

11. 05.10.2017 Request letter for renewal cum enhacement of facilities issued by the 1st defendant in favour of the assignor of the applicant A-11

12. 28.10.2017 Renewal sanction letter issued by the assignor of the applicant in favour of all the defendants A-12

08.11.2017 Term loan agreement entered between the 1st defendant and the assignor of the applicant A-13

14. 08.11.2017 Supplemental agreement entered between 1st defendant and the assignor of the applicant A-14

15. 08.11.2017 Supplemental deed of hypothecation executed by the 1st defendant in favour of the assignor of the applicant A-15

16. 08.11.2017 Letter of continuing guarantee executed by all the defendants infavour of the assignor of the applicant A-16

17. 08.11.2017 Supplemental memorandum of entry executed the first defendant infavour of the assignor of the applicant A-17

18. 08.11.2017 Declaration for extension of mortgage by way of constructive delivery executed by the 1st defendant in favour of the assigner of the applicant A-18

19. 08.11.2017 Declaration for extension of mortgage by way of constructive delivery executed by the 1st defendant in favour of the assigner of the applicant A-19

20. 08.11.2017 Declaration for extension of mortgage by way of constructive delivery executed by the 1st defendant in favour of the assigner of the applicant A-20

21. 08.11.2017 Undertaking letter executed by the 1st A-21

defendant in favour of the assignor of the applicant.

22. 08.11.2017 Letter of undertaking (unhedged forex exposure) executed by the 1st defendant in favour of the assignor of the applicant. A-22

23. 08.11.2017 Undertaking while issuing post dated cheques executed by the 1st defendant in favour of the assignor of the applicant. A-23

24. 08.11.2017 Letter of acknowledgement of debt executed by all the defendant in favour of the assignor of the applicant A-24

25. 09.12.2020 Debt assignment agreement entered between the assignor and the applicant which is registered as Doc.No.8120 of 2020 on the files of the Sub-Registrar office, Pammal A-25

26. 07.01.2021 Demand notice issued by the applicant in favour of all the defendants A-26

27. 10.06.2015 Sale deed in the name of the 1st defendant registered as Doc.no.4527 of 2015 on the files of the Sub-Registrar office, Pammal A-27

28. 14.06.2011 Sale deed in the name of the 1st defendant registered as Doc.no.2829 of 2011 on the files of the Sub-Registrar office, Pammal A-28

29. - Statement of account No.512003481125 A-29

30. - Statement of account No. 510003478260 A-30

31. - Statement of account No.650014046440 A-31

32. - Statement of account No.800014026676 A-32

33. - Statement of account No.290000004890 A-33

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE-A: All that piece and parcel of the land and building situated at Kancheepuram district in Alandur taluk (formerly Chengelpet district, Saidapet taluk, Tambaram taluk), Pammal village comprised in S.No.108/3 as per Patta S.No.108/40B, Door No. 39, Anna salai, Nagalkeni measuring an extent of 16 grounds and 460sq.ft together with the right of usage of passage or way in or over, upon and through the land bearing Survey No.121 comprised in Patta No.310 in the village of the above said 129 pammal to with 25 from North to South and to a length extending right from Annasalai to throughout the land together with R.C.C. buildings, ACC tannery sheds, electricity services connection, 1170 PTIET shares & deposit & machineries and also other amenities and bounded on the:

North by: The property of Mr.Adam Hathila (a) Mr.Haji Hathila alias H.A. Hathila South by: Property belonging to Mr. Hasan Basha in S.No.102 East by: The land belonging to the Mr. Adam Hathila (a) Mr. Haji Hathila alias H.A.Hathila West by: Passage land belonging to the Mr. Adam Hathila (a) Mr. Haji Hathila alias H.A.Hathila :-SCHEDULE-B: All that piece and parcel of vacant plots total measuring 3024sq.ft or 280.93sq.mtrs bearing Plot Nos.21 and 22 in block no.3-b situated at Old village Nos.129, 100, 88, New Village No.23, Pammal village, Rangaswamy street, thiru nagar, comprised in survey no.206/13A/1A2, Patta No.8251 as per patta new survey no.206/101A2, in Tambaram taluk, Kancheepuram district bounded on the North by: 3rd Cross street South by: Plot No.23 and property belongs to Mr. Thambidurai East by: 2nd site road West by: Plot No.20 and house belongs to Mr. Babukhan

Measuring: East to West on the Northern side: 55’ East to West on the Southern side: 53’ North to South on the Eastern side: 58’ North to South on the Western side: 54’ And situated within the registration district of Chennai south and sub registration district of Pammal.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI