CANARA BANK vs THE OFFICIAL LIQUIDATOR FOR M/S EMARSSO EXPORT PVT LTD on 30 October 2026

J U D G M E N T

1. 1. This is an application under Section 19(1) of Recovery of the Debt and Bankruptcy Act, 1993 (for short, 'the 1993 Act') to recover Rs.14,41,08,929.42/- with future interest thereon from the date of presentation of the Transfer Original Application till payment/realization.

2. 2. The Defendants were granted enhancement of the Packing Credit Facility from Rs.400 Lakhs to Rs.650 Lakhs vide Hypothecation Agreement dt.16.09.2003, Packing Credit Facility of Rs.50 Lakhs vide Agreement dt.15.05.2004, Packing Credit Facility (Single Transaction) of Rs.25 Lakhs vide Agreement dt.28.08.2004, Term Loan Facility (LHM/SSI) Facility of Rs.15.45 Lakhs vide Agreement dt.17.09.2004 and Packing Credit Facility (Single Transaction) of Rs.25 Lakhs vide Agreement dt.17.08.2005 and as specified in para no.5(A) to 5(E), of the Transfer Original Application and on the defendants executing loan and security documents.

3. 3. Defendants mortgaged the property viz., New Door No.14, (Old Door Nos. 12(B), 12 1) Old Ward No.8, New Ward No.9, Muthunagar 2nd Street, Kongu Nagar, Tirupur Town & Municipal Limit, T.S. No.1202, Block No.30, ward No.2, Tirupur Taluk, Coimbatore, Dist.: Tamilnadu. RCC Terraced Garments office, buying office & Manager House Building, Land Area 1800.00 sq.ft. RCC Terraced building Area: 4201.76 sq.ft., in favour of the applicant to secure the loan.

1. 4. Despite the undertaking effected by Defendants they had failed to regularise the account and service interest in the account. So the account remained out of order since long time resulting it to be declared as NPA.

2. 5. Despite issuance of letters, personal visits, telephonic conversation and reminders the Defendants have failed to regularise the account. So the Applicant had caused the issuance of lawyer notice to Defendants to pay up the dues with interest.

3. 6. Since defendants failed to make the repayment, the applicant was left with no other alternative other than to file the Transfer Original Application which was presented on 07.08.2008. Defendants were duly served with the summons for appearance on 09.09.2008. Vakalatnama filed for the Defendants on 02.12.2008. On 20.10.2010 Defendant No.2 to 5 filed Written Statement. No WS filed by Defendant No.1 and subsequently there was no representation for any of the Defendants. The last representation for them was made on 29.03.2022 and then they had remained absent.

4. 7. The applicant filed an affidavit (exhibit-10) in lieu of examination in chief through Mr. Pawar Kamalakant Nana, Authorised Officer of the bank, who had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-45.

A handwritten signature or mark consisting of a vertical line with a small loop at the top, and a diagonal line extending from the bottom of the vertical line towards the right.

8. As stated earlier apart from filing a written statement, no effective representation is made by the defendants since 29.03.2022. Apart from filing the written statement no attempt is made by the defendants to substantiate any of their contentions raised in the Written Statement. Mere pleadings in the written statement cannot supplant the substantiation of the said pleading by arguing the matter or by filing argument notes. Even though applicant had filed CAOD and written argument notes nothing is attempted to by defendants to resist or deny the averments in CAOD filed by the Applicant. They had persistently remained absent since 29.03.2022. So, the contentions of the applicant are being accepted.

9. Accordingly, the Transfer Original Application was filed for the recovery of a sum aggregating to Rs.14,41,08,929.42/- with further interest @16.75% p.a along with penal interest @2% p.a and other expenses for the period from the date of filing of this T.O.A. till payment/realization.

10. The claim of the applicant for interest @ 16.75% p.a. with respect to said facilities, is hereby declined.

11. A scrutiny of the averments in the Transfer Original Application and an analysis of the evidence adduced by the applicant, which has gone unchallenged, uncontroverted and unrebutted, shows that there is no reason to reject the claim made by the applicant bank.

12. In view of the observations made hereinabove, Transfer Original Application filed by the applicant deserves to be allowed.

13. Hence, the following order is passed:

ORDER

a. T.O.A. stands allowed with cost and the Defendant No. 1 to 5 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.14,41,08,929.42/- with further interest @9% p.a along with penal interest @2% p.a and other expenses from the date of filing of this T.O.A. till the date of realization; failing which the aforesaid amount shall be recovered from the sale of mortgaged property viz., New Door No.14, (Old Door Nos. 12(B), 12 1) Old Ward No.8, New Ward No.9, Muthunagar 2nd Street, Kongu Nagar, Tirupur Town & Municipal Limit, T.S. No.1202, Block No.30, ward No.2, Tirupur Taluk, Coimbatore, Dist.: Tamilnadu. RCC Terraced Garments office, buying office & Manager House Building, Land Area 1800.00 sq.ft. RCC Terraced building Area: 4201.76 sq.ft. and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendants.

b. Defendants are directed to declare, on oath, to the Recovery Officer, Debts Recovery Tribunal - I, Mumbai, both their moveable and immovable assets for the purpose of attachment and sale for realizing the shortfall, if any.

c. Let a Recovery Certificate be issued with memo of cost immediately u/s 19(22) of The Recovery of Debts and Bankruptcy Act, 1993 together with the details of the properties, if any.

- d. The Defendants are restrained from depleting, transferring, encumbering, alienating or in any way dealing with their properties/assets without first paying the claim of the Applicant Bank.

- e. Copies of this judgment be sent to the parties free of cost and file be consigned to the record room.

- f. Give under my hand and the seal of this Tribunal on this date : 30.10.2026.

(Dictated to my Stenographer, transcribed by him corrected and signed by me and pronounced in open forum on 30.10.2026)

Place:- Mumbai Date:- 30.10.2026

Presiding Officer, DRT-1, Mumbai (Sreekala Suresh)