Phoenix ARC Private Limited vs M/S RADHEY FORGINGS 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.34,34,097/- with future interest thereon from the date of presentation of the Transfer Original Application till payment/realization.

2. 2. The Defendant no.1 was granted Business Loan facility of Rs.29,45,875/- and as specified in para no.5.8 of the Transfer Original Application and on the defendants executing loan and security documents.

3. 3. 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.

1. 4. 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.

2. 5. 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 28.10.2013. Defendants were duly served with the summons through paper publication for appearance on 25.03.2015. Vakalatnama filed for the Defendants on 30.11.2015, but they had failed to file WS and their right to file WS was forfeited on 21.07.2017. Since 29.05.2026 no one has appeared /represented on behalf for the Defendants.

3. 6. The applicant filed an affidavit (exhibit-15) in lieu of examination in chief through Mr. Sunil Suryavanshi, 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-7.

4. 7. Accordingly, the Transfer Original Application was filed for the recovery of a sum aggregating to Rs.34,34,097/- with further interest @20% p.a and other expenses for the period from the date of filing of this T.O.A. till payment/realization.

5. 8. The claim of the applicant for interest @ 20% p.a. with respect to said facilities, is hereby declined.

9. 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 unrebuted, shows that there is no reason to reject the claim made by the applicant bank.

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

11. Hence, the following order is passed:

ORDER

a. T.O.A. stands allowed with cost and the Defendant No. 1 to 3 are held liable jointly and severally to pay to the Applicant Bank within two months a sum of Rs.34,34,097/- with further interest @9% 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 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 immoveable 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)