BANK OF MAHARASHTRA vs M/S GULMOHAR STEEL PRIVATE LIMITED 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.1,83,74,627/- 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 Cash Credit facility of Rs.150 Lakhs vide sanction letter dt.23.11.2005 and as specified in para no.5.3 of the Transfer Original Application and on the defendants executing loan and security documents.

3. 3. Defendants created hypothecation and mortgage of the properties in favour of the applicant to secure the loan as follows,.

1. a. Present and future movable plants, machineries, goods, stocks of raw materials, items, inventories, stocks in process, semi-finished and finished goods, stores and spares (Consumable stores and Spares), stock in trade, goods in process, movables in transit, and present and future tangible and intangible assets, vehicles, goodwill, trademark, copyright, patent and all the right, title, interest and benefit of the Defendant No.1 in upon or over all contracts and agreements and amounts and rights to collect and receive and recover the same together with all movables situated or located at any place and now lying, being, affixed or installed at any place at any time and all outstanding monies, claims, bills, receivables, Book Debts of the Defendants No.1

- b. Immovable property being Flat No.12 admeasuring 655 sq.ft. (60.87 sq.meters) built-up area on the third floor of the Building known as "Raghuveer Apartments being constructed on Plot of land situated, lying and being in the District, Sub-District and City of Nashik, within the Nashik Urban Agglomeration and area under Urban Land Ceiling limits, within the limits of Nashik Municipal Corporation, being Plot No.79 out of approved layout of Survey No.901 in area known as Chetna Nagar, Rane Nagar, Opp. Swami Samarth Kendra, Nashik 422 009, area admeasuring 362.31 sq.meters

- c. All that piece and parcel of land bearing Survey No.23, Gat No.197 admeasuring Hect. 00.89 R i.e. 8900 sq.meters situated lying and being at Village Samangaon, Taluka and District Nashik, out of the limits of Nashik Municipal Corporation and within Registration and Sub-Registration District Nashik

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.

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.

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 07.03.2008. Defendant Nos.1 to 6 were duly served with the Transfer Notice for appearance on 08.06.2023, despite receipt of Summons, the defendants did not appear. They had remained absent without any representation for them and so, they were set at exparte.

7. The applicant filed an affidavit (exhibit-20) in lieu of examination in chief through Mr. Pronab Kumar Sahu, Asst. General Manager of the bank, had produced documents, which are admitted in evidence, read, recorded and exhibited and were marked as AW-1 to AW-34.

8. Accordingly, the Transfer Original Application was filed for the recovery of aggregating a sum of Rs.1,83,74,627/- with further interest @15.25% p.a compounded at with monthly rests plus penal interest @2% p.a simple and other expenses for the period from the date of filing of this T.O.A. till payment/realization.

9. As the applicant sought relief only against the Defendant No.1 to 5 and no relief is sought from the Defendant No.6, no relief is granted against Defendant No.6.

10. 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.

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

12. 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.1,83,74,627/- with further interest @15.25% p.a plus 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 properties and hypothecated goods as follows:-

a. Present and future movable plants, machineries, goods, stocks of raw materials, items, inventories, stocks in process, semi-finished and finished goods, stores and spares (Consumable stores and Spares), stock in trade, goods in process, movables in transit, and present and future tangible and intangible assets, vehicles, goodwill, trademark, copyright, patent and all the right, title, interest and benefit of the Defendant No.1 in upon or over all contracts and agreements and amounts and rights to collect and receive and recover the same together with all movables situated or located at any place and now lying, being, affixed or installed at any place at any time and all outstanding monies, claims, bills, receivables, Book Debts of the Defendants No.1

- b. Immovable property being Flat No.12 admeasuring 655 sq.ft. (60.87 sq.meters) built-up area on the third floor of the Building known as "Raghuveer Apartments being constructed on Plot of land situated, lying and being in the District, Sub-District and City of Nashik, within the Nashik Urban Agglomeration and area under Urban Land Ceiling limits, within the limits of Nashik Municipal Corporation, being Plot No.79 out of approved layout of Survey No.901 in area known as Chetna Nagar, Rane Nagar, Opp. Swami Samarth Kendra, Nashik 422 009, area admeasuring 362.31 sq.meters

- c. All that piece and parcel of land bearing Survey No.23, Gat No.197 admeasuring Hect. 00.89 R i.e. 8900 sq.meters situated lying and being at Village Samangaon, Taluka and District Nashik, out of the limits of Nashik Municipal Corporation and within Registration and Sub-Registration District Nashik and in case of shortfall, the same shall be recovered from the sale of the movable and immovable properties of the Defendants. As the applicant sought relief only against the Defendant No.1 to 5 and no relief is sought from the Defendant No.6, no relief is granted against Defendant No.6.

10/10/2026

- b. Defendant no. 1 to 5 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 Defendant no.1 to 5 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)