Allowed

Reliance Asset Reconstruction Company Ltd. v. M s Himaja Alloys Pvt. Ltd.

DRT8 Apr 2025MA/75/2025

Case brief

AI extract

What is this about?

The Tribunal allowed Maintenance Applications seeking to reopen a closed Original Application due to the defendant's default in an amalgamation arrangement, directing the issuance of a Recovery Certificate for the outstanding loan amount with interest.

What did the court decide?

Reopened Original Application; directed issuance of Recovery Certificate for Rs.14,01,81,054.30 with interest; granted liberty to recover via sale of schedule properties.

Reliance Asset Reconstruction Company Ltd. versus M s Himaja… — Banking and Recovery | DRT (2025)

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MA Nos.74 & 75/25 in OA No.390/2013 1

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08.04.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of April, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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M.A. Nos.74 & 75 of 2025 in O.A. No. 390 of 2013

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*Reliance Asset Reconstruction Company Limited Reliance Centre, North Wing, 6^th Floor Off Western Express Highway Santacruz East Mumbai – 400 055

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….Applicant

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*(Amended vide order in IA No.1090/2017 dated 05.07.2018)

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-Vs-

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M/s. Himaja Alloys Pvt. Ltd. Plot No.110, Dr. Murthy Nagar

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Padi, Chennai – 600 050

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And also at No.341, 2^nd Floor, Mohanram Nagar Mogappair West Chennai – 600 037

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Mr. Sushil Maheshwari S/o Babulalji Maheshwari Director, M/s Himaja Alloys Pvt. Ltd. 855, Sai Kripa Apartments 20^th Main Road, Anna Nagar West Chennai – 600 040

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Mr. Mokshagundam Madhusudhana S/o Late M.S. Sastry Director, M/s Himaja Alloys Pvt. Ltd. Plot No.341, Golden Colony Mohanram Nagar, Mogappair West Chennai – 600 037

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Mr. Sachin Maheshwari S/o Sushil Maheshwari Director, M/s Himaja Alloys Pvt. Ltd. 855, Sai Kripa Apartments 20^th Main Road, Anna Nagar West Chennai – 600 040

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MA Nos.74 & 75/25 in OA No.390/2013 2

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08.04.2025

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Mr. Mokshagundam Sunilkumar S/o M. Madhu Sudhana Director, M/s Himaja Alloys Pvt. Ltd. Plot No.341, Golden Colony Mohanram Nagar, Mogappair West Chennai – 600 037 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s Shivakumar and Suresh

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: - ORDER ON MA NOs.74 & 75 of 2025- :

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The Original Application is filed by the Applicant against the Defendants, seeking for recovery of money due from Defendant Nos.1 to 3 jointly and severally to pay a sum of Rs.14,01,81,054.30p (Rupees

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Fourteen Crores One Lakh Eighty One Thousand and Fifty Four and

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Thirty Paise only) together with further interest and costs.

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The Applicant has filed the present petition i.e., MA No.74 & M.A.No.75/2025 with affidavit of the Authorised Officer of applicant company, Sh. Prabhu, seeking to re-open the above OA for passing necessary order pursuant to failure of OTS and for an order to issue Recovery Certificate for the entire claim i.e., Rs.14,01,81,054.30p together with interest as prayed in the above OA respectively.

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It is the case of applicant that the Defendants have availed various credit facilities from applicant for their business purpose and defendants have executed loan and security documents in favour of the applicant.

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Due to default in operating the loan accounts, it turned into NPA. Hence the present OA is filed for recovery of sum of Rs.14,74,09,485/-. During

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MA Nos.74 & 75/25 in OA No.390/2013

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08.04.2025

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the pendency of OA, defendants have approached the applicant with OTS proposal, which was accordingly approved on 03.03.2018. The applicant taking into consideration the request of the Defendants have agreed to accept the proposal for payment of OTS amount of Rs.627 lakhs towards full and final settlement of the outstanding dues as per the OTS Sanction dated 05.03.2018.

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It is submitted by applicant that the defendants have paid a sum of Rs.1 crore till 31.03.2018 and the applicant had released the Agricultural land at Pulivendra Village, the balance OTS amount of Rs.527 lakhs is supposed to be paid on or before 30.11.2018 on approval against the release of factory land and building with plant and machinery at Mogli, Chittur District on other conditions as mentioned in the affidavit.

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It is further submitted by applicant that a joint compromise memo dated 14.08.2018 has been filed by applicant and defendants. This Tribunal vide order dated 14.08.2018 recorded the said compromise memo and closed the OA in terms of the memo.

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Now, it the case of applicant that the defendants have not complied with the terms of OTS and committed default. Hence it is prayed that the OA may be re-opened and also prayed for issuance of Recovery Certificate for the entire claim amount of Rs.14,01,81,054.30p together with interest as prayed in the above OA.

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Notice in the MAs are sent to respondents by registered post and applicant had produced the postal receipts evidencing the same along

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MA Nos.74 & 75/25 in OA No.390/2013

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08.04.2025

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with MAs. However, respondents did not choose to file any counter despite receipt of copies of MAs.

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Heard the counsels for applicant and respondents and perused the records of produced along with the IA.

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The Applicant has filed the above MAs praying to issue Recovery Certificate for the OA claim as the defendants have committed default in compliance of terms of OTS. AS per the Clause ix and x of the OTS terms agreed between the parties,

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ix. The defendants have agreed to this compromise will be treated

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as cancelled, if OTS amount is not fully paid along with interest on or before 30.11.2018

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x. In the event of defendants failure to pay the entire OTS amount within the specified time frame as stipulated in the OTS, the defendants hereby consent, agree and submit for a decree and allowing the original application and recovery certificate issued for the entire claim amount of Rs.14,74,09,485/- together with interest’

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It is submitted by applicant that defendants had only remitted a sum of Rs.1 crore till 31.03.2018 and the Agricultural land property was released for the said payment. Thereafter, defendants failed to comply the balance OTS amount of Rs.527 lakhs, which is to be paid on or before 30.11.2018. Hence invoking the default clauses ‘ix’ and ‘x’, the applicant is entitled for recovery of the OA claim together with interest as prayed for in the OA.

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MA Nos.74 & 75/25 in OA No.390/2013

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08.04.2025

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In the result, MAs 74/25 & 75/25 stands allowed and OA is reopened. Applicant is entitled for the Recovery certificate in terms of the following

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:ORDER:

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The OA is allowed with costs,

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(a) The applicant is allowed to recover from the Defendants 1

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to 5 jointly and severally, a total sum of Rs.14,01,81,054.30p (Rupees Fourteen Crores One Lakh Eighty One Thousand and Fifty Four and Thirty Paise only) as follows:

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(i) A sum of Rs.11,25,14,080.30p due in respect of Term

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Loan facility together with further interest @ 5% above the Base Rate with a minimum of 15% per annum from the date of application till the date of realisation, till date of realization in full along with costs.

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(ii) A sum of Rs.2,76,66,974/- due in respect of Cash Credit Facility together with further interest @ 14.25% per annum with monthly rests from the date of application till the date of realisation in full along with costs.

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(b) Applicant is directed to give credit to the sum of Rs.1 crore remitted by the defendants to the loan account and any other payments remitted during pendency of OA, on the respective date of payment / realisation.

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MA Nos.74 & 75/25 in OA No.390/2013

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08.04.2025

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aforesaid amount, the applicant is at liberty to recover the amount by sale of the Schedule A mentioned hypotheca and Item No.2 of Schedule B mentioned immovable property.

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(d) OA Schedule shall be appended to this final order.

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(e) The applicant shall file the latest memo of calculation of OA

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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

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the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant.

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

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

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

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Sd/ -

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 08^th day of April, 2025)

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MA Nos.74 & 75/25 in OA No.390/2013 7

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08.04.2025

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Schedule of Properties

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FIRST SCHEDULE

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The whole of the movable properties of the borrowers including its current assets, receivables, book debts and stock in trade and plant and machinery spares, tools and accessories and other movable both present future, whether installed or not and whether now lying loose or in cases or which are now lying at Plot No.3, NH 4, Mohili Village, Bangarupalayam, Chittoor, Andhrapadesh and other units at various places in India.

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SECOND SCHEDULE

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ITEM 2 (PROPERTY MORTGAED BY THE FIRST DEFENDANT)

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The lease hold rights for a period of 99 years from 19.10.2010 in the landed property measuring 2.67 acres comprised in Survey Numbers 11, 12, 16, 17, 18, 19, 20, 21 (part), 24/2, 24/3, situated at Plot No.3, Srini Food Park Private Limited, Mogili Village, Bangarupalayam Mandal, Bangarupalaym Sub-District, Chittoor District, Andhra Pradesh together with buildings / shed thereon and bounded on

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North By : Road South By : Central Processing Unit West By : Plot No.2 East By : Plot No.4

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Situated within the Sub-Registration District of Bangarupalayam, Chittoor District.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Reliance Asset Reconstruction Company Ltd. v. M s Himaja Alloys Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Reliance Asset Reconstruction Company Ltd. v. M s Himaja Alloys Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

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Case details

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