Allowed

Bank of Maharashtra v. M/S Archdeep Interior Infra Pvt. Ltd.

DRT17 Dec 2025OA/244/2022

Case brief

AI extract

What is this about?

In an application under the RDBI Act, the Tribunal, finding the Defendants ex-parte and the evidence uncontroverted, allowed the Applicant Bank's claim for recovery of outstanding dues. The order directed payment of the revised claim amount with interest and issuance of a Recovery Certificate.

What did the court decide?

Direction to pay ₹5,86,93,685/- with interest, entitlement to redeem hypothecated properties, and issuance of a Recovery Certificate.

Bank of Maharashtra versus M/S Archdeep Interior Infra Pvt. Ltd. — Banking and Recovery | DRT (2025)

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ORIGINAL APPLICATION NO.244 OF 2022

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DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

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PRESIDING OFFICER: HARISH KUMAR KAUSHIK

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ORIGINAL APPLICATION NO.244 OF 2022

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Date of Institution: 04.01.2020 Date of Decision: 17.12.2025

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TOTAL CLAIM AMOUNT : ₹ 5,86,93,685/-

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Bank of Maharashtra A body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970, having its Head Office at Lokmangal, 1501, Shivaji Nagar, Pune- 411 005 and branch office amongst others at Versova Branch, Mazdock Apartments CHS Ltd., J.P. Road, 7 Bunglows, Andheri (W), Mumbai400 061, represented by its Chief Manager and Authorised Signatory Mr. M.D.Waranashiwar … Applicant Versus 1. M/s Archdeep Interior Infra Pvt. Ltd. i) 30-F, Laxmi Industrial Estate, Andheri (W), Mumbai-400 053. ii) C-93, Building No.5, Mittal Industrial Estate, A.K.Road, Marol Naka, Andheri (E), Mumbai-400 069.

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Page 1 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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Mr Kaniyarkuzhiyil Luka Abraham Adult, Indian Inhabitant, Flat No.601/602, 6^th Floor, Green Acres CHS.Ltd., Building No.1/A, Plot No.325, Lokhandwala Complex, Village: Oshiwara, Andheri (W), Mumbai-400 053. 3. Mrs Lizy Kaniyarkuzhiyil Abraham Adult, Indian Inhabitant, Flat No.601/602, 6^th Floor, Green Acres CHS. LTD., Building No.1/A, Plot No.325, Lokhandwala Complex, Village: Oshiwara, Andheri (W), Mumbai-400 053. 4. Mr Archie K. Abraham Adult, Indian Inhabitant, i) E-703/704, Remi Biz Court, Off Veera Desai Road, Andheri (E), Mumbai-400 053. ii) Flat No.601/602, 6^th Floor, Green Acres CHS.LTD., Building No.1/A, Plot No.325, Lokhandwala Complex, Village: Oshiwara, Andheri (W), Mumbai-400 053. 5. Mrs Esther A. Abraham Adult, Indian Inhabitant, i) E-703/704, Remi Biz Court, Off Veera Desai Road, Andheri (E), Mumbai-400 053. ii) Flat No.601/602, 6^th Floor,

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Page 2 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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Green Acres CHS.LTD., Building No.1/A, Plot No.325, Lokhandwala Complex, Village: Oshiwara, Andheri (W), Mumbai-400 053. …Defendants APPEARANCES For the Applicant : Mr Sachin Koli - Advocate For Defendants : None – Advocate

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J U D G M E N T

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(1) This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the 1993 Act’) initially to recover ₹8,16,98,581/(Rupees Eight Crores Sixteen Lakhs Ninety Eight Thousand Five Hundred Eighty One Only) with interest @ 13.50% per annum thereon from the date of presentation of the Original Application i.e. 04.01.2020 till payment/realization and to enforce the mortgaged and hypothecated securities. Thereafter, vide Claim Affidavit dated 04.03.2022 the Applicant submitted that the secured asset was sold and profits accrued has to be reduced from the initial claim amount and the claim has been revised to ₹5,86,93,685/- (Rupees Five Crores Eighty Six Lakhs Ninety Three

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Page 3 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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Thousand Six Hundred Eighty Five Only).

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The details of the initial claim amount and revised

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claim amount are as under:-

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S r	Total under	Claim Cash	Total Claim under WCTL	Total Claim under FITL	Total Initial Claim
N	Credit
o
1	₹3,60,45	,635/-	₹4,40,09,899/-	₹16,43,047/-	₹8,16,98,581/-
					Less: Amount
					accrued from Sale of the secured asset i.e. ₹2,30,04,896/-
				Revised	₹5,86,93,685/-
				Total Claim

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(2) It is undisputed fact in the matter that the Defendant nos.1 to 5 were duly served with the summons vide order-sheet dated 14.11.2024. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 11.07.2025.

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(3) Defendant no.1 is the principle borrower Private Limited Company incorporated under the provisions of the Indian Companies Act, 1956 and engaged in the business of Interior decorators and civil works contractors who approached the Applicant Bank through its Directors Defendant Nos.2 & 3 and Guarantors i.e. Defendant Nos. 4 & 5 sought the financial assistance. The Applicant sanctioned and renewed Credit facilities time to time as under.

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ORIGINAL APPLICATION NO.244 OF 2022

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The details of the Sanction amount are as under:-

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S r N o Date of Sanct ion	Type of Facility	Amount sanctio ned (In Lakhs)	ROI	Prima ry Secur ity	Collate ral Securi ty	Guara ntor	Creati on of Charge
1 15.07 .2013	Funded Facility Cash Credit	250.00	13%	Hypo theca tion of Book Debts and Stock	Additio nal charge by way of Equita ble mortga	Guara ntee by the direct ors: 1. Mr Kaniy	Charge to be create d with ROC for all the faciliti
	Total FB	250.00			ge of residen	arkuz hiyil	es.
	Non- Funded Facility				tial propert y Flat No.601	Luka Abrah a;
	Bank Guarant ee	200.00	-		& 602, 6 ^{t h} Floor,	2. Mr s Lizy Abrah
	Letter of Credit	50.00	-		Green Acres Co op Hsg	am in their perso nal
	Total NFB	250.00			Soc. Ltd Bldg. No.1/A , Plot No.325 , Lokhan dwala Comple x, Village Oshiwa ra, Andher i (W), Mumba i-400 053 valued at	capac ity; 3. Mr Achie Abrah am & 4. Mr s Esthe r Abrah am.

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ORIGINAL APPLICATION NO.244 OF 2022

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					₹468.7 5 Lakhs already mortga ged with us for housin g loan of₹145 Lakhs.
	Total (FB+NF B)	500.00	-	-	- - -
2 30.03 .2015	Cash Credit (Renewa l)	250.00	Base rate + 3.25% presently 13.50% p.a. with monthly rest	Hypo theca tion of Stock , recei vable s upto 120 days	Same as Sanctio n Letter dated 15.07. 2013. - -
	WCTL-1	248.10/-	Base rate + 3.25% presently 13.50% p.a. with monthly rest repayable within 60 months inclusive of six months of moratori um period. Repayme nt to commenc e from 01.10.20	Same as above	- - -

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Page 6 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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		15 in 54 monthly equal installme nts
FITL	17.00	Base rate + 3.25% presently 13.50% p.a. with monthly rest repaymen t to commence from 01.10.201 5 on monthly basis within 18 months - - - -
Total	515.1

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(4) On 17.07.2013, 19.07.2013, 22.07.2013, 30.03.2015, 18.05.2015, 06.06.2015, 08.06.2015 and 09.06.2015, defendants signed and executed the loan and security documents as set out in paragraph no.5 (Page no.7) of the Original Application. Defendants hypothecated Stocks, Plant & Machinery, Equipments, Movables & Book Debts and mortgaged Flat No.601 & 602, 6^th Floor, Green Acres CHS. LTD., Building No.1/A,

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Page 7 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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Plot No.325, Lokhandwala Complex, Village Oshiwara, Andheri (W), Mumbai – 400 053 to secure the loan.

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The details of the documents executed on 18.07.2013 by the Defendants are as under:-

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(a) Mortgagor’s Declaration for Proposed Equitable Mortgage dated 17.07.2013 executed by the Defendant Nos.4 & 5;

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(b) Memorandum of Record of Equitable Mortgage dated 19.07.2013;

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(d) Request Letter dated 22.07.2013 executed by all the Defendants for Cash Credit Facility upto ₹250 Lakhs;

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(e) Demand Promissory Note dated 22.07.2013 executed by the Defendant No.1 for Cash Credit Facility for ₹250 Lakhs;

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(f) Request Letter dated 22.07.2013 executed by all the Defendants for Bank Guarantee facility for ₹200 Lakhs;

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(g) Demand Promissory Note dated 22.07.2013 executed by the Defendant No.1 for Bank Guarantee facility for ₹200 Lakhs;

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(h) Guarantee in Bank’s favour from its client

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Page 8 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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and/or from Guarantor in respect of Bank Guarantee Limit granted by the Bank executed by Defendant No.1 for availing Bank Guarantee facility of ₹200 Lakhs dated 22.07.2013;

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(i) Request Letter dated 22.07.2013 executed by all the Defendants, for availing Letter of Credit facility for ₹50 Lakhs;

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(j) Demand Promissory Note dated 22.07.2013 executed by the Defendant No.1 for availing Letter of Credit facility for ₹50 Lakhs;

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(k) Composite Deed of Hypothecation dated 22.07.2013 executed by Defendant No.1 for availing credit facilities of ₹500 Lakhs;

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(l) Guarantee Deed for over all limits dated 22.07.2013 executed by the Defendant Nos. 2 to 5;

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(m) Undertaking Letter dated 22.07.2013 executed by the Defendant No. 1;

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(n) Request Letter for Restructuring of credit facilities dated 28.01.2015 by Defendant No.1.

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The details of the documents executed on 30.03.2015 by the Defendants are as under:-

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(a) Accepted Sanction Letter dated 30.03.2015;

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(b) Request Letter dated 30.03.2015 executed by

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Page 9 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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all the Defendants for availing WCTL of ₹248,10,000/-;

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(d) Application/Request Letter for making credit facility available dated 30.03.2015 executed by all the Defendants for FITL (Term Loan) of ₹17 Lakhs;

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(e) Demand Promissory Note dated 30.03.2015 executed by the Defendant No.1 for FITL (Term Loan) of ₹17 Lakhs;

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(f) Letter of Irrevocable Undertaking dated 30.03.2015 executed by Defendant Nos.4 & 5 for ₹248,10,000 and ₹17 Lakhs;

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(g) Letter of Authority for Adjustment of deposit (Letter of Set Off) dated 30.03.2015 executed by all the Defendants;

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(h) Composite Deed Of Hypothecation for all facilities dated 30.03.2015 executed by the Defendant No.1 for ₹265.10 Lakhs;

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(i) Composite Deed Of Hypothecation for all facilities dated 06.06.2015 executed by the Defendant No.1;

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(j) Guarantee Deed dated 30.03.2015 executed by the Defendants Nos.2 to 5;

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(k) Receipt for amount of Loan dated 30.03.2015 & 18.05.2015 executed by the Defendant No.1

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Page 10 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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in respect of WCTL facility;

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(l) Receipt for amount of Loan dated 30.03.2015 & 18.05.2015 executed by the Defendant No.1 in respect of FITL facility.

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The details of the documents re-executed on 08.06.2015 by the Defendant Nos.4 & 5 are as under:-

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(a) Mortgagor’s Declaration for Extension Equitable Mortgage dated 06.06.2015 executed by the Defendant Nos.4 & 5;

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(b) Memorandum of Record of Additional Equitable Mortgage dated 08.06.2015;

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(5) After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalment and repayment of the loan and accordingly the account in Cash Credit Account, WCTL Account and FITL Account of the Defendant No.1 was declared as Non-Performing Assets (N.P.A.) on 26.08.2015 as per RBI Guidelines. Therefore, on 26.12.2017, the applicant, through its advocate, called upon defendant nos.1 to 5, to liquidate the outstanding in the sum of ₹2,56,09,386/- as on 26.12.2017 alongwith unapplied interest from 29.01.2016 at

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Page 11 of 15

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ORIGINAL APPLICATION NO.244 OF 2022

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the applicable rates from time to time as per RBI guidelines and further interest @ 13.50 % p.a. with monthly rests alongwith penal interest @ 2 % accrued thereon within 7 days from the receipt of the said legal notice. Despite notice, defendant nos. 1 to 5 failed and neglected to pay.

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(6) As on 30.09.2020, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹8,16,98,581/- (Rupees Eight Crore Sixteen Lakhs Ninety Eight Thousand Five Hundred Eighty One Only) with interest at the rate of 13.50% per annum. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

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(7) Since, defendant nos.1 to 5 failed and neglected to make the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 04.01.2020.

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(8) The applicant has filed affidavit (exhibit-6) on 04.03.2022 in lieu of examination in chief of Ms Kanchanlata Pandey, Chief Manager at the Asset Recovery Branch, Mumbai of the Applicant and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1/1 to AW-1/47, which are admitted in evidence, read, recorded and exhibited.

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(9) Accordingly, in the Original Application was filed

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ORIGINAL APPLICATION NO.244 OF 2022

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initially for the recovery of ₹8,16,98,581/(Rupees Eight Crores Sixteen Lakhs Ninety Eight Thousand Five Hundred Eighty One Only) with interest at the rate of 13.50% per annum from the date of presentation of the Original Application, that is, 04.01.2020 till payment/realisation.

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(10) The Applicant vide the Claim Affidavit dated 04.03.2022 states that the secured assets (Flat No.601 & 602, Andheri (W), Mumbai – 400 053) had been sold and an amount of ₹2,30,04,896/(Rupees Two Crores Thirty Lakhs Four Thousand Eight Hundred Ninety Six Only) was appropriated in the WCTL Account on 30.09.2021 and profits accrued has to be reduced from the initial claim amount and the claim has been revised to ₹5,86,93,685/- (Rupees Five Crores Eighty Six Lakhs Ninety Three Thousand Six Hundred Eighty Five Only).

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(11) The Tribunal has scrutinised and examined the allegations contained in the Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

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(12) Upon careful scrutiny and the examination of the Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by

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ORIGINAL APPLICATION NO.244 OF 2022

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the applicant bank.

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(13) In view of the observations made hereinabove, Original Application filed by the applicant deserves to be allowed.

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(14) Hence, the following order:

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ORDER

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(A) The Original Application No.244 of 2022 is allowed with costs.

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(B) Defendant nos.1 to 5 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹5,86,93,685/- (Rupees Five Crores Eighty Six Lakhs Ninety Three Thousand Six Hundred Eighty Five Only) with interest at the rate of 12% per annum from the date of filing of the Original Application, that is, 04.01.2020 till payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Stocks, Plant & Machinery, Equipments, Movables & Book Debts.

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(D) Defendant nos. 1 to 5 are entitled to redeem the hypothecated properties as per law failing which the applicant has right to proceed to sell the hypothecated properties and recover dues as per law.

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(E) Issue Recovery Certificate.

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(F) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the

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ORIGINAL APPLICATION NO.244 OF 2022

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applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

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Sd/-

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(Harish Kumar Kaushik)

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Presiding Officer, DRT-2, Mumbai

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Bank of Maharashtra v. M/S Archdeep Interior Infra Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. M/S Archdeep Interior Infra Pvt. Ltd.

Case brief

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What did the court decide?

What the court decided

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