Allowed

Bank of India v. M/S Wrm Health Care Pvt. Ltd.

DRT11 Sept 2025OA/542/2022

Case brief

AI extract

What is this about?

In this after-default recovery proceeding, the Tribunal examined uncontradicted loan documents and demanded payment notices. Finding the claim substantiated by evidence, the order allowed the application holding respondents liable to repay the dues secured by hypothecated and mortgaged assets.

What did the court decide?

Order invoking Section 19(1) RDB Act passed; Original application allowed with costs; direction to pay ₹4,29,12,077.71 with 12% interest from 08.05.2019; issue of Recovery Certificate.

Bank of India versus M/S Wrm Health Care Pvt. Ltd. — Insolvency and Bankruptcy | DRT (2025)

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ORIGINAL APPLICATION NO.542 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.542 OF 2022

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Date of Institution: 08.05.2019 Date of Decision: 11.09.2025

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TOTAL CLAIM AMOUNT :

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₹ 4,29,12,077.71/-

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BANK OF INDIA,

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a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970,having their Head Office at "Star House", C-5, "G" Block, BandraKurla Complex Bandra (East), Mumbai-400 051 and having its Branch office at 1^st Floor, Thirthankar Apartment, 294, S. K. Bole Marg. Dadar (West), Mumbai 400 028, known as "Dadar (West) Branch", through their Authorized Officer/Chief Manager, MR. R. D. KUJUR

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… Applicant

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Versus

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M/S. WRM HEALTH CARE PVT. LTD.

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A Private Limited Company. Indian Inhabitant of, having its Office at: B-75, Rituraj Building, Juhu Tara Road, Juhu, Opp. SNDT University, Juhu-400 049.

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Page 1 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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MISS. SWATI PRADEEP JOSHI Director as well as Guarantor of M/s. WRM Health Care Pvt. Ltd. An adult, Indian Inhabitant of, having his Office address at: B-75, Rituraj Building. Juhu Tara Road, Julhm, Opp. SNDT University, Juhu - 400 049; And Residential address at: E-3, Rail Nagar, Vazira Naka, L. T. Road, Borivali (West), Mumbai 400 092; 3. MR. VIJAY RAMCHANDRA PATIL Director as well as Guarantor of M/s. WRM Health Care Pvt. Ltd. An adult, Indian Inhabitant of, having his Address at: B-75, Rituraj Building. Juhu Tara Road, Juhu, Opp. SNDT University, Juhu-400 049; and also And also Residing address at: Bandhu Niwas, Bhoidapada, Gokhivare, Vasai (East), Thane - 401 208 …Defendants

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APPEARANCES For the Applicant : Ms Akanksha Sarpole I/b Mr O.A.Das - Advocate For Defendants : None – Advocate

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J U D G M E N T

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Page 2 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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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’) to recover aggregate sum of ₹4,29,12,077.71/- (Rupees Four Crores Twenty Nine Lakhs Twelve Thousand Seventy Seven and paisa Seventy One Only) as on 07.05.2019 with interest @ 12.85% per annum thereon from the date of presentation of the Original Application i.e. 08.05.2019 till payment/realization and to enforce the hypothecated/movable securities.

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The details of the claim amount are as under:-

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S	Nature	O/s. amount	Uncharged	Penal	Total Claim
r	of	due	interest	Interest	Amount
N	facility		@12.85%	@2% p.a.
o			from	from
			28.03.2017	28.03.2017
			to	to
			07.05.2019	07.05.2019
1	Cash	₹	₹	₹	₹
	Credit	3,22,41,575.	10,46,1276.3	2,09,225.53	4,29,12,077.71/
		80/-	8/-	/-	-

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(2) It is undisputed fact in the matter that the Defendant nos.1 to 3 were duly served with the summons vide order-sheet dated 19.04.2024. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 14.08.2025.

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Page 3 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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(3) Defendant no.1, Private Limited Company Borrower company through its directors and guarantors i.e. Defendant No.2 and 3, approached to the Applicant Bank seeking financial assistance by way of Cash Credit Facility. Pursuant to the loan application made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 21.06.2016 for sum of ₹2,50,00,000/(Rupees Two Crores Fifty Lakhs Only) for Cash Credit Facility against Hypothecation of Stocks and within which for sum of ₹75,00,000/- (Rupees Seventy Five Lakhs Only) for Cash Credit Facility against Hypothecation of Book-debts and maximum limit of ₹2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) payable with interest as given in the table below.

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The details of the Sanction amount are as under:-

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S Date of	Natur	Amount	ROI	Security	Collateral
r N o Sanction	e of Facili ty	sanction ed (In₹)			Security
1 21.06.2016	Cash Credit	2,50,00,0 00/-	As applicable	Hypothecati on of Stocks	Plot No.S No.43, H No.2
	Cash Credit	( 75,00,00 0/-)	to "SME-3" rated accounts, i.e. for CC A/c: MCLR Business Strategy 9.40% spread 0.30% + Credit Risk Premium	Hypothecati on of Book- Debts upto 90 days old. Also all stocks- non moving & more then 90 days old, would be excluded for purpose of calculation	B4, Hissa No.2A(p)1, S No.44, H Hissa 2(p) B, 1(p) B, S No.42, Hissa No.2(p) B, situated at village- Gokhiware Bhoydapada, Vasai (East)Taluka Vasai, Palghar

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Page 4 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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			4.05%, applicable ROI will be 13.75%	of Drawing Power. Guarantee: 1.Niss
			pa. presently with monthly rests.	Swati Joshi. 2.Mr Vijay Ramchandr a Patil
Maximum	-	2,50,00,	-	- -
Limit		000/-

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(4) On 21.06.2016, 23.06.2016 and 30.06.2016, defendants signed and executed the loan and security documents as set out in paragraph nos.5.5 (Page No.8) of the Original Application. Defendants hypothecated Stocks and Book-Debts and mortgaged Plot No. S No.43, H No.2 B4, Hissa No.2A(p)1, S No.44, H Hissa 2(p) B, 1(p) B, S No.42, Hissa No.2(p) B, situated at villageGokhiware Bhoydapada, Vasai (East)Taluka Vasai, Palghar to secure the loan.

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The details of the documents executed by the Defendants vide Sanction Letter dated 21.06.2016 are as under:-

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(a) Accepted Sanction Letter dated 21.06.2016;

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(b) Demand Promissory Note dated 23.06.2016 of ₹2,50,00,000/- (L-434) ;

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(d) Non Relation with any Director of Bank dated

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Page 5 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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23.06.2016 (L-515);

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(e) Undertaking Letter dated 23.06.2016;

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(f) Multipurpose Document dated 23.06.2016 (L-516);

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(g) Hypothecated cum Loan Agreement dated 23.06.2016 of ₹2,50,00,000/- (IFD-010);

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(h) Deed of Guarantee executed by Defendant Nos.2 and 3 dated 23.06.2016 of ₹2,50,00,000/- (OD-194);

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(i) Memorandum of Oral Assent dated 30.06.2016.

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(5) After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 31.03.2017 as per RBI Guidelines. Therefore, on 25.04.2019, the applicant, through its advocate, called upon defendants to liquidate the outstanding for the sum of ₹3,22,41,575.80/(Rupees Three Crores Twenty Two Lakhs Forty One Thousand Five Hundred Seventy Five and paisa Eighty Only) and uncharged interest @ 12.85% from 28.03.2017 + 2% Penal Interest till realization of the said notice. Despite notice, defendant nos.1 to 3 failed and neglected to pay.

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(6) As on 07.05.2019, there was owing, due and payable by defendants to the applicant the

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Page 6 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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aggregate sum of aggregate sum of ₹4,29,12,077.71/- (Rupees Four Crores Twenty Nine Lakhs Twelve Thousand Seventy Seven and paisa Seventy One Only). 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, defendants 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 08.05.2019.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Ms Naina Kamble, Chief Manager and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-23, which are admitted in evidence, read, recorded and exhibited.

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(9) Accordingly, in the Original Application was filed for the recovery aggregate sum of ₹4,29,12,077.71/- (Rupees Four Crores Twenty Nine Lakhs Twelve Thousand Seventy Seven and paisa Seventy One Only) with interest @ 12.85% per annum thereon from the date of presentation of the Original Application i.e. 08.05.2019 till payment/realisation.

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(10) The Tribunal has scrutinised and examined the allegations contained in the Original Application and analysed the evidence adduced by the

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Page 7 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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applicant which has gone unchallenged, uncontroverted and unrebutted.

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(11) 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 the applicant bank.

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

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(13) Hence, the following order:

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ORDER

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(A) The Original Application No. 542 of 2022 is allowed with costs.

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(B) Defendant nos.1 to 3 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹4,29,12,077.71/- (Rupees Four Crores Twenty Nine Lakhs Twelve Thousand Seventy Seven and paisa Seventy One Only) with interest @ 12% per annum thereon from the date of presentation of the Original Application i.e. 08.05.2019 till payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Stocks and Book-Debts.

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(D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged immovable

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Page 8 of 9

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ORIGINAL APPLICATION NO.542 OF 2022

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properties, that is, Plot No.S No.43, H No.2 B4, Hissa No.2A(p) 1, S No.44, H Hissa 2(p) B, 1(p) B, S No.42, Hissa No.2(p) B, situated at villageGokhiware Bhoydapada, Vasai (East) Taluka Vasai, Palghar.

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(E) Defendant nos.1 to 3 are entitled to redeem the mortgaged property as per law failing which the applicant has right to proceed to sell the mortgaged property and recover dues as per law.

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(F) Issue Recovery Certificate.

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(G) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

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Sd/-

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(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai

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Page 9 of 9

Bank of India v. M/S Wrm Health Care Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Wrm Health Care Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

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