Allowed

Bank of India v. M/s. Prachi Digital Print Zone

DRT2 Feb 2026OA/336/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant Bank of India's application for recovery of dues. The respondents were served but appeared ex-parte. The court adjudicated the claim and ordered payment with future interest, directed the submission of Central Government scheme details, and issued a Recovery Certificate against hypothecated securities.

What did the court decide?

Order directed payment of ₹54,47,113.90/- with future simple interest, secured by hypothecated properties, and directed issuance of a Recovery Certificate.

Bank of India versus M/s. Prachi Digital Print Zone — Banking and Recovery | DRT (2026)

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ORIGINAL APPLICATION NO.336 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.336 OF 2022

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Date of Institution: 18.12.2021 Date of Decision: 02.02.2026

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TOTAL CLAIM AMOUNT :

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₹ 54,47,113.90/-

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BANK OF INDIA

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A body corporate constituted under the Banking Companies (Acquisition Transfer of Undertakings) Act V of 19701, having their head office at “Star House”, C-5, “G” Block, BandraKurla Complex, Bandra (East), Mumbai-400 051, and having its one of the Branches situated at: 1^st floor, Trithankar Apartment, 294, S.K. Bole Marg, Dadar (West), Mumbai-400 028 known as “Dadar (West) Branch” through their Authorised Officer/Chief Manager Ms Naina C Kamble. Versus 1. M/S. PRACHI DIGITAL PRINT ZONE, A Proprietorship Firm, Indian Inhabitant of, having its address at: Shop No. 2, Yadvesh Clinic, Doodnath Pandey Chawl,

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… Applicant

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Page 1 of 12

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ORIGINAL APPLICATION NO.336 OF 2022

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Bamanwada, Near PNT Colony, Sahar Road, Vile Parle (East), Mumbai-400 069;

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And having its another address at:

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R. No. KEG 12-8/26, Mata Prasad Chawl, Koldongri Road No. 1, Sahar Road, Andheri (East), Mumbai-400 069. 2. MR. SATISH GENAJI MAHARAJ, Proprietor of M/s. Prachi Digital Print Zone, An adult, Indian Inhabitant of, having his Address at: Shop No. 2, Yadvesh Clinic, Doodnath Pandey Chawl, Bamanwada, Near PNT Colony, Sahar Road, Vile Parle (East), Mumbai - 400 069;

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And having another address at:

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R No. KEG 12-8/26, Mata Prasad Chawl, Koldongri Road No. 1, Sahar Road, Andheri (East), Mumbai - 400 069;

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And having his also at:

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1-A, Kalpita Enclave Opp. Vijay Nagar Hall, Sahar Road, Andheri (East), Mumbai - 400 069;

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And also at:

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Page 2 of 12

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ORIGINAL APPLICATION NO.336 OF 2022

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Flat No. A/402, 4th Floor, Urmila CHS Ltd., Koldongri Road No. 1, Off. Sahar Road, Andheri (East), Mumbai-400 069.

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…Defendants

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APPEARANCES

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For the Applicant : Mr Sudhir Gupta i/b. Mr O.A. Das - Advocate For Defendants : None

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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’) to recover ₹54,47,113.90/- (Rupees Fifty-Four Lakhs Forty-Seven Thousand One Hundred Thirteen and paisa Ninety Only) with future interest @ 9.35% per annum under CC A/c. + Penal Interest @ 2% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 18.12.2021 till payment/realization and to enforce the hypothecated securities.

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The details of the claim amount are as under: -

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S r N	N a t u r e o f	O / s . a m o u n t	U n c h a r g e d	P e n a l I n t e r e s t @	T o t a l A m o u n t
o	F a c i l i t y		I n t e r e s t @ 9 . 3 5 %	2 % p e a n n u m f r o m
			f r o m 3 1 . 0 3 . 2 0 2 1 t o 1 7 . 1 2 . 2 0 2 1	3 1 . 0 3 . 2 0 2 1 t o 1 7 . 1 2 . 2 0 2 1
1	C C A / c N o . 0 0 1 5 3 0 1 1 0 0 0 0 1 0 1	₹5 0 , 2 7 , 8 9 2 . 6 8 / -	₹3 , 4 5 , 3 4 9 . 6 4 / -	₹7 3 , 8 7 1 . 5 8 / -	₹ 5 4 , 4 7 , 1 1 3 . 9 0 / -

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ORIGINAL APPLICATION NO.336 OF 2022

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(2) It is undisputed fact in the matter that the Defendant nos.1 and 2 were duly served with the summons vide order-sheet dated 13.06.2023. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 17.12.2025.

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(3) Defendant no.1, a proprietorship firm through its proprietor i.e. Defendant no.2 are the borrowers who approached the Applicant Bank and sought financial assistance by way of Cash Credit Facility. Pursuant to the loan application made by defendant no.1, the Applicant sanctioned the loan Cash Credit Facility against Hypothecation of Stocks of ₹45,00,000/- (Rupees Forty-Five Lakhs Only) and Hypothecation of Book Debts of ₹45,00,000/- (Rupees Forty-Five Lakhs Only) vide its Sanction Letter bearing Ref. No. DDW/ADV/RDK/2019-20 dated 19.03.2020, Maximum Limit of ₹45,00,000/- (Rupees FortyFive Lakhs Only) payable with interest at the rate of 1yr RBLR + BSS+CRP=8.00+0.00+2.50 equivalent to 10.50% per annum with monthly rests. The said loan is covered under CGTMSE Scheme.

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The details of the Sanction amount are as under: -

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S r	D a t e o f	N a t u r e o f S e c u r i t y	A m o u n t	R O I	S e c u r i t y
N	S a n c t i o n
o 1	1 9 . 0 3 . 2 0 2 0	C a s h C r e d i t	₹4 5 , 0 0 , 0 0 0 / -	1 y r R B L R	H y p o t h e c a t i o n o f S t o c k
		a g a i n s t S t o c k &		+	a n d B o o k - d e b t s ( u p t o 9 0

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ORIGINAL APPLICATION NO.336 OF 2022

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	B o o k d e b t s u p t o 9 0 d a y s		B S S + C R P = 8 . 0 0 + 0 . 0 0 + 2 . 5 0 e q u i v a l e n t t o 1 0 . 5 0 %	d a y s )
			p e r a n n u m w i t h m o n t h l y r e s t s .
T o t a l	-	₹ 4 5 , 0 0 , 0 0 0 / -	-	-
A m o u n t

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(4) On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.4 to 5.5 of the Original Application. Defendants hypothecated a) all tangible movable machineries and plants (both present and future), whether installed or not and whether living loose or at site or in transit or acquired subsequently or which may any time during the continuance of this security in or upon or about the Borrower's premises being installed or lying loose or in cases or being godowns at wherever else the same may be or be held by any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower;

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ORIGINAL APPLICATION NO.336 OF 2022

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semi-finished goods, spare parts, components (including spare parts and stores relating to plant and machinery both present and future) and stocks in process of the Borrower and/or in transit now belonging to or that may at any time during the continuance of its security belong to the Borrower or that may be held by any party to the Order and disposition of the Borrower;

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c) all the present and future book -debts. outstandings, money receivables, claims, bills which are now due and owing or which may any time hereafter during the continuance of this security become due and owing to the Borrower in the course of his business by any person, firm, company or body corporate or by the Central Government or any State Government or any Government Department or office or any municipal or local or public or semi -governmental body or authority or anybody corporate or undertaking or project whatsoever to secure the loan.

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The details of the documents executed by the Defendant are as under: -

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(a) Accepted Sanction Letter bearing Ref. No. DDW/ADV/RDK/2019-20 dated 19.03.2020;

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(b) (L-434) Demand Promissory Note dated

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ORIGINAL APPLICATION NO.336 OF 2022

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19.03.2020 for ₹45,00,000/-;

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(d) (L-315) Non-Relation with any Director of bank dated 19.03.2020;

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(e) Undertaking Letter to Bank dated 19.03.2020 executed by Defendant No. 2.

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(f) Declaration cum Undertaking Letter to Bank executed by Defendant No.1 through its Proprietor i.e. Defendant No.2 dated 19.03.2020;

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(g) Specimen Undertaking to be obtained from the Borrowers in respect of payment of Stamp Duty on lean and security documents dated 19.03.2020 executed by Defendant No. 1 through its Proprietor i.e. Defendant No. 2;

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(h) RBLR (Repo Based Lending Rate) Agreement dated 19.03.2020 for ₹45,00,000/- executed by Defendant No. 1 through its Proprietor i.e. Defendant No. 2;

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(i) (L-516) Multi-purpose Documents for ₹45,00,000/-;

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(j) (IFD-010) Hypothecation cum Loan Agreement dated 19.03.2020.

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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

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ORIGINAL APPLICATION NO.336 OF 2022

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borrowers were declared as Non-Performing Assets (N.P.A.) on 31.03.2021 as per RBI Guidelines. Therefore, on 27.11.2021, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹54,11,113.60/(Rupees Fifty-Four Lakhs Eleven Thousand One Hundred Thirteen and paisa Sixty Only) plus uncharged interest @ 9.35% per annum + penal interest @ 2% from 31.03.2021 till payment and/or realization forthwith from receipt of this notice. Despite notice, defendant nos. 1 and 2 failed and neglected to pay.

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(6) As on 17.12.2021, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹54,47,113.90/- (Rupees FiftyFour Lakhs Forty-Seven Thousand One Hundred Thirteen and paisa Ninety Only) with future interest @ 9.35% per annum under CC A/c. + Penal Interest @ 2% per annum with monthly rest thereon. 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 18.12.2021.

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(8) The applicant has filed affidavit (exhibit-6) in lieu

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ORIGINAL APPLICATION NO.336 OF 2022

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of examination in chief of Mr Naina Kamble, Chief Manager and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-22, which are admitted in evidence, read, recorded and exhibited.

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(9) Accordingly, in the Original Application was filed for the recovery of ₹54,47,113.90/- (Rupees FiftyFour Lakhs Forty-Seven Thousand One Hundred Thirteen and paisa Ninety Only) with future interest @ 9.35% per annum under CC A/c. + Penal Interest @ 2% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 18.12.2021 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 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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Page 9 of 12

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ORIGINAL APPLICATION NO.336 OF 2022

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(13) Hence, the following order:

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ORDER

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(A) The Original Application No.339 of 2022 is allowed with costs.

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(B) Defendant no.1 through its proprietor i.e. Defendant no.2 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹54,47,113.90/- (Rupees FiftyFour Lakhs Forty-Seven Thousand One Hundred Thirteen and paisa Ninety Only) with future simple interest @ 9.35% per annum under Cash Credit A/c. thereon from the date of presentation of the Original Application i.e. 18.12.2021 till payment/realization.

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a) all tangible movable machineries and plants (both present and future), whether installed or not and whether living loose or at site or in transit or acquired subsequently or which may any time during the continuance of this security in or upon or about the Borrower's premises being installed or lying loose or in cases or being godowns at wherever else the same may be or be held by any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower;

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ORIGINAL APPLICATION NO.336 OF 2022

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b) all tangible movable properties, assets and stocks, whatsoever nature of the Borrower (both present and future) including but without prejudice to the generality of the foregoing all stocks of raw materials and finished goods and semi-finished goods, spare parts, components (including spare parts and stores relating to plant and machinery both present and future) and stocks in process of the Borrower and/or in transit now belonging to or that may at any time during the continuance of its security belong to the Borrower or that may be held by any party to the Order and disposition of the Borrower;

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c) all the present and future book-debts. outstandings, money receivables, claims, bills which are now due and owing or which may any time hereafter during the continuance of this security become due and owing to the Borrower in the course of his business by any person, firm, company or body corporate or by the Central Government or any State Government or any Government Department or office or any municipal or local or public or semi-governmental body or authority or anybody corporate or undertaking or project whatsoever.

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(D) Defendant no.1 through its proprietor i.e.

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ORIGINAL APPLICATION NO.336 OF 2022

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Defendant no.2 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) The Applicant is also hereby directed to submit the details of claim amount received from the Central Government since the facility is granted under CGTMSE Scheme.

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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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Bank of India v. M/s. Prachi Digital Print Zone

Case brief

What is this about?

What did the court decide?

Bank of India v. M/s. Prachi Digital Print Zone

Case brief

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