The Tribunal allowed an original application filed by Indian Overseas Bank to recover an outstanding loan amount of ₹97,63,125.26 plus interest from Hari Steel Industries and its partners, who failed to appear and contest the claim.
Direct payment of ₹97,63,125.26 plus interest; Enforcement of hypothecated securities; Issue of Recovery Certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
ORIGINAL APPLICATION NO.59 OF 2022
DEBTS RECOVERY TRIBUNAL No.2, MUMBAI
PRESIDING OFFICER: HARISH KUMAR KAUSHIK
ORIGINAL APPLICATION NO.59 OF 2022
Date of Institution: 21.10.2021 Date of Decision: 03.02.2026
TOTAL CLAIM AMOUNT :
₹ 97,63,125.26/-
INDIAN OVERSEAS BANK, A body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its having its Central Office at 763 Anna Salai Chennai - 600 002, Regional Office 5th Floor, E- Wing, Maker Tower Cuffe Parade, Mumbai - 400 005 and Branch office amongst others at Chakala Branch, situated at Omex Corner, Opp. Cigarette Factory, Tarun Bharat Society, Sahar Road, Chakala, Andheri (East), Mumbai-400099, Through its Chief Manager Shri. P. Jayant
… Applicant
Versus
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ORIGINAL APPLICATION NO.59 OF 2022
| 2. MR. MUKESH H. GADOYA, |
|---|
| Partner of M/s. Hari Steel |
| Industries, |
| An individual, Indian inhabitant |
| residing at Flat no. 101, 1 stFloor, |
| Building No.101, C-Wing, |
| Rajashree IRIS, Eagle CHSL, Tilak |
| Nagar, Chembur, Mumbai-400089. |
| 3. MR NILAY MUKESH GADOYA, |
| Partner of M/s. Hari Steel |
| Industries, |
| An Individual, Indian Inhabitant, |
| residing at Flat No.101, 1 stFloor, |
| Building No.101, C-Wing, |
| Rajashree IRIS, Eagle CHSL, Tilak |
| Nagar, Chembur, Mumbai-400 089. …Defendants |
| APPEARANCES |
| For the Applicant : Ms Salma Ghaswala - Advocate |
| For Defendants : None |
J U D G M E N T
(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 ₹97,63,125.26/- (Rupees Ninety-Seven Lakhs Sixty-Three Thousand One Hundred Twenty-Five and paisa Twenty-Six Only) along with pendente lite and future interest @ 8.90% with 2% overdue interest with monthly rest
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ORIGINAL APPLICATION NO.59 OF 2022
thereon from the date of presentation of the Original Application i.e. 21.10.2021 till payment/realization and to enforce the hypothecated securities.
The details of the claim amount are as under: -
| Sr | Nature of |
Particulars | Amount |
|---|---|---|---|
| No | Facility | ||
| 1 | Cash Credit | O/s. as on 30.09.2021 | ₹82,16,632.00/- |
| Unapplied Interest from 01.10.2021 to 20.10.2021 |
₹57,457.00/- | ||
| Total | ₹82,74,092.00/- | ||
| 2 | Term Loan | O/s. as per Statements of WCTL (GECL) Account as on 20.10.2021 @ 7.85% |
₹14,89,033.26/- |
| Total Amount |
- | ₹97,63,125.26/- |
(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 08.12.2023. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 02.12.2025.
(3) Defendant no.1 a Partnership Firm through its Partners i.e. Defendant nos.2 and 3 are the principal borrowers who approached the Applicant Bank and sought financial assistance by way of CC and Term Loan Facility. Pursuant to the loan application made by defendants, the Applicant
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ORIGINAL APPLICATION NO.59 OF 2022
sanctioned the loan vide Sanction Letter dated 23.12.2019 in sum of ₹70,00,000/(Rupees Seventy Lakhs Only) under Cash Credit against Hypothecation of Stocks and Receivables payable with interest at the rate of RLLR + 2.05% presently 10.05%. The said loan is covered under CGTMSE Scheme. Further on 09.09.2020, the Applicant sanctioned an amount of ₹14,00,000/(Rupees Fourteen Lakhs Only) under WCTL payable in 36 EMI’s of ₹43,775/- with interest @ RLLR + 1.00% equivalent to 7.85% with monthly rests. The said loan is covered under Guaranteed Emergency Credit Line (GECL).
The details of the Sanction amount are as under: -
| Sr | Date of |
Am ount | R OI | Sec ur ity |
|---|---|---|---|---|
| No | Sa nct io n | |||
| 1 | 23. 12. 20 19 | ₹7 0,0 0,0 00/ - | RLLR + 2.0 5% pre s ent ly |
Sto c k and R ec e ivab les. T he said loa n is co v ere d und er C GT MSE Sc hem e. Guara nte e d b y: - |
| 10. 05 % | (1 ) Mr M uk e s h H Ga do ya and (2 ) Mr N ila y M Ga do ya. |
|||
| Total Am ount |
₹70, 00, 000/ - | - | - | |
| 2 | 09. 09. 2020 | ₹1 4,0 0,0 00/ - | RLLR + 1.0 0% eq uiv ale nt to 7.8 5% w it h monthly res t s |
Sto c k and R ec e ivab les. T he said loa n is co v ere d und er (GEC L ) Sc heme. Guara nte e d b y: - (1 ) Mr Muke s h H Gado ya and (2 ) Mr N ila y M Ga do ya. |
| Total Am ount |
₹14, 00, 000/ - | - | - |
(4) On the dates given below, defendants signed and
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ORIGINAL APPLICATION NO.59 OF 2022
executed the loan and security documents as set out in paragraph nos.5.3 to 5.8 of the Original Application. Defendants hypothecated Stocks of Raw Materials in the form of Iron Wires, Semi Finished Nails and Finished Goods of Nails of various sizes and Screws and Receivables to secure the loan.
The details of the documents executed by the Defendant are as under: -
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ORIGINAL APPLICATION NO.59 OF 2022
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ORIGINAL APPLICATION NO.59 OF 2022
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ORIGINAL APPLICATION NO.59 OF 2022
(N.P.A.) on 31.05.2021 as per RBI Guidelines. Therefore, on 02.08.2021, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹80,37,885/(Rupees Eighty Lakhs Thirty-Seven Thousand Eight Hundred Eighty-Five Only ) under Cash Credit and ₹14,55,773/- (Rupees Fourteen Lakhs Fifty-Five Thousand Seve Hundred Seventy-Three Only) under WCTL under GECL with further interest calculated upto 31.07.2021 at the rate of 10.90% and 7.85% from 01.08.2021 with monthly rest plus legal & other expenses accrued till payment and/or realization within 2 weeks from receipt of the said notice. Despite notice, defendant nos.1 and 2 failed and neglected to pay.
(6) As on 20.10.2021, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹97,63,125.26/- (Rupees NinetySeven Lakhs Sixty-Three Thousand One Hundred Twenty-Five and paisa Twenty-Six Only) along with pendente lite and future interest @ 8.90% with 2% overdue interest 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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ORIGINAL APPLICATION NO.59 OF 2022
the payment, the applicant was left with no other alternate but to file the Original Application which was presented on 21.10.2021.
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ORIGINAL APPLICATION NO.59 OF 2022
the applicant bank.
ORDER
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ORIGINAL APPLICATION NO.59 OF 2022
sell the hypothecated properties and recover dues as per law.
Sd/-
(Harish Kumar Kaushik)
Presiding Officer, DRT-2, Mumbai
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2 issues framed by the court
Whether the claimed debt of ₹97,63,125.26 along with interest is established unchallenged despite the defendants failing to appear.
Whether the Original Application filed under Section 19(1) of the RDB Act deserves to be allowed and enforced against the borrowers.
1 provisions across 1 enactments
Indian Overseas Bank
M/S. Hari Steel Industries
Mr. Mukesh H. Gadoya
Mr. Nilay Mukesh Gadoya
Harish Kumar Kaushik
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
