Allowed

Bank of Maharashtra v. M/S Reflection Investment

DRT20 May 2026TA/55/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by the Bank of Maharashtra against a partnership firm and its partners for recovery of a defaulted Cash Credit facility totaling approximately Rs. 2.28 crores, along with interest and costs, after an ex-parte hearing since respondents failed to contest.

What did the court decide?

Recovery of Rs. 2,27,62,980.89p principal, pending interest @ 15% p.a., costs, and liberty to sell personal/movable/immovable assets for balance dues.

Bank of Maharashtra versus M/S Reflection Investment — Company and Corporate | DRT (2026)

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T.A. No.55 of 2023

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20.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.55 of 2023

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(Originally filed before DRT- II, Chennai as OA No.1003 of 2019 and thereafter transferred to this Tribunal and renumbered as TA No.55 of 2023)

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Bank of Maharashtra,

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No.1, M.G. Road, Besant Nagar, Chennai- 90 Represented by its Authorised Signatory

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…Applicant

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-Vs-

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M/s Reflection Investment

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Rep by its Partners Vijay Sambrani & Mrs. Chandrika Sambrani 15/1, Beach Home Avenue,

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1^st Cross street, Besant Nagar,

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Chennai- 600 090

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Vijay Sambrani,

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S/o Mr.Narayan Rao,

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F302 Atrium, 22 Kalachetra Road, Thiruvanmiyur, Chennai- 600 041

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Mrs. Chandrika Sambrani

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W/o Vijay Sambrani

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F302 Atrium, 22 Kalachetra Road, Thiruvanmiyur, Chennai- 600 041 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s Shree Law Services

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Defendants 1 to 3 were set ex-parte on 28.09.2022

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: - FINAL ORDER- :

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This Original Application is filed on 22.11.2019 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act,

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T.A. No.55 of 2023

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20.05.2026

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against the defendants 1 to 3, jointly and severally for recovery of a total sum of Rs.2,27,62,980.89p (Rupees Two Crores Twenty Seven

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Lakhs Sixty Two Thousand Nine Hundred Eighty and Eighty Nine Paise only) due in respect of Cash Credit facility (A/c No.6020597870) repayable together with further interest @ 15% p.a., with monthly rests from the date of Application till the date of realization in full and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 1003 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.1003 of 2019 stood transferred to this Tribunal and renumbered as TA No. 55 of 2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

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It is the case of the applicant bank that the 1^st Defendant is a Partnership Firm and the Defendants 2 & 3 are the partners of the 1^st defendant. The 1^st defendant is carrying on business in stock broking and investments. The 1^st defendant had approached the applicant seeking credit facilities for its business requirements and the same was sanctioned by way of Cash Credit and Bank Guarantee by the applicant. The said

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T.A. No.55 of 2023

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20.05.2026

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Cash Credit and Bank Guarantee facilities were sanctioned with a primary security of lien on deposit of Rs.10 lakh for Cash Credit Limit and Rs.4 Crores for Bank Guarantee respectively.

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It is submitted by the applicant bank that pursuant to such sanction, the 1^st defendant executed Demand Promissory Note on 16.03.2018, agreeing to pay back on demand to the applicant or its order, the sum of Rs.15 lakhs with interest on such sum at the rate of 3.75% p.a. above MCLR which was 12.45% relevant point of time. The 1^st defendant executed a clean Cash Credit Facility Agreement in favour of the applicant.

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The applicant submits that the defendants 2 & 3 guaranteed the repayment of the facilities extended to 1^st defendant and executed Guarantee Deed on 16.03.2018.

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It is submitted by the applicant bank that on 16.03.2018, the 1^st defendant had availed bank guarantee facility of Rs.4 Crores to offer guarantee to stock exchange for share and also executed a letter of counter guarantee for bank guarantee limit in favour of the applicant.

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The applicant submits that subsequent to availing of loan, the defendants defaulted in repayment of the dues payable to the applicants. Therefore the loan account of defendants was declared as Non-Performing Asset (NPA) on 01.05.2019 in accordance with the RBI norms. As per the accounts maintained by the bank, the defendants are liable to pay a sum of Rs.2,27,62,980.89p as on 21.11.2019. Despite repeated request and demands, as defendants did not come forward to repay the dues, the

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T.A. No.55 of 2023

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20.05.2026

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present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1 to D-3. Although defendants had entered appearance and filed Vakalath, did not choose to file Written Statement despite availing substantial number of adjournments. Hence, opportunity to file written statement was closed on 13.04.2021. Subsequently, there was no representation from Defendants for several hearings. When OA was taken up on 28.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 28.09.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Mr.Sharad Kumar Sinha, Authorised signatory of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-9.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-9 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of

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T.A. No.55 of 2023

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Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 28.09.2022, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

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With regard to the amount advanced, the interest applied the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, for recovery of a total sum of Rs.2,27,62,980.89p (Rupees Two Crores Twenty Seven Lakhs Sixty Two Thousand Nine Hundred Eighty and Eighty Nine Paise only) due in respect of Cash Credit facility (A/c No.6020597870) repayable together with further interest @ 15% p.a., with monthly rests from the date of Application till the date of

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T.A. No.55 of 2023

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realization in full along with costs of this application.

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(b) The applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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(c) The applicant bank shall file the latest memo of calculation of OA 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 the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

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

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

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 20^th day of May, 2026)

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T.A. No.55 of 2023

20.05.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr.Sharad Kumar Sinha, Authorised signatory of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	21.12.2015	Board resolution	A-1
2.	16.03.2018	Sanction letter	A-2
3.	16.03.2018	Demandpromissorynote	A-3
4.	16.03.2018	Clean cash credit agreement	A-4
5.	16.03.2018	Guarantee deed	A-5
6.	16.03.2018	Demandpromissorynote	A-6
7.	16.03.2018	Bankguarantee letter	A-7
8.	16.03.2018	Guarantee deed	A-8
9.	21.11.2019	Statement of accounts	A-9

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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:-SCHEDULE-:

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-NIL-

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

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Uploaded on 20.05.2026 at 17:30 hours

Bank of Maharashtra v. M/S Reflection Investment

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. M/S Reflection Investment

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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