Allowed

Punjab National Bank v. Ramesh Paras Singh

DRT12 Sept 2025OA/15/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's Original Application filed under Section 19(1) to recover the outstanding loan amount and enforce mortgaged security. Defendants were served but proceeded ex-parte. The Tribunal directed payment of the principal, interest, and penalties.

What did the court decide?

Defendants directed to pay the adjudicated sum of ₹2,48,89,875.58/- with future interest @ 11.20% p.a. and right to sell mortgaged property if redemption fails.

Punjab National Bank versus Ramesh Paras Singh — Banking and Recovery | DRT (2025)

¶1

ORIGINAL APPLICATION NO.15 OF 2023

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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.15 OF 2023

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Date of Institution: 30.08.2019 Date of Decision: 12.09.2025

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TOTAL CLAIM AMOUNT :

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₹ 2,48,89,875.58/-

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Punjab National Bank, Bank constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970 having its Head Office at Plot No.4, Sector No.10, Dwarka, New Delhi110 607 & a branch at Opera House Branch at Shop No.1, 1-A, Ground Floor, New Queens Road, Ladhabhai Mansion, Charni Road Station, Mumbai 400 004 through its Authorized Officer Mr Kandarp Kusume, Chief Manager

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… Applicant

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Versus

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Mr Ramesh Paras Singh, Adult, Male, Indian Inhabitant, Residing at Flat No.101, Panorama, The Address Opp R City Marg, L.B.S.Marg, Ghatkopar West, Mumbai 400 086.

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M/s Aditya Investments and Exim Trade Co through Sole Proprietor Mr Ramesh Paras Singh, 23/B, Pallavi Building, New Maneklal

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Page 1 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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Mehta Estate, Ghatkopar (West), Mumbai-400 086.

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…Defendants

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APPEARANCES

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For the Applicant : Mrs A.W.Barve- 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’) to recover ₹2,48,89,875.58/- (Rupees Two Crores Forty Eight Lakhs Eighty Nine Thousand Eight Hundred Seventy Five and paisa Fifty Eight Only) with future interest @ 11.20% per annum with monthly rest and penal interest @ 2% per annum thereon from the date of presentation of the Original Application i.e. 30.08.2019 till payment/realization and to enforce the mortgaged security.

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Page 2 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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The details of the claim amount are as under:-

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Sr	Nature	Ledger	Unapplied	Penal	Total
N	of	Balance as	Interest @	Interest @
o	Facility	on	11.20% per	2% simple
		12.10.2018	annum from	from
			01.10.2018 to 30.08.2019	01.10.2018 to
				30.08.2019
1	Overdraft Loan	2,24,32,495 .00	24,09,196.65	48,183.93	2,48,89,875.58

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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 26.07.2023. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 01.01.2024.

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(3) Defendant no.2, a Proprietorship Firm through its Proprietor Defendant No.1 is the borrower who approached to the Applicant Bank seeking financial assistance by way of OD Mortgage under monthly reducing DP basis Facility. Pursuant to the loan application dated 10.04.2018 made by defendant no.1, the Applicant sanctioned the loan vide Sanction Letter dated 25.04.2018 in sum of ₹2,21,00,000/- (Rupees Two Crores Twenty One Lakhs Only) payable in 120 EMIs of ₹3,05,054/DP reduction every month will be to the Extent of the principal component of EMI on full sanction limit with interest at the rate of 11.05% per annum.

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Page 3 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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The details of the Sanction amount are as under:-

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Sr	Date of	Amount	ROI	Security
No	Sanction	(In₹)
1	25.04.2018	2,21,00,000	@ 11.05% with	EM of Office	No.607,
			reset clause of 12	adm.1340	sq. ft.
			month from date of	Carpet area	on the
			1 ^{s t}disbursement	6 ^{t h}floor of	the bldg.
				known as	“FILIX
				Tower”, situ	ated at
				Opp. Asian	Paints
				Ltd. LBS	Marg,
				Bhandup	(West),
				Taluka Mumbai-400	Kurla, 078
	Total	2,21,00,000	-	-
	Amount

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(4) On the dated given below, defendants signed and executed the loan and security documents as set out in paragraph nos.5.7 and 5.8 of the Original Application. Defendants mortgaged Office No.607, adm.1340 sq. ft. Carpet area on the 6^th floor of the bldg. known as “FILIX Tower”, situated at Opp. Asian Paints Ltd. LBS Marg, Bhandup (West), Taluka Kurla, Mumbai-400 078 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) Loan Application 10.04.2018 made by Defendant No.1;

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(b) Accepted Sanction Letter dated 25.04.2018 for an amount of ₹2,21,00,000/-;

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Page 4 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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(d) Letter of Authority dated 25.04.2018 to debit for an amount of ₹3,05,054/- to SB Account;

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(e) Stamped Overdraft Agreement dated 25.04.2018 between Defendant No.1 and the Applicant Bank for an amount of ₹2,21,00,000/-;

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(f) Stamped Declaration dated 25.04.2018 issued by Defendant No.1;

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(g) Stamped Irrevocable Power of Attorney dated 25.04.2018 issued by Defendant No.1;

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(h) Agreement for Sale dated 10.10.2013 between Axis Realty Pvt Ltd and Defendant No.2;

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(i) Letter for permission to mortgage dated 10.05.2018 issued by Axis Realty Pvt Ltd (Builder) to the Applicant Bank wherein it is stated that the builder has issued Mortgage NOC dated 27.05.2015 for mortgaging the Unit No.607, 6^th Floor in the building called Felix situated Opp. Asian Paints, L.B.S. Marg, Bhandup (West), Mumbai and that the said unit had been sold to Defendant No.2;

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(j) Copy of Occupation Certificate dated 25.01.2011;

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(k) Stamped Letter dated 24.05.2018 issued by Defendant No.1 to the Applicant Bank requesting to acknowledge the receipt of Title deeds deposited by the Defendant;

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(l) Letter dated 25.05.2018 issued by the

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Page 5 of 9

¶48

ORIGINAL APPLICATION NO.15 OF 2023

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Applicant to the Defendant No.1 regarding the receipt of the Title documents;

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(m) Letter dated 06.07.2018 by the Applicant to the Defendant to regularise the overdrawn amount of ₹6,78,528/-.

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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 12.10.2018 as per RBI Guidelines. Therefore, on 20.10.2018, the applicant issued Demand Notice under Section 13 (2) Notice and called upon all the defendants to liquidate the outstanding in the sum of ₹17,66,63,006 (Rupees Seventeen Crores Sixty Six Lakhs Sixty Three Thousand and Six Only) with further interest at contracted rate due within 60 days from receipt of this notice. Despite notice, defendant nos. 1 and 2 failed and neglected to pay.

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(6) As on 30.08.2019, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹2,48,89,875.58/- (Rupees Two Crores Forty Eight Lakhs Eighty Nine Thousand Eight Hundred Seventy Five and paisa Fifty Eight Only) with future interest @ 11.20% per annum with monthly rest and penal interest @ 2% per

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Page 6 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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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, 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 30.08.2019.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Sanjio Bagde, Senior Manager and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-16, 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 ₹2,48,89,875.58/- (Rupees Two Crores Forty Eight Lakhs Eighty Nine Thousand Eight Hundred Seventy Five and paisa Fifty Eight Only) with future interest @ 11.20% per annum with monthly rest and penal interest @ 2% per annum thereon from the date of presentation of the Original Application i.e. 30.08.2019 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 applicant which has gone unchallenged, uncontroverted and unrebutted.

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Page 7 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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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.15 of 2023 is allowed with costs.

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(B) Defendant no.2, through its proprietor Defendant no.1 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹2,48,89,875.58/- (Rupees Two Crores Forty Eight Lakhs Eighty Nine Thousand Eight Hundred Seventy Five and paisa Fifty Eight Only) with future interest @ 11.20% per annum thereon from the date of presentation of the Original Application i.e. 30.08.2019 till payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged immovable properties, that is, Office No.607, adm.1340 sq. ft. Carpet area on the 6^th floor of the bldg. known as “FILIX Tower”, situated at Opp. Asian Paints Ltd.

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Page 8 of 9

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ORIGINAL APPLICATION NO.15 OF 2023

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LBS Marg, Bhandup (West), Taluka Kurla, Mumbai-400 078.

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(D) Defendant no.2, through its proprietor Defendant no.1 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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(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 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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Page 9 of 9

Punjab National Bank v. Ramesh Paras Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ramesh Paras Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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