Allowed

Bank of Baroda v. Viral Dhirajlal Shah

DRT11 Sept 2025OA/71/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application for recovery of dues amounting to Rs. 28,96,225.69/- along with interest and directed enforcement of mortgage security against the mortgaged property. Defendants were adjudged liable jointly or severally.

What did the court decide?

Recovery of Rs. 28,96,225.69/- with interest; direction to redeem mortgage or face sale of property; issuance of Recovery Certificate.

Bank of Baroda versus Viral Dhirajlal Shah — Banking and Recovery | DRT (2025)

¶1

ORIGINAL APPLICATION NO.71 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.71 OF 2022

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Date of Institution: 05.03.2021 Date of Decision: 11.09.2025

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TOTAL CLAIM AMOUNT:

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₹ 28,96,225.69/-

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Bank of Baroda, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Mandvi, Baroda and Corporate Office at Baroda Corporate Centre, Bandra-Kurla Complex, Bandra (East), Mumbai400 051 and its Mandvi Branch at Rang Mahal, 212/216, Samual Street, Mumbai-400 003 through its Chief Manager Mr. Jitendra Prasad Shriwatsav.

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… Applicant

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Versus

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Mr. Viral Dhirajlal Shah of Indian Inhabitant residing at Room No.11, Sharad Niwas, Patharli Road, Opp. Shiv Mandir, Gograswadi, Tilak Nagar, Dombivali (East), District Thane-421201. And

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Flat No. 301, 3rd Floor, Om

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Page 1 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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Durvankur Building, Jijai Nagar, Sant Namdeo Path, Dombivli (East), District Thane.

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Mr. Rohit Dhirajlal Shah of Indian Inhabitant residing at Room No.11, Sharad Niwas, Patharli Road, Opp. Shiv Mandir, Gograswadi, Tilak Nagar, Dombivali (East), District Thane-421201. And Flat No. 301. 3d Floor, Om Durvankur Building, Jijai Nagar, Sant Namdeo Path, Dombivli (East), District Thane.

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…Defendants

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APPEARANCES For the Applicant : Mr Nilesh Bamne i/b. M/s A.R.Bamne & Co. - 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 aggregated sum of ₹28,18,282.97/- (Rupees Twenty Eight Lakhs Eighteen Thousand Two Hundred Eight Two and paisa Ninety Seven Only) as on 16.02.2021 with interest @ 7.80% per annum with monthly rests for Term Loan-1 and @ 8.35% per annum with

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Page 2 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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monthly rests for Term Loan-2 thereon from the date of presentation of the Original Application i.e. 05.03.2021 till payment/realization and to enforce the mortgaged security.

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The details of the claim amount are as under:-

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Sr	Nature of Loan	Amount
No
1	Term Loan-I (Housing Loan)	₹23,63,451.78/-
2	Term Loan-II (Top-up)	₹4,54,831.19/-
	Total Amount	₹28,18,282.97/-

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Vide Claim Affidavit dated 14.01.2022, the claim amount has been increased by addition of unapplied penal interest @ 2 % as on 16.02.2021 by ₹77,942.62/- (Rupees Seventy Seven Thousand Nine Hundred Forty Two and paisa Sixty Two Only) and total claim has arrived at ₹28,96,225.69/- (Rupees Twenty Eight Lakhs Ninety Six Thousand Two Hundred Twenty Five and Paisa Sixty Nine Only).

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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 13.09.2022. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 05.01.2023.

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(3) Defendant nos.1 and 2 are the borrowers who approached to the Applicant Bank seeking financial assistance by way of Term Loan Facility for purchase of Residential Flat. Pursuant to the

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Page 3 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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loan application vide Loan Application dated 18.03.2015 made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 31.03.2015 in sum of ₹24,80,000/- (Rupees Twenty Four Lakhs Eighty Thousand Only) in respect to Baroda Term Loan- I payable in 180 EMIs of ₹27,031/- (Rupees Twenty Seven Thousand Thirty One Only) with interest at the rate of 10.25 % per annum floating interest. Further, on request of the defendants, the Applicants sanctioned vide Sanction Letter dated 27.07.2017 further amount of ₹5,00,000/(Rupees Five Lakhs Only) @ 9.10% per annum.

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The details of the Sanction amount are as under:-

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Sr N	Date of Sanction	Nature of Facility	Amount of Sanction	Security
o
1	31.03.2015	Term Loan-I	₹24,80,000/-	Equitable mortgage of House/Flat bearing Survey No. 47/3 located at Flat No.301, 3rd Floor, Om Durvankur Bldg, Jijai Nagar, Sant Namdeo Path,, Dombivali, Maharashtra 421201 Belonging To Viral Dhirajlal Shah & Rohit Dhirajlal Shah
2	27.07.2017	Term Loan-II (Top-up Loan)	₹5,00,000/-	Same as above
	Total		₹29,00,000/-

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(4) On 16.04.2015 and 27.07.2017, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.4 and 5.9 (Page nos.9

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Page 4 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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& 12) of the Original Application. Defendants mortgaged Flat No. 301, on the 3rd Floor, admeasuring about 585 sq. ft. built up equivalent to 54.36 sq. mtrs. building known as "OM DURVANKUR BUILDING" constructed on he land Survey bearing No. 47, Hissa No. 3(p), lying being and situated at Mauje-Gajabandhan Pathrali within limits of Kalyan Dombivali Municipal Corporation, Jijai Nagar, Sant Namdeo Path, Dombivali (East), District Thane to secure the loan which has been registered under CERSAI and a CERSAI Certificate has been issued on 22.04.2015.

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The details of the documents signed and executed by the Defendant under Term Loan-I are as under:-

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(a) Application for Loan dated 18.03.2015;

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(b) Accepted Sanction Letter dated 31.03.2015;

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(d) Letter of Installments with Acceleration Clause dated 16.04.2015;

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(e) Declarationcum Undertakingcum Authority dated 16.04.2015;

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(f) Memorandum of Entry dated 16.04.2015; (g) Declarationcum Undertakingcum Authority dated 16.04.2015;

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(h) Irrevocable General Power of Attorney dated

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Page 5 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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20.04.2015 executed by Defendants;

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(i) Joint Letter of Confirmation dated 16.04.2015;

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(j) Notice of Intimation dated 29.04.2015 and receipt no.462 issued by Joint SubRegistrar, Kalyan-2.

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

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(a) Accepted Sanction Letter dated 27.07.2017; (b) Loan Agreement For Individual(s) (Housing Loan) dated 27.07.2017;

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(c) Letter of Installments with Acceleration Clause dated 27.07.2017 whereby the Defendants agreed and undertook to pay the said Top Up Term Loan in 60 monthly installments of ₹10,404/- commencing from 27.08.2017 in addition to the accrued interest thereon;

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(d) Undertaking dated 27.07.2017;

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(e) Declarationcum Undertakingcum Authority dated 27.07.2017.

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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 31.08.2019 as per RBI Guidelines. Therefore, on 21.12.2020, the applicant, through

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Page 6 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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its advocate, called upon defendants to liquidate the outstanding as under:-

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(i) A sum of ₹20,01,974/- (Rupees Twenty Lakhs One Thousand Nine Hundred and Seventy Four only) due under the said Term Loan (Housing Loan) inclusive of interest up to 31.05.2019 with further unapplied interest thereon at the rate of 7.80% p.a. with monthly rest from 01.06.2019 till payment plus 2% penal interest;

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(ii) For a sum of Rs.3,51,232/- (Rupees Three Lakhs Fifty One Thousand Two Hundred and Thirty Two only) due under the said Top up Loan inclusive of interest upto 31.05.2019 with further unapplied interest thereon at the rate of 8.35% p.a. with monthly rest from 01.06.2019 till payment plus 2% penal interest within a period of three days from receipt of this notice/letter. Despite notice, defendant nos.1 and 2 failed and neglected to pay.

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(6) As on 16.02.2021, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹28,18,282.97/- (Rupees Twenty Eight Lakhs Eighteen Thousand Two Hundred Eight Two and paisa Ninety Seven Only). The applicant has maintained the loan ledger extract

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Page 7 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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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 05.03.2021.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Ajay Kumar Sinha and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-34, 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 recover aggregated sum initially of ₹28,18,282.97/- (Rupees Twenty Eight Lakhs Eighteen Thousand Two Hundred Eight Two and paisa Ninety Seven Only) on 05.03.2021 till payment/realisation.

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(10) Revised claim filed Vide Claim Affidavit dated 14.01.2022, the claim amount has been increased by addition of unapplied penal interest @ 2 % as on 16.02.2021 by ₹77,942.62/- (Rupees Seventy Seven Thousand Nine Hundred Forty Two and paisa Sixty Two Only) and total claim has arrived at ₹28,96,225.69/- (Rupees Twenty Eight Lakhs Ninety Six Thousand Two Hundred Twenty Five and Paisa Sixty Nine Only) from 16.02.2021.

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Page 8 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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(11) 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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(12) 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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(13) In view of the observations made hereinabove, Original Application filed by the applicant deserves to be allowed.

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(14) Hence, the following order:

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ORDER

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(A) The Original Application No.71 of 2022 is allowed with costs.

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(B) Defendant nos.1 and 2 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of recover aggregated sum of ₹28,96,225.69/- (Rupees Twenty Eight Lakhs Ninety Six Thousand Two Hundred Twenty Five and Paisa Sixty Nine Only) with interest @ 7.80% per annum with monthly rests for Term Loan-1 and @ 8.35% per annum with monthly rests for Term Loan-2 thereon from the date of presentation of the Original Application i.e. 05.03.2021 till

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Page 9 of 10

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ORIGINAL APPLICATION NO.71 OF 2022

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payment/realization.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting immovable mortgaged properties, that is, Flat No.301, on the 3rd Floor, admeasuring about 585 sq. ft. built up equivalent to 54.36 sq. mtrs. building known as "OM DURVANKUR BUILDING" constructed on he land Survey bearing No. 47, Hissa No. 3(p), lying being and situated at Mauje-Gajabandhan Pathrali within limits of Kalyan Dombivali Municipal Corporation, Jijai Nagar, Sant Namdeo Path, Dombivali (East), District Thane.

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(D) Defendant nos.1 and 2 are entitled to redeem the mortgage 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 10 of 10

Bank of Baroda v. Viral Dhirajlal Shah

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Viral Dhirajlal Shah

Case brief

What is this about?

What did the court decide?

What the court decided

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