Allowed

Union Bank of India v. Jigna Devang

DRT8 Apr 2026OA/190/2022

Case brief

AI extract

What is this about?

DRT-2, Mumbai allowed an application under Section 19(1) of the RDB Act by Union Bank of India for recovery of ₹15.35 crores along with interest. The court enforced hypothecated and mortgaged securities against the respondents, issuing a recovery certificate and granting the right to redeem properties.

What did the court decide?

Pending payment and realization. Defendant 1 & 2 to pay ₹15,35,21,306.16 with interest; Recovery Certificate issued; Right to redeem granted.

Union Bank of India versus Jigna Devang — Maintenance and Alimony | DRT (2026)

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ORIGINAL APPLICATION NO.190 OF 2022

¶2

DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

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PRESIDING OFFICER: HARISH KUMAR KAUSHIK

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ORIGINAL APPLICATION NO.190 OF 2022

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Date of Institution: 03.12.2019 Date of Decision: 08.04.2026

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TOTAL CLAIM AMOUNT :

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₹ 15,35,21,306.16/-

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UNION BANK OF INDIA, A body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Central Office at Union Bank Bhavan, 239, Backbay Reclamation, Nariman Point, Bombay-400 021 and having their Mohd Ali Road Branch at, Karim Building, 56-Mohd Ali Road, Mumbai- 400 003 through their Constituted attorney, Mr. Chandra Mohar Meena Chief Manager.

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… Applicant

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Versus

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MRS. JIGNA DEVANG MEHTA, A-10, Gautam Dhan Apartment, Bajaj Road, Vile Parle (West), Mumbai-400 056.

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MR. DEVANG AMULAKH MEHTA, A-10, Gautam Dhan Apartment, Bajaj Road, Vile Parle (West), Mumbai-400 056.

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Page 1 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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3. DENA BANK,
(Now Bank of Baroda)
A body constituted under the
Banking Companies (Acquisition
and Transfer of Undertakings) Act,
1970 having its branch address at
Manoi Villa, Dashrathlal Joshi
Road, Vile Parle (W),
Mumbai - 400 056
4. AXIS BANK LIMITED,
A banking company incorporated
under the Companies At 1956,
having their address at CCSU
Thane, Dhiraj Baug, near
Hariniwas, Circle, LBS Marg,
Thane (W), 400 602. …Defendants
APPEARANCES
For the Applicant : Mr Rishav Singh i/b. Jamshed Ansari - 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 ₹15,35,21,306.16/- (Rupees Fifteen Crores Thirty-Five Lakhs Twenty-One Thousand Three Hundred Six and paisa Sixteen Only) under Union Cash Credit Facility with

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Page 2 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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future interest @ MCLR + 4.15% per annum (i.e. 12.75 + 2%) with monthly compounding rest thereon from the date of presentation of the Original Application i.e. 03.12.2019 till payment/realization and to enforce the hypothecated and mortgaged securities.

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The details of the claim amount are as under: -

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Sr	Nature	O/s. as on	Interest	Total Amount as
No	of Facility	30.04.2019	including penal interest from 01.05.2019 till 30.11.2019	on 30.11.2019
1	CC (Hypothe cation) Union Trade Scheme	₹14,96,05,328.16/-	₹39,15,978.00/-	₹15,35,21,306.16/ -

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(2) It is undisputed fact in the matter that the Defendant nos.1 to 4 were duly served with the summons vide order-sheet dated 21.08.2023. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 06.02.2024.

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(3) It is perceived from the present O.A. and the original documents that, M/s Trump Impex Private Limited, a company registered under Companies Act, 1956 had not been made party in the present O.A. in existence of an order passed in Company Petition (IB) No.426 of 2019 dated

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Page 3 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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27.08.2019, wherein it was stated that the NCLT had admitted Company Petition and has appointed Provisional Resolution Professional under IBC, 2016 and had declared moratorium under Section 14 of IBC Act, 2016. Thus, in subsistence of a valid moratorium period, no suit for recovery of money can be filed as against the said company in any other court and/or tribunal. And thus, on this very point of law, the Applicant cannot proceed against the company i.e. M/s Trump Impex Private Limited but can proceed against its directors and guarantors i.e. Defendant nos.1 and 2. Defendant nos.3 and 4 are acting as “Proforma parties” having pari passu charge of Stocks & Book-debt.

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(4) M/s Trump Impex Private Limited through its directors/ guarantors are the principal borrowers who approached the Applicant Bank and sought financial assistance by way of Cash Credit Facility. Pursuant to the loan application made by defendants, the Applicant sanctioned the loan vide Sanction Letter Ref. No. MAR:ADV:326:201718 dated 08.02.2018 in sum of ₹14,00,00,000/(Rupees Fourteen Crores Only) payable with interest at the rate of MCLR 1Y + 4.15 % per annum (MCLR equivalent to 8.20% w.e.f. 01.02.2018.

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Page 4 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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The details of the Sanction amount are as under: -

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Sr No	Date of Sanction	Amount	ROI	Securities
1	08.02.2018	₹14,00,00,000/-	MCLR 1Y +	i. Flat No. 902, 9 ^t in Building kno	^hFloor wn as
			4.15 %	Andheri Monish	a CHS
			per	Ltd. (Regn.	No.
			annum	BOM/HSG/2926/	1971),
			(MCLR	Near Dev Plaza,	S. V.
			equivale	Road, Andheri	(West),
			nt to	Mumbai-400 058	in the
			8.20% w.e.f.	name of Mr Dev Mehta.	ang A.
			01.02.20	ii. Flat No.301,3 ^{r d}	Floor,
			18	Building know	n as
				Jitendra CHS	Ltd.
				(Regn.	No.
				BOM/HSG/1927 12.12.68), Gokalibai Puna Pitambar High Dadabhai Cross	dated Opp. mchand School, Road
				No.1, Vile Parle Mumbai-400 056	(West), in the
				name of Mr Mehta. iii. Guaranteed Devang Amulakh and Mrs Jigna Mehta.	Devang by Mr Mehta Devang
	Total Amount	₹14,00,00,000/-	-	-
2	28.03.2018	₹14,00,00,000/-	Same as Letter dated 08.02.20 18	Same as Letter 08.02.2018	dated
	Total Amount	₹14,00,00,000/-	-	-

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(5) On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.3 to 5.12 of the Original Application. Defendants hypothecated Stock,

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Page 5 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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finished goods, stores, spares and book -debts and mortgaged the following properties: -

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(i) Flat No. 301 on 3rd Floor adm. 1800 sq. ft. built up area consisting of AHU, shaft, proportionate CFO passage, proportionate lift lobby and ET Features which areas are exclusive, appurtenant and restricted to the premises including ornamental/ aesthetic features in the building known “Jitendra CHS Ltd.” situated at Dadabhai Cross Road No.1, Vile Parle (West), Mumbai-400 056 and

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(ii) Flat No. 301 , adm. 1066 sq. ft. (carpet area) on 3rd Floor in the building known as “Andheri Monisha CHS Ltd.” situated at S. V. Road, Andheri (W), Mumbai 400 058 to secure the loan.

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

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(a) Sanction Letter dated 08.02.2018;

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(b) Modified/Revised Sanction Letter dated 28.03.2018;

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(d) Letter of pre-disbursement dated 18.04.2018;

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(e) Equitable mortgage by way of Depositing of

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Page 6 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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Title Deeds on 17.04.2018;

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(f) Demand Promissory Note dated 18.04.2018; (g) Letter of Continuity dated 18.04.2018, executed by the Defendant nos. 1 & 2 on behalf of M/s. Trump Impex Private Limited;

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(h) Letter dated 18.04.2019 issued by Defendant nos. 1 & 2 on behalf of M/s. Trump Impex Private Limited, for credit facility/Accommodation granted by the Bank;

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(i) Letter of Undertaking not to alienate Hypothecated Goods dated 18.04.2018 for a sum of ₹14 Crores wherein the defendant nos. 1 and 2 being the directors of M/s. Trump Impex Private Limited, have given undertaking not to alienate the Goods on which charge is created by way of Agreement dated 18.04.2018;

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(j) Hypothecation Agreement of Goods & Debts dated 18.04.2018 for a sum of ₹14 Crores where in the defendant No. 1 and 2 being the directors of M/s. Trump Impex Private Limited hypothecated all the stocks/ goods and entire book debts in favour of the Bank;

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(k) Interest Agreement dated 18.04.2018 executed by Defendant nos. 1 & 2 on behalf of M/s. Trump Impex Private Limited, where it the Defendants have agree to pay interest at the rate of MCLR 4.15% on monthly rest on

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Page 7 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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the amount of ₹14.00 Crores availed by the M/s. Trump Impex Private Limited;

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(l) Undated Undertaking of all the borrowers executed by Defendant No. 1 & 2 as the directors of M/s. Trump Impex Private Limited;

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(m) Annexure-I & II duly signed by the Defendant nos. 1 & 2 as Directors as well as Guarantors dated 18.04.2018;

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(n) Letter of Authority/Mandate to debit Account dated 18.04.2018, signed by the Defendant nos. 1 & 2 being the Director of M/s. Trump Impex Private Limited;

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(o) Undertaking executed by Defendant nos. 1 & 2 as the Director of M/s. Trump Impex Private Limited in favour of the Applicant Bank;

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(p) Letters of Guarantee dated 18.04.2018;

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(q) Board Resolution;

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(r) Registered Agreement for Sale executed between M/s. AJS Developers and Mrs Jigna D Mehta in respect of Flat No.301;

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(s) Registered Agreement for Sale executed between M/s. Bineeta Associates and Mrs Devang A Mehta in respect of Flat No.301;

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(t) Memorandum of Deposit of Title deeds dated 17.04.2018.

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Page 8 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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(6) 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 30.04.2019 as per RBI Guidelines. Therefore, on 23.05.2019, the applicant, called upon defendants to liquidate the outstanding in the sum of ₹14,96,05,328.16/- (Rupees Fourteen Crores Ninety-Six Lakhs Five Thousand Three Hundred Twenty-Eight and paisa Sixteen Only) together with contractual rate of interest from 01.05.2019 with monthly rest within 60 days from receipt of this notice. Despite receipt of the said notice, defendant nos. 1 to 4 failed and neglected to pay.

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(7) As on 30.11.2019, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹15,35,21,306.16/- (Rupees Fifteen Crores Thirty-Five Lakhs Twenty-One Thousand Three Hundred Six and paisa Sixteen Only) under Union Cash Credit Facility with future interest @ MCLR + 4.15% per annum (i.e. 12.75 + 2%) with monthly compounding 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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Page 9 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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(8) 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 03.12.2019.

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(9) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Navinchandra A. Anchan, Chief Manager and list of documents (exhibit-7) thereby adducing in evidence the documents at AW-1 to AW-28, which are admitted in evidence, read, recorded and exhibited.

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(10) Accordingly, in the Original Application was filed for the recovery of ₹15,35,21,306.16/- (Rupees Fifteen Crores Thirty-Five Lakhs Twenty-One Thousand Three Hundred Six and paisa Sixteen Only) under Union Cash Credit Facility with future interest @ MCLR + 4.15% per annum (i.e. 12.75 + 2%) with monthly compounding rest thereon from the date of presentation of the Original Application i.e. 03.12.2019 till payment/realisation.

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(11) The Applicant filed Claim Affidavit dated 13.05.2022 (Exhibit-6) wherein it is stated that the Applicant Bank vide their Possession Notice u/s. 13(4) dated 09.08.2019 and requested the Defendants to handover peaceful possession of the mortgaged properties but the defendants failed to handover the said properties.

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(12) The Tribunal has scrutinised and examined the

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Page 10 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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

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(15) Hence, the following order:

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ORDER

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(A) The Original Application No.190 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 ₹15,35,21,306.16/- (Rupees Fifteen Crores Thirty-Five Lakhs Twenty-One Thousand Three Hundred Six and paisa Sixteen Only) under Union Cash Credit Facility with future simple interest 12% per annum thereon from the date of presentation of the Original Application i.e. 03.12.2019 till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002

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Page 11 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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or any other amount paid by the borrowers after filing of this present O.A. No.190 of 2022.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, Stock, finished goods, stores, spares and book-debts.

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(D) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged immovable properties, that is, (i) Flat No. 301 on 3rd Floor adm. 1800 sq. ft. built up area consisting of AHU, shaft, proportionate CFO passage, proportionate lift lobby and ET Features which areas are exclusive, appurtenant and restricted to the premises including ornamental/ aesthetic features in the building known “Jitendra CHS Ltd.” situated at Dadabhai Cross Road No.1, Vile Parle (West), Mumbai-400 056 and Flat No. 301 , adm. 1066 sq ft (carpet area) on 3rd Floor in the building known as “Andheri Monisha CHS Ltd” situated at S. V. Road, Andheri (W), Mumbai 400 058.

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(E) Defendant nos.1 and 2 are entitled to redeem the hypothecated and mortgaged properties as per law failing which the applicant has right to proceed to sell the hypothecated and mortgaged properties and recover dues as per law.

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(F) Issue Recovery Certificate.

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(G) The learned Registrar is directed to send a copy of

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Page 12 of 13

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ORIGINAL APPLICATION NO.190 OF 2022

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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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Page 13 of 13

Union Bank of India v. Jigna Devang

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Jigna Devang

Case brief

What is this about?

What did the court decide?

What the court decided

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