Allowed

The South Indian Bank Ltd. v. Sanjeev Edwin Gaikwad

DRT8 May 2026OA/548/2023

Case brief

AI extract

What is this about?

This is an Original Application filed by THE SOUTH INDIAN BANK LIMITED under Section 19(1) of the Recovery of the Debt and Bankruptcy Act, 1993 for recovery of an aggregated sum of over ₹3.93 crores along with interest from three respondents who were declared ex-parte for failing to appear. The Tribunal examined the admitted documentary evidence regarding loan sanctions, hypothecation agreements,

What did the court decide?

The Original Application is allowed. Respondents are directed to jointly or severally pay the aggregated sum of ₹3,93,58,578.98 with interest and costs. A Recovery Certificate is issued.

The South Indian Bank Ltd. versus Sanjeev Edwin… — Contract and Commercial Disputes | DRT (2026)

¶1

ORIGINAL APPLICATION NO.548 OF 2023

¶2

DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

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PRESIDING OFFICER: HARISH KUMAR KAUSHIK

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ORIGINAL APPLICATION NO.548 OF 2023

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Date of Institution: 20.01.2022 Date of Decision: 08.05.2026

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TOTAL CLAIM AMOUNT :

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₹ 3,93,58,578.98/-

¶8

THE SOUTH INDIAN BANK LIMITED, A Banking Company incorporated under the Companies Act, 1913, having its Registered office at Post box no. 28, T.B. Road, Mission Quarters, Trichur-680 001, Kerala State And having one of its Regional office at 804, Parinee, Cresczeno, "G Block", Bandra Kurla Complex, Bandra and one of its Branch Office At Andheri East, Shop No. 9, Ambika Towers Aghadi Nagar, Pump House, Andheri East, Mumbai-400 093, represented through Mr. Riyas N, Branch Manager, Andheri (East) and Authorised Officer of The South Indian Bank Limited.

¶9

… Applicant

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Versus

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MR. SANJEEV EDWIN GAIKWAD, Proprietor, M/s Dynamic Oil Tech Industries Having its office at F/2, Ground Floor, Khan Estate, Vasai Small Scale Industry Compound, Village Pelhar, Taluka Vasai, Dist. Palghar-401 208.

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Page 1 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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DR. GILBERT MASSEY,

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An adult, Indian Inhabitant, having his address at Flat No. 701, C-1 Trans Residency Subhash Nagar, Road No. 23, Near ICICI Bank, Chakala, MIDC, Andheri East, Mumbai – 400093. 3. MRS. DIANA SANJEEV GAIKWAD, An adult, Indian Inhabitant, having her address at B/201, Trans Residency, Building No.03, Subhash Nagar, Road No. 23, Near ICICI Bank, Chakala, MIDC, …Defendants Andheri East, Mumbai – 400093.

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APPEARANCES

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For the Applicant : Ms Jyoti Sanap i/b M/s. Chambers of Jangra & Asso. - 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 ₹3,93,58,578.98/- (Rupees Three Crores Ninety Three Lakhs Fifty Eight Thousand Five Hundred Seventy Eight and paisa Ninety Eight Only) wherein a sum of ₹3,82,09,725.57/(Rupees Three Crores Eighty Two Lakhs Nine

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Page 2 of 17

¶21

ORIGINAL APPLICATION NO.548 OF 2023

¶22

Thousand Seven Hundred Twenty Five and paisa Fifty Seven Only) as on 11.01.2022 with further interest @ 10.10 % per annum with monthly rests with respect to CCOL Limit, a sum of ₹2,06,686.46/- (Rupees Two Lakhs Six Thousand Six Hundred Eighty Six and paisa Forty Six Only) as on 11.01.2022 with further interest @ 17.40% per annum with monthly rests with respect to TOD Account and a sum of ₹9,42,166.95/(Rupees Nine Lakhs Forty Two Thousand One Hundred Sixty Six and paisa Ninety Five Only) as on 11.01.2022 with further interest @ 11.90 % per annum with monthly rests with respect to CCOL Limit from the date of presentation of the Original Application i.e. 20.01.2022 till payment/realization and to enforce the mortgaged and hypothecated securities.

¶23

The details of the claim amount are as under: -

¶24

Sr	Nature of Facilities	Amount as on 11.01.2022
No
1	Defendant nos.1 to 3 is liable to	₹3,82,09,725.57/-
	pay towards CCOL A/c.
2	Defendant no.1 is liable to pay	₹2,06,686.46/-
	towards TOD A/c.
3	Defendant nos.1 is liable to pay	₹9,42,166.95/-
	towards Vehicle Loan-I A/c.
	Total Amount	₹3,93,58,578.98/-

¶25

(2) It is undisputed fact in the matter that the Defendant nos.1 to 3 were duly served with the

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Page 3 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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summons vide order-sheet dated 11.12.2024. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 21.07.2025.

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(3) Defendant no.1 is the principal borrower and guarantor who approached the Applicant Bank seeking financial assistance by way of CCOL A/c.0354083000000033, TOD A/c.0354073000000377, Vehicle Laon I A/c.0354655000000052 and Vehicle Laon I A/c.0679655000000026 wherein defendant no.2 is the mortgagor and guarantor and defendant no.3 is the guarantor of the said loans. Pursuant to the loan application dated 01.07.2017 made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 01.08.2017 in sum of ₹2,00,00,000/- (Rupees Two Crores Only) under CCOL payable with interest at the rate of 11% per annum floating interest with monthly rests. On 21.09.2017, the Applicant sanctioned a sum of ₹7,19,000/(Rupees Seven Lakhs Nineteen Thousand Only) under SIB Mobi Loan repayable in 84 EMIs of ₹12,700/- each commencing after initial holiday of 0 months after initial draw down with interest @ 11.90% per annum with monthly rests. On 23.01.2019, a sum of ₹2,75,00,000/(Rupees Two Crores Seventy-Five Lakhs Only) under CCOL (Sub-limit for BD) payable @11.35%

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Page 4 of 17

¶31

ORIGINAL APPLICATION NO.548 OF 2023

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per annum with monthly rests and lastly on 08.09.2020, a sum of ₹1,55,680/- (Rupees One Lakhs Fifty-Five Thousand Six Hundred Eighty Only) under Single Clean TOD payable with interest @ 17.40% per annum fixed interest.

¶33

The details of the Sanctioned amounts are as

¶34

under: -

¶35

S	D ate of	Nat ur	Amoun t	R OI	Pr ima ry	Colla ter al
r N o	Sanct ion	e of Facil i tie s			Secu ri ty	Secu ri ty
1	01.08 .20 17	CC O L	₹2,00, 00, 000 /-	@ 11% per annum floati ng intere st w ith mon thl y rest s.	Hypot hec ati on o f Entire current asset of t he firm (prese nt and future).	EM of Reside ntial F lat v alued at₹200 Lakh s ( Ex pert Valuatio n da ted 10.06 .20 17). Guarant eed by: - (i)Sanjeev Gaikw ad; (ii)De Gilbert Massey and (iii)Diana Gaikw ad.
	Tota l Amoun t	-	₹ 2,00, 00,0 00 / -	-	-	-
2	21.09 .20 17	SIB Mobi Loa n	₹7,19, 000 /-	11.90 % per annum w ith mon thl y rest s.	Hypot hec ati on of Bran ch New Eic her Pro 105 9 C w ith an inv oice of ₹10,50 ,047 / - .	Nil. Guarant eed by: - (i)Sanjeev Gaikw ad. The said loa n is cov ered by CGTM S E Sche me .
	Tota l Amoun t	-	₹ 7,19, 000 / -	-	-	-
3	23.01 .20 19	CC O L (Sub- limit for BD)	₹2,75, 00, 000 /-	11.35 % per annum w ith mon thl y rest s.	Hypot hec ati on o f Entire Curren t asset of t he firm (prese nt and future).	EM of reside ntial F lat v alued at₹200 Lakh s ( Ex pert Valuatio n da ted 10.06 .20 17). Guarant eed by: - (i)Mr Sanj eev

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Page 5 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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					Gaikw ad; (ii)Dr Gilbert Massey and (iii)Diana Gaikw ad.
	Tota l Amoun t	-	₹ 2,75, 00,0 00 / -	-	- -
4	08.09 .20 20	Single Clean TOD	₹1,55, 680 /-	17.40 % per annum fixed intere st .	- -
	Tota l Amoun t	-	₹ 1,55, 680 / -	-	- -

¶39

(4) On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. V (3) to (9) of the Original Application. Defendants hypothecated the following properties: -

¶40

(i) Brand New Eicher Pro 1059 C HSD , bearing Engine No: E414CDHK172030, Chassis No.: MC2C6CRC0HK386102 and Registration No.: MH48 AY 2191, Registration dated: 13.11.2017 of Dy RTO Vasai in the name of M/s. Dynamic Oil Tech Industries;

¶41

(ii) Brand New Eicher Pro 1080 H HSD , bearing Engine No: E414CDJF222026, Chassis No.: MC2B9HRC0JF410255 and Registration No.: MH48 AY 6296, Registration dated: 18.07.2018 of Dy RTO Vasai in the name of M/s. Dynamic

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Page 6 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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Oil Tech Industries;

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(iii) Entire Current assets of M/s. Dynamic Oil Tech Industries to CCOL & TOD

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And mortgaged Flat bearing no.C/701 , admeasuring 812 sq. ft. of built -up area in the 7^th floor of building known as ‘Trans Residency’ of Trans Residency 1 C & D Co-operative Housing Society Ltd. constructed on the piece and parcel of land bearing in Sy No.9, Hissa No.9, Hissa No.1, Corresponding CTS No. 17 (Part), 17/1 (Part) of Vyarvali Village, Andheri Taluka, Andheri Sub - Registration District, Mumbai Suburban District owned by Mr Gilbert Massey, as per Agreement No: BDR -4-07646-2005 dated 24.08.2005 of Sub-Registrar of Assurance Andheri -2 and Registered Deed of Gift No: BDR-17-5845-2017 dated 22.06.2017 of Sub-Registrar of Assurance Andheri-6 to secure the loan.

¶47

The details of the documents executed by the Defendants under Sanction Letter dated 01.08.2017 are as under: -

¶48

(a) Copy of Sanction Letter dated 01.08.2017; (b) Credit Facility Agreement dated

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Page 7 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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01.08.2017;

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(e) Deed of Declaration dated 01.08.2017;

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(f) Memorandum of deposit of Title deeds dated 01.08.2017;

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(g) Agreement of Guarantee dated 01.08.2017;

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(h) Letter of Confirming deposit of title deeds dated 02.08.2017;

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(i) Form of Acknowledgement dated 01.08.2017;

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(j) Acknowledgement receipt of copy of documents dated 01.08.2017.

¶59

The details of the documents executed by the Defendants under Sanction Letter dated 21.09.2017 are as under: -

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(a) Sanction Letter dated 21.09.2017;

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(b) Mobiloan (Vehicle Loan) cum Hypothecation Agreement dated 21.09.2017;

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(e) Acknowledgement of debt and security;

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(f) General terms and conditions for credit facilities.

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Page 8 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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The details of the documents executed by the Defendants under Sanction Letter dated 23.01.2019 are as under: -

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(a) Sanction Letter dated 23.01.2019;

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(b) Credit Facility Agreement dated 23.01.2019;

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(e) Deed of Declaration dated 23.01.2019;

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(f) Letter confirming deposits of title deeds dated 24.01.2019;

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(g) Agreement of Guarantee dated 23.01.2019; (h) Form of Acknowledgement dated 23.01.2019;

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(i) Acknowledgement receipt of copy of documents dated 23.01.2019.

¶75

The details of the documents executed by the Defendants under Sanction Letter dated 08.09.2020 are as under: -

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(a) Sanction Letter dated 08.09.2020;

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(b) Credit Facility Agreement for operating loan account dated 08.09.2020;

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¶79

(d) Registered Agreement dated 24.08.2005;

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Page 9 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

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(e) Gift Deed dated 22.06.2017;

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(f) Share Certificate No.081 dated 25.02.2017.

¶84

(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 30.06.2020 as per RBI Guidelines. Therefore, on 02.01.2021, the applicant under Section 13(2) of the SARFAESI Act, 2022 called upon defendants to liquidate the outstanding in the sum of ₹3,54,79,353.09/- (Rupees Three Crores Fifty-Four Lakhs Seventy-Nine Thousand Three Hundred Fifty-Three and paisa Nine Only) as on 01.01.2021 with further interest and penal interest as follows: -

¶85

(i) A sum of sum of ₹3,39,47,273.52/- (Rupees Three Crores Thirty-Nine Lakhs FortySeven Thousand Two Hundred SeventyThree and paisa Fifty-two Only) with further interest @ 10.90% per annum with monthly rests and penal interest @ 2% per annum from 31.12.2020 with regard to CCOL account (including ₹50,00,000/earmarked to Mumbai Vasai Branch);

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Page 10 of 17

¶87

ORIGINAL APPLICATION NO.548 OF 2023

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(ii) A sum of ₹1,66,422.89/- (Rupees One Lakhs Sixty-Six Thousand Four Hundred Twenty-Two and paisa Eighty-Nine Only) with further interest @ 17.40% per annum with monthly rests and penal interest @ 2% per annum from 31.12.2020 with regard to in TOD account;

¶89

(iii) A sum of ₹6,17,266.73/- (Rupees Six Lakhs Seven Thousand Two Hundred Sixty-Six and paisa Seventy-Three Only) with further interest @ 11.90% per annum with monthly rests and penal interest @ 2% per annum from 21.12.2020 with regard to Vehicle Loan I;

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(iv) A sum of ₹7,48,389.95/- (Rupees Seven Lakhs Forty-Eight Thousand Three Hundred Eighty-Nine and paisa Ninety-Five Only) with further interest @ 10.85% per annum with monthly rests and penal interest @ 2% per annum from 25.12.2020 with regard to Vehicle Loan II;

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within 60 days from receipt of the said notice. Despite notice, defendant nos.1 to 3 failed and neglected to pay.

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(6) As on 11.01.2022, there was owing, due and

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Page 11 of 17

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ORIGINAL APPLICATION NO.548 OF 2023

¶95

payable by defendants to the applicant the aggregate sum of ₹3,93,58,578.98/- (Rupees Three Crores Ninety-Three Lakhs Fifty-Eight Thousand Five Hundred Seventy-Eight and paisa NinetyEight Only). 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.

¶96

(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 20.01.2022.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Riyas N, Branch Manager and list of documents (exhibits-7, 8 and 9) thereby adducing in evidence the documents at AW-1 to AW-41, which are admitted in evidence, read, recorded and exhibited.

¶98

(9) Accordingly, in the Original Application was filed for the recovery of aggregated sum of ₹3,93,58,578.98/- (Rupees Three Crores Ninety Three Lakhs Fifty Eight Thousand Five Hundred Seventy Eight and paisa Ninety Eight Only) wherein a sum of ₹3,82,09,725.57/(Rupees Three Crores Eighty Two Lakhs Nine Thousand Seven Hundred Twenty Five and paisa Fifty Seven Only) as on 11.01.2022 with further interest @ 10.10 % per annum with monthly rests

¶99

Page 12 of 17

¶100

ORIGINAL APPLICATION NO.548 OF 2023

¶101

with respect to CCOL Limit, a sum of ₹2,06,686.46/- (Rupees Two Lakhs Six Thousand Six Hundred Eighty Six and paisa Forty Six Only) as on 11.01.2022 with further interest @ 17.40% per annum with monthly rests with respect to TOD Account and a sum of ₹9,42,166.95/(Rupees Nine Lakhs Forty Two Thousand One Hundred Sixty Six and paisa Ninety Five Only) as on 11.01.2022 with further interest @ 11.90 % per annum with monthly rests with respect to CCOL Limit from the date of presentation of the Original Application i.e. 20.01.2022 till payment/realisation.

¶102

(10) The Applicant in this present application states that the Applicant bank had taken symbolic possession of the secured asset on 20.03.2021 which was duly pasted on the premises and posted in two vernacular newspapers i.e. “Indian Express” dated 24.03.2021 and “Loksatta (Marathi)” dated 24.03.2021 as per law. The Applicant had also filed S.A. No.488 of 2021 before the Ld. Esplanade, Mumbai to take physical possession of the secured asset.

¶103

(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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Page 13 of 17

¶105

ORIGINAL APPLICATION NO.548 OF 2023

¶106

(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.

¶107

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

¶108

(14) Hence, the following order:

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ORDER

¶110

(A) The Original Application No.548 of 2023 is allowed with costs.

¶111

(B) Defendant nos.1 to 3 are ordered and directed to pay to the applicant, either jointly or severally, the recover aggregated sum of ₹3,93,58,578.98/(Rupees Three Crores Ninety Three Lakhs Fifty Eight Thousand Five Hundred Seventy Eight and paisa Ninety Eight Only) wherein a sum of ₹3,82,09,725.57/- (Rupees Three Crores Eighty Two Lakhs Nine Thousand Seven Hundred Twenty Five and paisa Fifty Seven Only) with further simple interest @ 10.10% per annum with respect to CCOL Limit, a sum of ₹2,06,686.46/- (Rupees Two Lakhs Six Thousand Six Hundred Eighty Six and paisa Forty Six Only) with further simple interest @ 12% per annum with respect to TOD Account and a sum of ₹9,42,166.95/- (Rupees

¶112

Page 14 of 17

¶113

ORIGINAL APPLICATION NO.548 OF 2023

¶114

Nine Lakhs Forty Two Thousand One Hundred Sixty Six and paisa Ninety Five Only) with further simple interest @ 11.90 % per annum with respect to CCOL Limit from the date of presentation of the Original Application i.e. 20.01.2022 till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002 or any other amount paid by the borrowers after filing of this O.A. No.548 of 2023.

(iii) Entire Current assets of M/s. Dynamic Oil Tech Industries to CCOL & TOD.

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Page 15 of 17

¶120

ORIGINAL APPLICATION NO.548 OF 2023

¶121

(D) The aforesaid adjudicated amount is secured by the valid and subsisting immovable mortgaged properties, that is, Flat bearing no.C/701 , admeasuring 812 sq. ft. of built-up area in the 7th floor of building known as ‘Trans Residency’ of Trans Residency 1 C & D Co-operative Housing Society Ltd. constructed on the piece and parcel of land bearing in Sy No.9, Hissa No.9, Hissa No.1, Corresponding CTS No. 17 (Part), 17/1 (Part) of Vyarvali Village, Andheri Taluka, Andheri SubRegistration District, Mumbai Suburban District owned by Mr Gilbert Massey, as per Agreement No: BDR-4-07646-2005 dated 24.08.2005 of SubRegistrar of Assurance Andheri-2 and Registered Deed of Gift No: BDR-17-5845-2017 dated 22.06.2017 of Sub-Registrar of Assurance Andheri-6.

¶122

(E) Defendant nos.1 to 3 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.

¶123

(F) The Applicant is also hereby directed to submit the details of claim amount received from the Central Government since the facility is granted under CGTMSE Scheme.

¶124

(G) Issue Recovery Certificate.

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Page 16 of 17

¶126

ORIGINAL APPLICATION NO.548 OF 2023

¶127

(H) 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.

¶128

(Harish Kumar Kaushik)

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Page 17 of 17

The South Indian Bank Ltd. v. Sanjeev Edwin Gaikwad

Case brief

What is this about?

What did the court decide?

The South Indian Bank Ltd. v. Sanjeev Edwin Gaikwad

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

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