Allowed

Punjab National Bank v. Atulkumar Sarabhai Parekh

DRT2 Feb 2026OA/86/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of outstanding term loan dues totaling approximately ₹3.17 crores from the principal borrowers and their guarantors. The Tribunal confirmed the loan default, validated the secured mortgage on immovable properties, and ordered an issue of the Recovery Certificate.

What did the court decide?

Recovery of ₹3,17,04,347.33/- with future interest and mortgaged properties to secure dues; Issue of Recovery Certificate.

Punjab National Bank versus Atulkumar Sarabhai Parekh — Money Laundering | DRT (2026)

¶1

ORIGINAL APPLICATION NO.86 OF 2022

¶2

DEBTS RECOVERY TRIBUNAL No.2, MUMBAI

¶3

PRESIDING OFFICER: HARISH KUMAR KAUSHIK

¶4

ORIGINAL APPLICATION NO.86 OF 2022

¶5

Date of Institution: 12.05.2021 Date of Decision: 02.02.2026

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TOTAL CLAIM AMOUNT :

¶7

₹ 3,17,04,347.33/-

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PUNJAB NATIONAL BANK,

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A Body corporate constituted under The Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head office at Plot No.4, Sector-10, Dwarka, New Delhi-110 075

¶10

And having its

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Branch office at Khodadad Circle, Behind Swami Narayan Mandir, Dadar (East), Mumbai- 400 014

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Also having its

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Circle Sastra Center, Mumbai City at 181-A1, 18^th floor, “E” Wing, Maker Tower, Cuffe Parade, Mumbai-400 005 Through Shri Kishor Madhurkarrao Hedau Senior Manager, the Power … Applicant of Attorney of the Applicant. Tel No: 9969163360, 8879817922 IFSC: PUNB0604100 Email: [email protected]

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Page 1 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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Versus

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ATULKUMAR SARABHAI PARIKH, a) R/ at Flat No.1004, 10^th floor, Jeevan Vihar 5, Manav Mandhir School, Walkeshwar, Mumbai-400 006.

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b) Office at 1^st floor, CW1130, C Tower, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra East, Mumbai-400 051.

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c) Annapurna Building Second Floor, Ashanagar City Navsari, State Gujarat-396 445.

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SUNNY ATULKUMAR PARIKH, a) R/ at Flat No.1004, 10^th floor, Jeevan Vihar 5, Manav Mandhir School, Walkeshwar, Mumbai-400 006.

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b) Office at 1^st floor, CW1130, C Tower, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra East, Mumbai-400 051.

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c) Annapurna Building Second Floor, Ashanagar City Navsari, State Gujarat-396 445.

¶23

ASHOK GOPAL THOTE, R/at Room No.103, House No.815, Nerul Village

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New Mumbai-400 706.

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BHARTI ASHOK THOTE, R/at Room No.103, House No.815, Nerul Village

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New Mumbai-400 706.

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Page 2 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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SIMONE SUNNY PARIKH, R/at Flat No.1004, 10^th floor, Jeevan Vihar, B Wing, Manav Mandhir School, Walkeshwar, Mumbai-400 006. …Defendants

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APPEARANCES For the Applicant : Mr Chetan R. Shah - 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 aggregate amount ₹3,17,04,347.33/(Rupees Three Crores Seventeen Lakhs Four Thousand Three Hundred Forty-Seven and paisa Thirty-Three Only) consisting of ₹1,57,09,999.61/(Rupees One Crore Fifty-Seven Lakhs Nine Thousand Nine Hundred Ninety-Nine and paisa Sixty-One Only) under Term loan-1 and ₹1,59,94,347.72/- (Rupees One Crore Fifty-Nine Lakhs Ninety-Four Thousand Three Hundred Forty-Seven and paisa SeventyTwo Only) Term loan-2, payable with future interest @ 8.05% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 12.05.2021 till

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Page 3 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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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 Facility	O/s. amount as
No		31.03.2021
1	Term Loan 1	1,57,09,999.61/-
2	Term Loan 2	1,59,94,347.72/-
	Total Amount	3,17,04,347.33/-

¶38

(2) It is undisputed fact in the matter that the Defendant nos.1 to 5 were duly served with the summons vide order-sheet dated 28.04.2023. Despite service, the defendants did not enter their appearance and therefore, they are set ex-parte on 10.10.2023.

¶39

(3) Defendant nos.1 and 2 are the principal borrowers who approached the Applicant Bank and sought financial assistance by way of Term Loan Facilities wherein Defendant nos.3 to 5 acted as Guarantors of the said loan. Pursuant to the loan application dated 20.04.2018 made by defendant nos.1 and 2, the Applicant sanctioned the loan vide Sanction Letter dated 24.04.2018 in sum of ₹1,32,00,000/- (Rupees One crore Thirty-Two Lakhs Only) payable in 360 EMIs of ₹1,02,494.37/- (Rupees One Lakhs Two Thousand Four Hundred Ninety-Four and paisa Thirty-Seven

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Page 4 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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Only) with interest at the rate of 8.60 % per annum floating interest and guaranteed by Defendant nos. 3 and 4. Further on request made by the borrowers, the Applicant further issued a Housing loan/ Term loan for an amount of ₹1,34,00,000/- (Rupees One Crore Thirty-Four Lakhs Only) repayable with 360 months of ₹1,04,792.99/(Rupees One Lakhs Four Thousand Seven Hundred Ninety-Two and paisa Ninety-Nine Only) with interest at the rate of 8.60 % per annum floating interest and guaranteed by Defendant nos. 3, 4 and 5.

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The details of the Sanction amounts are as under: -

¶44

Sr.	Date of	Amount of	ROI	Secur	ity
No.	Sanction	Sanction
1	24.04.2018	₹1,32,00,000/-	8.60 %	Equita	ble/Registere	d
			per	Mortg	age of All	that
			annum	piece	and parcel	of a
			floating	constr	ucted pre	mises
			interest.	constr	ucted as	per
				appro	ved building	plan
				from	N.M.C. over	the
				proper	ty as men	tioned
				before	Flat No.	803/B
				Wing	on Eight Flo	or of
				buildi	ng known	as
				Shree	nath Dar	shan,
				Vihar	Lake Road,	Near
				Krishn	a Ci	nema,
				Bhand	up West, Mu	mbai-
				400 proper Defen	078 and ty belonging dant nos. 1 a	the to the nd 2.

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Page 5 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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				Guaranteed by Defendant nos.3 and 4 i.e. Mr Ashok Gopal Thote and Mrs Bharti Ashok Thote.
	Total Amount	₹1,32,00,000/-	-	-
2	16.05.2018	₹1,34,00,000/-	8.60 % per annum floating interest.	Equitable/Registered Mortgage of Flat No. 804/B,adm. 854 Sq ft, usable Carpet area alongwith One Car Parking at podium level, on the 8th floor, of the Building known "SHREENATH DARSHAN
				constructed on ALL
				THAT PIECE AND PARCEL of Khot land, plot or ground, bearing Survey no. 113, Hissa No. 2, CTS no. 245, 245/1 to 4 of Bhandup Village, together with shed, structures, standing thereon, situate lying and being at Vihar Lake Road, Bhandup (West), Mumbai 400067, presently admeasuring 1664 square yards i.e. 1376.9 square meters after road widening (originally admeasuring 2100 square yards), and assessed for municipal rates and taxes under Ward No. 2937 and street no. 62F belonging to the Defendant nos. 1 and 2.
				Guaranteed by Defendant nos.3, 4 and 5 i.e. Mr Ashok Gopal Thote, Mrs Bharti Ashok Thote and Mrs Simone Sunny Parikh.

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Page 6 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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Total	₹1,34,00,000/-	- -
Amount
Total	2,66,00,000/-	- -
amount
sanctioned

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(4) On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos.5.3 to 5.8 of the Original Application. Defendants mortgaged All that piece and parcel of a constructed premises constructed as per approved building plan from N.M.C. over the property as mentioned before Flat No.803/B Wing on Eight Floor of building known as Shreenath Darshan, Vihar Lake Road, Near Krishna Cinema, Bhandup West, Mumbai -400 078 and Flat No.804/B, adm. 854 Sq ft, usable Carpet area alongwith One Car Parking at podium level, on the 8th floor, of the Building known "SHREENATH DARSHAN constructed on ALL THAT PIECE AND PARCEL of Khot land, plot or ground, bearing Survey no. 113, Hissa No. 2, CTS no. 245, 245/1 to 4 of Bhandup Village, together with shed, structures, standing thereon, situate lying and being at Vihar Lake Road, Bhandup (West), Mumbai 400067, presently admeasuring 1664 square yards i.e. 1376.9 square meters after road widening (originally admeasuring 2100 square yards), and assessed for municipal rates and taxes under Ward No. 2937 and street no. 62F

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Page 7 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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and the property belonging to the Defendant nos. 1 and 2 and the property belonging to the Defendant nos. 1 and 2 to secure the loan.

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The details of the documents executed by the Defendant vide Sanction Letter dated 24.04.2018 are as under: -

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(a) Application for home loan dated 20.04.2018 alongwith the KYC Documents filed by the Defendants;

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(b) Accepted Sanction Letter dated 24.04.2018 for an amount of ₹1,32,00,000/(Rupees One Crore Thirty-Two Lakhs Only);

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¶59

(d) Eight Letters dated 24.04.2018 and Property Declaration Forms dated 24.04.2018;

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(e) Letter of Guarantee dated 24.04.2018 executed by Defendant nos.3 and 4.

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The details of the documents executed by the Defendant vide Sanction Letter dated 16.05.2018 are as under: -

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(a) Application for loan dated 05.05.2018

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Page 8 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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alongwith the KYC Documents filed by the defendants;

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(b) Accepted Sanction Letter dated 16.05.2018 for an amount of ₹1,34,00,000/(Rupees One Crore Thirty-Four Lakhs Only);

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(d) Irrevocable Power of Attorney dated 16.05.2018;

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(e) Declaration dated 16.05.2018;

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(f) Seven Letters dated 16.05.2018 and Property Declaration Forms dated 16.05.2018;

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(g) Letter of Guarantee dated 16.05.2018 executed by Defendant nos.3 to 5;

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(h) Receipt of Notice of Intimation of Mortgage by way of Deposited Title deed dated 23.05.2018 alongwith the Letter dated 25.04.2018;

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(i) Agreement for Sale dated 23.04.2018 for Flat No.803/B) alongwith Original Index II;

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(j) Two Part Payment Receipt issued by M/s. Shreenath Building & Pvt Ltd dated 23.04.2018;

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(k) NOC dated 23.04.2018 from the promoter to mortgage Flat No.803;

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Page 9 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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(l) Receipt of Notice of Intimation of Mortgage by way of Deposit of Title deed alongwith the Letter dated 17.05.2018;

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(m) Agreement for Sale dated 23.04.2018 alongwith Original Index II;

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(n) Four Part Payment receipt issued by M/s Shreenath Building & Pvt Ltd dated 23.04.2018;

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(o) NOC dated 23.04.2018 from the promoter to mortgage Flat No.804/B.

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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 31.05.2019 as per RBI Guidelines. Therefore, on 03.05.2021, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹1,56,86,511.04/(Rupees One Crore Fifty-Six Lakhs Eighty-Six Thousand Five Hundred Eleven and paisa Four Only) due under Term Loan No.1 and ₹1,59,83,286.00/- (Rupees One Crore Fifty-Nine Lakhs Eighty-Three Thousand Two Hundred Eighty-Six Only) due under Term Loan No.2 both upto 30.03.2021 and further interest thereon at the rate of 8.05% per annum with monthly rests

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Page 10 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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from 01.04.2021 till payment and/or realization. Despite notice, defendant nos.1 to 5 failed and neglected to pay.

¶86

(6) As on 31.03.2021, there was owing, due and payable by defendants to the applicant the aggregate amount ₹3,17,04,347.33/(Rupees Three Crores Seventeen Lakhs Four Thousand Three Hundred Forty-Seven and paisa ThirtyThree Only) consisting of ₹1,57,09,999.61/(Rupees One Crore Fifty-Seven Lakhs Nine Thousand Nine Hundred Ninety-Nine and paisa Sixty-One Only) under Term loan-1 and ₹1,59,94,347.72/- (Rupees One Crore Fifty-Nine Lakhs Ninety-Four Thousand Three Hundred Forty-Seven and paisa Seventy-Two Only) Term loan-2, payable with future interest @ 8.05% per annum with monthly 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. (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 12.05.2021.

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(8) The applicant has filed affidavit (exhibit-6) in lieu of examination in chief of Mr Kishor Madhukarrao Hedau, Senior Manager and list of documents (exhibit-7) thereby adducing in evidence the

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Page 11 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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documents at AW-1 to AW-28, 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 aggregate amount ₹3,17,04,347.33/(Rupees Three Crores Seventeen Lakhs Four Thousand Three Hundred Forty-Seven and paisa Thirty-Three Only) consisting of ₹1,57,09,999.61/(Rupees One Crore Fifty-Seven Lakhs Nine Thousand Nine Hundred Ninety-Nine and paisa Sixty-One Only) under Term loan-1 and ₹1,59,94,347.72/- (Rupees One Crore Fifty-Nine Lakhs Ninety-Four Thousand Three Hundred Forty-Seven and paisa SeventyTwo Only) Term loan-2, payable with future interest @ 8.05% per annum with monthly rest thereon from the date of presentation of the Original Application i.e. 12.05.2021 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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(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

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Page 12 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

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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.86 of 2022 is allowed with costs.

¶101

(B) Defendant nos.1, 2, 3 and 4 are ordered and directed to pay to the applicant, either jointly or severally, a sum of ₹1,57,09,999.61/- (Rupees One Crore Fifty-Seven Lakhs Nine Thousand Nine Hundred Ninety-Nine and paisa Sixty-One Only) under Term loan-1 and Defendant nos. 1, 2, 3, 4 and 5 are ordered and directed to pay to the applicant, either jointly or severally, a sum of ₹1,59,94,347.72/- (Rupees One Crore Fifty-Nine Lakhs Ninety-Four Thousand Three Hundred Forty-Seven and paisa Seventy-Two Only) under Term loan-2, aggregating to an amount of ₹3,17,04,347.33/(Rupees Three Crores Seventeen Lakhs Four Thousand Three Hundred Forty-Seven and paisa Thirty-Three Only) both payable with future simple interest @ 8.05% per annum thereon from the date of presentation of the Original Application i.e. 12.05.2021 till payment/realization.

¶102

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Page 13 of 15

¶104

ORIGINAL APPLICATION NO.86 OF 2022

¶105

the valid and subsisting mortgaged immovable properties, that is, All that piece and parcel of a constructed premises constructed as per approved building plan from N.M.C. over the property as mentioned before Flat No.803/B Wing on Eight Floor of building known as Shreenath Darshan, Vihar Lake Road, Near Krishna Cinema, Bhandup West, Mumbai-400 078 and Flat No. 804/B, adm. 854 sq. ft, usable Carpet area alongwith One Car Parking at podium level, on the 8th floor, of the Building known "SHREENATH DARSHAN constructed on ALL THAT PIECE AND PARCEL of Khot land, plot or ground, bearing Survey no. 113, Hissa No. 2, CTS no. 245, 245/1 to 4 of Bhandup Village, together with shed, structures, standing thereon, situate lying and being at Vihar Lake Road, Bhandup (West), Mumbai 400067, presently admeasuring 1664 square yards i.e. 1376.9 square meters after road widening (originally admeasuring 2100 square yards), and assessed for municipal rates and taxes under Ward No. 2937 and street no. 62F and the property belonging to the Defendant nos. 1 and 2 and the property belonging to the Defendant nos. 1 and 2.

¶106

(D) Defendant nos.1 and 2 through its guarantors i.e. Defendant nos.3 to 5 are entitled to redeem the mortgaged properties as per law failing which the applicant has right to proceed to sell the

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Page 14 of 15

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ORIGINAL APPLICATION NO.86 OF 2022

¶109

mortgaged properties and recover dues as per law.

¶110

(E) Issue Recovery Certificate.

¶111

(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/-

¶113

(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai

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Page 15 of 15

Punjab National Bank v. Atulkumar Sarabhai Parekh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Atulkumar Sarabhai Parekh

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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