Dismissed

Samiran Roy v. Bank of Baroda

DRT23 Feb 2026SA/880/2025

Case brief

AI extract

What is this about?

A Special Application regarding the wrongful declaration of a home and home improvement loan account as Non-Performing Asset (NPA). The applicant challenged the bank's recovery notices and possession proceedings, claiming default was due to the pandemic. The Tribunal upheld the bank's actions.

What did the court decide?

The Special Application challenging NPA classification and recovery notice/possession proceedings was dismissed on contest. No order as to costs. Stay order vacated.

Samiran Roy versus Bank of Baroda — Banking and Recovery | DRT (2026)

¶1

¶2

BEFORE THE DEBTS RECOVERY TRIBUI{AL-III KOLKATA

¶3

PRESE T: -SRI ARBIND ITIADHAV

¶4

PRESIDI G OEFICER Of DRT -tI KOLKATA

¶5

ADDTTIOI{AL CHARGE OF DRf -ItI XOLXATA

¶6

s,A. e8O ol 2025

¶7

DATE OF DELIVERY OF ORDER: 2310212026

¶8

li{R, SArilIRAl{ ROY, Son of Blswanath Roy, residing at A4l7, olamond^{Park, Joka, Near} Diamond Park, P.S.- Harldevpur, Blshnupur. I, Chak Thakuranl,^{District-South 24 Parganas,} Pin Code- 700 104.

¶9

Address for servlce of all notlces: Srl Blswajlt Nag, Advocate.

¶10

At 6, Old Post omce street, 3d Floor, Room No. 79118, Kolkata-⁷⁰⁰ 001,^{Phone No.-} 7003513211.

¶11

...Applicant.

¶12

-Versus-

¶13

Bank Of Baroda, Bhowanlpore Branch. 2. The Authorlzed Officer, Bank Of Baroda, Bhowanlpore^Branch' Both at No. 13, Andul RaJ Road, Kolkata-^700026.

¶14

... Defendants.

¶15

Counsels for the Appllcant(s):^-

¶16

Learned Counsel Mr. R. Sarkar Learned Counsel l,lr, Andolon Sarkar Learned Counsel Ms. Sudeshna^f4aji

¶17

Counsels for th€ Defendant(s):-

¶18

Learned Counsel Mr. Samlk^Basu Learned Counsel Mr. AmJad Ali

¶19

Hearlng Date:' l0l02/2026

¶20

JUDGEMENT

¶21

IA/215/2026 along wlth^{put up lA'/215/2026has been pressed.}

¶22

IA has been flled in compllance^{of the order dated 19.01'2026passedby the Hon'ble} Hlgh Court at Calcutta. ln the^{IA prayerhas been made to preponethe date and dispose of} the SA 880 of 2025 by 30.01.2026^{as perthe dlrectlon of the Hon'ble Hlgh Court at Calcutta} and also to declare that classlflcatlon^{of the loan accountsof the applicant as NPAby the} defendant bank ls^{wrongtul,lllegal.}

¶23

The matter was lnltlally^{heard on 28.01,2026 and defendant bank was directed to} flle affldavlt-ln-opposltlon^{together wlth the detalls regardlngclasslflcatlonof the loan} account as NPA, as urell as opposltlon^{to the IA'/215/2026wlth a copy to the SAapplicant'}

¶24

The next dlte was flxed on 30.01.2025^{under the headlng "Put uP'"}

¶25

6^r^

¶26

¶27

Agaln on 30.01.2026 the matter was taken up for hearlng and the Ld. Counsel for the appllcant sgught for^pass over. The matter was agaln taken up and Ld' Counsel^{for the} SA applicrnt sought tlme to flle reply to the opposltlon. On the^{requestof the SA applicant} the matter was^posted for hearlng on 10.02.2025.

¶28

As per dlrectlon of the Hon'ble Hlgh Court^passed on 19.01.2026^{ln WPA949/2026} the Sectlon 17 appllcatlon has been taken up for hearlng.

¶29

It was observed that Ld. ORT wlll take lnto conslderatlon the^process of the^manner in whlch the loan account of the^petltloner has been declared as^NPA by the^{defendantbank.}

¶30

Heard both sldes.

¶31

ORDER

¶32

The lnstant SA has been flled on 15.08.2025. Hard coPy of the SA^{has been received} on 20.08.2025 and lt was reglstered as SA 880 of 2025.

¶33

The SA has been filed wlth a^prayer that classlflcatlon of the^{loan account as NPAis} wrongful, steps and measunes taken by the^{defendant bank under Sectlon 13(2) and 13(4)} of the Act read wlth sald Rules are bad ln law. lt^{ls alsofiled for passlnga declarationthat} the^purported notlce dated^{12.04.2025underSedlon 13(2)of the Act alongwiththe} newspaper^publlcatlon dated 12,04.2025 are^lllegal and^{unlawful.Declaratlonhasalsobeen} sought for that notlce of symbollc^possesslon dated 04.07.2025^{under Section 13(4) of the} Acr. along wlth newspaper^{publlcatlon is lllegal and unlawful.}

¶34

The case of the appllcant as made ln the SA ls that the^{appllcant is a borrower. Loan} was sanctloned by the defendant bank for the^{purchaseof a flat from lts BhowanlpurBranch} for a total cost of Rs. 31,00,000( Rupees^{Thirty-oneLaconly),The said loan accountwas} opened on 12,11.2018 and allotted^{LoanAccountNumber: 00350600009018. Theactual} amount dlsbursed to the applicant^{was Rs. 27,90,000/-(Twenty-seven Lac andNlnety} Thousand only).

¶35

(Copy of Sanctloned letter dated 03.11.2018 ls annexed^{and marked as Annexure-} "A-1.',).

¶36

The sald loan was to be repald ln 348^{equallnstalmentsand the sum payable} towards each monthly^{lnstalmentwasRs. 21,812.33/-(RupeesTwenty-one ThousandEight} Hundred and Twelve and Thlrty-three^palseonly).

¶37

As per the terms and condltlons of sanctlon^{of the BHL an equltable mortgage was} created over the fgllowlngl

¶38

"Residential^{Flatbearing SurveyNumber Dag no, 7372, located at Plot No} "t^Flat No,^gC on f Floor, North East^{faclng,DoorNo./House,,,NearestDoor', Adnland Sq'Feet,} Build up Area 624, Carpet Area^{525i whlch ls situated at Flat no, 3C on *Floor, NotthEast} facing along with one car^{parktnE space no, 4 at G IIsto ed building situated at premises} no, 114, Ram Krishna Sarant⁽ Dhali^{Para Road),ward No'130,PS Parnasree(New), Kolkata} Municipal Corporatlon, Near Sunny^{School, Corporation City, Other-, DistrictState/Region} West Eengal, Country IN,^{PIN Code 700060, belongto Mr. samiranRoy,Boundary} ,r"rrno{o, East : 2 storied^{bullding,west : 2 storied buitding/Notth: othet property,South:} aa,mmon road,"

¶39

^ 4l ''"

¶40

¶41

It has further been submltted that appllcant was duly maklng^payments as^per the schedule tlll February 2020.

¶42

(Copy of Statement^g, Accounts is annexed as Annexure -"A-2.').

¶43

The further case ls that appllcant has aPplled for another credlt faclllty and^the defendant bank sanctloned a credlt faclllty unde. Home Improvement^Loanand communlcated lt by letter dated 29.01.2019. The total cost of the^{HIL was Rs, 7,42,4L5/-} (Rupees Seven Lac Forty-two Thousand Four Hundred and Flfteen only) but actual sum dlsbuEed to the appllcant was Rs. 5,50,000/.( Flve Lac and^{Flfty Thousandonly). The loan} was repayable ln l8O equal monthly lnstallments and the rate of^{Interestappllcableto the} llIL was 8.70 %,

¶44

(Copy of the sanctlon letter dated 29.01.2019 ls annexed as Annexure -"A-3.")

¶45

As per the terms and condltlons of sanctlon of the^{Bl'lL an equitable mortgage was} created over the followlng:

¶46

"Extenslon of Equltable^{Mottgage, of Resldential Flat, bearlng SuNey Number10A,} located at Plot No, -/ Flat No. 114,^{Door No,/House-,Nearest Door-,adm,LandSq,Feet,} Build up Area 562, Carpet Area 505,^{whichls situated} at^{114 RamKrishna Sarani,PS-} gehala (Old) Pamasree (New),-, Municipallty, City Kolkata, District-Kolkata, State/Region we;t Bengal, Country IN, PIN Code^{700060, belongingto samiron Roy, Boundary} Desciption East:2 Storied Butldlng,^{west: 2 StorledBuilding, North: other Propeiy, south:} 18 ft wide Road,'

¶47

The appllcant began maklng^{paymentstowards loan repaymentof the HIL from} 28.02.2019 and contlnued to^{make payments every monthtill 27,02,2020}

¶48

on account of the spread of the SARS-CoV-2^{virus and consequent occurrence of the} CO,.'iD-19 a natlonwlde lockdot{n^{waslmposed'The applicantwas requl.ed to closehis} business and as such he dld^{not have anymeans to repaythe flnancialassistance obtained} from the defendant bank. The buslness^{of the appllcant sufferedand appllcanthad the} dimcultles ln maklng^{payments towardsthe loan.}

¶49

There was a moratorlum on loan^{repaymentsfor three monthsfromMarch2020 to} Yay 2022, Thereafte., the^{moratorlumwas extendedfor another periodof three monthstill} August 2020. Despite such rellef,^{interestcontlnuedto accrue.Thefurthercase of the} agplicant ls that applicant made some^{payment towardsloan repaymentsandstarted} mal',1g regular^payments towards^{loan repayment of the BHL from themonthof February} 2021. The defendant bank^{on the other handafter providlng the repayment moratorlumon} account of the COVID-19^{pandemlc contlnuedto apply interest on theunrealizedportion of} the flnanclal asslstance^{provldedto the appllcant under the BHL and HlL.}

¶50

The further case Is that EMt^{payableat the time of sanctlon of the creditfacility to} l,\e appllcant was about 21,812.33/-(Rupees Twenty-one Thousand Eight^{tlund'ed and} T\relve and Thlrty-three^palse only)^{for the BHL andRs. 5,480/-(RupeesFiveThousand Four} |],tirdred and Elghty only) for the^{HIL. After the moratorlumfor the sald credltfacility as a} measure on account of the COVID-l9^{pandemlc,the revlsed monthly Inte.estfor the} ,.t ",

¶51

,fu )2'

¶52

BHL was about Rs. 22,500/- (Rupees Twenty-two Thousand and Flve Hundred onty) and for the HIL was Rs. 4,200/- (Rupees Four Thousand and Two Hundred only).

¶53

The furthe. case ls that desplte repayment of the loan the appllcant was compelled to make a representatlon dated 23.02.2025 by matl. It was polnted out that there was unexplalned and lrrational lncrease ln the monthly tnstallments. It was increased from Rs. 21,812/-(Rupees Twenty-one Thousand Elght Hundred and Twelve only) to approxtmately Rs. 34,soo/-(Rupees Thlrty-tour Thousand and Flve Hundred only) for BHL and from Rs. 5,480.ii'rp€es^{Five Thousand Four Hundred Eight} only)^per month to approximately Rs. 7,500/(Rupees Seven Thousand and Flve Hundred only) per month for the HIL.

¶54

(Copy of the representatlon by e-mall dated 23,02,2025 ls annexed as Annexure"A-4.")

¶55

Wlth the refusal to address the concerns raised by the appllcant with the defendant bank, the appllcant was compelled to make an appllcation dated 17,03.2025 under Section 6 1f the RIght to Informatlon Act, 2005 seeklng the following lnformatloni

¶56

l) Loan Agreement detalls of House Loan Account No. 00350500009018 and other Home Improvement Loan Account holder vlde Home Improvement Loan Account No. 00350600009043 along wlth Terms and Condltlons.

¶57

ll) Whether any House Loan amount and/or Home Improvement Loan amount can be disbursed wlthout Co-BoI'rower.

¶58

If so, supply me the relevant documents regarding the dlsbursement of any House oan amount and/or Home Improvement Loan amount sanctloned wlthout Co-Borrower.

¶59

lll) Whether the .epresentatlon dated 24,02,2025 sent to^you by me through Speed . Posr vlde Postal Recelpt No. EW1590254391N has already been consldered or not?

¶60

If so consldered, klndly supply me the reply of such representatlon.

¶61

In reply to that RTI appllcatlon the followlng answer was^glven.

¶62

xvlll. After the lssuance of the appllcatlon under Sectlon 6 of the Rlght to :nformatlon Act, 2005 dated March 17,03.2025 replied to the appllcant^{by an e-malldated} ..5.03.2025 as follows:-

¶63

we acknowledge the recelpt of your mall dated 23,02.2025 on the issue of EMIⁱⁿ your Home Loan Account No. 00350600009018 and Home Improvement Loan A/C. 00350600009043. As^peryour request for dlfference ln EMI, we state that^we are^looking into the ma$er and we shall cla.iry you soon, Also^your request for of loan account statement, we have already sent^you the same on 25.02.2025 through^{mail at} [email protected].

¶64

I (Copy of the reply by e.mall dated 25.03,2025 is annexed hereto and marked^as ,. nexure- "A-8.')

¶65

The formal reply to the above appllcatlon was lssued by the defendant^bankon L9,o4.2o24 The bank supplled the copy of the loan agreement and also^supplledthe statement of accounts of BHL and HIL but the defendant bank could^not clarify^{or providean}

¶66

¶67

¶68

explanatlgn as to why the representatlon^{made by the apPllcant in its letterdated} 17.03.2025 was ever replled to or consldered by^{the defendantbank.}

¶69

A demand notlce dated L2.04.2025 was lssued under Sectlon^{13(2) of the Act was} published.

¶70

(Copy of the newspaper publlcatlon ls annexed and marked as Annexure -"A-9l1".) It was publlshed, as mentloned ln the notice that the^{notice wasreturned} unanswered. No such notlce was ever served upon the applicant

¶71

The further polnt made out is that the^partlculars of the^{propertyas descrlbed in the} demand notlce was different from the^{prop€rtydescrlbedln the letter of sanctlon. It comes} from the newspaper^publlcatlon dated 04.12.2025^{that loan accountsof the applicant were} classified as NPA by the defendant bank^{on 20.03.2025.The saidclassificatlonis itself} misconcelved and unlawtul. The EMI^payments towards^{theBHL and theHILweremadeon} 23.02,2025 and 17.02.2025 respectlvely.^{As such, the lnterestand/orlnstallment of} prlnclpal was not overdue for a perlod of 90 days, Therefore, the classification^{of the loan} account of the applicant as NPA^{ls lllegal.}

¶72

As per RBI Master Clrcular on Prudentlal norms^{on IncomeRecognltlon,Asset} Classiflcltlon and^{provlslonlng pertalnlng} to^{Advances (IMCPnorms)dated 01.10.2021} produced at the tlme of hearlng.

¶73

Further case ls that representatlon^{was made underSectlon 13(3A)of the Act dated} 22.05,2025 through ld. Counsel.^{The appllcant hadralsedall the lssues.It was submitted} that the sald notlce was lssued by^{a person who is not an Authorlzed Omcer in terms of} Sectlon 2(a) of the Rules. As such^{the notlce was bad in lar^''}

¶74

(Copy of the representatlon dated May 22, 2025 ls annexed^{as Annexure-"A-11,").}

¶75

The representatlon was replled.^Portlon of^{the reply has beenquoted in the} appllcatlon.

¶76

(Copy of reply has been annexed as Annexure- "A-12.").

¶77

The further representatlon^{was madeagalnst that replyon 23.05.2025 maklng out} that lncrease ln the EMI and^{lnterest couldnot have been from Rs. 21,812/-(Rupees} Twenty-one Thousand Elght Hundred^{and TwelveOnly to Rs. 34,500/-(RupeesThlrty-four} Thousand and Flve Hundred only), an^{lncreaseof about 58%(flfty-el9htper cent) even after} taking lnto account restructurlng^{of theloan account due to COVID'19 and accumulatlonof} overdue lnterest and charges.

¶78

(Copy of the further representatlon has been annexed^{and marked as Annexure]A-} 13. ).

¶79

It has further been^{made out that except for the perlod from March 2020to} September 2O2O on account^{of COVID-l9, there was no defaulton the part of the applicant} and ln fact, there^was a^moratorlum,

¶80

The further case ls that^{the bank} Proceeded^{to lssuea symbollcPossesslon notice} under Sectlon 13(4) of the^{Act on 04.07.2025.The said notlce was never afflxed on a} part of the secured assets. Therefore, the bank^{has vlolatedthe Rule 8(1)of the} "on"rrruous

¶81

¶82

¶83

Rules, 2002. The sald notlce was publlshed ln the newspaper. The descrlptlon of the Immovable prgperty ls not the same as an equltable mortgage created as detalled in the loan agreement.

¶84

It ls submltted that whether the classlflcatlon of the 8HL and the HIL loan as NPA ls wrongful, all steps taken ln fu.therance are also lllegal.

¶85

It ls further submltted that recovery measures had been taken wlthout following the due process of law,

¶86

Affldavlt-ln-opposltlon has been flled on behalf of the defendants.

¶87

It has been made out that prlor to the issuance of the formal demand notice under Sectlon 13(2) on 25.03,2025 the bank had conslstently lnformed and cautloned the borrower -egarding the lrregularity of the loan accounts. The representatlon made vla mall as early as on 07.02.2025. The bank further lssued a formal reply to the appllcant's representatlon dated 25.03.2025 concurrently wlth the demand notlce, thereby malntalnlng complete tBnsparency ln lts recovery process. These pre-demand communications clearly established that the borrower was fully aware of the default,

¶88

(Copy of the letter dated o7,o-2.2o25 ls annexed herewith and marked as Annexure-'A".)

¶89

Demand notlce dated 25.03.2025 was duly dlspatched vla reglstered^post but was i'etumed wlth the postal rcmart 'Unclalmed', whlch constltutes" Deemed Servlce" as the borrower lntentlonally evaded recelpt. Consequently, the bank strlctly followed the procedure lald down ln Rule 3 of the Securlty Interest (Enforcement) Rules by publishing the demand notlce ln two leadlng newspapers on 12,04,2025. The appllcantt subsequent action of maklng a tgrmal representatlon through an advocate on 22,05.2025, expresslyⁱⁿ response to the contents of sald newspaper^publlcatlon, seryes as concluslve evldence and^a confi.mation of servlce.

¶90

It has further been made out that the defendant bank strongly refutes the lppllcant's challenge to the r€vlsed equated monthly lnstallments^(EMls). The applicant conslstently pald the lncreased EMI amounts for a substantlal^period of over one^year without any protest or reservatlon. Thls ls an unequlvocal acknowledgement of the liability and a deemed consent to the lnterest rate adjustments and correspondlng EMI^revisions. The bank malntalns that all the revlslons were made ln strlct compllance^{wlth theagreed-} upon sanctlon terms and^prevalllng RBI^guldellnes.

¶91

There was no regular repayment and the appllcant was ln absolute and^{willful default} of hls flnanclal obllgatlon for a contlnuous^perlod exceeding^{fourteen months, specifically} .om lune 10, 2021 to August 25, 2022, Thls sustalned fallure to pay the EMIS was not an lsolated lapse but a chronlc default that compelled the bank to classlfy the^{account as NPAln} strlct compllance of the Prudentlal Norms of the RBL The EMls^{werecalculatedandralsed} strictly followlng the sanctloned terms of @E.6Vo^{per annum for the Home Loan and 8,70lo} per annum for the l'lome Improvement Loan, Therefore, the recovery measures under^the SARFAESI Act, 2002 lncludlng the lssuance of the demand^{noticeand symbolic possession,} a.e legally valld actlons.

¶92

(Copy of Account statement ls annexed herewlth and marked as AnnexureJC",)

¶93

"&,)1.'

¶94

¶95

It has been submltted that the appllcatlon under Sectlon 17 of the SARFAESI Act^ls nothlng but a dllatory tactlcs agalnst the lawful recovery of the bank.

¶96

After hearlng the^partles and on conslderatlon of the record the lasuc^{tor dGcl3lon} is whether the process and the manner ln whlch the loan account of the^{petltlonerhas been} declared as NPA ls ln accordance wlth the^procedure and^law.

¶97

Submlsslon has been made on behalf of the appllcant that^{lf the loan has wrongly} been classlfled as NPA of the subsequent would fall.

¶98

Annexure-'A-1' ls the letter of sanctlon to the^{bgrrot{er for} a^{home loan for} purchaslng a flat. It was a term loan and a loan of Rs. 27,90,000/-(^{RupeesTwenty-seven} lac and Nlnety Thousand only) has been sanctioned.^{Second loan was sanctionedunder} Baroda Home Loan of Rs. 5,50,000/-(Rupees^{Flve Lac and Flfty Thousandonly).}

¶99

(Copy of letter of sanctlon ls annexed herewlth and marked as Annexure-"4-3"

¶100

In the flrst loan the appllcable^rate of^{lnterestls 8.60% per annum of Rs'} 2!,812,331- wlth monthly^{rests repayableln 348 equated monthlylnstallmentsandthe} second loan the apPllcable^{rdte of lnterest ls Rs.8,7O% per annumof Rs. 5,480'74/-with} monthly rests repayable ln 180 equated^{monthly lnstallment.}

¶101

The terms and condltlons^{no. 6 ln boththe sanctionedlettersls that rate of interest} would be llnked to and one^{year MCLRcf thebank. TheMCLR prevalllngon the date of} dlsbursement wlll be^{appllcabletlll the nextreset date i.e. one year irrespectiveof the} changes ln the MCLR durlng^{the lnterlm perlodlt hasfurther been provldedthat the rate of} interest would be revlewed annually^{at the tlme of .evlew of the account The rate of interest} would be.evlsed based^{on the bureau score of the borrower andthe applicable spread over} one^year MCLR ln^{force at the tlmeof revlew. lt hasfurther beenprovlded in the termsand} condltlons that^perlod of^{loan wlll be adlusted as per lncrease/decreaseln the rate of lnterest'} keeplng EMIS at fixed^{leveltlll full repayment subjectto the condltlonthat total/extended} tenure of the loan^{does not} 90^{beyondthe maxlmum period permlsslble under the scheme} as per guldellnes.

¶102

tt has further been Provlded^{that penal lnterest@ 29o perannum would be charged} for non-paymenvdelayed^{paymenton overdueamount for overdue perlod/breach/violatlon/} non-compliance of^{any terms and condltlons of the sanctionThesearethe termsbesides} the order ln the sanctlon letter.^{Samels the terms and condltlons for other loan accounts} also.

¶103

(Copy of the demand notlce has^{been annexed t4lth the Paper Bookof SA')}

¶104

In the demand notlce^{dated 25'Ot'2025thedate of NPA has been mentioned as} 20.03.2025. The^{outstandlng amountas made out ln the demand notlce was Rs'} 34,64,889,48t'+^{un applled lnterest amountfrom25 03'2025 for theHome Loan and for} Home Improvement^{Loan.Theamount of outstandlngwas Rs' 5'35'852'54/-ason} 25.03.2025.TotalamountoutstandlngasonthatdatewasRs.40,0|,742,02l.,Totalllmlt rvas 33,4O,OOO/-.^{Therefore,the outstanding ls far above the llmlt'}

¶105

Annexure.A-4lsaletterlssuedbytheborrowertotheManager,BankofBarodain whlch lt ls admltted^{thrt borrower falled to pay EMlsdue to his health issue as well as the} \eaflh rssues of hrs^{wtfe,chtld educatlon expenses.He sought clariflcatlon and intimatehim}

¶106

,-&,* '].2^'

¶107

the reasons for fluctuatlons ln the EMIS. He also sought total outstandlng of his Home Loan and Home Improvement Loan,

¶108

Representatlon to that 13(2) demand notlce was lssued on 22.05,2025 by 14., Biswajlt Nag, Ld. Counsel ln whlch correctness of the outstandlng amount was^questloned. The lnterest calculatlon and the .ate thereof and method of calculatlon were also challenged.

¶109

(Reply to that rep.esentatlon was lssued on 02.05.2025 (Annexure -A-12.)

¶110

In the reply lt has been set^gut that the account statements and other relevant documents had been made avallable to the borrower from tlme to tlme, both at the time of disbursement and durlng the tenure^gf the ag.eement, The borrower has also acknowledged varlous documents lncludlng the balance conflrmations, whlch reflected hls awareness of the account status. Furthermore, the borrower has convenlent access to the account statement through the bank's dlgltal^pladorms, lncluding moblle and lnternet banking appllcations, whlch allow him to view or download account details wlthout the need to^{visit the branch,}

¶111

The borrower has executed the terms and condltions of^{the loan aqreementvrhlch} lnclude the lnterest rate^(flxed or floatlng, as^{appllcable), perlodlcltyof lnterestappllcatlon} and the penal lnterest for default. Bank has malntalned^{transparencyby lncorPoratlng the} appllcable lnterest rates ln the account statements^{and the loan documents.}

¶112

The lnltlal EMI of Rs. 21,812/- was based on the^{prevalllng rate of lnterest and loan} tenure at the tlme of sanctlon.

¶113

It has been submltted on behalf^{of the defendant thatincreaseln EMI post-COVID} was a result of a revision ln the applicable^{interest rate, whichwassubject to change as per} the terms of the loan agreement.^{The loan was sanctlonedwlth a floatlngrateof lnterest,} whlch fluctuates ln llne wlth the^{repo rate or otherbenchmarkrates notlfled by the RBI'} These revtslons are^pertodlcally communlcated^{through publlc notlces are also reflectedln} the digltal banklng Platforms.

¶114

It has further been submitted^{that increasein EMI was primarily due to the} restructurlng of the loan^{accounton 25.05.2021 and the moratorlum relief wasavalled} durlngthecovlD.lgpandemlc,lnllnewlthRBlguldelines.Thedeferredinterestandthe revlsedrepaymentschedulehaveledtoarecalculatlonoftheE|4I.45theloanremains lrregularslncetheyear2olgthatresultedlntheaccumulatlonofoverdueinterestand charges whlch further^{lmpacted the repayment structure. It has been submltted that} borrower never objected^{to suchrevlslonsthereby acknot{ledgingthe changesMoreover'} Accountstatementsareaval|ableondlgltalplatformofthebankandeverythlngls transparent.

¶115

The classlficatlon of the^{accountas NPA ls governed by the guidellnes issued by the} RBI and lf the borrower^{falls to paythe overdueamount for a perlodof morethan 90 days} then the account shall^{be classtfled as NPA.What is relevant is the regularityand timeliness} of repayment ln accordance^{wlth the agreed repayment schedule' The borrowerhasfalledto} malntalntheaccountaspertheagreement,andperslstentdefaultshaYeledtotheaccount belng classlfied as^{NPA. Therefore,Ido not flnd anyground to flnd fault with the} classlficatlon of the^{accountas NPA.}

¶116

k?t^

¶117

¶118

I do not flnd any fault wlth the^{procedurefor taklng actlon under the SARFAESIAct,} 2002. Therefore, the Trlbunal^{flndsthat the classlflcatlongf accountas NPA ls ln accordance} wlth law, the notlces under Sectlons^{13(2)and 13(4) wereissued as per the Actsand the} Rules.

¶119

For the reasons above, sA,/880/2025^{stands dlsmlssed on contest.}

¶120

There shall be no order as to costs,

¶121

Pendlng IAs, lf any, lncludlng the^{IAy'215l2026alsostands dlsmlssed.}

¶122

The stay order, lf any,^granted earller^{is hereby vacated.}

¶123

Copy of the ludgmenvFlnal Order^{be uploaded ln the Trlbunal's webslte.}

¶124

File ls conslgned to the Record^Room.

¶125

(Dlctated to steno, transcrlbed by hlm, corrected,^{slgned and} pronounced by me ln the op€n court on the 23u day of February, 2026)

¶126

PRESIOING OFFICER OF DRT -II^KOLKATA ADDIT1ONAL CHARGE OF DRT -III^KOLKATA

Samiran Roy v. Bank of Baroda

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Samiran Roy v. Bank of Baroda

Case brief

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