DCB BANK LIMITED vs RAJVI SHARMA on 22 April 2026

J U D G M E N T

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 ₹4,71,21,558/- (Rupees Four Crores Seventy-One Lakhs Twenty-One Thousand Five Hundred Fifty-Eight Only) with future interest @ 11.95% per annum compounded with monthly rest and penal interest @ 3% per month thereon from the date of presentation of the Transferred Original Application i.e. 16.03.2016 till payment/realization and to enforce the mortgaged security. The details of the claim amount are as under: - Sr No Nature of Facility Principal O/s. Unapplied interest upto 08.03.2016 Current Overdue Charges Late Payment Charges Total Amount

Home Loan ₹2,54,81,2 39.00/- ₹42,291.00 /- ₹2,15,10, 304.00/- ₹87,724. 00/- ₹4,71,21,558.00/-

It is undisputed fact in the matter that the Defendant nos.1 to 4 were duly served with the summons vide order-sheet dated 16.09.2016. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 12.01.2026.

Defendant nos. 1 to 3 are the borrowers who approached the Applicant Bank and sought financial assistance by way of Home Loan Facility.

Pursuant to the loan application made by defendants, the Applicant sanctioned the loan vide Sanction Letter dated 31.01.2010 for a sum of ₹2,69,00,000/- (Rupees Two Crores Sixty-Nine Lakhs Only) payable in 240 EMIs of ₹2,42,027/- (Rupees Two Lakhs Forty-Two Thousand Twenty- Seven Only) with variable rate of interest @ 9% per annum which is 5.75% per annum below the DCB MBPLR i.e. 14.75% per annum. The details of the Sanction amount are as under: - Sr No Nature of Facility O/s. amount ROI Security

Home Loan ₹2,69,00,000/- @

14.75% per annum floating Flat No.701, 7 t h floor, Krimson Park, S.V. Road, Amboli

Naka,

Near Corporation Bank, Andheri (West), Mumbai-400 058. Total Amount ₹2,69,00,000/- - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5(iii) and (iv) of the Transferred Original Application. Defendants mortgaged Flat No.701

, 7th floor, Krimson Park,

S.V. Road, Amboli Naka, Near Corporation Bank, Andheri (West), Mumbai-400 058 to secure the loan.

The details of the documents executed by the Defendants are as under: - (a) Sanction Letter dated 31.01.2010;

(b) Loan Agreement dated 26.02.2010;

(c) Agreement for Sale dated 26.02.2010 executed between M/s. S. Jadhwani Developers and Dr Rajvi Sharma, Dr Satish Maganmal Sharma and Mrs Bhagwati Maganmal Sharma; (d) NOC to create mortgage dated 27.02.2010 for ₹2,69,000/- (Rupees Two Lakhs Sixty-Nine Thousand Only).

The last payment of ₹2,23,460/- (Rupees Two Lakhs Twenty-Three Thousand Four Hundred Sixty Only) was made on 22.03.2016 vide cheque no.000886, thereafter no such payment was made by the defendant. Thus, 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 Irregular. Therefore, on 06.03.2016, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹4,70,57,731/- (Rupees Four Crores Seventy Lakhs Fifty-Seven Thousand Seven Hundred Thirty-One Only) as on 05.03.2016

under Home Loan account with accrued interest and penal interest at the applicable rate charges and penalties within 7 days from receipt of the notice. Despite notice, defendant nos. 1 to 3 failed and neglected to pay.

As on 08.03.2016, there was owing, due and payable by defendants to the applicant the aggregate sum of ₹4,71,21,558/- (Rupees Four Crores Seventy-One Lakhs Twenty-One Thousand Five Hundred Fifty-Eight Only) with future interest @ 11.95% per annum compounded with monthly rest and penal interest @ 3% per month 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.

The Applicant further state that the Applicant bank took possession of the said property on 28.05.2012 and sold the said property on 29.11.2013 for a sum of ₹2,15,00,000/- (Rupees Two Crores Fifteen Lakhs Only) and that the builder had filed an S.A. No.287 of 2013 before the Tribunal and have directed to the bank to keep the amount in the “Internet Earning Account” till disposal of the S.A. and hence the Sale proceeds are not adjusted towards outstandings.

Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Transferred Original Application which was presented on 16.03.2016.

The applicant has filed affidavit (exhibit-12) in lieu of examination in chief of Mr Santosh Chauhan, Authorised Officer and list of documents (exhibit-13) thereby adducing in evidence the documents at AW-1 to AW-5, which are admitted in evidence, read, recorded and exhibited.

Accordingly,

in

the

Transferred

Original Application was filed for the recovery of ₹4,71,21,558/- (Rupees Four Crores Seventy-One Lakhs Twenty-One Thousand Five Hundred Fifty- Eight Only) with future interest @ 11.95% per annum compounded with monthly rest and penal interest @ 3% per month thereon from the date of presentation of the Transferred Original Application

i.e.

16.03.2016

till payment/realisation.

The Tribunal has scrutinised and examined the allegations contained in the Transferred Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

Upon careful scrutiny and the examination of the Transferred 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.

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

Hence, the following order:

ORDER

(A) The Transferred Original Application No.1814 of 2016 in Original Application No.858 of 2016 is allowed with costs. (B) Defendant nos.1 to 4 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹4,71,21,558/- (Rupees Four Crores Seventy-One Lakhs Twenty-One Thousand Five Hundred Fifty-Eight Only) with future simple interest @ 11.95% per annum thereon from the date of presentation of the Transferred Original Application

i.e.

16.03.2016

till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002 or any other amount paid by the borrower after filing of this T.O.A. No.1814 of 2016. (C) The Applicant hereby proceed against any available property/ies in the name of the borrowers to recover the outstanding amount due as per law. (D) Issue Recovery Certificate.

(E) 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. Sd/- (Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai