CITY UNION BANK LIMITED vs MUMTAZ AND ANOTHER on 23 March 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 16.07.2022 before DRT-II, Delhi and then transferred *Sd-*

to DRT-I under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.52,06,708.08 (Rupees Fifty Two Lacs Six Thousand Seven Hundred Eight and paisa Eight only) as on 10.06.2022 along with pendentelite and future interest @11.75% per annum with monthly rests from the date of filing this application till the date of realization along with costs.

2. The brief facts of the case are that on the request of the defendants as co-borrowers vide their loan application dated 09.07.2019, the applicant bank sanctioned Loan Against Property for a sum of Rs.39,00,000/- (Rupees Thirty Seven Lacs only) on 29.08.2019 @11.25% interest per annum with annual rests subject to change as per RBI guidelines to be repayable in 84 EMIs of Rs.68,326/- (Rupees Sixty Eight Thousand Three Hundred Twenty Six only) for business purpose against mortgage of immovable property owned by defendant no.2 who stood as guarantor for the limit sanctioned along with defendant no.1. Further, the applicant bank sanctioned Other Secured Loan Special (OSL-Scheme) for a sum of Rs.5,00,000/- @11.75% interest per annum with annual rests to be repaid in 12 EMI of Rs.41,666/- against extension of mortgage of property.

3. In order to avail the loan facility, the defendants submitted loan application dated 09.07.2019 and executed Demand Promissory Notes, Sanction Letters for Advances, Applications cum Undertakings for Loan and Guarantee Agreements on 29.08.2019 and 18.05.2020 with the applicant bank.

*Sd/-*

4. That in order to secure the loan facilities, the defendant no.2 created equitable mortgage of property by depositing title deeds and chain of property documents of Entire Second Floor with its roof rights, measuring area 58 square yards, part of property bearing No.3115/A, Dharam Gali, Gali Shanker, Kalan Masjid, Delhi along with proportionate share in land and executed Memorandum of Deposit of Title Deeds of the property on 29.08.2019 towards the applicant bank which was extended on 18.05.2020 by means of Extension of Memorandum of Deposit of Title Deeds.

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to comply with the terms and conditions of sanction and failed to deposit monthly installments in both the accounts in order to regularize the account with the applicant bank. The applicant bank recall both the loan facilities and issued legal notice on 08.04.2021 but no response, therefore, the applicant bank classified both the accounts as NPA on 27.02.2021 as per RBI guidelines but defendants did not clear the overdues, hence the applicant bank has approached this tribunal for recovery of its dues.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 31.05.2021 was issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank but the defendants did not clear the dues.

7. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 01.05.2025, the defendants have been proceeded ex-parte as not appeared Sd- before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Aman Goel, authorized representative of the applicant bank, who has proved the documents such as Power of Attorney, Demand Promissory Note, Sanction Letter for Advances, Application cum undertaking for Loan, Guarantee Agreements, Consent Letter of Mortgagor, Memorandum of Deposit of Title Deeds, Sale Deed dated 08.04.1954, Urdu Translations, Partition Deed with Translation, Gift Deed, WILL, Possession Letter, Affidavit, General Power of Attorney, Gift Deed, Sale Deed, Release Deed, Statement of Account, NPA Split-up, Banker's Certificate, Legal Notice, AD Cards, Notice u/s 13(2), Tracking Reports marked as Ex.AW-1/1 to Ex.AW-1/49.

9. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

10. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

11. In the light of the above discussions, the Original Application deserves to be allowed.

*Sd-*

---

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.52,06,708.08 (Rupees Fifty Two Lacs Six Thousand Seven Hundred Eight and paisa Eight only) as on 10.06.2022 together with pendentelite and future interest @11.75% per annum with annual rests from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of mortgaged property being Entire Second Floor with its roof rights, measuring area 58 square yards, part of property bearing No.3115/A, Dharam Gali, Gali Shanker, Kalan Masjid, Delhi. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 22.05.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

*Sd - 2026* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 23.03.2026