STATE BANK OF INDIA vs MANISH ISWAR AND ORS on 16 May 2026

FINAL ORDER

This original application has been filed by the applicant bank on 04.10.2021 before DRT-II Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and

Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.61,86,687/- (Rupees Sixty One Lacs Eighty Six Thousand Six Hundred Eighty Seven only) as on 11.09.2021 along with pendentelite and future interest @7.40% per annum and @2% penal interest with monthly rest from date of filing of this application till the date of realization and costs.

2. The brief facts of the case are that at the request of defendant no.1 vide his loan application and allotment letter dated 06.04.2018 issued by defendant no.2, the applicant bank sanctioned Housing Loan of a sum of Rs.65,00,000/- (Rupees Sixty Five lacs only) and as per request of defendant no.1, disbursed an amount of Rs.60,80,625/-, out of total loan amount, @8.75% interest per annum subject to change as per bank guidelines, which was to be repayable in EMI of Rs.59,194/- on 03.07.2018 in order to purchase under construction flat being constructed/ developed by defendant no.2 at Sonipat, Haryana. the defendant no.1 agreed to pay penal interest @2% over agreed rate of interest, in case of default in repayment of interest/instalment.

3. That in order to avail the housing loan facility, the defendant no.1 submitted loan application along with allotment letter and executed Loan Arrangement Letter, Loan Agreement, Agreement to Mortgage, No Objection to Mortgage, Affidavit in favour of applicant bank as well as executed Tripartite Agreement by both the defendants with Applicant Bank on 03.07.2018.

4. That in order to secure the housing loan, defendant no.1 executed Agreement to Mortgage of Flat No.C4/002, Tower C- 4, Shree Vardhman Gardenia, Sector-10, Sonipat, Haryana by way of deposit of title documents with applicant bank and defendant no.2 marked lien on the flat. The defendant no.2 issued No Objection Certificate to mortgage the flat on 03.07.2018.

5. As per tripartite agreement executed by defendants with applicant dated 03.07.2018, applicant bank shall have first lien over the residential flat being financed, and in the event of default in repayment of instalments / interest, the defendant no.2 under obligation shall cancel the booking and not transfer the flat to any other person without prior consent of applicant bank and pay all the amount received on behalf of defendant no.1 to the applicant bank.

6. It has been submitted by the applicant bank that after availing the housing loan facility, the defendants failed to comply with the terms and conditions of sanction despite several requests and failed to deposit interest and monthly instalments regularly in time to the applicant bank. The applicant bank classified the account as NPA on 27.06.2021 as per RBI guidelines and issued legal demand notice on 13.09.2021 calling upon the defendants to pay the entire outstanding dues to the applicant bank but the defendants did not clear the dues of the applicant bank, hence the applicant bank has approached this Tribunal for recovery of their dues.

7. The defendant no.1 sent voluntary surrender letter undertaking irrevocable power of attorney and declaration cum identity bond dated 11.08.2021 but applicant bank not accepted the same which is not tenable in the eyes of law vide letter dated 25.09.2021 issued to the defendant no.1 thru Email.

8. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to sd absent from the proceedings. As per order dated 22.10.2024, the defendant no.1 has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant. Further, vide order dated 10.11.2015, written statement of defendant no.2 was not taken on record as it was filed after the statutory period.

9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Sharat Jain, authorized representative of the applicant bank who has exhibited the documents such as Gazette Notification Ex.AW-1/1(Colly), Loan Application Ex.AW-1/2, Arrangement Letter Ex.AW-1/3, Agreement for Home Loan Ex.AW-1/4, Agreement to Mortgage Ex.AW-1/5, Affidavit Ex.AW-1/6, No Objection to Mortgage Ex.AW-1/7, Allotment Letter Ex.AW-1/8, Flat Buyer Agreement Ex.AW-1/9, Call Notice / Intimation Letter Ex.AW-10, Tripartite Agreement Ex.AW-1/11, Surrender Letter, Undertaking etc. Ex.AW-1/12 (Colly), Reply Vide Email Ex.AW-1/13, Demand Notice Ex.AW-1/14, Postal Receipts Ex.AW-1/15, Demand Notice dated 13.09.2021 Ex.AW-1/16, Postal Receipts Ex.AW- 1/17, Statement of Account Ex.AW-1/18(Colly).

10. 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 proved.

11. 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. sd 4

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

ORDER

I, allow this OA and direct the defendants, jointly or severally, to the applicant bank, within a period of 30 days, a sum of Rs.61,86,687/- (Rupees Sixty One Lacs Eighty Six Thousand Six Hundred Eighty Seven only) as on 11.09.2021 together with pendentelite and future interest @9.40% per annum from the date of filing of this O.A. till the date of realization with costs failing which the aforesaid amount shall be recovered from the sale of Flat No.C4/002, Tower C-4, Shree Vardhman Gardenia, Sector-10, Sonipat, Haryana. In case of default/shortfall, the same shall be recovered from the sale of moveable and immovable property 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 15.07.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. — Sct (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 16.05.2026