CENTRAL BANK OF INDIA vs VARINDER PAL SINGH AND ANR on 18 July 2026

FINAL ORDER

This original application has been filed by the applicant bank on 18.11.2021 before DRT-III 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.80,18,444/- (Rupees Eighty Lacs Eighteen Thousand Four Hundred Forty Four only) as on 18.11.2021 along with pendentelite and future interest @8.70% per annum and @2% 5-ct(--46

penal interest from 19.11.2021 till the date of its realization and along with costs.

2. The brief facts of the case are that on the request of the defendant no.1 and 2 being co-borrowers submitted housing loan application along with KYC documents, the applicant bank sanctioned Housing Loan of Rs.75,00,000/- (Rupees Seventy Five Lacs only) on 26.07.2013 @10.50% interest per annum to be repayable in 240 EMI of Rs.74,900/- in order to purchase immovable property i.e. Built up Entire Upper Ground Floor (without terrace rights) of Property No.F-267, New Rajinder Nagar, New Delhi measuring 125 sq.yds in the name of defendant no.2. The defendants agreed to pay @2% interest for delay in repayment of installment/interest.

3. In order to avail the housing loan facility, the defendants submitted housing loan application with KYC details and executed Sanction Letter dated 26.07.2013, Letter of Interest, Consent Clause, Loan Agreement with Schedule on 26.07.2013 towards applicant bank.

4. After disbursal of housing loan on 26.07.2013, the defendants registered Sale deed with the seller Smt.Manju Arora in favour of defendant no.2 on 26.07.2013 with the office Sub-Registrar-III, New Delhi as document no.5865, Book No.1, Volume No.15326 on Pages 120 to 127. In order to create equitable mortgage of property, the defendant no.2 deposited the original title deeds of property on 26.08.2013 along with original chain of documents in favour of the applicant bank.

5. It has been submitted by the applicant bank that after availing the loan facility, the defendants failed to maintain financial discipline and comply with the terms and conditions of loan despite several requests and reminders and defaulted in payment of monthly installments in time to the applicant bank. Ultimately, the applicant bank classified the account as NPA on 18.10.2016 in terms of RBI guidelines but defendants failed to regularize the account 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 27.10.2016 was issued to the defendants to pay the outstanding along with future interest. The applicant bank took symbolic possession of property on 03.04.2017 and published corrigendum of Possession Notice on newspapers on 13.04.2017. The defendants approached for settlement on 15.07.2017 for Rs.170.00 lacs in housing loan account along with two other accounts in which defendant no.1 was proprietor in the name of M/s Twinkle Exclusive and Lara Exclusive. On persuasion, the OTS offer was revised to Rs.195.00 lacs, duly approved by applicant bank on 22.02.2018 read with sanction dated 28.02.2018, out of which, defendants deposited Rs.19.50 lacs as down deposited adjusted in the housing loan but only Rs.29,500/- was deposited thereafter, therefore defendants failed to pay balance OTS amount within six months from sanction of OTS proposal.

7. The applicant filed application u/s 14 for taking physical possession of property and vide order dated 08.10.2018, the Ld.CMM (Central), Delhi passed orders for possession thru Court Receiver which issued notice on 15.10.2018 and defendants filed SA no.374/2018 before DRT-III Delhi. The DRT vide conditional order dated 03.11.2018 directed to deposit Rs.20.00 lacs by 05.11.2018 and Rs.50.00 lacs on or before 20.11.2018 but defendants failed to comply. The 5d- defendant no.1 filed MA No.562/18 before Hon'ble DRAT which asked to make pre-deposit of 25% for entertaining his appeal on 28.11.2018. The defendant no.1 challenged this order before Hon'ble High Court of Delhi vide W.P.(C) no.12942/18 and the Court directed to deposit 25% amount by 15.12.2018. The Hon'ble DRAT finally disposed off MA No.562/18 on 16.3.2020 directed the defendant no.1 to deposit Rs.15.00 lacs within two weeks but defendant no.1 failed deposit.

8. Notices of this O.A. were issued to the defendants and despite proper service the defendants have chosen to absent from the proceedings. As per order dated 06.06.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Pawan Kumar Grover, authorized representative of the applicant bank who has proved the documents as Power of Attorney, Loan Application, Sanction Letter, Letter of Interest, Consent Clause, Loan agreement, Copy of Extract of Entry of EM/Title Deed Register, Sale Deed dated 26.07.2013, Sale Deed dated 19.12.2012, Sale Deed dated 22.07.2003, Demand Notice, Paper Publication, Corrigendum of Possession Notice, OTS Offer Letter, Revised OTS Offers, Sanctions of OTS offers, Letter dated 29.08.2018, Order of Ld.CMM (Central), Tis Hazari Courts Delhi, Court Receiver Notice, Condition Order dated 03.11.2018, Order dated 28.11.2018, Order dated 30.11.2018 of Hon'ble High Court Delhi, Order dated 16.03.2020 in MA No.562/18, Certified Statement of Accounts under Banker's Book Evidence Act and Calculation Sheet of Housing Loan marked as Ex.AW-1/1 to Ex.AW-1/29. SC/

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.

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

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.80,18,444/- (Rupees Eighty Lacs Eighteen Thousand Four Hundred Forty Four only) as on 18.11.2021 along with pendentelite and future interest @10.70% per annum with monthly rests from 19.11.2021 till its realization with costs, failing which the aforesaid amount shall be recovered from the sale of mortgaged Property i.e. Built up Entire Upper Ground Floor (without terrace rights) of Property No.F-267, New Rajinder Nagar, New Delhi measuring 125 sq.yds. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant. (II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi. SI)

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 17.09.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 18.07.2026