STATE BANK OF INDIA vs M/s. Torque Motor Cars Pvt. Ltd. on 3 June 2025

FINAL ORDER

CJ

TANO.67512022

Cash Credit Facility under Electronic Dealer Financing Scheme (E-DFS) Fiat (Hypothecation) Limit of Rs.500.00 lacs for smooth running business of selling of Fiat Motor's Vehicle' vide sanction letter dated 21.09.2013. The defendants executed all necessary loaning documents on 27'09'2013' The defendant no'1 hypothecated and created first charge on its entire stocks comprising of vehicles' (including vehicles in Transit), receivable' etc' with the applicant bank' The defendant nos' 2 to 5 stood as guarantors' To fufther secure the tiability of aforesaid credit limit' the defendant no'5 through its authorised representative' e*endedthechargeoftheapplicantbankoverthe existing mortgage over its immovable propefl bearing no. All that ptot of land being the Plot No'113' measuring 440 Sq' mtrs'' in Block BG in the layout plan of Sanjay Gandhi Transport Nagar' Delhi-110042' for the due repayment of credit limit availed by defendant no.l by way of letters of conflrmation for extension of mortgage by deposit of Tltle Deeds Covering Enhanced limitdated2T.og.2ot3,asthedefendantno.5had already mortgaged the said property with the applicant bank on 23'09'2013 for the due repayment of credit facilities allowed to and availed by M/s Thrust Motors PvtLtdfromtheapplicantbank,bydepositofthe originalTitleDeedsofthepropertywiththeappticant bank with an intention to create moftgage over the properfy in favour of the applicant bank' It is submitted thattheofficersoftheapplicantbanktimeandagain approached the defendants to submit the audit balance sheet as on 31'03'2014 as well as financial data for availing the limit, but the gefendants failed to do' hence <)

TANO.67sl2022 J the applicant bank reduced the Cash Credit Umit from Rs.500 lacs to Rs' 190 lacs since 16'02'2015'

3. It is fufther submitted that the defendants enjoyed and utilized the Loan facility' but failed to maintain the financial discipline and failed to repay the due amounts' The appticant bank requested the defendants to regularize the loan account by visits and letters, but there was no response from the defendants, hence the account was classifled as NPA on 01.07'2016' Therefore' the applicant bank serued a demand notice dated 16'07'2016 and legal notice datd 27.07'2016 to the defendants but failed to recover the same' Thus' the present O'AfiA is preferred by the applicant bank to recover its dues'

4. On notice by this Tribunal' the defendant nos' t to 4 put appearance through counsel but failed to flle WS and evidence' Thereafter' the defendant nos' 1 to 4failedtoputappearance.Accordingly,defendantnos. 1to 4 were proceeded against exparte on26'04'20L7' The defendant no'5 put appearance through counsel and fited WS and evidence but faited to exhibit the documents' Thereafter' defendant no'5 failed to put appearance, despite issuance of default notice' Accordingly, defendant no'5 was proceeded against exParte on 13'01'2025'

5. The applicant bank has fited evidence by way of affidavit of Mr' Inder Singh Solanki' Chief Manager and Principal Offtcer of the applicant bank as Paper no'l to 155 atong with the OA which have gone unchallenged and un-rebutted' Hence' the case ofthe applicant bank <^'

TANO. 67512022 4 stands fully established against the defendants with respect to non-payment of EMI/ outstanding amount.

6. After perusing the records' this Tribunal is of the view that the applicant bank has proved its case beyond reasonable doubts and there is no question of disbelieving the evidence lead by the applicant bank based upon the written/printed documents' In the light of the above discussions' deserves to be allowed'

ORDER

the Present TA

1) I hereby allow this T'A' of the Applicant Bank and direct the defendant nos' 1 to 5 to pay jointly and severally to the applicant bank within 30 days from today, a sum of Rs'1'16'45'g461' along with cost' expenses and interest @ 10'05o/o from the date of filing of this O.A which has become TA till the date of realization.

2) In case of failure to deposit the above amount within the stipulated period, the same shall be recoveredfromthesaleofhypothecatedassetsandthe moftgage property bearing Plot No'113' measuring 440 Sq. mtrs., in Block BG in the layout plan of Sanjay GandhiTransport Nagar' Delhi-l10042' In case of short fall, the same shall be recovered from the sale of the personal movable and immovable assets of the defendant nos' l to 5'

3) Recovery Certificate be issued forthwith and be sent to Recovery Off,tcer' lebts Recovery Tribunal-Il' Delhi. 9I

TANO.67512022 This judgement has been pronounced in oPen court' Date :03.06.2025 signed, dated and

4) The registry of this Tribunal is hereby directed to issue free copy of the order and send the same to both the Parties'

5) Parties are direct to appear before the Ld' Recovery Officer, DRT-II' Delhion 04'08'2025' Pending IAs, if anY, stand disPosed of' File be consigned to records' (eA? Date: 03'06.2025 (SUSHIL KtJ-MAp RASrO6q PRESIDING OFFICER DRT-II, Delhi ,g^ ( susHIL KUM-AR nnsroct) PRESIDING OFFICER DRT-II, Delhi T