CENTRAL BANK OF INDIA vs Pragati Naik on 9 August 2023

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 Rs.28,70,527/- with future interest thereon from the date of presentation of the Original Application till payment/realization and to enforce the mortgaged securities.

Defendants 1 and 2 are the principal borrowers, defendants 3 and 4 are the guarantors, the 1st defendant is also sued in her capacity as mortgagor. Defendants 1 and 2 approached the applicant to grant financial assistance seeking financial assistance in Cent-Mortgage Scheme for their business. On 15th February 2012, the applicant sanctioned the loan in the sum of Rs.25 lakhs to be repaid in 120 EMIs of Rs.39,200/- commencing from the month of March 2012.

Defendants signed and executed the loan and security documents as set out in paragraphs 5.5 and 5.6 of the Original Application. To secure the mortgaged loan, the 1st defendant created mortgage by deposit the original title deeds relating to Flat No.2 as set out in paragraph 5.8 of Original Application.

After that, defendants defaulted in payment of EMIs and repayment of the loan. Therefore, the applicant, issued the notice calling upon the defendants to liquidate the entire outstanding.

As of the date preceding the filing of the Original Application, there was owing, due and payable by defendants to the applicant the aggregate sum of Rs.28,70,527/-. 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 filed the Original Application on 29th March 2016 and served the summons upon defendants vide order dated 22nd December 2017. On 23rd January 2018, defendants are set ex- party.

The applicant has filed affidavit (exhibit-19) in lieu of examination in chief of Mr Nitin Narayan Prabhu and list of documents (exhibit-20) thereby adducing in evidence the documents at AW-1 to AW-38, which are admitted in evidence, read, recorded and exhibited.

Mr Singh submits that the applicant does not press for the penal interest for an amount in the sum of Rs.83,498/- and requests the Tribunal to issue the Recovery Certificate for the reduced amount in the sum of Rs.27,87,029/- with pendent lite and future interest at the rate of 14.25% per annum from the date of presentation of the Original Application, that is, 29th March

2016 till payment/realisation.

Mr Singh requests the Tribunal to allow the applicant to sell the mortgaged flat as per the law. It is submitted that no Bank, Financial Institution, NBFC, Securitization Company or any other Lender has right to redeem the mortgaged flat. Nevertheless, the mortgagor has a right to redeem upon payment of the adjudicated amount.

The Tribunal have scrutinised and examined the allegations contained in the 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 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, Original Application filed by the applicant deserves to be granted.

Hence, the following order:

ORDER

(A) The Original Application No.1187 of 2016 is allowed with costs. (B) Defendants are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of Rs. 27,87,029/- with pendent lite and future interest at the rate of 14.25% per annum from the Original Application’s presentation date, that is, 29th March 2016 till payment/realization. (C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged properties, that is, Flat No.002, Ground Floor, Gorai Shanti Sagar Co-operative Housing Society Ltd., Plot No.GOR-1-4, L.T. Road, Near Hotel Green Channel, Gorai, Borivali (West), Mumbai-400092. (D) Defendants is granted liberty to redeem the mortgage upon payment of the adjudicated amount as per the recovery certificate failing which the applicant shall become entitled to sell the mortgaged flat as per the law. (E) Issue Recovery Certificate. (F) The learned Registrar is directed to send a copy of the judgment and recovery certificate to the applicant and defendant by post and email.

Sd/- (Deepak M. Thakkar) Presiding Officer, DRT-2, Mumbai Radhika