STATE BANK OF INDIA vs JAYCHANDRA GUPTA 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.16,61,939.50 with future interest thereon from the date of presentation of the Original Application till payment/realization and to enforce the mortgaged securities.

Defendant is the borrower who approached the applicant seeking financial assistance by way of housing loan. On 28th October 2009, the applicant sanctioned the housing loan in sum of Rs.13,86,000/- payable in

EMIs of Rs12,700/-. Defendant signed and executed the loan and securities documents as set out in paragraph 5.6 of the Original Application. To secure the housing loan, defendant created mortgage by deposit of title deeds relating to flat no.303 on 28th October 2009 as set out in paragraph 5.6 of the Original Application.

The defendant failed to pay the EMIs and repay the housing loan. Therefore, on 7th October 2014, the account was classified as NPA followed by issuance of 13(2) notice. The applicant’s authorized officer took symbolic possession of the mortgaged flat on 18th December 2015 and issued sale notice but the auction failed for want of bid. Defendant failed to pay and therefore, the applicant filed the Original Application on 22nd February 2016. The applicant amended the Original Application. Defendant was duly served with the summons but failed to enter appearance of file written statement and the Tribunal set the defendant ex-parte.

The applicant has filed affidavit (exhibit-19) in lieu of examination in chief of Mr Suresh Patel and list of documents (exhibit-20) thereby adducing in evidence the documents at AW-1 to AW-15, which are admitted in evidence, read, recorded and exhibited.

Mr Singh that the applicant be granted pendent lite and future interest at the rate of 9.25% per annum which is the contractual rate. The submission made by Mr Singh is fair and reasonable. The Tribunal therefore, grants pendent lite and future interest at the rate of 9.25% per annum from the date of presentation of the Original Application, that is, 22nd June 2016 till payment/realization. Mr Singh further submits that the defendant has the right to redeem the mortgaged flat, that is, Flat No.303, 3rd Floor, ‘B’

Wing, Janvi Gagan Deep Co-operative Housing Society Ltd., Pleasant Park, Mira Bhayander Road, Mira Road (East), Dist. Thane- 401 107 as per law. The learned counsel submits that in case of default, the applicant be granted permission to sell the mortgaged flat as per law. Permission granted.

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.1176 of 2016 is allowed with costs. (B) Defendant is ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of Rs.15,61,939.50 with pendent lite and future interest at the rate of 9.25% per annum from the Original Application’s presentation date, that is, 22nd June 2016 till payment/realization. (C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgaged flat, that is, Flat No.303, 3rd Floor, ‘B’ Wing, Janvi Gagan Deep Co-operative Housing Society Ltd., Pleasant Park, Mira Bhayander Road, Mira Road (East), Dist. Thane- 401 107. (D) Defendant is granted liberty to redeem the mortgage as per law failing which the applicant shall become entitled to sell the mortgaged flat and recover dues as per 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 Nidhi