KARUR VYSYA BANK vs NITIN KHANNA AND ORS on 9 October 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 09.05.2022 before DRT-III, Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (as amended upto date) against the respondents for recovery of a sum of Rs.50,90,258.14 (Rupees Fifty Lacs Ninety Thousand Two Hundred Fifty Eight & paisa Fourteen only) as on 01.11.2021 along with interest @7.20%

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and penal interest @3% per annum with monthly rest from 06.11.2021 till the date of its realization and costs.

2. The brief facts of the case are that on the request of respondent no.1 vide loan application along with Builder Buyer Agreement dated 12.02.2019, the applicant bank sanctioned housing loan facility for Rs.52,56,649/- (Rupees Fifty Two Lacs Fifty Six Thousand Six Hundred Forty Nine only) under "Digital Home Loan-777" on 19.02.2019 @9.65% interest per annum with monthly rests subject to change as per bank's guidelines to be repaid in 278 EMIs of Rs.46,476/- in order to purchase Residential Apartment no. S2-12A02, Tower Speed S2, 12^th Floor, Sector-25, Solitairian City, Jaypee Greens Sports City, SDZ, Gautam Budh Nagar, Uttar Pradesh being constructed and developed by defendant no.2. In case of default in repayment of monthly instalments, the respondent no.1 agreed to pay @3% penal interest over the agreed rate of interest.

3. That in order to avail housing loan facility, the respondent no.1 submitted loan application along with Builder Buyers Agreement dated 12.02.2019 and executed Sanction Letter, Housing Loan Agreement, Agreement cum Undertaking and Permission to Mortgage issued by respondent no.2 and Tripartite Agreement all dated 19.02.2019 in favour of applicant bank.

4. That in order to secure the loan facility, the applicant bank created equitable mortgage of Apartment no. S2-12A02, Tower Speed S2, 12^th Floor, Sector-25, Solitairian City, Jaypee Greens Sports City, SDZ Gautam Budh Nagar, UP on the basis of Builders' Buyer Agreement dated 12.02.2019 and Permission to Mortgage dated 19.02.2019 issued by respondent no.2.

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1. 5. As per tripartite agreement executed by defendants with applicant dated 19.02.2019, applicant bank shall have first and paramount lien and charge over all the money paid or to be paid in future by or on behalf of defendant no.1 to the defendant no.2 and defendant no.2 stated its No objection of Flat with applicant bank as security to the loan amount.

2. 6. It has been submitted by the applicant bank that after availing the loan facility, the respondent no.1 failed to comply with the terms and conditions and despite several requests and reminders the respondent no.1 failed to pay the outstanding dues and monthly installments in time to the applicant bank. Ultimately, the applicant bank classified the account as NPA defendants neglected to clear the dues. Hence the applicant bank has approached this Tribunal for recovery of their dues.

3. 7. Notices of this O.A. were issued to the respondents and despite proper service the respondents have chosen to absent from the proceedings. As per order dated 09.01.2024, the respondent no.1 & 2 have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

4. 8. The defendant no.2 is involved in Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC) at Ld. NCLT and the CIRP period has been extended with the Committee of Creditors (COC) receiving a large number of resolution plans, leading to a need for more time.

5. 9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Manish Khandelwal, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Builder Buyer Agreement, Sanction Letter, Housing Loan Agreement, Sd-

Agreement cum Undertaking to create Mortgage, Tripartite Agreement, Permission of Mortgage and Certified Statement of Account under Bankers Book Evidence Act marked as EX AW-1/1 to EX AW1/8 (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.

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

ORDER

I, allow this OA and direct the respondents to pay to the applicant bank within a period of 30 days, , jointly or severally, a sum of Rs.50,90,258.14 (Rupees Fifty Lacs Ninety Thousand Two Hundred Fifty Eight & paisa Fourteen only) as on 01.12.2021 together with pendentelite and future interest @10.20% per annum with monthly rest from 01.12.2021 till the date of its realization and costs, failing which the aforesaid amount shall be recovered from the sale of mortgaged Residential Apartment no. S2-12A02, Tower Speed S2, 12^th Floor, Sector-25, Solitairian City, Jaypee Greens Sports City, SDZ Gautam Budh Nagar, UP. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the respondents.

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(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 09.12.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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**(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 09.10.2026