Allowed

Idbi Bank v. Prakash Narayan Swamy

DRT28 Nov 2023OA/169/2022

Case brief

AI extract

What is this about?

The DRT allowed IDBI Bank's original application for recovery of Rs. 20,84,567.57 plus interest. The court held the defendants jointly and severally liable for the defaulted housing loan based on proven documentary evidence.

What did the court decide?

Directed defendants to jointly and severally pay Rs. 20,84,567.57 plus future interest within 60 days; directed recovery from sale of mortgaged assets and prohibited defendants from dealing with prope

Idbi Bank versus Prakash Narayan Swamy — Contract and Commercial Disputes | DRT (2023)

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O. A. No. 169 of 2022

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Decided on : 28.11.2023

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Registered on : 05.05.2022

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IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI Original APPLICATION NO. 169 of 2022

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IDBI BANK, having its Registered office at Chaturvedi Mansion, 2^nd Floor, 26/4 Old Palasiam, Agra-Mumbai Road, Indore452 001 amongst its other branches (erstwhile branches of IHFL) a Branch Office at Sapna Building, Ground Floor, Plot No. 850, S.K. Bole Road, Agar Bazar, Dadar (West), Mumbai- 400 028 and Retail Collection & Recovery Department, Mittal Court, 2^nd Floor, “C” Wing, Nariman Point, Mumbai – 400 021.

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...APPLICANT

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VERSUS

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1. MR PRAKASH NARAYAN SWAMY., 201/202 Shree Morya CHS Sugvekat Alignment Neral Raigadh, Maharashtra – 410 101.

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2. MRS SANDEEP KISAN SHINDE, 201/202 Shree Morya CHS Sugvekat Ali Neral Raigadh, Maharashtra – 410 101. Decorators

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...DEFENDANTS

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Counsel for the Applicant : Advocate Shamshaike i/b Rathina Maravarman. Counsel for the Defendants : Ex-Parte

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Page 1 of 5

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O. A. No. 169 of 2022

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J U D G M E N T

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The present OA has been filed by the Applicant for recovery a sum of Rs.20,84,567.57/- (Rupees Twenty Lakh Eighty Four Thousand Five Hundred Sixty Seven and Paise Fifty Seven Only) as on 24.08.2019 in respect of the Housing Loan facility sanctioned to the Defendants as per Particulars of Claim to the present OA with further interest at the rate of 11.15% p.a. from the date of filing of the present OA till its realization.

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Facts as succinctly set out in the OA are that the Defendant No.1 is a constituent of the Applicant Bank since the year 2005 and at the request of the Defendant, the Applicant Bank sanctioned/granted the said Defendants Home Loan facility of Rs.5,60,000/- vide Sanction Letter dt.21.05.2005 for purchase of immovable property being Flat No. 202 & 203 at Shri Kripa Building on Survey No. 78, Hissa No. 2(P), Plot No. 16 at Village Kulgaon, Tal Ambernath, Dist. Thane, on the terms and conditions mentioned therein.

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In consideration of the aforesaid sanction, the Defendants executed the following loaning and Security Documents on 11.07.2005:-

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a. Loan Agreement.

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b. Irrevocable Power of Attorney executed by Defendant No.1.

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c. Letter of Guarantee executed by Defendant No.2.

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d. Demand Promissory Note executed by Defendant No.1.

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Page 2 of 5

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O. A. No. 169 of 2022

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e. Article Reference for Loan executed by Defendant No.1.

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f. Letter of Confirmation.

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In order to secure the aforesaid Sanction, the Defendants deposited the original Title deeds of the said property with the Applicant Bank and created mortgage on the said immovable property and executed power of attorney in favour of the applicant authorising the Applicant Bank to deal with the said property in case of default.

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However, after availing the said Home Loan Facility, the Defendants failed to adhere to the terms and conditions of the loan agreement and neglected to make the payment to the Applicant bank. Therefore, the account was declared as NPA. Thereafter, the Applicant issued the recall notice dated 24.08.2019 and called upon the Defendants to make the payment of the outstanding dues but the Defendants failed to pay the dues. Hence, the present OA has been filed.

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Notices were issued to the Defendants. Despite service, none appeared for the Defendants nor filed the WS thus, they were proceed ex-parte vide order dated 01.09.2023.

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The Applicant Bank has produced all the Original Loan documents and other relevant documents along with their Claim Affidavit filed on 25.07.2023 through the Assistant General Manager Deepa Naik.

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Page 3 of 5

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O. A. No. 169 of 2022

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I have heard the Ld. Counsel for the Applicant Bank and perused the record.

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The witness of the Applicant Bank has fully corroborated the averments made in the OA, even otherwise the whole case of the Applicant is based on documents and the witness has duly proved all these documents as against the Defendants. In my view there is no question of disbelieving the evidence led by the Applicant Bank and the Applicant Bank has proved its case beyond reasonable doubt. The liability of Defendant No.1 & 2 is joint and several.

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In the light of above discussions, the Transfer Original Application deserves to be allowed against the Defendant No.1 & 2.

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O R D E R

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(i) I allow the present OA and direct the Defendant No.1 & 2 to pay to the Applicant Bank, jointly and severally, within a period of 60 days, a sum of Rs.20,84,567.57/- (Rupees Twenty Lakh Eighty Four Thousand Five Hundred Sixty Seven and Paise Fifty Seven Only) as on 24.08.2019 in respect of the Housing Loan facility together with further interest at the rate of 11.15% p.a. from the date of filing of the present OA till its realization.

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(ii) Failing which the aforesaid amount shall be recovered from the sale of mortgaged assets and other secured assets, as well

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Page 4 of 5

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O. A. No. 169 of 2022

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as other personal movable and immovable assets of the Defendants.

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(iii) Defendants are hereby directed not to deal with their properties till further direction of Ld. Recovery Officer.

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(iv) Defendants shall also pay the cost and expenses of the TA.

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(v) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal. Copy of this order be sent to the parties as per rules. File be consigned to record.

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Place: Mumbai. (Dr. Rekha G. Dhakar) Date : 28.11.2023 Presiding Officer, DRT-1, Mumbai

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SP/-

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Page 5 of 5

Idbi Bank v. Prakash Narayan Swamy

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Prakash Narayan Swamy

Case brief

What is this about?

What did the court decide?

What the court decided

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