Allowed

State Bank of India v. Farooq Ahmed

DRT13 Jan 2023OA/210/2022

Case brief

AI extract

What is this about?

In this Origin Application under the SARFAESI Act, the Debt Recovery Tribunal allowed the State Bank of India's claim for recovery of a reverse mortgage loan debt of Rs. 81.10 lakhs from the legal heirs of deceased borrowers, who were absconding.

What did the court decide?

Defendants jointly and severally liable to pay Rs. 81,10,925/- with interest; Bank entitled to proceed against mortgaged property and defendants' property to extent of estate devolved.

State Bank of India versus Farooq Ahmed — Insurance | DRT (2023)

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IN THE DEBTS RECOVERY TRIBUNAL-I AT HYDERABAD DATED THIS THE 13TH DAY OF JANUARY, 2023

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PRESENT: SRI GUMMADI GOPICHAND, PRESIDING OFFICER

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OA.No.2tO of 2022

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Between:

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State Bank of India, Stressed Assets Recovery Branch -II, 1-8-563/1, RTC Cross roads, Opp Sandhya theatre, 1st floor, Chikkadpally, Hyderabad- 20 . Represented by its Chief Manager

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Applicant

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VERSUS

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Md Farooq Ahmed, s/o Late Md Mazhar Ali Khan, aged about 62 yrs,

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H.No.12-2-877, Murad nagar, Asif nagar, Hyderabad - 28.

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Md. Mohsin Ahmed, S/o Late Md Mazhar Ali Khan, aged about 62 yrs,

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H.No.12-2-877, Murad nagar, Asif nagar, Hyderabad - 28.

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Defendants

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Counsel for the Parties:

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Sri C. Prabhakar Exparte

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(oA.No.210/2022)

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ORDER

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The Applicant Bank flred the present oA against Defendants for recovery of a total sum of Rs.81,10,925/- (Rupees Eighty one Lakhs Ten thousand Nine hundred and twenty five onty) with further interest @ 10.75% p.a with monthly rests from date of filing of oA till the date of realization and in default for sale of mortgaged property as described in the schedule to OA.

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As per the averments in the application, the Applicant Bank states that the smtsyedaMohammadi Begum and Mohammad Mazhar Ari Khan (parents of defendants) being borrowers avaired sBI Reverse Mortgage loan of Rs.90.00 rakhs through arrangement retter dated 08.04.2008. To secure due repayment of loan, smtsyedaMohammadi Begum and Mohammad Mazher Ari Khan excuted sBI Reverse Mortgage loan agreement and created equitable mortgage on 08.04.2009 by way of deposit of gift deed no.652/19g8 dated 16.10.1987 in respect of OA schedule property. After

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creation of mortgage, the aforesaid smtsyedaMohammadi Begum .i.1P;Ml:YgffmaO^{MazharAtiKhanavaitedonty Rs.32,41,980/-on} ii,le.c.zi^{.o,;;5.L3SqrtSyedaMohammadibesum} died on 01.08.2o0s t.: Ti Yflr yil?f"'I'azhar Ari Khan died on 11.07.2018 reavins {.^{Oenina Oefenda$fl and 2} as legal heirs/ legal representatives. "A^6o. t:t{ffiff;8,/beins ^;^+s,/ successors and tesat heirs are enjoyins the

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(oA.No.210/2022)

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property and are liable jointly and severally. After availing the loan facilities, the defendants failed to comply the terms of sanction, hence the applicant bank was constrained to classify the account as NPA and issued legal notice on 24.06.2022. Inspite of several requests and demands, the defendants did not clear the outstanding, Hence this OA.

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Defendants were called absent set exparte on 20.12.2022.

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Shri Rajendra Prasad, Manager of the Applicant Bank examined himself as AW.1 and exhibited relevant documents, which are marked as Ex.A.1 to A. 15.

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Heard the Ld. Counsel for the Applicant Bank.

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The point that arise for consideration is whether the Applicant Bank is

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entitled for the claim made in the OA against the Defendants as prayed for?

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called absent and set exparte, To substantiate

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ffi";";ffii]"^{;#A, Bank, AW.l, orriciar or rhe Appricant Bank}

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tt^{?l'ltnoZflEonlli-hibitedrelevant documentsas Ex.Al to} Ut'to 1n ,iu[$# above, I hold that the Appricant Bank has

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^..&", made in the OA against the Defendants and

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9yspJ

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(oA.No.210/2022)

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hence the Applicant Bank is entifled to recover the claim made in the OA with future interest and costs.

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B. In the result, the present OA is allowed with costs, as under:

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9' The Defendants 1 &2 are joinuy and severaily riabre to pay to the Applicant Bank a total sum of Rs.g1,1O,g2Sl_ (Rupees Eighty one Lakhs Ten thousand Nine hundred and twenty five only) with further interest @ 10.75olo p.afrom date of filing of OA till realization.

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i) The Applicant Bank is entitled to proceed against the mortgaged immovable property as described in the schedule to OA towards realization of the debt due.

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ii) the Applicant Bank is also entitled to proceed against the person and properties of defendants towards rearization of the debt due. However, the applicant bank can proceed only to the extent of estate devolved upon defendants being legal heirs of deceased SmtSyedaMohammadi Begum and Mr. Mohammad Mazhar Ali

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iii) the costs of the OA.

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(oA.No.210/2022)

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iv) The Applicant shall file a cost memo within two weeks from the

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date of receipt of order,

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Issue Recovery certificate accordingly.

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Communicate a copy of the order to the parties concerned.

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(Dictated to the P.A., transcribed by her, corrected, signed and pronounced by me in the open court on this the 13th day of Jan., 2023)

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(G. GOPTCHAND) PRESIDING OFFICER

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¶49

TRUE CQ.!3Y

State Bank of India v. Farooq Ahmed

Case brief

What is this about?

What did the court decide?

State Bank of India v. Farooq Ahmed

Case brief

What is this about?

What did the court decide?

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