Allowed

Idbi Bank v. Space Cellular Pvt. Ltd.

DRT15 Mar 2024OA/29/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs. 1.06 crore plus interest against the borrower and co-borrowers, who failed to appear. The court fixed statutory penal interest at 2% p.a. as the parties concluded loan documents omitted the clause for penal interest.

What did the court decide?

Direction to defendants to pay Rs. 1,06,84,881.10 plus floating interest from the date of filing, and issue of Recovery Certificate.

Idbi Bank versus Space Cellular Pvt. Ltd. — Banking and Recovery | DRT (2024)

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OA 29 of 2023

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Registered on: 25.01.2023

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Decided on: 15.03.2024

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IN THE DEBT RECOVERY TRIBUNAL-I AT MUMBAI ORIGINAL APPLICATION NO. 29 of 2023

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IDBI BANK LTD., A company incorporated and registered under Indian Companies Act, 1956 [1/1956] and a company within the meaning of the Companies Act, 2013 (Act 18 of 2013) and also a banking company under section 5 (C) of Banking Regulation Act of 1949 [10/1949], having its head office at IDBI Tower, W.T.C. Complex, Cuffe parade, Mumbai- 400 005 and one of its Retail Asset Centre (RAC) at CBD Belapur, Navi Mumbai and Office at Retail Recovery Department, 2^nd Floor, C Wing, Mittal Court, Nariman Point, Mumbai 400 021.

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…. APPLICANT

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VERSUS

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1. SPACE CELLULAR PVT. LTD. (BORROWER) i . 305, Shree Sadguru CHS., Plot No36, Sector 21, Kharghar, Navi Mumbai – 410 210, Maharashtra.

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ii . Office No. 128. B-Wing, Sai Chamber, Plot No. 44, Sector 11, CBD Belapur, Navi Mumbai- 400 614, Maharashtra.

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iii . Shop No. L-183 & 188, Dreams Mall, LBS Marg, Bhandup (W), Mumbai- 400 078

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iv . Shop No. 7 & 8, ARM Arcade, Plot No. 11A, Sector 7, Kharghar, Navi Mumbai – 410 210.

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2. SARWAR KUMAR JALWAL (CoBorrorwer)

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OA 29 of 2023

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i . 305, Shree Sadguru CHS., Plot No36, Sector 21, Kharghar, Navi Mumbai – 410 210, Maharashtra.

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ii . Office No. 128. B-Wing, Sai Chamber, Plot No. 44, Sector 11, CBD Belapur, Navi Mumbai- 400 614, Maharashtra.

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iii . Shop No. L-183 & 188, Dreams Mall, LBS Marg, Bhandup (W), Mumbai- 400 078

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iv . Shop No. 7 & 8, ARM Arcade, Plot No. 11A, Sector 7, Kharghar, Navi Mumbai – 410 210.

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3. ANITA SARWAR KUMAR JALWAL (C0-Borrower)

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i . 305, Shree Sadguru CHS., Plot No36, Sector 21, Kharghar, Navi Mumbai – 410 210, Maharashtra.

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ii . Office No. 128. B-Wing, Sai Chamber, Plot No. 44, Sector 11, CBD Belapur, Navi Mumbai- 400 614, Maharashtra.

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iii . Shop No. L-183 & 188, Dreams Mall, LBS Marg, Bhandup (W), Mumbai- 400 078

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iv . Shop No. 7 & 8, ARM Arcade, Plot No. 11A, Sector 7, Kharghar, Navi Mumbai – 410 210.

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…DEFENDANTS

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_____________________________________________ Counsel for the Applicant : Advocate Rahila Menon i/b S. I. Joshi & Co.

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Counsel for the Defendants : Ex-parte

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J U D G M E N T

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The Original Application has been filed by the Applicant against the Defendants for recovery of Rs. 1,06,84,881.10 (Rupees One Crore Six Lakh Eighty Four Thousand Eight Hundred Eighty One and Paise

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OA 29 of 2023

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Ten Only) with further interest @ 8.35 % (floating rate of interest) per annum for a/c no. 0238675100001243 and @ 9.30 % p.a. (floating rate of interest) for a/c no. 0238675100002677 plus penal interest @ 2 % p.a. on the overdue amount from the date of filing of the present OA till its realisation.

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Facts as succinctly set out in the present OA are that the Defendant 1 to 3 are the Borrower and Co-Borrower for the facilities availed by the Applicant.

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It is stated that Defendant No. 1 to 3 approached the Applicant for Rs. 2,40,00,000/- Mortgage Loan and application dated 29.01.2021 for Working Capital Term Loan of Rs. 17,74,000/-. Pursuant to the said request the Applicant sanctioned the Mortgaged Loan for Rs. 2,40,00,000/through Mortgage loan account No. 0238675100001243 and for working capital term loan of Rs. 17,74,000/- through loan account No. 0238675100002677 vide sanction letter dated 08.03.2016 & 29.01.2021. The said loan of Mortgage loan was to be rapid in 180 equated monthly installments of Rs. 2,76,563/-. The said loan of working capital term loan was to be repaid in 36 installments.

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In consideration of sanction of aforesaid facility, the Defendants executed following loaning and security documents on 08.03.2016; 22.03.2018

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Loan Account No. 0238675100001243

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i. Sanction letter

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ii. Home Loan Interest Saver Agreement

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iii. Declaration and Undertaking

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OA 29 of 2023

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iv. Indemnity

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v. Power of Attorney

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Loan Account No. 0238675100002677

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i. Sanction letter

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ii. Supplementary Agreement to Home Loan Agreement

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iii. Affidavit

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iv. Declaration and Undertaking

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v. Undertaking by borrower

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vi. Undertaking letter from Borrower/ Guarantor

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vii. Memorandum of deposit of title deeds

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In order to secure the aforesaid facility, the Defendants has created equitable mortgage by way of collateral security in respect of the immovable property being Shop No. L-183 and L-118, lower ground floor, Dream Mall, L.B.S. Marg, CTS No. 642, 642/1, 642/29, 645, Bhandup (W), Mumbai- 400 078 and Shop Nos. 7 & 8, Gound Floor, A wing, ARM Arcade CHS, Ltd., Sion Panvel Road, Plot No. 11A, Sector No. 7, Kharghar, Navi Mumbai, Thane 410 210 Maharashtra.

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However, after availing aforesaid facilities, Defendant No. 1 to 3 failed and neglected to pay the outstanding dues, thus the account was classified as NPA on 09.07.2021. Thereafter, the Applicant through their Advocates Legal Notice dated 05.08.2022 and called upon the Defendants to pay the outstanding dues but failed to do so, hence the present OA has been filed.

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OA 29 of 2023

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Notice was issued to the Defendants. Despite service, none appeared on behalf of the Defendant No. 1 to 3 nor any WS has been filed, thus they were proceeded ex-parte vide even order.

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

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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 Bank 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 the Defendant No. 1 to 3 is joint and several.

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In the light of above discussions, the Original Application filed by the Applicant Bank deserves to be allowed against the Defendant No. 1 to 3.

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The Applicant claiming penal interest @ 2% p.a. with respect of Mortgaged Loan and Working Capital Term Loan, however, the same is hereby declined.

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O R D E R

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(i) I allow the present O.A. and direct the Defendant No. 1 to 3 to pay to the Applicant, jointly and severally, within a period of 60 days, a sum of Rs. 1,06,84,881.10 (Rupees One Crore Six Lakh Eighty Four Thousand Eight Hundred Eighty One and Paise Ten

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OA 29 of 2023

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Only) with further interest @ 8.35 % (floating rate of interest) per annum for a/c no. 0238675100001243 and @ 9.30 % p.a. (floating rate of interest) for a/c no. 0238675100002677 from the date of filing of the present OA till its realisation.

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(ii) Failing which the aforesaid amount shall be recovered from the sale of the mortgage property, personal moveable and moveable and immoveable 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 OA.

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(v) Recovery Certificate be issued forthwith and be sent to the Recovery Officer of this Tribunal.

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Copy of this order be sent to the parties as per rules.

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File be consigned to record.

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Place: Mumbai. (Dr. Rekha G. Dhakar) Date : 15.03.2024 Presiding Officer, DRT-1, Mumbai.

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Tjs/-

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Idbi Bank v. Space Cellular Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Space Cellular Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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