Allowed

State Bank of India v. Shanty

DRT1 Apr 2025OA/1066/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed a recovery application filed by State Bank of India against two borrowers for defaults in home loan and insurance cover payments. The court granted payment of principal amounts plus future simple interest and directed the sale of the mortgaged property to recover dues.

What did the court decide?

Payment of Rs. 45,81,487/- with future interest @8.25% p.a. and Rs. 2,50,781/- with future interest @8.85% p.a.; authorization to sell mortgaged property; issuance of Recovery Certificate.

State Bank of India versus Shanty — Banking and Recovery | DRT (2025)

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Presented on .. 29.06.2023 Registered on .. 13.07.2023 Decided on .. 01.04.2025 Duration .. Y—M—D 01--09--02

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No. 1066/2023.

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State Bank of India,

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A Banking Company constituted under the State Bank of India Act, 1955 and having its Corporate Office at State Bank Bhavan, Nariman Point, Madam Cama Road, Mumbai 400021 and its branch at - Stressed Assets Recovery Branch, Second Floor, Wardhaman, Seven Loves Chowk, Plot No. 321/A/3, Mahatma Phule Peth, Pune 411042.

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… Applicant

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Versus

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1 Mrs. Shanty Kishan Singh, Age 48 years, Occ. – Service,

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2 Mr. Kishan Singh, Age 53 years, Occ. – Service, Both R/at :- Flat No. 302, Staff Colony, D Block, ABMH Marg, Chinchwad, Pune 411 033. Also at :-

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Flat No.604, 6^th Floor, B Wing, Probo

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Sanap ( OA No. 1066/2023 ) 1 of 6

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Prolix Pride, S. No. 214 (Part) and S. No. 215 (Part), at village Ravet, Taluka Haveli, District Pune 412 210. … Defendants

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:- Appearances For Applicant For Defendants

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Advocate Aarti Ahuja. Ex parte.

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Total Claim Amount – Rs.48,32,268 /-

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JUDGEMNT

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(Delivered on 01^st April, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.48,32,268/- together with future interest for Home Loan @8.25% per annum and for Insurance Cover of Home Loan @8.85% per annum from the date of Application till realization of the entire dues from the defendants.

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Brief facts of the application are as under :-

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Erstwhile State Bank of Patiala along with other subsidiaries was merged/amalgamated with the applicant State Bank of India. As per the loan application dated 24.12.2014 of defendant Nos.1 and 2, the applicant Bank sanctioned and disbursed Home loan facility of Rs.40,75,000/- to the defendants vide Arrangement Letter dated 13.01.2015.

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Sanap ( OA No. 1066/2023 ) 2 of 6

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Further, as per request of the defendants, the applicant Bank sanctioned and disbursed Insurance Cover Loan of Rs.3,74,715/- to the defendants vide Specimen of Agreement for Additional Housing Loan on 30.01.2015.

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In order to secure the aforesaid loan facilities, the defendants executed necessary loan and security documents in favour of the applicant. The defendants have also executed deed of mortgage of Flat No. 6, 6^th Floor, in Probo Prolix Pride along with covered car parking admeasuring about 1139 sq. fts. i.e. 105.85 sq. mtrs. built up, constructed on S. No. 214 and 215 at village Ravet, Taluka Haveli, District Pune, in favour of the applicant Bank.

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The defendants have also executed letters of Balance Confirmation cum Acknowledgment of Securities on 01.03.2017 and 12.02.2020 and thereby confirmed the balance outstanding in loan account.

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The applicant Bank contended that the defendants committed defaults in payment of installments and failed to regularize the accounts. Hence, the applicant Bank has classified the account of the defendants as Non Performing Asset in accordance with guidelines of

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Sanap ( OA No. 1066/2023 ) 3 of 6

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Reserve Bank of India. Therefore, on 25.05.2022, the applicant Bank issued legal Notice to the defendants. Despite service of Notice, the defendants failed and neglected to pay the outstanding dues of the applicant Bank. Hence, this application is filed.

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte as Order dated 19.02.2025 below per passed Application (Exhibit-1).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Mrs. Padmaja Pol, Chief Manager of the applicant Bank, and has produced on record the original loan transaction documents at Sr. Nos. AW-1-1 to AW-1-16 along with list (Exhibit 7), which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendants failed to appear and contest the application, I find no reason to disbelieve evidence of the applicant Bank. Therefore, the applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has claimed future interest for Home Loan @8.25% per annum and for Insurance

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Sanap ( OA No. 1066/2023 ) 4 of 6

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Cover of Home Loan @8.85% per annum. Considering the facts of the case, I am of the opinion that if future interest is granted for Home Loan @8.25% per annum (simple) and for Insurance Cover of Home Loan @8.85% per annum (simple), it would be just and reasonable rate of interest.

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Hence, I pass the following order.

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O R D E R

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A} Original Application No. 1066/2023 is allowed with costs.

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B} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.45,81,487/(Rupees Forty Five Lakhs Eighty One Thousand Four Hundred Eighty Seven only) along with future interest @8.25% per annum from the date of filing of the Original Application i.e. 29.06.2023 till full payment/realization of the amount mentioned in this operative order.

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C} Defendant Nos.1 and 2 either jointly or severally shall pay to the applicant Bank the sum of Rs.2,50,781/(Rupees Two Lakhs Fifty Thousand Seven Hundred Eighty One only) along with future interest @8.85%

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Sanap ( OA No. 1066/2023 ) 5 of 6

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per annum from the date of filing of the Original Application i.e. 29.06.2023 till full payment/realization of the amount mentioned in this operative order.

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D} The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of Flat No. 6, 6^th Floor, in Probo Prolix Pride along with covered car parking, admeasuring about 1139 sq. fts. i.e. 105.85 sq. mtrs. built up, constructed on S. No. 214 and 215 at village Ravet, Taluka Haveli, District Pune, more particularly described in the Para No. 5.9 and Schedule of the Original Application.

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E} The applicant Bank is entitled to sell the mortgaged property to recover its dues.

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F} Issue Recovery Certificate. G} The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Sd/( Dilip G. Murumkar ) Place : Pune Presiding Officer Date : 01.04.2025 Debts Recovery Tribunal, Pune.

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Sanap ( OA No. 1066/2023 ) 6 of 6

State Bank of India v. Shanty

Case brief

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State Bank of India v. Shanty

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