Allowed

State Bank of India v. Abhay Chandrakant Kulkarni

DRT1 Mar 2025OA/171/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 36,45,705/- plus future simple interest. Defendants were held jointly and severally liable to pay dues secured by an equitable mortgage on a flat in Pune.

What did the court decide?

Directing defendants to pay Rs. 36,45,705/- with future simple interest at 8.50% p.a. and declaring the equated mortgaged property as security for recovery.

State Bank of India versus Abhay Chandrakant Kulkarni — Banking and Recovery | DRT (2025)

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Presented on:	01.02.2023
Registered on:	28.11.2023
Decided on:	01.03.2025
Duration:	Y M D
	02 00 28

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J.R. Chauhan Presiding officer)

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TOTAL CLAIM AMOUNT – Rs.36,45,705/-

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ORIGINAL APPLICATION No.171/2023

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State Bank of India,

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A body corporate constituted under the provisions of the State Bank of India Act, 1955 (23 of 1955) having its one of Local Head Office at Synergy, Bandra-Kurla Complex, Bandra (E) Mumbai & Branches amongst the other places at Kedgaon Tq. & Dist. Ahmednagar & having Stressed Assets Recovery Branch (SARB) at Plot No.79, N-5, CIDCO, Aurangabad - 4–1 003 through CCO & Dy. Manager Mr. Sunil Dutt s/o Jagdish Chander, Age: 50 yrs., Occu.: Service, R/o.: CIDCO, Aurangabad. Versus

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… Applicant

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Mr. Abhay Chandrakant Kulkarni (Deceased), Through his legal heir, Smt. Shweta Abhay Kulkarni, Age: Major, Occu.: Business, At 108/A2, Ambika Nagar Housing Society, Kedgaon, Tq. & Dist. Ahmednagar-414005.

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[SBJ] (OA No.171/2023) Page 1 of 10

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Mr. Devdutt Abhay Kulkarni (Deceased) Through his legal heir Smt Kalpalaxmi Devdutt Kulkarni, Age : Major, Occu.: Business, At Plot No.29, “Sujkalpa”, Shrikrushna Nagar, Shahnoorwadi Area, Aurangabad-431001.

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AND / OR

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Mr. Devdutt Abhay Kulkarni (Deceased) Through his legal heir Smt Kalpalaxmi Devdutt Kulkarni, Age : Major, Occu.: Business, R/o : Flat No.1902, 19^th Floor, Tower No.5, Wing No. B, “Godrej Infinity”, Keshavnagar, Mundhwa, Pune 411036.

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Smt. Shweta Abhay Kulkarni, Age: Major, Occu.: Business, R/o : 108/A2, Ambika Nagar Housing Society, Kedgaon, Tq. & Dist. Ahmednagar-414005.

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AND / OR

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Smt. Shweta Abhay Kulkarni, Age: Major, Occu.: Business, R/o : Flat No.1902, 19^th Floor, Tower No.5, Wing No. B, “Godrej Infinity”, Keshavnagar, Mundhwa, Pune 411036.

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… Defendants

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APPEARANCES

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Mr. K.D. Pande - Advocate

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For the Applicant For Defendant Nos.1 to 3 Ex-parte

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[SBJ] (OA No.171/2023) Page 2 of 10

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JUDGMENT (Delivered on 01^st March, 2025)

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The Applicant Bank has filed the present application for recovery of the sum of Rs.36,45,705/- (Rupees Thirty-Six Lacs Forty-Five Thousand Seven Hundred and Five only) as on 04.01.2023 alongwith future interest @8.50% per annum with monthly rests compoundable from 05.01.2023 till realization of the entire amount and costs of the application from the defendant nos.1 to 3 jointly and severally.

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Brief facts of the application are as under :

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The Defendants were in need of financial assistance and approached the applicant bank for sanction of Housing Loan facility of Rs.33,00,000/- (Rupees Thirty-Three Lacs only). As per the Loan Application of the defendants for Housing Loan facility, the applicant bank has sanctioned the Housing Loan facility for Rs.33,00,000/- (Rupees ThirtyThree Lacs only) to the defendants vide Arrangement Letter dated 03.10.2017. The said Housing Loan facility was to be repayable with interest @8.50% per annum with monthly rests. The defendants were to pay interest applied on daily outstanding in the loan account computed on daily

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[SBJ] (OA No.171/2023) Page 3 of 10

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balance basis, duly compounded and debited to the loan account at monthly rests on last working day of every month in accordance with accounting practice. The defendant also agreed to pay enhanced interest @1% cumulatively subject to a maximum of 2% for the period of delay in submission of financial data, annual financial statements as is accepted the terms and conditions by the defendants in the Arrangement Letter dated 3.10.2017.

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In order to secure the aforesaid Housing Loan facility, the defendants executed the terms and conditions of the Arrangement Letter dated 03.10.2017. The defendants have also executed Memorandum Loan Agreement, Memorandum of Deposit, Confirmation Letter. The Attested copy of Registered Agreement for sale bearing Daybook No.8118 dated 21.08.2017, which is filed at Exhibit-5 at Exhibit”A-7” and also the True photocopy of Letter dated 30.06.2021 issued by defendant No.3 in favour of the applicant bank, which is filed at Exhibit-5 at Exhibit “A-8”.

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In order to secure the aforesaid Housing Loan facility of Rs.33,00,000/-(Rupees Thirty-Three Lacs only), the defendants created charge and security interest i.e.

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[SBJ] (OA No.171/2023) Page 4 of 10

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Equitable Mortgage by way of depositing Title Deeds and executed Memorandum of Deposit on 03.10.2017 and Confirmation letter on 04.10.2017 in favour of the applicant bank on the following properties:

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All that piece & parcel of Flat No.1902, 19^th Floor, Tower No.5, Wing No. B, “Godrej Infinity” constructed in Survey no.9 to 14, H. No.1, Plot No.1 to 11, 15, 17, 18, 20 to 26 & 28, at Keshavnagar, Mundhwa, Pune which is disclosed in Paragraph No.3A and Paragraph No.5.4 of the Original Application, which are bounded as under:

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East	West		South	North
By Internal Road	By River	and	S. No. 9 to 14, H.	By River
& S. No.9 to 14,	S.No.6 & 7		No.30 to 36
H.No.37, 45 to 53, 30

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The applicant bank submitted that the defendant No.3 filed a letter dated 30.06.2021 with the applicant bank stating that the defendant No.1 Mr. Abhay Chandrakant Kulkarni has expired on 15.05.2021 and the defendant No.2 has expired on 14.05.2021 leaving behind defendant No.3 and Smt. Kalpalaxmi Devdutt Kulkarni as their legal heirs and as such they should be held liable to repay the said loan amount on behalf of defendant No.1 to 3. The defendant ought to have repaid the due amount of the applicant bank.

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[SBJ] (OA No.171/2023) Page 5 of 10

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The applicant bank further contended that the defendants have failed and neglected to repay the dues of the applicant bank and committed default in repayment therefore, the account of the defendants classified as Non-Performing Asset (NPA) on 28.08.2021.

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The applicant bank submitted that the account of the defendants was maintained in the course of its business and the statement of account is certified as per Section 2A (a) & (b) of Bankers Book Evidence Act, 1891 stating the rate of interest and compounding interest. The interest charged is at such periodical rests as is permitted by the Reserve Bank of India.

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The applicant bank further contended that as the account of the defendants classified as Non-Performing Asset (NPA) on 28.08.2021, the applicant bank issued legal notice on 07.01.2023 to the defendants thereby calling upon them to pay the outstanding balance alongwith further interest at the agreed rate with monthly rests and also cost of the notice. Despite service of notice, the defendants failed to comply the same. The applicant bank also prayed for the charge on the mortgaged property of the defendants mentioned in Paragraph 3A of the Original Application to

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[SBJ] (OA No.171/2023) Page 6 of 10

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realize its dues. Hence, this Original Application filed by the applicant bank to recover the dues from the defendants.

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The particulars of the claim in the Housing Loan account is as under:

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a)	Cleared Balance	Rs.32,68,426.00
b)	Accrued Interest	Rs.3,77,279.00
	Total	Rs.36,45,705.00

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Hence, the applicant bank has filed this Original Application to recover the dues from the defendant Nos.1 to 3 jointly and severally.

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In this matter the defendant Nos.1 to 3 failed to appear despite service of summons by hand through Court Commissioner. Hence, the defendants were proceeded exparte as per Order dated 10^th April, 2024.

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The applicant Bank has filed Claim Affidavit of Evidence (Exhibit-4) of Mr. Sunil Dutt s/o Jagdish Chander, Dy. Manager and CCO of the applicant bank i.e. State Bank of India and has produced on record the original loan documents at Sr. Nos.A-1 to A-11 alongwith List (Exhibit-5). There is a True photocopy of Registered Agreement for Sale bearing Day Book No.8118 dated 21.08.2017 and also

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[SBJ] (OA No.171/2023) Page 7 of 10

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True photocopy of letter dated 30.06.2021 issued by defendant No.3 in favour of the applicant bank on record, 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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The applicant Bank has claimed future interest at the contractual rate (now it is @ 8.50% p.a.) with monthly rests compounded from 05.01.2023 till the realization of the entire amount and costs of the Original Application from the defendants jointly and severally. However, considering the facts of the case, I am of the opinion that if future interest is granted @8.50% 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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ORDER

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(A) Original Application No.171/2023 is allowed with cost.

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(B) Defendant Nos.1 to 3 are ordered and directed to pay jointly and severally to the applicant the aggregate sum of Rs.36,45,705/- (Rupees ThirtySix Lacs Forty-Five Thousand Seven Hundred and Five only) along with future interest @8.50%

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[SBJ] (OA No.171/2023) Page 8 of 10

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per annum (simple) from the date of filing of the original application i.e. 01^st February, 2023 till full payment/realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by Equitable Mortgage by way of depositing Title Deeds and executed Memorandum of Deposit on 03.10.2017 and Confirmation letter on 04.10.2017 in favour of the applicant bank on the following properties:

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East	West	South	North
By Internal	By River and	S. No. 9 to 14,	By River
Road & S. No.9 to 14, H.No.37, 45 to 53, 30	S.No.6 & 7	H. No.30 to 36

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in favour of the applicant bank.

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[SBJ] (OA No.171/2023) Page 9 of 10

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(D) The applicant Bank is entitled to sell the mortgaged property as described in the Equitable Mortgage by way of depositing Title Deeds and executed Memorandum of Deposit on 03.10.2017 and Confirmation Letter on 04.10.2017 to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registrar is directed to send the copy of Judgment and Recovery Certificate to the applicant and defendants.

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Pronounced in open Court. Sd/Date :01.03.2025. (Dr. J.R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad

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[SBJ] (OA No.171/2023) Page 10 of 10

State Bank of India v. Abhay Chandrakant Kulkarni

Case brief

What is this about?

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State Bank of India v. Abhay Chandrakant Kulkarni

Case brief

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