Allowed

State Bank of India v. Shri Aditya Pappu

DRT21 May 2025TA/1306/2023

Case brief

AI extract

What is this about?

The Tribunal considered an original application by SBI for recovery of loan dues against a borrower and builder regarding a defaulted flat purchase loan. With the defendant's case unrebutted, the Tribunal allowed the application, directed payment within 30 days, and ordered sale of mortgaged property in case of default. A recovery certificate was issued.

What did the court decide?

Direct the defendants to pay Rs.41,97,784 plus interest within 30 days; in default, recover via sale of mortgaged flat or other properties; issue recovery certificate.

State Bank of India versus Shri Aditya Pappu — Contract and Commercial Disputes | DRT (2025)

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T.A. No.1306 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No. 1306 of 2023

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State Bank of India

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Stressed Asset Recovery Branch First Floor, 23, Najafgarh Road New Delhi-110015

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Applicant

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Versus

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1.^{Shri Aditya Pappu s/o Kameswara Rao Pappu} 126, Seana Tower, Mahagun Mention Phase I Vaibhav Khand, Indirapuram Ghaziabad, UP-201014

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Also at: 5-B-108, Divyashakti Apartments Ameerpet, Opp. Lal Bunglow Hyderabad, Andhra Pradesh-500016

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Also at: Bharti Airtel Ltd. C-24, Sector-59 Noida, UP-201301

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2.^{Shree Vardhman Developers Pvt. Ltd.} Regd. Office: 301-311, 3^rd Floor Indraprakash Building, 21 Barakhamba Road Connaught Place, New Delhi-110001

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Also at:

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302, Indraprakash Building Barakhamba Road, New Delhi-110001 Defendants

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Present: Shri Pradeep Dhaka, Counsel for the applicant bank Shri A.J.Ashish, Counsel for the defendant no.1 Date of Institution: 04.10.2021

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Date of Pronouncement: 21.15.2025

T.A. No.1306 of 2023

FINAL ORDER

This original application has been filed by the applicant bank on 04.10.2021 through Shri Sharat Jain, authorized representative of the applicant bank, under section 19 of Recovery of Debts and Bankruptcy Act, 1993 read with Rule 8 of the Debts Recovery Tribunal Rules 1993 against the defendants for recovery of a sum of Rs.41,97,784/- (Rupees Forty One Lacs Ninety Seven Thousand Seven Hundred Eighty Four only) as on 11.09.2021 along with pendentelite and future interest @7.40% per annum and 2% penal interest with monthly rest from date of this application till the date of realization and costs. Further, the name of Sh.Jagpal Singh was substituted as authorized representative in place of Sh.Sharat Jain, erstwhile AR for the applicant bank.

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The brief facts of the case are that at the request of defendant No.1, the Applicant Bank sanctioned Housing Loan of a sum of Rs.39,20,000/- (Rupees Thirty Nine Lacs Twenty Thousand Only) and Rs.2,28,552/- for SBI Life Insurance Premium Loan on 24.10.2018 for purchasing under construction Flat bearing No.C-4/401, "Shree Vardhman Gardenia", Sector-10, Sonepat, Haryana based on allotment letter dated 04.10.2018 issued by defendant no.2. Both the loan were to be repaid in EMI of Rs.35,018/- and Rs.2,042/respectively till adjustment of the accounts.

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That in order to avail the said loan facilities, the defendant no.1 submitted loan application, Flat Buyer's Agreement, Allotment Letter, NOC and executed Loan Arrangement Letter, Loan Agreement, Agreement to Mortgage, Tripartite Agreement and request letter and agreement for additional

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T.A. No.1306 of 2023

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loan dated 23.10.2018 and 24.10.2018 in favour of the applicant bank.

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As per tripartite agreement executed by defendants with applicant dated 24.10.2018, applicant bank shall have first lien over the residential flat being financed, and in the event of default, defendant no.2 under obligation cancel the booking, shall not transfer the flat to any other person without prior consent of applicant bank and pay all the amount received on behalf of defendant no.1 to the applicant bank.

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It has been submitted by the applicant bank that in order to secure the aforesaid loan facility, the defendant no. 2 marked lien of applicant bank as per Agreement to Mortgage dated 24.10.2018 and by way of deposit of title documents on Flat No.C-4/401, "Shree Vardhman Gardenia", Sector-10, Fonepat, Haryana in favour of the applicant bank on the basis of permission given by Defendant No. 2.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants failed to comply with the terms and conditions despite several requests and failed to pay the outstanding dues in time to the applicant bank. Ultimately, the applicant bank declared the account as NPA on 24.06.2021 as per RBI guidelines and Legal notice was issued on 04.08.2021 calling upon the defendants to pay the entire outstanding dues to the applicant bank but the defendants did not clear the dues of the applicant bank and hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and defendant no.1 appeared and submitted written statement stating that at the time of booking of flats, the staff of the

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4 \

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T.A. No.1306 of 2023

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defendant no.2 approached him and promised to complete the flat and deliver the possession by 2019 and no EMI was to be given by defendant no.1 and same was to be paid by builder only, in fact, some EMIs were directly given by defendant no.2 to the applicant bank. Further, the defendant no.1 submits that there is no default on his part and on the assurance of defendant no.2, builder-buyer agreement and other documents had been executed and bank already had the mortgaged property to satisfy the complete loan amount. As per order dated 20.06.2024, the written statement of defendant no.2 not taken on record as also no evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Sharat Jain, authorized representative of the applicant bank who has exhibited the documents as Gazette Notification Ex.AW1/1 (colly), Loan Application Ex.AW-1/2, Arrangement Letter Ex.AW1/3, Agreement for Home Loan Ex.AW1/4, Request Letter & Agreement for Additional Loan Ex.AW1/5 (colly), Agreement to Mortgage Ex.AW1/6, No Objection Letter Ex AW1/7, Allotment Letter Ex.AW1/8(colly), Flat Buyer Agreement Ex.AW1/9, Tripartite Agreement Ex.AW1/10, Demand Notice Ex.AW1/11, Postal Receipts Ex.AW1/12, Demand Notice Ex.AW1/13, Postai Receipts Ex.AW1/14, Statement of Account Ex.AW1/15(colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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10.^{The case filed by the applicant bank gone unrebutted and} there is no question of disbelieving the case of the applicant

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T.A. No.1306 of 2023

bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendants, jointly or severally, to the applicant bank, within a period of 30 days, a sum of Rs.41,97,784/- (Rupees Forty One Lacs Ninet; Seven Thousand Seven Hundred Eighty Four only) as on 11.09.2021 together with pendentelite and future interest @9.40% per annum from the date of filing of this O.A. till the date of realization with costs failing which the aforesaid amount shall be recovered from the sale of mortgaged Flat No.C-4/401, "Shree Vardhman Gardenia", Sector-10, Sonepat, Haryana. In case of default, the same shall be recovered from the sale of moveable and immovable property of the defendants.

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(I) The recovery certificate be issued forthwith and be sent the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(II) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 21.07.2025.

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(III)^{Copies of final order as well as Recovery Certificate be} sent to all concerned free of cost. 1

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(GOVIND BALLAWSHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 21.05.2025

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State Bank of India v. Shri Aditya Pappu

Case brief

What is this about?

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State Bank of India v. Shri Aditya Pappu

Case brief

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