Allowed

State Bank of India v. Rattan Singh Chauhan

DRT19 Jul 2025TA/169/2023

Case brief

AI extract

What is this about?

In an ex-parte proceeding, the Tribunal allowed the applicant bank's original application. It directed the defaulting defendant to pay the outstanding loan amount of Rs. 11,41,409.98 inclusive of interest within 30 days. Failing payment, recovery shall be effected through the sale of hypothecated car and other properties.

What did the court decide?

Defendant directed to pay Rs.11,41,409.98 with interest within 30 days; amount recoverable from sale of hypothecated car and other properties if not paid.

State Bank of India versus Rattan Singh Chauhan — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 169 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.169 of 2023

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State Bank of India

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SARB-II, 18/4, 4th Floor, State Bank of India House, Arya Samaj Road,

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Karol Bagh, New Delhi-110005

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Applicant

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Versus

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Sh. Rattan Singh Chauhan S/o Sh. Shyam Sunder Chauhan A-30, Citizen Enclave, Sector- 14, CRPF Public School, Rohini, New Delhi- 110085

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Also at:

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C/o M/s. Chauhan Builders & Developers, Shop No. 15, M.P. Mall, Pitampura,

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New Delhi, 110034

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Defendant

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Present: Shri Jai Mohan, Counsel for the applicant bank

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Date of Institution: 27.10.2016

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Date of Pronouncement: 19.07.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 27.10.2016 before DRT-III, Delhi and then transferred to DRT-I, Delhi through Shri Chandra Shekhar Azad, authorized

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T.A. No. 169 of 2023

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representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.11,41,409.98/- (Rupees Eleven Lacs Forty One Thousand Four Hundred Nine and Ninety Eight Paisa only) along with pendentelite and future interest @10.00% per annum with monthly rest from date of filing of this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant vide loan application dated 30.10.2015, the applicant bank sanctioned Car loan for a sum of Rs.11,00,000/(Rupees Eleven Lacs only) on 03.11.2015 @10.00% interest per annum which was repayable in 84 equated monthly installments of Rs.18,233/- (Rupees Eighteen Thousand Two Hundred Thirty Three Only) each against security of hypothecation of the car.

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That in order to avail the loan facility, the defendant submitted loan application and executed Credit Facility application along with terms and conditions, Loan Cum Hypothecation Agreement dated 03.11.2015 and Power of Attorney on 18.10.2013 in favor of the applicant bank.

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That in order to secure the Car Loan Facility, the defendant hypothecated the purchased vehicle being Honda City VXMT-Diesel-T Body Type Saloon, Model 2015, Engine No. N15A12423184, Chassis No. MAKGM85EKF4106546 having Registration number DL4CAU1884.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions of sanction and not routed their transactions through the account and failed to

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T.A. No. 169 of 2023

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regularize the account with the applicant bank. The applicant bank classified the account as NPA on 04.06.2016 as per RBI guidelines but defendant failed to regularize the accounts, hence the applicant bank has approached this tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 13.06.2016 was issued to the defendant calling upon them to make available the said car for inspection and to pay the entire outstanding dues with the applicant bank but the defendant neglected the same and did not clear the dues.

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 19.11.2019, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendant.

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In order to prove its case, the applicant bank has submitted various documents as Gazette Notification, Loan Application, Sanction Letter, Arrangement Letter, Demand Promissory Note, Agreement of Loan, Letter of Insurance Indemnity, Letter of Undertaking, Search Report, Valuation Report, Share Certificate, Allotment Letter, Possession Slip, Registered General Power of Attorney, Registered Agreement to Sell, Registered Conveyance Deed, Property Tax, Affidavit, Letter for Deposit of Title Deed, Power of Attorney, Notices and Statement of Account as A-1 to A-24 .

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T.A. No. 169 of 2023

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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 approved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant 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 defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.11,41,409.98/- (Rupees Eleven Lacs Forty One Thousand Four Hundred Nine and Ninety Eight Paisa only) along with pendent lite and future interest @10.00% per annum with monthly rest from date of filing of this application till the date of realization along with costs, failing which the aforesaid amount shall be recovered from the sale of hypothecated Car being Honda City VXMT-Diesel-T Body Type Saloon, Model 2015, Engine No. N15A12423184, Chassis No. MAKGM85EKF4106546 having serial number DL4CAU1884. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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

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T.A. No. 169 of 2023

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 20.09.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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1-ro)- - (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 19.07.2025

State Bank of India v. Rattan Singh Chauhan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Rattan Singh Chauhan

Case brief

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What did the court decide?

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