Allowed

State Bank of India v. Parveen Kumar

DRT13 May 2025TA/3131/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application to recover Rs. 10,72,367/- from the defendant regarding a defaulted car loan. The defendant was absent, and the proceedings were conducted ex-parte.

What did the court decide?

Recovery of Rs. 10,72,367/-, pendentelite and future interest @12% p.a. with monthly rests and costs. Enforcement via sale of hypothecated BMW vehicle and other assets if necessary.

State Bank of India versus Parveen Kumar — Execution and Attachment | DRT (2025)

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T.A. No.3131 of 2022

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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. 3131 of 2022

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State Bank of India SBI RACPC, A-51 First floor Perl West Heights-I, NSP, Pitampura, Delhi-110034 Applicant Versus

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Mr. Parveen Kumar s/o Mr.Banarasi Dass 20A, Platinum Enclave Sector-18, Rohini, Delhi-110085 Also at: 104, Vardhman City Centre 3 Gulabi Bagh, Delhi-110052 Also at: 238, AC Nagar, NIT Faridabad-121001 Also at: 134-135, Gali no.11 Gulab Vatika, Loni Ghaziabad, U.P-201102 Defendant Present: Sh.Mithilesh Kumar, Counsel for the applicant bank Date of Institution: 30.11.2017 Date of Pronouncement: 13.05.2025

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T.A. No.3131 of 2022

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FINAL ORDER

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This original application has been filed by the applicant bank before DRT-III, Delhi on 30.11.2017 & then transferred to DRT-I, Delhi through Shri Rajesh Kumar Garg, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of Rs.10,72,367/- (Rupees Ten Lacs Seventy Two Thousand Three Hundred Sixty Seven only) along with pendentelite and future interest @15.45% per annum with monthly rest from date of filing of this application till the date of realization and costs. Further, the name of Ms. Usha S. was substituted as authorized representative in place of Mr. Rajesh Kumar Garg, erstwhile AR of the applicant bank.

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The brief facts of the case are that at the request of defendant, the applicant bank sanctioned Car Loan facility of Rs.13,50,000/- (Rupees Thirteen Lacs Fifty Thousand only) on 20.06.2014 in order to purchase Used BMW 320D Car HAVING Registration No.HR26BL8478 from dealer "First Choice" against hypothecation of a vehicle.

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That in order to avail the car loan facility, the defendant submitted loan application and executed Sanction letter, Arrangement Letter, Annexure-I, Letter from Deals on Wheels, Annexure Car-VIII in favour of the applicant bank on 20.06.2014.

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It has been submitted by the applicant banks that after availing the aforesaid loan facility, the defendant miserably failed and neglected to pay the interest and installments in the

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5c1 --

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T.A. No.3131 of 2022

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accounts and failed to maintain financial discipline as per terms and conditions despite various notices and reminders. The applicant bank classified the account as NPA on 31.03.2016 as per RBI guidelines and issued a legal notice dated 26.10.2016 but the defendant failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its dues.

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Notices of this O.A. were issued to the defendant and despite proper service through publication in newspapers, the defendant has chosen to absent from the proceedings. As per order dated 06.01.2020, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Ms. Usha S, authorized representative of the applicant bank who has proved the documents as Gazette Notification Ex.PW-1/1, Sanction letter Ex.PW-1/2, Arrangement letter Ex.PW-1/3, Annexure I Ex.PW1/4, Letter of Deals on Wheels Ex.PW-1/5, Annexure CAR-VIII Ex.PW-1/6, Notice dated 26.10.2016 Ex.PW-1/7, Statement of account Ex.PW-1/8.

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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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As per the provision of Section 19(20) of the Rec)very of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim,

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T.A. No.3131 of 2022

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the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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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 and documents on record, 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.10,72,367/- (Rupees Ten Lacs Seventy Two Thousand Three Hundred Sixty Seven only) along with pendentelite and future interest @12% per annum with monthly rests and costs from date of filing of this application failing which the aforesaid amount shall be recovered from sale of hypothecated BMW 320D car bearing Registration No.HR26BL8478. In case of shortfall the same shall be recovered from the sale of movable and immovable assets of the defendant.

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T.A. No.3131 of 2022

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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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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 11.07.2025.

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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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Sd-

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

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(Dictated and pronounced in open court) Dated: 13.05.2025

State Bank of India v. Parveen Kumar

Case brief

What is this about?

What did the court decide?

State Bank of India v. Parveen Kumar

Case brief

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