Allowed

State Bank of India v. Subhashchandra Singh

DRT13 Mar 2026OA/1444/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India for recovery of an outstanding housing loan. The court ruled that the debt was recoverable from the borrower and joint and several liability of the developers, directing the issuance of a recovery certificate and allowing future interest at 9% per annum.

What did the court decide?

Recovery of Rs. 31,01,020/- plus future interest at 9% per annum; recovery certificate issued.

State Bank of India versus Subhashchandra Singh — Contract and Commercial Disputes | DRT (2026)

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Presented on: 21.03.2023 Registered on: 06.11.2023 Decided on: 13.03.2026 Duration: Y M D 02 11 20

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G Murumkar, Presiding Officer) ORIGINAL APPLICATION No.1444/2023

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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, and Successor of State Bank of Hyderabad having its Branch Office at State Bank of India, RACPCIII, Icon Tower, S.No.114/115, Baner Link Road, Baner, Pune-411 045.

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Versus

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1 Mr. Subhashchandra Jitendra Singh R/at Ganraj Prasad Apartment, Ganesh Durg, Rajwada Parisar, Taluka Miraj, District Sangli-416 416 Also at –

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… Applicant

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Flat No.1, 308, 3^rd Floor, Bldg. I-1, Swapana Nagar, Gat No.401, 462, 463, 460, 471, Chakan, District Pune-410501.

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2 Shree Sai Associates

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Swapnanagari, Pune-Nashik Highway Chakan, Tal. Khed, District Pune-410501.

(OA No.1444/2023)

Page 1 of 6

[ANIL]

3. Mr. Harishikesh Chandrakant Zagade

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4. Mr. Yogesh Chandrakant Zagade

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5 . Mr. Ganesh Laxman Zagade Nos.3 to 5 - R/at - Zagade Vasti, Pune-Nashik Highway, Chakan, Tal. Khed, District Pune-410 501. … Defendants

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APPEARANCES

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For the Applicant Mrs. Sudha Koloti - Advocate For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.31,01,020/-.

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JUDGMENT

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(Delivered on 13^th March, 2026)

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The applicant Bank has filed present application for recovery certificate of aggregate sum of Rs . 31,01,020/- together with future interest thereon @09.75% per annum with monthly rests till 18.03.2023 and interest from 19.03.2023 till repayment/realization of entire dues/debts from the date of Application, from defendant No.1 or alternatively from Defendant Nos.2 to 5.

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Brief facts of the application are as under:

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Defendant No.1 is borrower and defendant Nos.2 to 5 are the

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developers of the Housing Project and they have given NOC dated 08.12.2020 to defendant No.1 for mortgaging the said flat.

(OA No.1444/2023)

Page 2 of 6

[ANIL]

Defendant No.1 approached the Applicant Bank on 10.11.2020 for housing loan of Rs.32,00,000/- for purchase of Flat No. I-308, 2^nd floor, carpet area admeasuring about 58.04 sq. mtrs. terrace area 4.97 sq. mtrs. in Building No.I-1 in the project Swapana Nagar, constructed on Gat No.401, 462, 463,460, 471 at village Chakan, District Pune-410 501.

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The Applicant Bank considered the request of defendant No.1 and sanctioned Housing Loan for a sum of Rs.32,00,000/-(Account No.-39766900398) vide Arrangement Letter dated 30.10.2020.

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In order to secure the Housing Loan, defendant No.1 executed necessary loan transaction and security documents, in favour of the Applicant Bank for securing the aggregate Home Loan facility of Rs.32,00,000/-, as mentioned in Para No.5.6 of the Original Application.

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Further, defendant No.1 mortgaged the immovable property i.e. Flat No. I-308, 2^nd floor, carpet area admeasuring about 58.04 sq. mtrs. terrace area 4.97 sq. mtrs. in Building No.I-1 in the project Swapana Nagar, constructed on Gat No.401, 462, 463,460, 471 at village Chakan, District Pune-410 501, in favour of the Applicant Bank, as mentioned in the Original Application.

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It is the case of the applicant Bank that after availing and utilizing Housing Loan facility, the defendants failed and neglected to repay the home loan amounts as per terms of sanction. Hence, the said

(OA No.1444/2023)

Page 3 of 6

[ANIL]

loan account has become Non-Performing Asset on 16.06.2021, as per RBI guidelines. The applicant bank states that defendant Nos.2 to 5 did not complete project and not handover possession of flat to Defendant No.1.

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Thereafter, the Applicant Bank on 30.05.2022 issued Recall Notice through Advocate Sagar S. Sathe to defendant calling upon to pay the outstanding amounts of Housing Loan account. Despite service of Notice, defendants failed & neglected to comply with the demand in the said Notice.

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Hence, this application is filed.

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Defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against all the defendants vide Order dated 04.09.2025 passed below the Application (Exhibit-01).

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The applicant Bank has filed Claim Affidavit of evidence (Exhibit-6) of Ms. Hemlata Nair, Manager, which supports the case of the applicant elucidated in the application.

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The applicant Bank has produced in evidence the original loan documents at Exhs.AW-1 to AW-19 which corroborate the case of the Applicant Bank.

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

(OA No.1444/2023)

Page 4 of 6

[ANIL]

Since defendants Nos.1 to 5 failed to appear and contest the application, I find no reason to disbelieve the evidence of the Applicant Bank. Therefore, the Applicant Bank is entitled for reliefs as claimed.

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The applicant Bank has pleaded and established the case of creation of mortgage by defendant No.1 as set out in the Original Application. Defendant Nos.2 to 5 are the developers, who have consented for creation of mortgage by defendant No.1. In Para No.5.3 in the pleadings of the Original Application, the applicant Bank has pleaded that defendant Nos.2 to 5 were to handover possession as they have received the consideration for the mortgaged property, but they have not completed the construction and handed over the possession of the mortgaged property to defendant No.1. The Builder is in possession of the flat of the defendant. Thus, the Applicant Bank has proved its claim against all the defendants.

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10 The applicant Bank has claimed future interest @9.75% per annum with monthly rests for the Loan availed. In my view, if future interest is granted @9% per annum (simple) on the claimed amount, it would be just and reasonable.

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11 Hence, I pass the following order: -

(OA No.1444/2023)

Page 5 of 6

[ANIL]

ORDER

(A) Original Application No.1444/2023 is allowed with costs. (B) Defendant Nos.1 to 5 either jointly or severally shall pay to the Applicant Bank Rs.31,01,020/- (Rupees Thirty-One Lakhs One Thousand Twenty only) towards Housing Loan (Account No.-36089797947) with future interest @9% per annum (Simple) from the date of filing of the Original Application i.e.21.03.2023 till payment/ realization of the amount mentioned in this operative order.

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(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable property i.e. Flat No. I-308, 2^nd floor, carpet area admeasuring about 58.04 sq. mtrs. terrace area 4.97 sq. mtrs. in Building No. I-1 in the project Swapana Nagar, constructed on Gat No.401, 462, 463,460, 471 at village Chakan, District Pune-410 501, in favour of the Applicant Bank, as mentioned in the Original Application.

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(D) The Applicant Bank is entitled to sell the mortgaged immovable property to recover its dues.

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(E) Issue Recovery Certificate.

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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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Place: Pune

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Date: 13.03.2026

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Sd/(Dilip G. Murumkar) Presiding Officer, Debts Recovery Tribunal, Pune.

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(OA No.1444/2023)

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Page 6 of 6

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[ANIL]

State Bank of India v. Subhashchandra Singh

Case brief

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State Bank of India v. Subhashchandra Singh

Case brief

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