Allowed

State Bank of India v. Johnson

DRT29 Jan 2026OA/18/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by State Bank of India for recovery of a defaulted housing loan of Rs. 21,87,386/- from two borrowers. The court reduced the claimed future interest rate from 10.90% to 9% per annum and directed the sale of the mortgaged property for recovery.

What did the court decide?

Payment of Rs. 21,87,386/- with future interest @9% p.a. from 17.07.2023; direction to sell mortgaged property; issuance of Recovery Certificate.

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

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Presented on: 17.07.2023 Registered on: 04.01.2024 Decided on: 29.01.2026 Duration: Y M D 02 06 12

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IN THE DEBTS RECOVERY TRIBUNAL AT PUNE (Before Shri Dilip G. Murumkar, Presiding Officer) ORIGINAL APPLICATION No.18/2024.

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State Bank of India ,

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A Banking Company constituted under the State Bank of India Act, 1955, having its Corporate Office at State Bank Bhavan, Nariman Point, Madam Cama Road, Mumbai400021 and its Branch at Stressed Assets Recovery Branch, Second floor, Wardhman Building, 7 Loves Chowk, Plot No.321/A/3, Mahatma Phule Peth, Pune-411 042.

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Versus

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1. Mr. Johnson Gee Varghese Age adult, Occ.:- Business,

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… Applicant

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2. Sou. Beena Johnson Varghese Age adult, Occ.:- Service, Both R/at- 1558, Borbhatwadi, Oros Bk., Taluka Kudal, District – Sindhudurg-416 812.

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… Defendants

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APPEARANCES For the Applicant Mr. R. B. Ganbote - Advocate For the Defendants Ex-parte.

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TOTAL CLAIM AMOUNT –Rs.21,87,386/-.

(OA No.18/2024)

Page 1 of 5

[ANIL]

JUDGMENT

(Delivered on 29^th January, 2026)

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Applicant Bank filed the present application for recovery of Rs.21,87,386/- together with future interest @10.90% p. a. with monthly rests from the date of application till repayment/realization of the entire dues from the defendants.

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Brief facts of the application are as under:

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Defendant No.1 and 2 approached to the Applicant Bank on 05.12.2018 and requested for housing loan of Rs.17,50,000/- for construction and Home Loan Insurance Cover of Rs.73,018/- to Defendant Nos.1 and 2.

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Applicant Bank considered the request of Defendant No.1 and 2 & sanctioned Rs.17,50,000/- for construction and Home Loan Insurance Cover of Rs.73,018/- on 11.01.2019 to Defendant No.1 and 2, on certain terms and conditions.

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Further, the defendants have executed necessary loan transaction and security documents in favour of the Applicant Bank as set out in Para No.5.5 the Original Application.

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Defendant No.1 to secure the above said loan facility, created charge and Equitable Mortgage is noted with Sub Registrar Office Sindhudurg at Sr. No.56/2019, in favour of the Applicant Bank by mortgaging the immovable property i.e. all that piece and parcel of House No.1558 on Plot No.2 admeasuring 506 sq. mtrs. out of

(OA No.18/2024)

Page 2 of 5

[ANIL]

Survey No.213, Hissa No.4/2 at village Oras Budruk, Taluka Kudal, within the limits of Registration District Sindhudurg, Sub Registration District Sindhudurg, District Sindhudurg, more particularly described in Para No.5.7 of the Original Application.

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Defendants after availing aforesaid Housing Loan failed to regularize the loan facility in spite of repeated requests and demands by the Applicant Bank, therefore, the account of Defendant No.1 was continuously irregular and hence, the account was classified as NPA as per Reserve Bank of India norms.

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Thereafter, Applicant Bank recalled the loan facility by issuing Loan Recall Notice dated 06.06.2023 through Advocate Shri. R. B. Ganbote and thereby demanded outstanding loan amount together with future interest. Despite service of Notice, the defendants failed and neglected to comply with the demand in the said Notice.

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Hence, this Application .

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The defendants failed to appear despite service of summons. Hence, the application proceeded ex-parte against the defendants as per order dated 15.07.2025 passed below Application (Exh-1).

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The Applicant Bank has filed Claim Affidavit (Exhibit-08) of Mr. Abhay D. Somkuwar, Chief Manager, of the Applicant Bank which supports the case of the applicant elucidated in the application whereas the defendants failed to lead the evidence.

(OA No.18/2024)

Page 3 of 5

[ANIL]

The Applicant Bank has produced in evidence the list of documents and filed original documents of loan and security documents at Sr.Nos.AW-1/1 to AW-1/9 in support of its case.

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I have heard arguments of the learned Advocate for the applicant bank.

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

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Applicant Bank has claimed future interest @10.90% p.a. with monthly rests. Having regard to the facts of the case, I am of the opinion that if future interest is granted @9% per annum, 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.18/2024 is allowed with costs.

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(B) Defendants No.1 & 2 either jointly or severally shall pay to the Applicant Bank sum of Rs.21,87,386 /- (Rupees Twenty One Lakhs Eighty Seven Thousand Three Hundred Eighty Six only) with future interest @9% p.a. from the date of filing of the Original Application i.e. 17.07.2023 till payment/realization of the amount mentioned in this operative order.

(OA No.18/2024)

Page 4 of 5

[ANIL]

(C) The aforesaid adjudicated amount is secured by the valid and subsisting mortgage of immovable property i.e. all that piece and parcel of House No.1558 on Plot No.2 admeasuring 506 sq. mtrs. out of Survey No.213, Hissa No.4/2 at village Oras Budruk, Taluka Kudal, within the limits of Registration District Sindhudurg, Sub Registration District Sindhudurg, District Sindhudurg, more particularly described in Para No.5.7 of 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 Date: 29.01.2026

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

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(OA No.18/2024)

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Page 5 of 5

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[ANIL]

State Bank of India v. Johnson

Case brief

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State Bank of India v. Johnson

Case brief

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