O.A. No. 134 of 2006. Case: Indian Bank Vs Kiran Kapil Dave and Santosh Mewalal Chauhan. Mumbai Debt Recovery Tribunals

Case NumberO.A. No. 134 of 2006
Party NameIndian Bank Vs Kiran Kapil Dave and Santosh Mewalal Chauhan
JudgesP. Govindan, J.
IssueSecuritisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Sections 13(2), 13(4)
Judgement DateSeptember 04, 2008
CourtMumbai Debt Recovery Tribunals

Judgment:

P. Govindan, J.

  1. The applicant, Indian Bank, are a body corporate constituted under the banking companies (Acquisition & Transfer of Undertakings) Act, 1970 having their Head Office having its Head Office at 66, Rajaji Salai. Chennai 600 and a Branch Office at Rele Smurti, 1st Floor, 679 S.V. Road, Malad (W) Mumbai 400 064. The bank has filed the above O.A. claiming a sum of Rs. 16,26,871.00 with future interest @ 8.75% p.a. with monthly rests plus 2% penal interest from the date of filing of suit i.e. 23.05.2006 till realization from defendant No. 1 & 2. The bank has claimed that the defendant No. 1 approached the applicant Bank for grant of housing loan facility for purchase of residential premises at Flat bearing No. A/703 on 7th Floor, "Emerald Court" Kondivita Road, Off Andheri-Kurla Road, Andheri East, Mumbai-400 059.

  2. The request of the Defendant No. 1 for housing loan of Rs. 14,45,000/- (Rs. Fourteen Lacs forty five thousand only) was granted by the applicant Bank and intimated the sanction as well as terms & conditions vide letter dt. 29.03.2003 marked as Ex-17.

    The defendant No. 1 consented to the terms & conditions as conveyed vide sanction letter dt. 29.03.2003. The applicant bank has claimed that the defendant No. 1 has executed the Term Loan Agreement Exh-20 dated 29.03.2003. The bank has also claimed that the defendant No. 1 had offered the said flat as collateral security for the loan facility availed by him to create equitable mortgage. Defendant No. 1 delivered and deposited the Original Title Deeds of Flat bearing No. A/703 on 7th Floor, "Emerald Court" Kondivita Road, Off Andheri-Kurla Road, Andheri East, Mumbai-400 059 with the bank. The letter of defendant No. 1 dt. 01.04.2003 with extract of mortgage registered addressed to Applicant confirming creation of Equitable mortgage is also produced by the Bank at Ex-25. The applicant bank has also enclosed the NOC from the builder dt. 24.03.2003 marked ad Ex-29. The defendant No. 2 has signed and executed Agreement of guarantee in favour of the applicant bank dated 29.03.2003 (marked as Ex-23) and agreed to be the guarantor for the repayment of loan with interest and charges due and payable by the defendant No. 1.

  3. The applicant has claimed that the defendants have failed to pay the loan amount in-spite of repeated requests and demands. Hence, notice dated 11.03.2006 was issued through their advocate and claimed the loan amount along with interest from...

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