State Bank of India Vs Nityanand Pawaskar (DRT Mumbai)
The matter concerns an application filed under Section 19(1) of the Recovery of Debts due to Banks and Financial Institutions Act, 1993, later renamed the Recovery of Debt and Bankruptcy Act, 1993. The application sought recovery of ₹10,74,796 as on 04.03.2014 along with future interest and enforcement of the hypothecated security.
The claim arose from a car loan facility availed by the defendant from the State Bank of Bikaner and Jaipur. The defendant applied for financial assistance through a loan application dated 22.12.2011. The bank sanctioned a loan of ₹10,00,000 on the same date, repayable in 84 equated monthly instalments of ₹17,387 beginning January 2012, with interest at 11.5% per annum on a floating basis. The loan amount was disbursed on 23.12.2011 through RTGS to the car dealer Global Gallerie at HDFC Bank, which issued a receipt dated 24.12.2011 acknowledging the payment. The loan was secured by hypothecation of a Mahindra Scorpio EX 9-seater vehicle.
The defendant executed several documents in connection with the loan, including the loan application, proforma invoice, dealer receipts, income tax verification forms for multiple years, PAN card, electricity bill, shop and establishment certificate, accepted sanction letter, loan-cum-hypothecation agreement, authority letters for post-dated cheques, authorization to deduct monthly instalments from the savings account, authority to make payment to the supplier, and RTGS documentation issued by the car dealer.
