A Delhi court has permitted the State Bank of India to recover ₹4.92 lakh form an engineer and his father who defaulted on repayment of an education loan of ₹3.93 lakh.
Vishwajeet Sinha and his father Birender Kumar Sinha had jointly taken the loan in 2010 to pay Mr. Vishwajeet’s tuition fees for BE (Mechanical) at Kalpi Institute of Technology, Ambala.
The loan was to be repaid in 84 equated monthly instalments (EMIs) of ₹6,802 each.
The bank, in the recovery suit filed before Additional District Judge (South-East) Satish Kumar Arora at the Saket courts, submitted that the father and son failed to repay the loan as per the schedule, except for some part payments. It said that the last payment of ₹30,000 was made on March 15 last year. Since no payment was made thereafter, the loan account became irregular and was declared as Non Performing Assets (NPA).
The bank said it got no reply despite serving a legal notice to them, adding that the outstanding amount as on May 10, 2017 was ₹4,92,449, including interest.
The court proceeded ex-parte in the matter as the borrowers did not respond to the court summons.
Allowing the bank’s suit, Mr. Arora said: “The plaintiff bank through the unrebutted and unchallenged testimony of prosecution witness [authorised representative of the bank] has established on record that it is entitled to the recovery of the outstanding amount against the defendants jointly and severally.”
“Accordingly, plaintiff is held entitled to a decree for a sum of ₹4,92,449 jointly and severally against the defendants with pendente lite interest [during the pendency of the suit] at the rate of 13% per annum compounded with monthly rests [reduction of principal amount per month following repayment] and future interest at the rate of 6% per annum simple till the amount is realised,” the Judge said.
