STATE BANK OF INDIA vs MR. E. VINAY KUMAR on 15 May 2026

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendant seeking issuance of a Recovery Certificate for recovery of a sum of Rs.37,62,861/- together with interest at the rate of 10.55% p.a. with monthly rests from the date of the application till the date of realisation along with costs of the application and for sale of schedule mentioned property.

2. The subject matter of the case is the Home loan availed by the defendant from the Applicant Bank.

3. It is the case of the applicant that the defendant approached the applicant bank for grant of housing loan vide loan application dated 18.09.2017 and the applicant considering the said request vide its sanction dated 11.10.2017 sanctioned a housing loan of Rs.30,00,000/- repayable in 300 Equated Monthly Installments of Rs.24,176/- commencing from 09.10.2017 to 08.10.2042. It is also the case of the applicant that the defendant executed necessary loan and security documents on 11.10.2017. It is the further case of the applicant that at the request of the defendant additional loan of Rs.2,18,240/- was also sanctioned for payment of Life Insurance Premium under Suraksha Account No.37240047826.

4. It is also the case of the applicant that the defendant deposited the title deeds of the property with the applicant bank on 11.10.2017 with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 6.11.2017 registered as Doc. No.10855 of 2017, SRO, Chengalpattu-II.

5. It is also the case of the applicant that the defendant was highly irregular in repayment and failed to regularize the loan account despite repeated demands and hence the loan account was classified as NPA on 09.08.2019. It is further stated that as the loan was recalled. Hence the present application is filed for recovery of its dues.

6. Summons was taken out to the defendant and served by way of substituted service. As the defendant was continuously absent and as there was no representation for the defendant on 28.03.2023, he was set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 12 documents, which were marked as Ex. A-1 to A-12 on 14.02.2024. The Ld. Counsel for Applicant Bank made his submissions on 27.03.2026 and thereafter the matter stood till this date for passing final orders.

7. The following issues arise for consideration in the matter: - (a) Whether the applicant had succeeded in proving the liability of the defendant?

(b) What order as to cost of the proceedings need be passed?

These issues are considered together.

8. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

9. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-12 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendant. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendant. It is clear from the statement of accounts that penal interest is not capitalized.

10. In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

11. In view of the fact that the loan facility availed by the defendant is a housing loan and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates.

12. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, TA is disposed off in the following manner: - (a) TA No.215 of 2022 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.37,62,861/- with further interest @9% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendant after deducting all the amounts received / realized by them during the pendency of OA and also by selling the schedule property and other assets of the defendant.

(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank, the defendant is personally liable for all such amounts due as ordered above.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

12. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 15th day of May, 2026)

EXHIBITS MARKED BY APPLICANT BANK S. No. Date Description of Documents Exhibit Nos.

1. 18.09.2017 Application form by defendant A-1

2. 11.10.2017 Sanction Letter A-2

3. 11.10.2017 Arrangement letter A-3

4. 11.10.2017 Memorandum of Loan Agreement for Home Loan granted to public A-4

5. 11.10.2017 Agreement to mortgage A-5

6. 11.10.2017 Deed of undertaking A-6

7. 11.10.2017 Operations letter A-7

8. 11.10.2017 Indemnity Affidavit A-8

9. 05.08.2017 Construction Agreement – Doc. No.10038/2017 A-9

10. 12.10.2017 Sale deed – Doc. No.10039/2017 A-10

11. 06.11.2017 Memorandum of Deposit of Title deeds – doc. No.10855/2017 A-11

S. No. Date Description of Documents Exhibit Nos.

12. Statement of accounts along with certificates under Bankers’ Book Evidence Act. A=12

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DESCRIPTION OF PROPERTY

SCHEDULE ‘A’

All the piece and parcel of property being land measuring an extent of 1,695 Sq. feet (including land area of 1368 sq. ft. and passage UDS area of 327 Sq. feet) bearing Plot No.3B, Elliamman Koil Street, comprised in Survey No.27/2, Old Patta No.21, Joint Patta No.146 and Patta No.151, as per the Patta New Survey No.27/2D, situated at No.53, Konathi Village, Chenglepet Taluk, Kanchipuram District Bounded on the:

North By

: Survey No.27/3 South By

: Survey No.27/1 East By

: Vacant land West By

: Plot belonging to Mr. Kumararaj

And Measuring:

East to West on the Northern side : 32.3 feet East to West on the Southern side : 33.3 feet North to South on the Eastern side : 51.4 feet North to South on the Western side : 51.4 feet

SCHEDULE-II

(CONVEYED PROPERTY)

321 Sq. feet undivided share of land out of 1694 sq. feet (i.e.,) 261 Sq. fet undivided share of land out of 1368 Sq. feet and 60 Sq. feet undivided share of land out of passage UDS 326 Sq. feet more particularly described in the Schedule “A” above mentioned property.

SCHEDULE-II

(CONVEYED PROPERTY)

A two bedroom flat bearing No.S2, having super build up area of 756 sqm feet (including common area) situated in the Second Floor, within the SRO of Chengalpattu Joint and Registration of Chengalpattu.

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