STATE BANK OF INDIA vs P. Santhosh Kumar on 22 August 2025

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.33,16,634/- with further interest at the rate of 10.35% per annum with monthly rests from 01.12.2021 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 housing loan availed by the defendant from the Applicant Bank.

3. It is the case of the applicant that the defendant approached the applicant on 20.12.2017 for grant of Housing Term Loan and the applicant considering the said request sanctioned Housing Loan of Rs.33,00,000/- to the defendant vide Sanction Letter dated 12.01.2018. The said loan is secured by mortgage of immovable property belonging to the defendant in favour of the applicant. It is also the case of the applicant that the defendant had executed various loan documents on 12.01.2018.

4. It is also the case of the applicant that the defendant by application dated 19.01.2018 approached the applicant bank for grant of additional loan (Suraksha Loan) for payment of insurance premium. The applicant considering the said request sanctioned a sum of Rs.1,36,990/-. The defendant executed additional loan documents on 19.01.2018.

5. It is the further case of the applicant that the defendant deposited the title deeds of the schedule mentioned property with the applicant bank on 12.01.2018 with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 19.01.2018, Joint II SRO, Chengelpet.

6. It is also the case of the applicant that the defendants defaulted in repayment and hence the loan account was classified as NPA on 09.08.2019 and the loan account now stands transferred from the applicant bank’s Avadi Road Branch, Kilpauk, Chennai to RACP Centre situated at Shanti Colony, Anna Nagar, Chennai in terms of the internal policy.

7. As the defendant did not come forward to clear the dues, the applicant sent a recall notice to the defendant. Despite the same the defendant did not come forward to clear the outstanding dues, hence the present OA is filed for recovery of its dues.

8. Summons was taken out to the defendant and the same was returned unserved and hence the defendant was served with notice by way of substituted service by causing paper publication. As there was no representation on behalf of the defendant continuously and on 28.03.2023 the defendant was called absent and placed ex-parte on that day. Applicant Bank filed Proof Affidavit along with 15 documents, which were marked as Ex. A-1 to A-15 on 27.06.2024. The Ld. Counsel for Applicant Bank made his submissions on 07.08.2025 and thereafter the matter stood till this date for passing final orders.

9. 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.

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

11. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-15 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and rebutted. 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.

12. 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.

13. 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.

14. 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, OA is disposed off in the following manner: - (a) TA No.214 of 2022 stands allowed.

(b) Applicant is permitted to realize an aggregate sum of Rs.33,16,634/- with further interest @8% 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.

15. 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.

Sd/-

(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 22nd day of August, 2025)

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

1. 20.12.2017 Application form submitted by defendant A-1

2. 19.01.2018 Sanction Letter issued by the applicant bank. A-2

3. 19.01.2018 Arrangement letter by defendant A-3

4. 12.01.2018 Memorandum of Loan – Agreement for Home Loan granted to public A-4

5. 12.01.2018 Operation Letter A-5

6. 12.01.2018 Indemnity Affidavit A-6

7. 12.01.2018 Deed of Undertaking A-7

8. 12.01.2018 (sic 19.01.2018) Agreement to Mortgage A-8

9. 12.01.2018 (sic 19.01.2018) Request for additional loan for payment of life insurance premium. A-9

10. SBI Suraksha Loan Approval A-10

11. 12.01.2018 (sic 19.01.2018) Agreement for additional loan granted for additional loan for payment of life insurance premium A-11

12. 04.12.2017 Construction Agreement - Doc. No.432/2017 on the file of SRO, Chengelpet A-12

13. Deed of absolute sale – Doc. No.433/2017 on the file of SRO, Chengelpet A-13

14. 12.02.2018 Memorandum relating to deposit of title deeds – Doc. No.1567/2018, SRO, Chengelpet A-14

15. 30.11.2021 Statement of Accounts A-15

Sd/-

DESCRIPTION OF PROPERTIES SCHEDULE ‘A’

All the piece and parcel of property being Land measuring an extent of 1,694 Sq. ft. (including Land Area of 1368 Sq. ft. and Passage UDS area of 326 Sq. ft.) bearing Plot No.3A, 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 : Plot No.3B belonging to Mr. Kumararaj West By : Plot belonging to Mr. N. Munisamy 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)

363 Sq. Feet Undivided share of Land out of 1694 Sq. Feet (i.e.) 289 Sq. Feet Undivided Share of Land out of 1368 Sq. Feet and 74 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 (DESCRIPTION OF FLAT)

A Three bedroom flat bearing No.F1, having super built up area of 906 Sq. Feet (Including Common Area) situated in the First Floor, Within the SRO of Chengalpattu Joint and Registration of Chengalpattu.

Sd/-