STATE BANK OF INDIA vs PRADEEP KUMAR AICH on 20 November 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.28,56,622.30p with further interest at the rate of 7.45% per annum with monthly rests from the date of the application till the date of realisation along with costs of the application.

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 for grant of housing loan during April 2016 and considering the said request the applicant sanctioned housing loan of Rs.25,65,000/- to the defendant repayable in 300 equated monthly installments of Rs.22,500/- by way of arrangement letter dated 11.04.2016. It is also the case of the applicant that the schedule property was obtained on perpetual lease basis by the defendant with the loan availed from the applicant. It is stated that the defendant deposited the title deeds of the schedule mentioned property with the applicant bank on 3.12.2016 with an intention to create equitable mortgage over the same in favour of the applicant and confirmed the same by executing Memorandum of Deposit of Title deeds dated 26.12.2016 registered as Doc. No.12355 of 2016, on the file of SRO, Chengalpattu.

4. It is also the case of the applicant that the defendant was highly irregular in repayment and made part payments on various dates between 23.05.2016 to 17.03.2020. As the defendant failed and neglected to regularize the loan account the applicant classified the loan account as NPA on

29.02.2020. As the defendant did not come forward to the outstanding dues, hence the present OA is filed for recovery of its dues.

5. Summons was taken out to the defendant returned unserved and hence was served with notice by way of substituted service causing paper publication. As there was no representation on behalf of the defendant continuously and on 24.08.2023 the defendant was called absent and placed ex-parte on that day. Applicant Bank filed Proof Affidavit along with 7 documents, which were marked as Ex. A-1 to A-7 on 11.01.2024. The Ld. Counsel for Applicant Bank made his submissions on 15.09.2024 and thereafter the matter stood till this date for passing final orders.

6. 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.

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

8. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-7 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.

9. 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.

10. In view of the fact that the loan facility availed by the defendants 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 and prayer for award of penal interest is rejected.

11. 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.235 of 2022 stands allowed.

(b) Applicant is permitted to realize a sum of Rs.28,56,622.30p with further interest @7% 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 20th day of November, 2025)

EXHIBITS MARKED BY APPLICANT BANK

S. No. Date Description of Documents Exhibit Nos.

1. 11.04.2016 Arrangement Letter A-1

2. 11.04.2016 Memorandum of Agreement of Home Loan granted to public A-2

3. 11.04.2016 Agreement to mortgage by defendant A-3

4. 22.11.2019 Confirmation letter by defendant A-4

5. 26.12.2016 Memorandum of Deposit of Title deeds registered as Doc. No.12355 of 2016, SRO, Chengalpattu A-5

6. 25.04.2016 Lease deed No.4260/2016 between defendant and Mahinda Integrated Township Ltd., A-6

7. 28.04.2016 to 23.12.2021 Statement of Accounts along with certificates under Bankers’ Book Evidence Act. A-7

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DESCRIPTION OF PROPERTY

Perpetual leasehold rights of the defendant in all that piece and parcel of residential flat of a carpet area 555 square feet corresponding to 652 square feet of built-up area, corresponding to 836 square feet of saleable area, bearing No.C2-708, Unit Type 2.5 BNK, 7th floor, Block, Name: C. Nova, Plot No.21, Second Avenue, Mahindra World City SEZ Kancheepuram – 603 004, together with an undivided share of land of an area of 150 square feet out of the total land area 25557 square feet, comprised in Survey Nos.78A/4H Part, 78A/41Part, 78A/4JPart, 78A/4K Part, 78A/4L Part, 78A/4M Part, 78A/4N Part, 78A/2W Part, 102/3 Part, 102/4E Part, 102 4D Part, 78/2R Part of Parunur Village, Chengalpattu Taluk, Kanchepuram District bounded on the North by Survey No.78/4H, 012/4D Part, 102/3 Part of Paranur Village, East by Survey No.102/4E, Part of Paranur Village, South by Survey No.78A/2W Part, 78A/4N Part of Paranur Village and West by Survey No.78A/2R Part of Paranur Village.

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