IDBI BANK vs RANGANATHAN on 28 January 2026

: - FINAL ORDER - :

1. This Original Application is filed on 03.01.2022 by the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.23,79,046/- (Rupees Twenty Three Lakhs Seventy Nine Thousand and Forty Six only) due as on 24.11.2021 in respect of Loan against Property (Account No.1086675100002370) repayable together with further interest @ 8.55% p.a. with monthly rests from the date of application till the date of realisation in full, for sale of schedule mentioned immovable property and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.280 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.347 of 2022 stood transferred to this Tribunal and renumbered as TA No.697 of 2023. Brief Facts of the case:

3. The Applicant submits that the application is filed within the period of limitation as prescribed under Section 24 of the Recovery of Debts and Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Tribunal.

4. It is the case of the Applicant Bank that the 1st Defendant had approached the Applicant Bank for sanction of Home Loan and 2nd Defendant stood as Guarantor of the said loan.

5. It is submitted that considering the said request of the Defendants, the Applicant Bank had sanctioned the Home Loan to the tune of Rs.25,00,000/- on 03.02.2017 vide Loan Account No.1085675100002370 with the rate of interest at 8.55% per annum compounded with monthly rests with repayment terms for the tenure of 240 monthly installments with each EMI amounting to Rs.24,692/-.

6. In order to secure the loan, the 1st Defendant had created equitable mortgage over the Flat to an extent of 962 Sq. ft. bearing Flat No.G-1 in the Ground Floor building known as Annavalam Apartment together with covered car park bearing in E along with an extent of 500 Sq. ft. undivided share of land out of 2400 Sq. ft. comprised in Survey No.351/1A2 & 408/2, Situated at Maduravoyal Mathura, Alapakkam Village, presently Maduravoyal Village, Thiruvallur District and executed Memorandum of deposit of Title Deeds registered as Document No.7766 of 2017 in favour of applicant bank.

7. It is further submitted that the Defendants have executed the loan documents for Rs.25,00,000/- in favour of bank. The applicant bank will not be able to produce the original loan and mortgage / security documents due to fact that the documents were burnt at their end in a fire accident on 11.12.2017. A police complaint was lodged by Stock Holding Corporation with regard to fire accident which has resulted in loss and destruction of physical documents.

8. It is submitted that subsequent to availing of the aforesaid loans, the defendants were not regular in repayment of dues, despite repeated requests and demands. The defendants failed to respond to the reminders, personal contacts and repeated demands made by the Applicant Bank. The defendants are also liable to pay 2% additional interest chargeable for default in making repayment till the date of realization along with costs.

Consequently, the loan account of the first defendant turned into Non- Performing Asset (NPA) on 08.01.2021 in accordance with RBI guidelines. Since the account turned NPA, the applicant bank through its Authorised Officer initiated SARFAESI proceedings by issuing Demand notice to the defendants on 29.07.2021. In spite of the notices the defendants did not come forward to repay the dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

9. After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with the remarks “No such person”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 12.10.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 12.10.2023. Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Smt. Aparna R, Deputy General Manager of the Applicant Bank, has filed her Affidavit by way of evidence and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-6. As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

11. With regard to the amount advanced, the interest applied, the conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for a final order on the following terms:

: O R D E R :

12. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, for recovery of a total sum of Rs.23,79,046/- (Rupees Twenty Three Lakhs Seventy Nine Thousand and Forty Six only) due in respect of Loan against Property (Account No.1086675100002370) repayable together with further interest @ 8.55% p.a. with monthly rests from the date of application till the date of realisation in full along with costs of this application.

(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property morefully detailed in the OA schedule.

(c) Schedule mentioned immovable property shall be appended to this final order.

(d) If the sale proceeds of the mortgaged property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

(e) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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

13. A copy of this order be communicated to the parties concerned.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 28th day of January, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Smt. Aparna R, Deputy General Manager of the Applicant Bank

Exhibits on the part of the Applicant:

Sl. No. Description of Documents Exhibit No.

1. Certified copy of Sale Deed in Document No.1339 of 2017 dated 14.03.2017 in the name of Mr. R. Ranganathan, 1st defendant A-1

2. Certified Copy of Memorandum of Deposit of Title Deeds in Document No.7766 of 2017 dated 01.12.2017 executed by 1st Defendant. A-2

3. Police Complaint lodged by Stock Holding Corporation dated 19.12.2017 A-3

4. Incident Spot Panchanama reported by Police Authorities dated 26.12.2017 A-4

5. Demand Notice under Section 13(2) of the SARFAESI Act dated 29.07.2021 issued to the defendants A-5

6. Statement of Accounts along with BBE Certificates A-6

Witness Examined for the Defendants: -Nil- List of Documents Exhibited for the Defendants: -Nil –

:-SCHEDULE OF PROPERTY-:

(Stands in the name of 1st Defendant covered under Sale Deed in Document No.1339 of 2017 dated 14.03.2017)

All that piece and parcel of Flat to an extent of 962 Sq. ft., bearing Flat No.G-1 in the Ground Floor, building known as Annavalam Apartment together iwith Covered Car park bearing in ‘E’ along with an extent of 500 Sq. ft. undivided share of land out of 2400 Sq. ft. comprised in Survey No.351/1A2 ^ 408/2, situated at Maduravoyal, Mathura Alapakkam Village, presently Maduravoyal Village, Maduravoyal Taluk and Thiruvallur Distrct and entire land bounded on the On the North By : 2nd Main Road of Ashtalakshmi Nagar

On the South By : Plot No.91;

On the East By : Plot No.99;

On the West By : Plot No.97;

Situated within the Registration District of Sough Chennai and Sub- Registration District of Virugambakkam.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI