STATE BANK OF INDIA vs SIVARAJ on 19 March 2026

: - FINAL ORDER - :

1. This Original Application is filed on 30.12.2019 by the applicant bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants jointly and severally for recovery of a total sum of Rs.48,50,628.58p (Rupees Forty Eight Lakhs Fifty Thousand Six Hundred and Twenty Eight and Fifty Eight paisa only) due in respect of Housing Loan (Account No.37613644551) repayable together with further interest @ 9.10% p.a. with monthly rests from the date of application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this application.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.78 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.78 of 2020 stood transferred to this Tribunal and renumbered as TA No.777 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 states that the Defendant had approached the applicant bank and requested for Housing Loan for purchase of schedule mentioned immovable property and submitted loan application dated 28.02.2018.

5. It is submitted that pursuant to the request of the defendant, the applicant bank had sanctioned the “Housing Loan” facility to the tune of Rs.49,50,000/- subject to the terms and conditions as envisaged under the Arrangement Letter dated 23.03.2018 executed by the defendant herein. The defendant had undertaken to repay the loan amount in time without committing any default. Loan is repayable in equated monthly installments of Rs.43,792/- together with agreed rate of interest.

6. The applicant bank submits that the defendant herein has executed the following loan documents thereby acknowledging the said loan amount availed from the applicant bank:

(i) Sanction letter dated 23.3.2018

(ii) Arrangement letter dated 23.3.2018

(iii) Memorandum of Loan agreement for Home Loan dated 26.3.2018

(iv) Agreement to Mortgage dated 26.3.2018

(v) Confirmation letter dated 7.9.2018

7. The applicant bank submits that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 23.03.2018. However, subsequent to the disbursement of the aforesaid “Housing loan” the defendant was operating the account as per terms and conditions.

8. The applicant bank further submits that they have been repeatedly making representations to the defendant to regularize the “Housing loan” account, but the defendant did not take any concrete steps to regularize the loan accounts or to repay the loan amount. Since the defendant had failed to service the interest and principal due under the Housing loan account, consequently it has become NPA in the books of the Applicant bank on 23.05.2019. The applicant bank through its Authorised Officer issued Demand Notice under Section 13(2) of the SARFAESI Act dated 22.07.2019, which was duly served to the defendant. Despite receipt of notice, as defendant did not come forward to repay the dues, 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 was sent to the Defendant through Registered Post with Acknowledgment Due, summons to the sole defendant returned with postal endorsement as ‘left’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 23.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 23.05.2022.

Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Sh. Jithin Anto, Deputy Manager, SARB-II, Chennai of the Applicant Bank, has filed his 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-11.

11. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-11 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendant.

12. The defendant was set ex-parte on 23.05.2022, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendant.

13. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.24,90,000/- by way of sale of Schedule immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.24,90,000/- is duly recorded vide proceedings dated 20.08.2024 and documents marked as Ex A-06 to A-09 were returned to applicant bank on 15.05.2025 under proper acknowledgement.

14. 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:

15. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendant a sum of total sum of recovery of a total sum of Rs.48,50,628.58p (Rupees Forty Eight Lakhs Fifty Thousand Six Hundred and Twenty Eight and Fifty Eight paisa only) due in respect of Housing Loan (Account No.37613644551) repayable together with further interest @ 9.10% p.a. with monthly rests from the date of application till the date of realization in full along with costs of this OA.

(b) The sum of Rs.24,90,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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

(d) 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 defendants 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.

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

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

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

Sd/-

(S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Steno, transcribed by her, corrected, signed and pronounced by me on this the 19th day of March, 2026) ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

AW-1: Sh. Jithin Anto, Deputy Manager, SARB-II, Chennai of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 28.12.2018 Loan Application A-1

2. 23.3.2018 Sanction letter A-2

3. 23.3.2018 Arrangement letter A-3

4. 26.3.2018 Memorandum of Loan agreement for Loan granted to public A-4

5. 26.3.2018 Agreement to Mortgage A-5

6. 07.09.2018 Confirmation letter A-6

7. 22.03.2018 Builders’ agreement A-7

8. 20.11.2017 Agreement of Sale A-8

9. 22.03.2018 Sale deed executed by M/S Engineers estates (Madras) Pvt. Ltd in favour of T.Sivaraj (Doc.No.928/2018) A-9

10. 22.07.2019 13(2) Demand notice with Ack A-10

11. 26.3.2018 to 13.12.2019 Statement of account and certificate under Banker’s Book evidence Act, 1891 A-11

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

:- SCHEDULE -:

Mortgaged property has been sold under SARFAESI Act.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI