STATE BANK OF INDIA vs RAVI on 19 March 2026

: - FINAL ORDER - :

1. This Original Application is filed on 15.04.2021 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, against the defendant for recovery of a total sum of Rs.66,79,206/- (Rupees Sixty Six Lakhs Seventy Nine Thousand Two Hundred and Six Only) due in respect of Housing Loan (Account No.35790783603) repayable together with further interest @

11.00% p.a. with monthly rests plus penal interest @ 2% p.a. 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.199 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.199 of 2021 stood transferred to this Tribunal and renumbered as TA No.418 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 that the Defendant had applied for a Housing Loan of Rs.49.00 Lakhs, for purchase of Flat at Grama Natham Sy.No.585/1,Ward No.”B”,Block no.2, TS.no.101 of No.18, Ambattur Village, Ambattur Taluk, Thiruvallur District.

5. It is submitted by the applicant bank that considering the said request, the applicant bank had sanctioned an amount of Rs.47.50 lakhs to the Defendant vide Arrangement Letter dated 26.05.2016. The defendant had acknowledged the terms and conditions of sanction and repayment of the loan, thereby agreeing to repay the loan in 300 Monthly installments of Rs.41206/- each from July, 2016 with then interest at the rate of 9.40% per annum, which would be reset from time to time as per the policy of the bank.

6. The applicant bank submits that in order to secure the loan, the Defendant had executed the following documents in favour of the applicant bank acknowledging his liability for the loan availed by him:

(i) Memorandum of Loan Agreement for Home loan, dated 26.06.2016

(ii) Annexure A-Affidavit of declaration cum indemnity

(iii) Consent letter for disclosure of information to CIBIL

(iv) Deed of undertaking

7. It is further submitted by the applicant bank that the Defendant had deposited the original Sale Deed dated 27.05.2016 registered as Doc.No.7197/2016 and Agreement of Construction dated 29.03.2016 registered as Doc.No.7197/2016, in respect of his property purchased out the Bank loan and created mortgage in favor of the Applicant by executing the following documents:

(i) Confirmation letter of EM

(ii) Memorandum of Deposit of Title deeds with the banks

(iii) Memorandum relating to Deposit of Title deeds dated 19.08.2016 registered as Doc. No.11499/2016 with SRO, Ambattur.

8. The applicant bank submits that the Defendant had executed Balance Confirmation/Renewal Letter dated 20.05.2019 confirming the balance in the Home Loan account and extending the validity of the loan documents executed by him.

9. The Applicant submits that subsequent to availing of loan, the Defendant has repaid only few loan installments as per terms of sanction and thereafter violated the terms of agreement with the Applicant. The applicant bank had repeatedly contacted the Defendant to regularize the account, but he has failed to regularize the Account and repay interest and principal as agreed. Hence the account was classified as Non- Performing Asset (NPA) in the books of the bank as per RBI norms, on 28.02.2017. As the Defendant has not heeded to the repeated request from the Applicant to regularize the loan, the applicant had recalled the loan and notice was issued on 29.08.2018. Despite repeated requests and demands, 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 defendant.

10. 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 the remark ‘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 defendants. Hence, defendant was placed ex-parte on 23.05.2022.

Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Sh. K. Ranjeeth Kumar, City Case Officer, 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-19.

12. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-19 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.

13. 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.

14. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.42,10,000/- by way of sale of Schedule immovable property under SARFAESI Act on 15.09.2025 and the entire amount has been received in the account on 31.10.2025. Accordingly, part satisfaction of sum of Rs.42,10,000/- was duly recorded vide proceedings dated 29.01.2026 and documents marked as Ex A-1 to A-19 were returned to applicant bank on 13.01.2026 under proper acknowledgement.

15. 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:

16. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendant a total sum of Rs.66,79,206/- (Rupees Sixty Six Lakhs Seventy Nine Thousand Two Hundred and Six Only) due in respect of Housing Loan (Account No.35790783603) repayable together with further interest @ 11.00% p.a. with monthly rests plus penal interest @ 2% p.a. from the date of application till the date of realization in full along with costs of this application.

(b) The sum of Rs.42,10,000/- 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) 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.

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

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

17. 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. K. Ranjeeth Kumar, City Case Officer, SARB-II, Chennai of the Applicant Bank Exhibits on the part of the Applicant: Sl. No. Date Description of Documents Exhibit No.

1. 20/05/2016 Application of Housing Loan A-1

2. 24/05/2016 Sanction letter issued by Applicant Bank A-2

3. 26/05/2016 Arrangement letter A-3

4. 26/05/2016 Memorandum of Loan agreement for Home loan A-4

5. 26/05/2016 Annexure I undertaking for information to CIBIL A-5

6. 26/05/2016 Affidavit by Defendant A-6

7. 26/05/2016 Deed of Undertaking A-7

8. 26/05/2016 Agreement to Mortgage A-8

9. 26/05/2016 Operations letter A-9

10. 25/05/2016 Affidavit of defendant to construct as per plan A-10

11. 29/03/2016 Agreement of construction executed by J.J.Build Tech in favour of N.Ravi registered as Doc.no.7196/2026 A-11

12. 27/05/2016 Sale deed executed by Narasinga Rao in favour of N.Ravi registered as Doc.no.7196/2026 A-12

13. 15/07/2016 Confirmation letter for creation of Mortgage A-13

14. 14/07/2016 Memorandum of Deposit of Title deeds A-14

15. 19/08/2016 Memorandum of Deposit of Title deeds registered as Doc .No.14999/2016 with SRO Ambattur A-15

16. 29/08/2018 Notice u/s 13(2) of SARFAESI act

A-16

17. 20/05/2019 Revival letter A-17

18. 08/03/2021 Letter from the Defendant A-18

19. Statement of account A-19

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