STATE BANK OF INDIA vs Rajeshwari on 20 July 2026

: - FINAL ORDER- :

1. This Original Application is filed on 03.06.2019 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.25,62,942/- (Rupees Twenty five lakhs sixty two thousand nine hundred and forty two only) as follows:

(a) A sum of Rs.25,04,595/- due in respect of Home Loan Credit (A/c No.36181568048) repayable together with further interest @ 12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full and for costs of this OA.

(b) A sum of Rs.58,347/- due in respect of Insurance loan (A/c No. 3618788626) repayable together with further interest @12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full; for sale of immovable property morefully detailed in the schedule to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.656 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 656 of 2019 stood transferred to this Tribunal and renumbered as TA No. 1603 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 applicant bank that the defendants have approached the applicant bank seeking financial assistance for purchase of house. Considering the said request, the applicant bank sanctioned Home Loan to the tune of Rs.30,00,000/- on 14.10.2016 and Insurance Loan of Rs.85,715/- on 20.10.2016.

5. It is submitted by the applicant bank that the defendants availed the Home Loan and Insurance Loan from the applicant bank and executed the following loan and security documents in favour of applicant bank:

(i) Home loan agreement dated 09.09.2016

(ii) Sanction letter dated 14.10.2016

(iii) Memorandum of loan agreement for home loan granted to public dated 17.10.2016

(iv) Arrangement letter dated 17.10.2016

(v) Deed of undertaking dated 17.10.2016

(vi) Agreement to mortgage dated 17.10.2016

(vii) Specimen of agreement for additional loan granted to existing home loan borrowers for insurance premium account

(viii) Confirmation letter (EM of borrowers property at home branch/RACPC)

(ix) Memorandum of deposit (Borrower’s property at RACPC/RCPC/RASMECCC/Home branch)

6. The applicant bank submits that as security towards the aforesaid loans, the defendants deposited original title deeds with the applicant bank namely, i. Sale deed dated 19.10.2016, Doc No. 13872/2016

ii. Sale deed dated 07.03.2016, Doc No. 3011/2016 iii. Construction agreement dated 07.03.2016, Doc No.

iv. Rectification deed dated 26.09.2016, Doc No. 13136/2016 and created EM for the loan availed by them from the applicant bank.

7. It is submitted by the applicant bank that the defendants agreed that the loan amount shall be repaid with interest of 12.15% towards Home Loan credit. The schedule property described in the OA was already mortgaged with bank by the defendants for the Home Loan credit facility availed by them. For the subject Home Loan credit facility availed by the defendants, mortgage over the said property was also created by defendants vide Registered Memorandum of Deposit of Title Deeds dated 03.11.2016.

8. The applicant bank further submits that subsequent to availing of loan, the defendants were not regular in repayment, except few instalment. The applicant bank had been repeatedly requesting the defendants to settle the dues. The applicant bank had several rounds of discussions with the defendants about the regularization of the loan accounts but of no avail. However, the defendants did not come forward to discharge the liability or take any steps to settle the dues.

9. Since the operation of the account was not satisfactory, the loan became classified as Non-Performing Asset (NPA) vide Home Loan Credit

Account no. 36181568048 on 29.03.2018 and Insurance Loan A/c No.36187588626was classified as NPA as on 10.08.2018, as per the guidelines of Reserve bank of India. The defendants failed to discharge the liability. In view of the aforesaid financial irregularities, there is a remote chance of the defendants turning around and repaying the dues of the applicant bank. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

10. 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 remarks “Left” in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 12.07.2021, even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 12.07.2021. Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Mr. S.K. Subhash, Chief Manager 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 defendants.

13. The defendants were set ex-parte on 12.07.2021, 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 defendants.

14. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.20,25,000/- by way of sale of Schedule mentioned immovable property under SARFAESI Act on 26.04.2021. Accordingly, part satisfaction of sum of Rs.20,25,000/- was duly recorded vide proceedings dated 14.03.2022.

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 Defendants 1 and 2 jointly and severally, a total sum of Rs.25,62,942/- (Rupees Twenty Five Lakhs Sixty Two Thousand Nine Hundred and Forty Two only) as follows:

(i) A sum of Rs.25,04,595/- due in respect of Home Loan Credit (A/c No.36181568048) repayable together with further interest @ 12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full;

(ii) A sum of Rs.58,347/- due in respect of Insurance loan (A/c No. 3618788626) repayable together with further interest @12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full along with costs of this OA.

(b) The sum of Rs.20,25,000/- realized by way of sale of schedule mentioned immovable property is directed to be given credit to the borrower’s loan account as on date of realization.

(c) 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.

(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 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.

(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.

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

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 20th day of July, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. S.K. Subhash, Chief Manager of the Applicant Bank

Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 09.09.2016 Home loan agreement A-1

2. 14.10.2016 Sanction letter A-2

3. 17.10.2016 Memorandum of loan agreement for home loan granted to public A-3

4. 17.10.2016 Arrangement letter A-4

5. 17.10.2016 Deed of undertaking A-5

6. 17.10.2016 Agreement to mortgage A-6

7. 17.10.2016 Specimen of agreement for additional loan granted to existing home loan borrowers for insurance premium account A-7

8. 03.11.2016 Confirmation letter (EM of borrowers property at home branch/RACPC) A-8

9. 03.11.2016 Memorandum of deposit (Borrower’s property at RACPC/RCPC/RASMECCC/Home branch) A-9

10. 02.03.2021 Valuation Report A-10

11. 28.09.2016 Sale Agreement A-11

12. 19.10.2016 Sale Deed A-12

13. 07.03.2016 Agreement Of Construction A-13

14. 07.03.2016 Sale Deed A-14

15. 26.09.2016 Deed of Rectification A-15

16. - Statement of account for home loan account no. A-16

17. - Statement of account for home loan account no. A-17

18. 28.09.2016 Tripartite Agreement A-18

19. 03.11.2016 Memorandum relating to deposit of title deeds A-19

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

:-SCHEDULE-: The mortgaged property has been sold under SARFAESI Act.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI