STATE BANK OF INDIA vs MANIKANDAN A on 17 July 2026

: - FINAL ORDER - :

1. This Original Application is filed on 15.03.2019 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 defendant for recovery of a total sum of Rs.38,55,654/- (Rupees Thirty Eight Lakh Fifty Five Thousand Six Hundred and Fifty Four Only) due in respect of Housing Term Loan (A/c No.36722109229) repayable together with further interest @ 8.65% p.a. with monthly rests from the date of filing the OA, till date of realization in full, for sale of immovable property more fully detailed in Schedule to the OA and for costs of this application.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.401 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.401 of 2019 stood transferred to this Tribunal and renumbered as TA No.749/2023. 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 defendant availed the Housing Term Loan from the applicant bank for purchase of the schedule house property. The OA property was developed and built by M/s. Sonex Builders, rep. by its partner Mr. G. Ther Vijayan, No.G2, 5/187, 5th Main Road, Otteri Extension, Vandalur, Chennai -600 004.

5. The applicant submits that the defendant having personally identified and satisfied with the specifications of the schedule flat promoted by the M/s. Sonex Builders, approached the applicant bank, through an application dated 15.03.2017, after entering into Sale Agreement and Construction Agreement, both dated 04.02.2017 with the M/s. Sonex Builders.

6. It is submitted that the Applicant Bank thereafter sanctioned a

Housing Term Loan and issued Arrangement Letter dated 29.03.2017 for the sum of Rs.36,48,000/- in Housing Loan Account No.36722109229 for the purchase of the residential flat situated in the schedule to the OA promoted and developed by the M/s. Sonex Builders. The said loan amount is repayable in 240 equated monthly installments of Rs.32,532/- each. At that time of sanctioning the Housing loan, the superstructure was not completed.

7. It is submitted by the applicant bank that the Defendant in agreement to the terms and conditions of the Applicant Bank for sanction disbursement of the Housing Loan had executed the entire loan and other documents on 29.03.2017 in favour of applicant bank including:

(i) . Memorandum of Term Loan Agreement for Home Loan Granted to Public;

(ii) . Deed of Undertaking;

(iii) . Agreement to Mortgage:

(iv) . Affidavit in Annexure A & B;

(v) . Operation Letter

(vi) . Annexure-I

8. It is submitted by the applicant bank that the Defendant after the sanction of the said Housing Loan had obtained the Sale Deed from the Owner for the schedule flat vide Doc. No.2932 of 2017 dated 30.03.2017. The Defendant, through Memorandum of Deposit the Title Deeds dated 17.05.2017 deposited the original title deeds pertaining to the schedule mentioned property and confirmed it by a letter dated 18.05.2017. Thereafter, the Defendant executed the Registered Memorandum of Deposit of Title Deeds dated 23.05.2017, vide Doc.No.4558 of 2017 of schedule mentioned property and thus created the equitable mortgage on the schedule mentioned property, which security is to cover the entire borrowings of the Defendant with the Applicant Bank in the above mentioned account and thereby securing the Housing Term Loan availed by them.

8. The applicant bank submits that subsequent to availing of loan, the Defendant was not regular in the payment of the monthly installments and defaulted in his payment of the EMI amount every month for the Housing Term Loan regularly as per the terms of the agreement entered into by them with the Applicant Bank. Consequently, the loan account was classified as Non-Performing Asset (NPA) with effect from 31.12.2018 by following the Reserve Bank of India Guidelines. The Applicant Bank periodically requested the Defendant to regularize the account as huge amounts remained as arrears and the account have been classified as NPA.

9. The Applicant submits that despite repeated demands made by the Applicant Bank, the Defendant did not complied with the demands and kept the amounts as outstanding till date. The Applicant sent several letters demanding the outstanding amount along with future interest, which ended in vain. Hence, 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 sole defendant was duly served. When OA was taken up on 04.06.2019 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 04.06.2019.

Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Sh. C. Arun Prasath, Deputy 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-15.

12. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-15 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 04.06.2019, 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. 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 total sum of Rs.38,55,654/- (Rupees Thirty Eight Lakh Fifty Five Thousand Six Hundred and Fifty Four Only) due in respect of Housing Term Loan (A/c No.36722109229) repayable together with further interest @ 8.65% p.a. with monthly rests from the date of filing the OA, till date of realization in full, along with costs.

(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 more fully detailed in the OA.

(c) OA Schedule shall be appended to this final order; (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 (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 17th day of July, 2026) ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

AW-1: Mr. C. Arun Prasath, Deputy Manager of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Description of Documents Exhibit No.

1. Sale Agreement dated 04.02.2017. A-1

2. Construction Agreement vide Doc.No.2931/2017 dated 04.02.2017. A-2

3. Application by the defendant to the applicant bank for Housing Loan dated 15.03.2017. A-3

4. Arrangement Letter dated 29.03.2017. A-4

5. Memorandum of Term Loan agreement for Home Loan Granted to Public dated 29.03.2017. A-5

6. Deed of Undertaking dated 29.03.2017. A-6

7. Annexure-I dated 29.03.2017. A-7

8. Affidavit in Annexure-A&B dated 29.03.2017. A-8

9. Agreement to mortgage dated 29.03.2017. A-9

10. Operation Letter dated 29.03.2017. A-10

11. Sale Deed vide Dco.No.2932 of 2017 dated 30.03.2017. A-11

12. Memorandum of deposit of title deeds dated 17.05.2017. A-12

13. Confirmation letter dated 29.03.2017. A-13

14. Memorandum of Deposit of Title Deeds vide Doc.No.4558/2017 executed by defendant in favour of applicant bank dated 23.05.2017. A-14

15. Statement of Account for the A/c.No.36722109229 dated 28.02.2019. A-15

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

SCHEDULE OF PROPERTY SCHEDULE -A

All that piece and parcel of Plot measuring an extent of 11 ¼ Cents Or 4914 Sq. Ft., (DTCP Approval No.53/2016, Maraimalai Nagar Municipality Na.Ka. No. 1995/2016) comprised in Old S.No.261/1, as per Patta No.2152, New S.No.261/1B4, situated at No.64, Chelliamman Koil Street, No.56, Kattankolathur Village, Chengalpattu Taluk, Kancheepuram District and bounded on the: North by: Krishnamoorthy Land; South by Bhagavan Sign Plot; East by: Krishnamoorthy Land; and West by: Chelliamman Koil Street (Kavanur Road)-Admeasuring: East to West on the Northern Side: 91 Feet, East to West on the Southern Side: 91 Feet. North to South on the Eastern Side: 54 Feet; and North to South on the Western Side: 54 Feet-Total Extent: 11 ¼ Cents Or 4914 Sq. Ft.

SCHEDULE-B

395 Sq Ft., undivided share of land out of 4914 Sq. Ft., more particularly described in the Schedule “A” above mentioned property.

SCHEDULE-C

A Two bedroom flat bearing No.2-C, having super built up area of 1085 Sq. Ft.. (Including Common Area) situated in the Second Floor of the building constructed in Schedule "A" land as per the approved plan.

Sd/-

(S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI