INDIAN OVERSEAS BANK vs SATISH KUMAR on 3 August 2026

: - FINAL ORDER- :

1. This Original Application is filed on 19.07.2019 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, against the defendant for recovery of a total sum of

Rs.24,73,599/- (Rupees Twenty Four Lakhs Seventy Three Thousand Five Hundred Ninety Nine only) due in respect of Housing Loan (A/c No.46303351100006) repayable together with further interest @ 11.95% p.a. with monthly rests from the date of Application till the date of realization in full, the 2nd defendant is liable to the extent of the estate left by the 1st defendant, 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.885 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.885 of 2019 stood transferred to this Tribunal and renumbered as TA No.1072 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 at the request of the 1st defendant by his application dated 10.01.2011, the applicant bank has sanctioned a Housing loan of Rs.15,50,000/- on 14.01.2011 to the 1st defendant under Subha Gruha Housing scheme for purchase of flat.

5. The applicant submits that the 1st defendant availed the Housing Loan under the said scheme on 18.01.2011 for a sum of Rs.15,50,000/-, for which the 1st defendant executed the following documents on 18.01.2011 in favour of applicant bank:

a) Demand promissory note for Rs.15.5 lakhs agreeing to repay the same with interest at 9.25% per annum with monthly rests or rests at such rates and rates as may be revised by the bank on the own or as per instructions from the RBI from time to time.

b) Letter of undertaking repayment in instalments

c) Housing Loan Agreement

6. It is submitted by the applicant bank that the defendants agreed with terms and conditions of sanction of housing loan, wherein they agreed to repay the loan with interest in 177 Equated Monthly Installments of Rs.16,078/- per month commencing from April 2011 and thereafter the subsequent installments on or before the same day each month as the case may be date of first disbursement or one month after completion of project whichever is earlier and promising to repay the said sum on demand together with interest at 9.25% per annum compounded at monthly rests as such rates or other rates as may be revised by RBI/bank from time to time.

7. The applicant submits that as security for the advances made to the 1st defendant, the 1st defendant on 10.03.2011 deposited with the applicant’s branch at Ashok Nagar, Chennai- 600 083, the title deeds relating to his property morefully described in schedule to the OA with intent to create a equitable mortgage as security for the advances made to the defendant. The mortgaged property had been registered before the

Sub-Registrar, Virugambakkam on 10.03.2011 vide Registered Doc. No. 2677/2011 by way of Memorandum of deposit of title deeds executed by the 1st defendant.

8. The applicant further submits that subsequent to availing of loan, the repayments of the installments towards the loan by the defendant were very irregular and inspite of several requests the defendant had not regularized the account. Till date the defendant has not cleared the outstanding. The applicant also made demands to the defendant but there was no response. Consequently, the account became Non-Performing Asset (NPA) on 01.01.2013. As per the documents executed the defendants are liable to pay the outstanding dues.

9. The applicant submits that all the above original documents pertaining to the loan account of Mr. M. Satish Kumar had been taken by Inspector of Police, CBI Anticorruption branch, Sasthri Bhavan, Chennai- 600006 in RC. 16A 2013CBI/ACB/ Chennai on 08.11.2013 the same are with CBI. The applicant has filed photocopies of the said original documents. Inview of the above the applicant bank undertakes to obtain and file the certified copies of the above documents for marking at the time of filing proof affidavit.

10. The applicant further submits that as on 10.07.2019 there is an outstanding of Rs.24,73,599/- in the account of the defendant as evidence from the statement of account duly certified under the Bankers Book Evidence Act, 1891 filed along with application.

11. The applicant submits that at the time of service of summons, the 1st defendant, borrower herein was reported dead and consequently, his sole legal heir, his wife was impleaded as 2nd defendant in the OA. As per the documents executed, the 1st defendant is liable to pay the claim in this application. The 2nd defendant is liable to the extent of the estate left by the deceased 1st defendant lying in her hands.

12. The applicant submits that as per the directions of the Bank/reserve Bank of India the present rate of interest on the outstanding is 11.95% per annum with monthly rests (including 2% penal interest). Despite repeated requests and demands, as 1st 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.

13. After the filing of the OA, summons was sent to the Sole defendant through Registered Post with Acknowledgment Due, which was duly served. Advocate Mr. M. Arunachalam appeared before the Registrar on 03.01.2020 and filed memo stating that sole defendant died on 18.03.2018. Subsequently, applicant bank had filed IA No.1301/2022 for impleading the legal heir of deceased defendant, notice was duly served to proposed defendant, despite which there was no representation. IA No.1301/22 came to be allowed on 12.07.2023. Although Advocate M/s AR.M. Arunachalam had filed vakalat on behalf of D-2, did not file written statement despite availing substantial adjournments. There was also no representation on behalf of the 2nd defendant. Hence, the 2nd Defendant 1 was placed ex-parte on 22.09.2023.

Heard the submissions of Applicant Bank and perused the records.

14. To prove the case of the Applicant Bank, Ms. R. Ramya, Senior 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-16.

15. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-16 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.

16. The 2nd defendant was set ex-parte on 22.09.2023, 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.

17. 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 :

18. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the 2nd Defendant a sum of Rs.24,73,599/- (Rupees Twenty Four Lakhs Seventy Three Thousand Five Hundred Ninety Nine only) due in respect of Housing Loan (A/c No.46303351100006) repayable together with further interest @ 11.95% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this application. However, the liability of 2nd defendant is restricted to the extent of the estate devolved upon her from the 1st defendant.

(b) In the event of failure of the 2nd Defendant 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 properties 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 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 Defendant 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.

19. 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 03rd day of August, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Ms. R. Ramya, Senior Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 10.01.2011 Application by Defendant A-1

2. 14.01.2011 Sanction letter by Applicant A-2

3. 18.01.2011 Demand promissory notice for Rs.15.5 lakhs by Defendant A-3

4. 18.01.2011 Housing loan agreement by defendant A-4

5. 18.01.2011 MOD by defendant A-5

6. 10.03.2011 Certified statement of account A-6

7. 10.07.2019 Certified statement of account A-7

8. 20.12.2010 Sale agreement between Sakkubai and Mr. A-8

M. Satish Kumar, the borrower herein

9. 20.12.2010 Construction agreement between M. Satish Kumar and V.V. Home Makers A-9

10. 18.01.2011 Original Sale deed in favour of M. Satish Kumar by Regd. Doc. No. 794/2011 A-10

11. 20.04.2023 Complaint by applicant’s head office A-11

12. 22.08.2013 FIR Copy by CBI/ACB A-12

13. 24.03.2022 Request letter by applicant A-13

14. 09.05.2022 Request letter by applicant A-14

15. 25.02.2011 Proof of SB account belongs to defendant and disbursement of loan for Rs.20 Lakhs A-15

16. - Address proof of Defendant A-16

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

:-SCHEDULE-: All that piece and parcel of land and building bearing Flat No.6, First floor, Flat measuring 440sq.ft along with 3% (132.3sq.ft) undivided share out of 4410sq.ft, Plot No’s 5, Natesa Nagar II cross street, Chenjeri village, Chennai- 600092, comprised in Survey No.75 of Chenjeri Village, Bounded on the North by: Plot No.4 South by: Plot No.6 East by: Road West by: Plot No.12 The property lies in the Registration district of Chennai south and Sub Registration district of Virugambakkam.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI