UNION BANK OF INDIA vs SUNDARARAJAN on 3 August 2026

: - FINAL ORDER - :

1. This original application is filed on 05.08.2019 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.23,41,961/- (Rupees Twenty Three Lakhs Forty One Thousand Nine Hundred and Sixty one only) due in respect of Housing Loan (A/c No.562906800000001), repayable together with further interest @ 9.25%, p.a. with monthly rests from the date of filing the OA, till date of realization in full and 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.840 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.840 of 2019 stood transferred to this Tribunal and renumbered as TA No.1768 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 the Defendant had approached the Applicant Bank for sanction of Housing Loan for an amount of Rs.16,00,000/- for purchase of Flat under construction for Residential purpose, bearing Flat No.A2F, First Floor, Plot No.2, Anthoniar Main Street, Puzhal, Chennai-66 admeasuring 717 Sq. Ft together with an undivided share of land measuring 368 Sq.Ft. in and out of total extent of 4000 sq.ft. Comprised in New Survey No.488/2, Old Survey No.448, Puzhal, within the Sub Registration District of Red Hills and Registration District of North

Chennai.

5. It is submitted that the Applicant Bank considered their application and sanctioned Housing Loan vide Sanction Letter dated 19-12-2008 for a sum of Rs.16,00,000/- (Rupees Sixteen Lakhs Only). The Applicant Bank sanctioned the said loan at the rate of floating interest at 9.25% which is repayable in Equated Monthly Installments of Rs.14,718/-each during the tenure of 237 Equated Monthly Installments commencing from April, 2009. As per the terms of sanction, the Defendant has to service interest to the loan account periodically as and when charged by the Applicant Bank before beginning of the payment of equal monthly installments.

6. In order to secure the loan, the Defendant had executed the following documents in favour of the Applicant Bank:

a) Housing Loan Agreement, dated 20.12.2008 for Rs.16.00 lakhs in favour of the Applicant.

b) Demand Promissory Note, dated 20.12.2008 for Rs.16.00 lakhs in favour of the Applicant.

c) Letter of undertaking, dated 20.12.2008 executed by the Defendant in favour of the Applicant Bank confirming the information furnished by him is true and correct.

d) A letter of undertaking/declaration, dated 20.12.2008 duly signed by the Defendant addressed to the Applicant declaring that the title deeds/documents/certificates deposited by him are genuine and not forged/faked. The defendant had also agreed to pay interest @ 9.25% p.a.

e) Memorandum of Deposit of Title Deeds dated 20-09-2010 executed by the defendant in favour of plaintiff bank.

f) An affidavit signed by the defendant confirming that he is the absolute owner of the property mortgaged with the bank.

g) Consent for take over penalty by the defendant.

7. It is submitted that it is agreed by the defendants that the Bank shall also be entitled to charge an additional interest at 2% per annum over and above the agreed rate of interest at such rests as agreed above in the event of non-payment of any installments of principle and/or interest, costs and other charges due or in the event of any other irregularity, during the period the amount due remains unpaid or the irregularity continues for the defaulted amount or an overdue outstanding as on that date.

8. However, this right is in addition to and not in derogation of the Bank's other rights to immediately call upon the Borrower to repay the entire amount outstanding or to enforce the security as stipulated in Housing Loan Agreement, dated 20.12.2008.

9. In order to further secure the advance, the Defendant mortgaged his immovable property which was purchased by availing the Housing Loan under the Registered Sale Deed in Document No.11612 of 2008, dated 19- 12-2008 held in the name of the Defendant.

10. The Defendant has deposited the above referred Sale Deed and other documents pertaining to his Residential Flat bearing No.AF2, Block- A, 1st Floor, Plot No.2, Anthoniar Main Street, Puzhal, Chennai-66, admeasuring 717 Sq. Ft. together with 368 Sq. Ft. UDS out of total extent of 4000 Sq. Ft. comprised in New Survey No.488/2, Old Survey No.448, within the Sub Registration District of Redhills and Registration District of North Chennai by way of Memorandum of Deposit of Title Deeds on 20.09.2010. The defendant has also executed simple Debit Balance Confirmation on 13.12.2011 confirming the correctness of total outstanding as on that date.

11. The Applicant submits that subsequent to availing of the loan, the Defendant had defaulted in repayment of Installment/interest and consequently Housing Loan account of the Defendant turned as NPA on 31.12.2011. On 25.05.2013, the bank issued Possession Notice in respect of the property mortgaged with the bank. On 11.12.2019, the defendant wrote a letter to the plaintiff, admitting his liability and expressed his desire to settle the loan amount but failed and neglected to repay the same. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

12. After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due. Summons to sole defendant returned with the remarks “No such person”. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 05.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-parte on 05.04.2022.

Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Sh. Abinash Barika, Branch 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.

14. 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.

15. The defendants were set ex-parte on 05.04.2022, 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 defendants.

16. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.10,60,000/- by way of sale of Schedule immovable property under SARFAESI Act on 12.02.2024. Accordingly, part satisfaction of sum of Rs.10,60,000/- was duly recorded vide proceedings dated 24.06.2024 and the documents marked as Ex A-9, A-11 and A-12 were returned to applicant bank on 16.07.2024 under proper acknowledgement.

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 Defendant, a total sum of Rs.23,41,961/- (Rupees Twenty Three Lakhs Forty One Thousand Nine Hundred and Sixty one only) due in respect of Housing Loan (A/c No.562906800000001), repayable together with further interest @ 9.25%, p.a. with monthly rests from the date of filing the OA, till date of realization in full, along with costs.

(b) The sum of Rs.10,60,000/- realized by way of sale under SARFAESI Act is directed to be given credit to the borrower’s loan account as on the date of realisation.

(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.

19. 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 03rd day of August, 2026) ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

AW-1: Sh. Abinash Barika, Branch Manager of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Description of Documents Exhibit No.

1. Loan application dated 14.10.2008. A-1

2. Sanction Letter for Rs.16.00 Lakhs issued to the defendant dated 19.12.2008. A-2

3. Housing Loan Agreement for Rs.16.00 Lakhs dated 20.12.2008. A-3

4. Demand Promissory Note for Rs.16.00 lakhs dated 20.12.2008. A-4

5. Letter of undertaking from borrowers dated 25.05.2006.

A-5

6. Letter of undertaking and consent for take over penalty dated 20.12.2008. A-6

7. Letter by defendant confirming that the documents mortgaged is genuine dated 20.12.2008. A-7

8. Affidavit executed by defendant dated 20.12.2008. A-8

9. Memorandum of Deposit of Title deeds dated 20.09.2010. A-9

10. Debit confirmation by defendant (2Nos) dated 13.12.2011. A-10

11. Sale-Cum-Construction Agreement dated 29.11.2008. A-11

12. Sale Deed executed in favour of defendant in Doc.No.11612/2008 in SRO, Redhills dated 19.12.2008. A-12

13. Possession Notice issued by Plaintiff dated 25.05.2013. A-13

14. Statement of accounts for Loan Account No.562906800000001 along with Certificate under Banker’s Book Evidence Act dated 19.07.2019. A-14

15. Power of Attorney. A-15

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

SCHEDULE

Mortgaged property has been sold under the SARFAESI Act.

Sd/-

(S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI