STATE BANK OF INDIA vs MUTHULAKSHMI on 10 August 2026

: - FINAL ORDER - :

1. This Original Application is filed on 29.01.2020 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.59,62,675/- (Rupees Fifty Nine Lakhs Sixty Two Thousand Six Hundred and Seventy Five only) due in respect of Home Loan(Account No. 37826861695) repayable together with further interest @ 8.75 % p.a. with monthly rests from the date of Application till the date of realization in full, 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.138 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.138 of 2020 stood transferred to this Tribunal and renumbered as TA No.505 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 is borrower, who had approached the applicant bank seeking financial assistance of purchase of house. The defendant had executed a loan document dated 19.07.2018 in favour of applicant bank.

5. The Applicant submits that pursuant to the request of the defendant, the applicant bank had sanctioned Housing Loan facility to the tune of Rs.58,00,000/- subject to the terms and conditions as envisaged under the Arrangement Letter dated 19.07.2018 and Memorandum of Loan Agreement for Home Loan granted to public herein and Agreement to Mortgage dated 21.07.2018. The defendant had executed Memorandum of Deposit dated 18.09.2018 and Confirmation Letter dated 19.09.2018 and Memorandum relating to Deposit of Title deeds dated 23.03.2019.

6. It is submitted by the applicant bank that in order to secure the loan, the defendant herein had executed the following loan documents in favour of applicant bank, thereby the defendant had acknowledged the said loan amount availed from the applicant bank. The defendant had undertaken to repay the loan amount in time without committing any default. i. Sanction Letter dated 19.07.2018 ii. Arrangement Letter dated 19.07.2018 iii. Memorandum of Loan Agreement for Home Loan granted to public dated 21.07.2018 iv. Agreement to Mortgage dated 21.07.2018 v. Memorandum of Deposit dated 18.09.2018 vi. Confirmation Letter dated 19.09.2018 vii. Memorandum Relating to Deposit of Title Deeds 23.03.2019

7. The applicant submitted that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 19.07.2018.

8. The applicant submits that subsequent to the disbursement of the aforesaid “Housing Loan” the defendant was not operating the account as per the terms and conditions.

9. It is submitted that they have been repeatedly making representation to the defendant to regularise the “Housing Loan” account but the defendant did not take any concrete steps to regularise the loan account or to repay the loan amounts. The defendant had been enjoying the Housing Loan facility ever since from the year of 2018 onwards but the defendant had not shown significant transactions to the utmost satisfaction of the applicant bank. As the defendant had failed to service the interest and principal due under the Housing Loan account consequently it has become Non-Performing Asset (NPA) on 18.08.2019 in the books of the applicant bank.

10. The applicant further submits that as the defendant had not operating the “Housing Loan” account and allowed it to become NPA, the applicant bank had sent Demand Notice under Section 13(2) of the SARFAESI Act dated 19.08.2019 to the defendant to repay the ‘Housing Loan’ amount together with accumulated interest but evoked no response from defendant. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

11. After the filing of the OA, summons was 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 05.08.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on05.08.2022.

Heard the submissions of Applicant Bank and perused the records.

12. To prove the case of the Applicant Bank, Sh. Saket Kumar, 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-12.

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

14. The defendant was set ex-parte on 04.08.2022, 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 defendant 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.

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.59,62,675/- (Rupees Fifty Nine Lakhs Sixty Two Thousand Six Hundred and Seventy Five only) due in respect of Home Loan(Account No. 37826861695) repayable together with further interest @ 8.75 % p.a. with monthly rests from the date of Application till the date of realization in full, along with costs of this application.

(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 properties morefully detailed in the OA schedule.

(c) OA Schedule shall be appended to this final order.

(d) If the sale proceeds of the immovable property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

(e) 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.

(f) 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 (Arti), transcribed by her, corrected, signed and pronounced by me on this the 10th day of August, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. Saket Kumar, Chief Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Description of Documents Exhibit No.

1. Sanction Letter dated 19.07.2018 A-1

2. Arrangement Letter dated 19.07.2018 A-2

3. Memorandum of Loan Agreement for Home Loan granted to public dated 21.07.2018 A-3

4. Agreement to Mortgage dated 21.07.2018 A-4

5. Memorandum of Deposit dated 18.09.2018 A-5

6. Confirmation Letter dated 19.09.2018 A-6

7. Memorandum relating to Deposit of Title Deeds (Doc. No.2117/2019) dated 23.03.2019 A-7

8. Sale Agreement dated 20.06.2018 A-8

9. Construction Agreement (Doc. No.4074/2018) dated 23.07.2018 A-9

10. Sale Deed executed by R. Viswanathan Power Agent M/s. Harini Constructions in favour of J. Muthulakshmi (Doc. No.4075/2018) dated 23.07.2018 A-10

11. Section 13(2) Notice dated 19.08.2019 A-11

12. Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 23.07.2018 to 11.12.2019 A-12

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 vacant house side, bearing Plot No.4, Measuring an Extent of 3,620 Sq Ft (2,795 Sq Ft + 825 Sq Ft), comprised in Survey No.25/1A, Patta No.8325, as Patta Sub-Division Survey No.25/1A2, in the layout named “Sri Meenakshi Nagar”, layout approved by C.M.D.A., P.P.D./L.O. No.98/2006, dated 25.09.2006, Vide Letter Permit No.2319/2006 and Vide E.O. Perungalathur Town Panchayat, Chennai-600063, Letter No.802/2005 dated 03.11.2006 situated in No.28 Perungalathur Village, Tambaram Taluk, Kancheepuram District. The building planning permit P.P.A. No.293/2013, dated 06.06.2013, Commissioner, Perungalathur Town Panchayat, Chennai – 600 063/ Member Secretary, C.M.D.A., Chennai-600008. Boundaries and Measurement for 2,795 Sq ft Bounded on the North by : Vacant Land in Survey No.250,

South by : Plot No.9 & 10, East by : Vacant Land, West by : Plot Nos.5, 6 and pathway Measuring on the North by : 29 Feet South by : 40 Feet East by : 84 Feet West by : 81 Feet

Boundaries and Measurement for 825 Sq ft Bounded on the North by : Vacant Land in Survey No.250, South by : Plot No.5, East by : Plot No.4 (part), West by : 24 Feet Road Measuring on the North by : 61 Feet South by : 60 Feet East by : 17 Feet 6 Inches West by : 10 Feet

The above property is situated within the Perungalathur Town Panchayat Limits and within the Registration District of Chennai South and Registration Sub-District of Padappai.

SCHEDULE “B” (Power given to M/s. Harini Constructions, represented by its Proprietrix Mrs. J. Rajeshwari) 2,852 Sq ft (265.05 Sq mt) undivided share of land in “A” schedule mentioned property.

SCHEDULE “C” 454 Sq ft (42.19 Sq Mt) undivided share of land in “B” schedule mentioned property with Built-up area of 1200 sq ft in Ground Floor including all its amenities, Flat No.G1, Plot No.4, “Sri Meenakshi Nagar”,No.28 Perungalathur Village, Tambaram Taluk, Kancheepuram District.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI