STATE BANK OF INDIA vs SWETADAS on 13 August 2026

: - FINAL ORDER- :

1. This Original Application is filed on 31.03.2022 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.44,62,274/- (Rupees Forty Four Lakhs Sixty Two Thousand Two Hundred and Seventy Four only) due in respect of Housing Term Loan (A/c No.383544162566) repayable together with further interest @7.50% 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.231 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 231 of 2022 stood transferred to this Tribunal and renumbered as TA No.331 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 them and submitted a proposal seeking for credit facility in the nature of Home Term loan. Considering the same the applicant’s RACPC Tambaram sanctioned a Home Term Loan of Rs.36.96 lakhs for the purpose of purchase of the schedule mentioned property vide Sanction

Letter dated 27.03.2019. The applicant submits that the loan was to be repaid in Equated Monthly Instalments of Rs.28,813/- each.

5. The applicant submits that in evidence of the borrowing and as security, the 1st defendant executed the following documents on 28.03.2019 in favour of applicant bank:

a) Arrangement letter

b) Memorandum of Loan agreement for loan granted to public.

c) Operations letter

6. It is submitted that on 08.04.2019, the defendant visited the office of the RACPC, Tambaram, Chennai and deposited the title deeds in respect of the schedule mentioned property with an intention to create an equitable mortgage over the same to secure the Home Loan. Memorandum relating to deposit of title deeds dated 08.04.2019 for the above mortgage came to be registered with the SRO, Padappai as Doc. No. 2492 of 2019.

7. The applicant submits that the defendant deposited the following documents on 08.04.2019 for the purpose of creation of equitable mortgage along with parent documents and Encumbrances Certificates:

a) Construction cum sale agreement dated 20.02.2019

b) Sale deed dated 08.04.2019

c) Construction agreement dated 08.04.2019.

8. It is submitted by the applicant bank that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the loan agreement mentioned above. The applicant bank further submits that subsequent to the disbursement of the aforesaid loan amount, the defendant was not operating the loan as per the terms and conditions of the security documents and failed to regularize the account despite repeated demands and representations made to them. The defendant made the last payment on 14.08.2020 for Home Loan credit facility.

9. The applicant bank further submits that they have been repeatedly making representations to the defendant to regularize the loan account but the defendant did not take any concrete steps to regularize the loan account or repay the loan amount. The defendant has been enjoying the credit facilities since 2019 and the defendant has not shown any significant transactions to the utmost satisfaction of the applicant bank which is in utter contravention of the promises given at the time of availing the loan. The applicant bank submits that since the defendant has failed to service the interest and principal due under the loan account, consequently it has become Non-Performing Asset (NPA) on 27.02.2020 in the books of the applicant and loan account is now transferred to Stressed Assets recovery branch (SARB) in terms of the internal policy of the bank and as per the guidelines of Reserve Bank of India.

10. The applicant bank submits that since the defendant was not operating the loan accounts and allowed it to become NPA they have sent letter/representations to the defendant to repay the loan amount together with accumulated interest but evoked no response from their end. The applicant bank submits that the above O.A. does not preclude the applicant bank from initiating SARFAESI proceedings against the defendant.

11. The applicant submits that the defendant is liable to pay a sum of Rs.44,62,247/- as on 25.03.2022 together with future interest and rests in respect of above Home loan as evidenced from the statement of accounts filed along with this O.A. The applicant bank had sent Demand Notice dated 15.03.2022 to the defendant, despite which the defendant did not come forward to repay the dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

12. After the filing of the OA, summons were sent all three address of the Defendant through Registered Post with Acknowledgment Due, which was duly served at one address, while at other two addresses returned with postal endorsement ‘No such person’. When OA was taken up on 08.09.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 08.09.2023. Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Ms. D. Sophia Sri Ranjani, City Case Officer 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-12.

14. 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.

15. The defendant was set ex-parte on 08.09.2023, but till this day she 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.

16. 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 :

17. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendant, a total sum of Rs.44,62,274/- (Rupees Forty Four Lakhs Sixty

Two Thousand Two Hundred and Seventy Four only) due in respect of Housing Term Loan (A/c No.383544162566) repayable together with further interest @7.50% 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 Defendant 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 Defendant 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.

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

18. 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 13th day of August, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Ms. D. Sophia Sri Ranjani, City Case Officer of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 03.10.2023 Proof Affidavit A-1

2. 03.10.2023 Index to documents filed by the applicant A-2

3. 27.03.2019 Sanction letter A-3

4. 28.03.2019 Arrangement letter A-4

5. 28.03.2019 Memorandum of loan agreement for home loan granted to public A-5

6. 28.03.2019 Operations letter A-6

7. 07.04.2019 Memorandum relating to deposit of title deeds Doc. No. 2492/2019 A-7

8. 20.02.2019 Construction cum sale agreement A-8

9. 08.04.2019 Sale deed Doc. No. 2491/2019 A-9

10. 08.04.2019 Construction agreement Doc. No.

A-10

11. - Statement of accounts with bankers Book evidence certificate A-11

12. 15.03.2022 Demand notice under SARFAESI Act A-12

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

:-SCHEDULE OF PROPERTY-:

All that piece and parcel of residential flat bearing Flat No.S1, in the second floor, having a total built up area of 887sq.ft or thereabouts (including of common area including a car parking also) together with an undivided share of 479 sq.ft and interest in all that piece and parcel of the vacant plot beating Plot Nos. 1 & 2, Church street, Manavalan Nagar, measuring an extent of 3625 sq.ft comprised in Old S.No. 338, as per patta 315, Sub Division Survey No. 338/2 situated at Old No.167, New No. 28, Perundalathur village, Tambaram taluk, Kancheepuram District bounded on the North by: Schedule C Item No.2 Vacant land South by: Survey No.338 East by: Survey No. 287 West by: 20 feet road Admeasuring Northern side: 72 feet Southern side: 73 feet Eastern side: 50 feet Western side: 50 feet

Land with building with all rights of enjoyments of common facilities in the building, stair case together with open area along with electricity, water and drainage, fittings etc and the property situated within the Registration District of South Chennai and Sub-Registration District of Padappai.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI