KARUR VYSYA BANK vs S JAYAKRISHNAN on 16 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 10.03.2021 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, 1993) against the defendants 1 to 3, jointly and severally for recovery of a total sum of Rs.25,16,880.24p (Rupees Twenty Five Lakhs Sixteen Thousand Eight Hundred and Eighty and Twenty Four Paise only) due in respect of Home Loan (A/c No.1257753000000988) repayable together with further interest @ 11.25% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of immovable property morefully detailed in schedule to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 187 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.187 of 2021 stood transferred to this Tribunal and renumbered as TA No.385 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 1st defendant approached the applicant bank in the year 2015 and requested for Happy Home Loan for a sum of Rs.20,24,000/- towards the purchase of residential plot and construction of individual house situated at Plot No.10, Purushotham Nagar, Veppampattu village, Thiruvallur Taluk.

5. The applicant bank, considering the request, sanctioned a sum of Rs.20,24,000/- vide Credit Sanction Intimation dated 20.02.2015 towards Home Loan. The said loan is repayable in 240 monthly instalments of Rs.20,548.23p each together with an interest @10.75% p.a. from the date of sanction till the date of payment in full, compounded with monthly rests or at such rates and rests as may be revised by the bank from time to time.

6. The applicant bank submits that the 1st defendant accepted the terms and conditions and executed the following necessary loan documents on 20.02.2015: i. Demand Promissory Note ii. Term Loan Agreement for Housing Finance

7. It is submitted that the second and third defendants stood as guarantor and executed Guarantee Agreement dated 20.02.2015 towards the loan availed by the first defendant. Besides that the first defendant had mortgaged the property at Veppampattu village vide Form of Memorandum of Registration dated 16.04.2015 registered as Doc. No. 4384/2015 as a security towards the loan availed which is morefully described in the schedule to the OA.

8. The applicant submits that the 1st defendant had executed Revival Letter dated 30.06.2018 reviving the Demand Promissory Note dated 20.02.2015 towards the loan availed. The applicant submits that even though the defendants had executed necessary documents towards the loan availed, the repayment towards the said loan was highly irregular and despite various demands and reminders made by the applicant bank, the defendants have failed and neglected to repay the amount dues. Therefore, the account had become Non-Performing Asset (NPA) on 03.10.2018 as per the RBI Norms.

9. It is submitted by the applicant bank that since the account turned into NPA, with no other option the applicant bank on 20.03.2019 had issued Demand Notice by initiating SARFAESI proceedings against the property that was given as a security towards the loan account. Further, the applicant bank had also taken symbolical possession of the property by issuing possession notice to the defendants on 04.09.2019. Inspite of the notices, the defendants did not come forward to settle the issues. Even after repeated reminders made by the applicant bank, the defendants have failed and neglected to repay the amount due. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

10. After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which were duly served in respect of D-1 and D-2, while summons to D-3 returned with postal endorsement as ‘Left’. Advocate Mr.P.Murugan appeared during hearing on 20.12.2021 and had undertaken to file Vakalat for D-1 to D-3. Despite receipt of copy of OA, defendants did not choose to file Written Statement, despite availing three adjournments. When OA was taken up on 26.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 26.09.2022. Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Sh. P.S. Sundaravarathan, Assistant General 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-10.

12. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-10 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 26.09.2022, 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.

14. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.25,25,000/- by way of sale of Schedule mentioned immovable property under SARFAESI Act on 29.02.2024. Accordingly, part satisfaction of sum of Rs. 25,25,000/- was duly recorded vide proceedings dated 12.90.2024 and documents marked as Ex A-5 and A-6 were returned to applicant bank on 17.10.2024 under proper acknowledgement.

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 Defendants 1 to 3 jointly and severally, a sum of Rs.25,16,880.24p (Rupees Twenty Five Lakhs Sixteen Thousand Eight Hundred and Eighty and Twenty Four Paise only) due in respect of Home Loan (A/c No.1257753000000988) repayable together with further interest @ 11.25% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this application.

(b) The sum of Rs. 25,25,000/- realized by way of sale of schedule immovable property is directed to be given credit to the borrower’s loan account as on date of realization.

(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 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.

(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.

17. 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 16th day of September, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. P.S.Sundaravarathan, Assistant General Manager of the Applicant Bank

Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 20.02.2015 Credit sanction intimation A-1

2. 20.02.2015 Demand promissory note A-2

3. 20.02.2015 Term loan agreement for housing finance A-3

4. 20.02.2015 Agreement for guarantee A-4

5. 16.04.2015 Form of memorandum for registration registered as Doc. No. 4384/2015 A-5

6. 25.02.2015 Sale deed registered as Doc. No.

A-6

7. 30.06.2018 Revival letter A-7

8. 20.03.2019 Demand letter A-8

9. 04.09.2019 Possession Notice A-9

10. - Statement of accounts A-10

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

:-SCHEDULE-: The mortgaged property has been sold under SARFAESI Act.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI