STATE BANK OF INDIA vs VIJAYAKUMARI on 17 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 11.09.2020 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.53,86,695/- (Rupees Fifty Three Lakhs Eighty Six Thousand Six Hundred and Ninety Five only) due in respect of Home Loan (A/c No.37553884702) repayable together with further interest @ 8.35% 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.391 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 391 of 2020 stood transferred to this Tribunal and renumbered as TA No.318 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 seeking financial assistance for purchase of house. Considering the said request, the applicant bank had sanctioned the said Housing loan facility to the tune of Rs.45,00,000/- subject to the terms and conditions as envisaged under the arrangement letter dated 21.02.2018 and memorandum of loan agreement for home loan granted to public herein and agreement to mortgage dated 21.02.2018.

5. It is submitted that in order to secure the loan, the defendant executed the following loan and security documents on 21.02.2018 in favour of applicant bank:

(i) Sanction letter

(ii) Arrangement letter

(iii) Memorandum of loan agreement for home loan granted to public

(iv) Agreement to Mortgage

(v) Memorandum of deposit of title deeds

(vi) Confirmation letter dated 26.04.2018

6. The applicant bank submits that the defendant herein has executed the loan documents, thereby acknowledging the said loan amount availed from the applicant bank. The defendant undertook to repay the loan amount in time without committing any default.

7. It is submitted that though the defendant undertook to repay the loan amount together with interest per the terms and conditions of the Arrangement Letter dated 21.02.2018, subsequent to the disbursement of the aforesaid Housing loan, the defendant was not operating the account as per the terms and conditions. The applicant bank had been repeatedly making representations to the defendant to regularize the Housing loan account but the defendant did not take any concrete steps to regularize the loan account or to repay the loan amount.

8. The applicant bank further submits that the defendant had been enjoying the “Housing loan” ever since from the year of 2018 towards but had not shown significant transactions to the utmost satisfaction of the applicant bank. Consequently, the loan account was classified as Non- Performing Asset (NPA) in the books of the applicant bank on 21.09.2019.

The applicant bank sent Demand Notice under Section 13(2) dated 24.09.2019 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.

9. After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘No such person’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 06.05.2022. Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Mr. Saket Kumar, Manager of the Applicant Bank, filed 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

11. 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 defendant.

12. The defendant was set ex-parte on 06.05.2022, 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.

13. During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.25,45,000/- by way of sale of mortgaged immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.25,45,000/- was duly recorded vide proceedings dated 15.07.2025 and documents marked as Ex A-6 to A-8 were returned to applicant bank on 05.02.2025 under proper acknowledgement.

14. 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 :

15. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendant, a total sum of Rs.53,86,695/- (Rupees Fifty Three Lakhs

Eighty Six Thousand Six Hundred and Ninety Five only) due in respect of Home Loan (A/c No.37553884702) repayable together with further interest @ 8.35% 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.25,45,000/-realized by way of sale of mortgaged property is directed to be given credit to the borrower’s loan account as on date of realization.

(c) If the sale proceeds of the immovable property are 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.

(d) 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.

(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.

16. 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 17th day of September, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. Saket Kumar, Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 21.2.2018 Sanction letter A-1

2. 21.2.2018 Arrangement letter A-2

3. 21.2.2018 Memorandum of loan agreement for home loan granted to public A-3

4. 21.2.2018 Agreement to mortgage A-4

5. 25.4.2018 Memorandum of deposit A-5

6. 25.4.2018 Confirmation letter A-6

7. 22.1.2018 Construction agreement A-7

8. 26.2.2018 Sale deed executed by T. Rajendran in favour of G. Vijayakumar (Doc. No. 1851/2018) A-8

9. 24.09.2019 13(2)Notice and returned cover and Acknowledgment A-9

10. 22.02.2018 to 13.08.2020 Statement of account and certificate under Banker’s Book Evidence Act, 1891 A-10

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

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

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI