CORPORATION BANK vs Kokila on 17 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 09.09.2019 by Erstwhile Corporation Bank (since merged with Union Bank of India) 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.1,04,42,278.27p (Rupees One Crore Four Lakhs Forty Two Thousand Two Hundred and Seventy Eight and Twenty Seven Paise only) due in respect of Term Loan (A/c No. CHOME/15005/560631001770951) repayable together with further interest @10.80% 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. 822 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 822 of 2019 stood transferred to this Tribunal and renumbered as TA No. 1166 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 at the request of the defendants, the applicant bank sanctioned Term Loan of Rs.1,08,04,000/- and took over the existing liability of the defendants under Housing Loan availed by them for purchase of the schedule mentioned property from the ICICI Bank. The said loan as per Sanction Letter dated 31.08.2015 was agreed to the repaid in 167 monthly instalments of Rs.1,19,414/ with interest 9.90 % p.a. The terms and conditions contained in the Sanction Letter were accepted by the defendants and in token of their acceptance they signed therein.

5. It is submitted by the applicant bank that in order to secure the Term Loan, the defendants have executed the following documents:

a) Agreement for Term Loan (Housing) dated 09.09.2015 executed by the defendants for Rs.1,08,04,000/-.

b) Letter of undertaking/declaration from the defendants dated 09.09.2015 declaring interalia that they are not enjoying any credit facility from any other bank to insure the building mortgage etc authorizing the bank to debit their savings bank account agreeing to disclose their names to CIBIL or any other authority as may be specified by the RBI.

c) Affidavit cum Undertaking Letter signed by the defendants dated 09.09.2015.

d) Request for Disbursement Letter signed by the defendants dated 09.09.2015.

e) Memorandum of Deposit of Title Deeds dated 13.10.2015 registered as Doc. No. 12924 of 2015 confirming the Deposit of Title Deeds on 12.10.2015 executed by the defendants 1 and 2, who are the owners of the property set out in the schedule mortgaged to secure the Housing Loan and also the Working Capital facility and Bank Guarantee facility availed by M/s Sugesan Transport (P) Limited, for whom they stood as guarantors. The total amount availed by the defendants towards Housing Loan and the facilities of Sugesan Transport is Rs.16,08,04,000/-

f) Acknowledgement of Debt/Liability by the borrowers dated 31.01.2018 confirming the balance outstanding as on 31.01.2018 executed by the defendants and also acknowledging/confirming all other documents, securities and agreements including mortgage shall remain in force. The said document is given for the purpose of Section 18 of the Limitation Act.

6. The applicant submits that subsequent to availing of loan, the defendants were irregular in making payment of the installment of the Term Loan availed under Corp Home Loan facility. Since the defendants 1 and 2 created mortgage over the schedule mentioned property also for securing credit facilities to M/s Sugesan Transport (P) Ltd besides the security created to secure Home Loan, the applicant filed the OA against the defendants and M/s Sugesan Transport Pvt Ltd and the said OA is still pending. The documents relating to mortgage property are filed since the Term Loan for Housing is payable in instalments.

7. It is further submitted that subsequent to availing of aforesaid credit facilities, as the defendants failed to conduct the Term Loan account properly and committed breach of the terms and conditions, the loan was classified as Non-Performing Asset (NPA) on 12.02.2019 and a notice of demand dated 02.04.2019 under the provisions of the SARFAESI Act was issued to the defendants. Despite the said notice and even after taking possession by issuing a notice for possession 26.06.2019, the defendants did not make any payment. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

8. After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘Unclaimed’ in respect of D-1 to D-3, while summons to second address of D-1 to D-3 returned with postal endorsement as ‘Door locked’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 26.07.2021. Heard the submissions of Applicant Bank and perused the records.

9. To prove the case of the Applicant Bank, Mrs.Smitha, Chief 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-12.

10. 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 defendants.

11. The defendants were set ex-parte on 26.07.2021, 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.

12. 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 :

13. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a total sum of Rs.1,04,42,278.27p (Rupees One Crore Four Lakhs Forty Two Thousand Two Hundred and Seventy Eight and Twenty Seven Paise only) due in respect of Term Loan (A/c No. CHOME/15005/560631001770951) repayable together with further interest @10.80% 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 immovable property morefully detailed in the OA schedule.

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

(d) 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.

(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.

14. 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: Mrs. Smitha, Chief Manager of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 13.08.2015 Loan application A-1

2. 31.08.2015 Sanction intimation A-2

3. 09.09.2015 Agreement for term loan A-3

4. 09.09.2015 Letter of undertaking A-4

5. 09.09.2015 Affidavit- cum undertaking A-5

6. 09.09.2015 Request for disbursement of loan A-6

7. 31.08.2018 Acknowledgement A-7

8. 13.10.2015 Memorandum of deposit of title deeds A-8

9. 18.06.2014 Sale Deed registered as Document no.

A-9

10. 18.06.2014 Sale deed registered as Document no.9766/2014 A-10

11. 02.04.2019 Copy of notice under Sec.13(2) of SARFAESI act A-11

12. - Statement of accounts with BBE certificates A-12

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

:-SCHEDULE-: All that piece and parcel of flat bearing No. 19E & F having built up area measuring an extent of 2268sq.ft in the 19th floor of the building known as “SAPPHIRE” at Olympia Opaline (formerly Old Mahabalipuram Road) Rajiv Gandhi Salai, Chennai together with UDS of 116.43sq.ft out of land measuring 8629 sq.ft comprised in S. No. 20/3 part, 20/4 part and 21/1 part of Navallur village and 584.74 UDS of land out of 5,17,0952.2 sq.ft (11.86acres) comprised in S. Nos. 11/2, 13,15,19,20/3 ,20/4,20/5, 20/6,20/7, 21/2, 21/4A, 23/1, 24/1A, 24/2A, 30/1, 30/2, 30/3, 31/2, 31/3, 33, 34, 35/2, 38/1 of Navallur village, Chengalpet taluk, Kancheepuram district and land bounded on the North by: S. Nos. 8/1, 12,16,17,18,20,20/2A,20/2B3.20/2B3C and 22 South by: S. Nos. 21/3B, 21/4B, 23/2, 24/1B, 24/2B, 29/2, 31/1, 31/4B and 36/1B1 East by: Back waters of Bay of Bengal

West by: Rajiv Gandhi Salai (OMR) Within the Sub Registration District of Thiruporur and Registration District of Chengalpet

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI