STATE BANK OF INDIA vs KALAISELVI on 23 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 14.10.2020 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, 1993) against the Defendants 1 and 2, for recovery of a total sum of Rs.1,77,51,109/- (Rupees One Crore Seventy Seven Lakhs Fifty One Thousand One Hundred and Nine only) due in respect of

Housing Loan (A/c No.37966144373) repayable together with further interest @ 9.10% 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 the schedule to the OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.68 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 68 of 2021 stood transferred to this Tribunal and renumbered as TA No.1041 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 had approached the applicant bank seeking financial assistance for construction of house vide application dated 09.08.2018. The applicant bank, considering the said request, sanctioned Housing Loan amount of Rs.1,88,00,000/-. The said loan is repayable with interest at the rate of 9.10% p.a. and secured by mortgage of immovable property described in the schedule to the OA.

5. The applicant bank submits that in terms of the said sanction, the defendant, on 25.09.2018 at Sholinganallur, had executed the following security documents in favour of the applicant bank:

a) Letter of Arrangement for accepting terms and condition

b) Memorandum of loan agreement for home loan

c) Operation Letter in favour of applicant bank confirming execution of agreement

d) Deed of Undertaking in favour of applicant bank

e) Stamped Agreements to mortgage confirming executing mortgage in applicant bank

f) Memorandum of deposit in favour of applicant bank confirming executing title deeds in favour of applicant bank

g) General power of attorney dated 29.05.2018

h) Sale agreement dated 16.08.2018.

6. The applicant bank submits that loan is secured by equitable mortgage of the OA schedule property and the defendants have executed Memorandum of deposit of title deeds dated 25.09.2018 in favour of applicant bank.

7. It is submitted by the applicant bank that subsequent to availing of loan, the defendants were not regular in repayment of installments and thus committed default. Consequently, the loan account turned into Non Performing Asset (NPA) on 25.01.2020 and despite repeated requests to the defendants to regularize the account went vain. The defendant neither cared nor bothered to repay the amount. Inspite of various meetings and discussions the defendant neither regularized the account nor closed the loan account. The defendant had promised to repay the amount but neglected to keep up the promise. 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 and 2 through Registered Post with Acknowledgment Due, which were returned with postal endorsement as ‘Left’ in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 30.11.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 30.11.2021. Heard the submissions of Applicant Bank and perused the records.

9. To prove the case of the Applicant Bank, Mr. A. Maniraja, Manager, RACPC, OMR Chennai 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-13.

10. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-13 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 30.11.2021, 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 and 2, a total sum of Rs.1,77,51,109/- (Rupees One Crore Seventy Seven Lakhs Fifty One Thousand One Hundred and Nine only) due in respect of Housing Loan (A/c No.37966144373) repayable together with further interest @ 9.10% 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) 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 Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

(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.

(g) 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 the23rd day of September, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. A. Maniraja, Manager, RACPC, OMR Chennai of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 25.09.2018 Loan application A-1

2. 25.09.2018 Sanction letter A-2

3. 25.09.2018 Arrangement letter A-3

4. 25.09.2018 Memorandum of loan agreement for home loan A-4

5. 25.09.2018 Operation letter A-5

6. 25.09.2018 Deed of undertaking in favour of applicant bank A-6

7. 25.09.2018 CIBIL A-7

8. 25.09.2018 Stamped agreement to mortgage A-8

9. 25.09.2018 Memorandum of deposit in favour of applicant bank A-9

10. 25.09.2018 General power of attorney A-10

11. 16.08.2018 Sale agreement A-11

12. 26.09.2018 Sale deed Doc.No. 5669/2018 A-12

13. - Statement of accounts A-13

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

:-SCHEDULE OF PROPERTY-: All that piece and parcel of land property at Madipakkam village, Sholinganallur taluk and Kancheepuram dist Ram Nagar South, Comprised in S. No. 123, bearing Plot No. 1236 measuring an extent of 4800sr.ft now measuring 3520 sq.ft and being bounded on the North by: Plot No. 1235 South by: XVI Main road East by: Plot No. 1238

West by: Plot No. 1234 Measuring on the

North by: 44 feet South by: 44 feet East by: 80 feet West by: 80 feet And situated within the registration District of Chennai-South and Sub Registration District of Velacherry.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI