UNION BANK OF INDIA vs KARTHIKEYAN on 29 September 2026

: - FINAL ORDER- :

1. This Original Application is filed on 31.12.2019 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 and 2, jointly and severally for recovery of a total sum of Rs.42,05,506.87p (Rupees Forty Two Lakhs Five Thousand Five Hundred and Six and Eighty Seven Paise only) due in respect of Housing Loan (A/c No.055730100019421) repayable together with further interest @ 10.25% p.a. with monthly rests along with penal interest @2% p.a. 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.15 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.15 of 2022 stood transferred to this Tribunal and renumbered as TA No.637 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 defendants have approached the applicant bank vide application dated 26.03.2015 seeking financial assistance in the form of Housing Loan. Considering the said request, the applicant sanctioned Housing Loan limit of Rs.25 Lakhs to the defendants vide Sanction Letter No.2522/23HL/720 dated 26.03.2015 with Primary security of equitable mortgage of land and building named as built up area of 983sq.ft including common area and together with 582 Sq.ft UDS out of total extent of 3246 sq.ft located at F1, first floor, Plot No.97-B, Bhavanipuram Main Layout, Karayampedu Village, Chengalpattu

Taluk, Kancheepuram District belonging to defendants. The applicant communicated the Sanction Letter to the defendant on 26.03.2015. The second stood as Co-applicant.

5. It is submitted by the applicant bank that in order to secure the loan, defendants executed Composite Agreement dated 27.03.2015 for Rs.25 lakhs in favour of applicant agreeing to the terms and conditions. Demand Promissory Note for Rs.26 lakhs dated 27.03.2015 was executed by the defendants in favour of applicant. Document R.F.256 dated 27.03.2015 executed by the 1st defendant, expressing their intention to offer the property as security. Memorandum of deposit of title deeds dated 30.03.2015 executed by 1st defendant in favour of applicant for amount of Rs.25 lakhs vide Doc. No. 4130/2015, R.F.255 dated 18.04.2015 executed by 1st defendant in favour of applicant confirming the deposit of the title deeds made on 30.03.2015.

6. The applicant bank submits that subsequent to availing of loan, the repayment of the said loan was not made as per the terms and conditions of loan documents executed by defendants. The defendants are in default in respect of default of the above said debt and the account has been classified by the applicant bank as Non Performing Asset (NPA) on 26.09.2016. The applicant through Authorized Officer issued Demand Notice dated 23.10.2017 under Sec.13(2) of SARFAESI Act, to the borrower/mortgagor demanding payment of Rs.29,67,731.18p as on 21.11.2016 with subsequent interest within 60 days from the date of notice dated 21.11.2016 and the same was received on 25.11.2016 by the

1st defendant as per endorsement. Although the said period of 60 days from the date as prescribed, the defendants have not come forward to repay the secured debt.

7. The applicant bank further submits that in terms of Rule 8, the prescribed Possession Notice under Sec.13(2) of the Act is issued on 25.01.2017, which was duly served and the acknowledgement card of possession notice of the defendants was received on 28.01.2017.

8. It is submitted by the applicant bank that they are entitled to the interest at the rate of 10.25% p.a. on the amount due. The present rate of interest at 10.25% p.a. and further interest at 2% towards additional interest both monthly compounded from the applicant till realization. As the defendants failed and neglected to pay the loan amount due inspite of repeated demands and reminders, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

9. After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘Unclaimed’ 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 12.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 12.09.2022.

Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Sh. J. Vetriselvan, 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-14.

11. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 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.

12. The defendants were set ex-parte on 12.09.2022, 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.

13. 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 :

14. 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.42,05,506.87p (Rupees Forty Two Lakhs Five Thousand Five Hundred and Six and Eighty Seven Paise only) due in respect of Housing Loan (A/c No.055730100019421) repayable together with further interest @ 10.25% p.a. with monthly rests along with penal interest @2% p.a. 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.

15. 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 29th day of September, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. J. Vetriselvan, Chief Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 26.03.2015 Andhra Bank Zonal office sanction letter A-1

2. 26.03.2015 Andhra Bank T. Nagar branch sanction letter A-2

3. 27.03.2015 Composite agreement A-3

4. 27.03.2015 Demand promissory note A-4

5. 27.03.2015 RF 256 executed by defendants A-5

6. 30.03.2015 Memorandum of deposit of title deeds executed by 1st defendant in favour of Union Bank of India erstwhile Andhra Bank T. Nagar for Rs.25 lakhs Doc. No.

A-6

7. 18.04.2015 RF 255 executed by 1st defendant in favour of Union Bank of India erstwhile Andhra Bank T.Nagar confirming the A-7

deposit of title deeds made on 30.03.2025

8. 21.11.2016 Demand notice A-8

9. 25.01.2017 Possession notice A-9

10. 23.10.2017 30 days sale notice A-10

11. 30.03.2015 Sale deed executed by S. Ameena Bee in favour of 1st defendant Doc. No.

A-11

12. 30.03.2015 Agreement for construction Doc. No.

A-12

13. 21.07.2017 E-auction notice A-13

14. 01.11.2019 Statement of account A-14

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

:-SCHEDULE ‘A’-: All that piece and parcel of vacant land bearing Plot No. 97B measuring to an extent 3246sq.ft connected to road 10 feet x 64 feet passage measuring 640 sq.ft in all total extent of 3886sq.ft in Bhavanipuram Main Layout comprised in Old Patta No. 3104 as per New Patta No. 5024, the New Survey No. 392/36 situated in Karayambedu village, Chengalpattu taluk, Kancheepuram district and Bounded on the North by: Plot No.94 & 95 part South by: Vacant land East by: Vacant land West by: Plot No. 97A & 10 feet Wide pathway connected from this plot to road Having linear measurement North to south on the Eastern side: 62 feet 0 inches North to south on the Eastern side: 62 feet 6 inches East to West on the Northern side: 50 feet and 0 inches East to West on the Southern side: 50 feet and 0 inches

And connected passage 10’x64’= 640 sq.ft The above property is situated within the limits of Karayambedu village Panchayat and within the jurisdiction of Sub Registration DT of Chengalpet Joint-II SRO and Registration Dt of Chengalpet SCHEDULE ‘B’ 582sq.ft of undivided share in the land 3246 sq.ft morefully described in the schedule ‘A’ property SCHEDULE ‘C’

Flat No.F1 located in the 1st floor measuring 983sq.ft include common area.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI