STATE BANK OF INDIA vs RAJAN on 6 October 2026

: - FINAL ORDER- :

1. This original application is filed on 29.01.2020 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.41,65,308/- (Rupees Forty One Lakhs Sixty Five Thousand Three Hundred and Eight only) due in respect of Home Loan (A/c No.36928388312) repayable together with further interest @9.00% 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. 140 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.140 of 2020 stood transferred to this Tribunal and renumbered as TA No.1400 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 is borrower, who had approached the applicant bank seeking for Housing Loan for purchase of immovable property. The defendant had executed a loan document dated 24.05.2017 in favour of the applicant bank.

5. It is submitted that pursuant to the request of the defendant, the applicant bank had sanctioned Housing Loan facility to the tune of Rs.37,00,000/- subject to the terms and conditions as envisaged under the Arrangement Letter dated 05.07.2017 and Memorandum of Loan Agreement for Home Loan granted to public. The defendant had executed Confirmation Letter dated 10.10.2017.

6. The applicant bank submits that in order to secure the loan, the defendant had executed the following loan documents thereby acknowledging the said loan availed from the applicant bank. The defendant had undertaken to repay the loan amount in time without committing any default. i. Sanction letter dated 24.05.2017 ii. Arrangement letter dated 05.07.2017 iii. Memorandum of loan agreement for home loan granted to public dated 05.07.2017 iv. Agreement to mortgage dated 05.07.2017 v. Memorandum of deposit dated 09.10.2017. vi. Confirmation letter dated 10.10.2017.

7. The applicant submits that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 05.07.2017. The applicant bank submits that subsequent to the disbursement of the “Housing loan” the defendant did not operate the account as per the terms and conditions.

8. The applicant bank submits that they have 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 amounts. The defendant had been enjoying the Housing loan facility ever since the year 2017 onwards but the defendant had not shown significant transactions to the utmost satisfaction of the applicant bank.

9. The applicant bank further submits that since the defendant had failed to service the interest and principal due under the Housing loan account, consequently it has become Non-Performing Asset (NPA) on 24.05.2018 in the books of the applicant bank.

10. The applicant bank submits that since the defendant had not been operating the Housing loan account and allowed it to become NPA, the applicant bank had sent Demand Notice to the defendant to repay the loan amount together with accumulated interest but evoked no response from defendant. The defendant is liable to pay a sum of Rs.41,65,308/- as on 17.12.2019 together with future interest and the statement of account is filed along with this O.A. Despite repeated requests and demands, as defendant did not come forward to repay the dues, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

11. After the filing of the OA, summons was sent to the Sole 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 12.05.2022 even after giving sufficient time, there was no appearance or representation from the Defendant. Hence, Defendant was placed ex-parte on 12.05.2022. Heard the submissions of Applicant Bank and perused the records.

12. To prove the case of the Applicant Bank, Mr. Saket Kumar, Manager, RACPC, MRC Nagar Branch 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.

13. 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 Defendant.

14. The Defendant was set ex-parte on 12.05.2022, 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.

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 Defendant, a sum of Rs.41,65,308/- (Rupees Forty One Lakhs Sixty Five Thousand Three Hundred and Eight only) due in respect of Home Loan (A/c No.36928388312) repayable together with further interest @9.00% 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 Defendant 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 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.

(e) 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.

(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.

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 06th day of October, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr.Saket Kumar, Manager, RACPC, MRC Nagar Branch of the Applicant Bank. Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 10.05.2017 Loan application A-1

2. 24.05.2017 Sanction letter A-2

3. 05.07.2017 Arrangement letter A-3

4. 05.07.2017 Memorandum of loan agreement for home loan granted to public A-4

5. 05.07.2017 Agreement to mortgage A-5

6. 09.10.2017 Memorandum of deposit A-6

7. 10.10.2017 Confirmation letter A-7

8. 27.02.2017 Agreement of sale A-8

9. 27.04.2017 Construction agreement A-9

10. 04.07.02017 Sale deed executed by S.M.Charles in favour of P.Rajan (Doc.No.3647/2017) A-10

11. 02.06.2018 13(2) Notice A-11

12. 06.06.2017 to 17.12.2019 Statement of account and certificate under Banker’s Book Evidence Act,

A-12

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

:-SCHEDULE-: All that piece and parcel of property being vacant land of an extent of 2190 Sq.ft comprised in Survey No.611/1B1A as per patta No.TK8A/1663/1420 dated 09.12.2012 Town Survey No.17/4, ward- C, Block No.3 situated in Madhavaram village bearing Plot No.2 in Anna nagar first street Mettupalayam formerly Reddy III cross street, Madhavaram, taluk, Thiruvallur district within the limits of Chennai Corporation Admeasuring: East to West on the Northern side: 87 feet, East to West on the Southern Side: 95 feet 6 inches, North to South on the Eastern side: 24 feet, North to South on the Western side: 24 Feet. Bounded on the

North by: Plot No.1, South by: Plot No.3, East by: Survey No.611/1B1B, West by: Survey No.611/1A1 SCHEDULE-B

438 Sq.ft undivided share (out of 2190 square feet) in all that piece and parcel of land described in the schedule ‘A’ herein above

SCHEDULE-C Flat bearing No.SF-2 in the second floor of the building measuring 922 square feet (Inclusive of common area) known as “VETHATHIRI FLATS”.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI