FEDERAL BANK vs Sudish on 8 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 20.11.2023 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.61,12,834.57p (Rupees Sixty One lakhs Twelve Thousand Eight Hundred and Thirty Four and Fifty Seven paise) as follows: i. A sum of Rs.49,91,342.57p due in respect of Housing Loan (A/c No. 12827300201102) repayable together with further interest @11.63% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.11,21,492/- due in respect of Personal Loan (A/c No.12827600106324) repayable together with further interest @16.50% 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. Brief Facts of the case:

2. 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.

3. It is the case of the applicant bank that the 1st defendant had availed Housing Loan from the applicant on 07.05.2014. The second defendant was the co-applicant/co-borrower. The loan was sought for the purchase of the schedule A and B mentioned property. The property in schedule B is a residential flat constructed on the schedule A land consisting of 4656sq.ft where the share of the defendants is UDS of 468sq.ft.

4. It is submitted by the applicant bank that the applicant approved the Housing Loan and gave the defendant Sanction Letter dated 07.05.2014, wherein the defendants were communicated the sanction of Rs.29,60,000/- repayable with interest at the rate of 10.55% p.a. (Floating rate) in 240 EMI’s at Rs.29,652/- per month. The defendants accepted the terms and signed the Sanction Communication Letter and executed other loan documents. The loan amount was later used for the purchase of the schedule A and B mentioned property.

5. The applicant submits that the above said credit facility was sanctioned against the primary security of the undivided share of 468sq.ft of land comprised in the schedule A property and flat constructed on the schedule A property which is morefully described in the schedule B.

6. In evidence thereof and as security the defendants executed amongst others the following loan documents on 07.05.2014 in favour of the applicant bank:

a) Sanction communication letter signed by the borrowers

b) Application for home loan

c) Demand promissory note

d) Security delivery letter

e) Federal housing scheme agreement

f) Memorandum of deposit of title deeds dated 25.07.2014

7. In furtherance of 5(f) the defendants have created a charge on their property mentioned in schedule A and B thus creating a valid security interest in favour of the applicant. The documents were executed by the defendants by depositing the title deeds and creating equitable mortgage by memorandum of deposit of title deeds. The said MOD was also duly registered as Doc.No.5619/2014 dated 25.07.2014 at the office of Sub Registrar at Pammal in favour of the applicant. The mortgage by deposit of title deeds was executed and registered as per law and hence forms a fully valid security interest in favour of the applicant under the loan agreement executed by the defendants. Therefore, the applicant is legally entitled to enforce the security interest in its favour in order to recover its dues.

8. It is the further case of the applicant bank that the 1st defendant also applied for a personal loan under the BYOM scheme digitally on 25.01.2017. The applicant bank approved the personal loan, which was digitally acknowledged by the defendants though OTP verification wherein the defendants were communicated the sanction of Rs.5,00,000/- repayable with interest at the rate of 14.50% p.a. (Floating rate) in 48 EMI at Rs.13,778/- per month. The defendants accepted the terms and signed the sanction communication letter and executed the other loan documents. The loan amount was later used to meet personal expenses of the defendant.

9. The applicant submits that subsequent to availing of loan, the defendants have defaulted in repayment of the dues. Consequently, the loan account bearing No.12827300201102 had been classified as Non Performing Asset (NPA) as on 26.12.2017 and the loan account No.12827600106324 has been classified as Non Performing Asset (NPA) as on 26.12.2017 in the books of accounts of the applicant.

10. The applicant sent a Recall Notice dated 31.05.2023 demanding a sum of Rs.49,03,168.57p being the balance outstanding on the Housing Loan as on 08.05.2023 to be paid back in respect of loan A/c No.12827300201102 and demanding a sum of Rs.10,99,533/- being the balance outstanding of the personal loan as on 26.05.2023 to be paid back in respect of loan account No.12827600106324. Despite the recall notice, no reply was received from the defendants nor any payment made into the credit of the loan account even after the expiry of 7 days which was the time stipulated in the recall notice.

11. The applicant submits that non-payment of the dues by the defendants is a deliberate attempt on their part to avoid repayment of the loan together with applicable interest. Since the applicant is a Public institution and Trustee of the public money, it is necessary that the applicant makes all attempts to legally enforce the payment of dues by the defendants. Hence it becomes just imperative that the applicant should proceed against the defendants personally also in order to enforce payment of its legal dues. As the defendants did not choose to repay in 7 days or respond to the Recall Notice, hence

12. 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 ‘No such Person’ 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 25.11.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 25.11.2024. Heard the submissions of Applicant Bank and perused the records.

13. To prove the case of the Applicant Bank, Ms. Ragini K, Associate Vice President 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.

14. 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.

15. The defendants were set ex-parte on 25.11.2024, 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.

16. During the pendency of OA, Applicant Bank had filed part satisfaction memo reporting recovery of a sum of Rs.29,21,000/- by way of sale of Schedule immovable property A & B under SARFAESI Act on 14.02.2025.

17. 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 :

18. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, a total sum of Rs.61,12,834.57p (Rupees Sixty One lakhs Twelve Thousand Eight Hundred and Thirty Four and Fifty Seven paise) as follows: i. A sum of Rs.49,91,342.57p due in respect of Housing Loan (A/c No. 12827300201102) repayable together with further interest @11.63% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.11,21,492/- due in respect of Personal Loan (A/c No.12827600106324) repayable together with further interest @16.50% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

(b) The sum of Rs.29,21,000/- realized by way of sale of schedule A & B immovable 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 is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 1st and 2nd Defendants (both movable and immovable) to recover the balance dues as required under law for which the 1st and 2nd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the 1st and 2nd Defendants.

(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.

19. 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 08th day of October, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Ms. Ragini K, Associate Vice President of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 07.05.2014 Sanction letter for Home loan- 12827300201102 A-1

2. 07.05.2014 Federal Housing loan agreement A-2

3. 07.05.2014 Demand promissory note A-3

4. 07.05.2014 Security delivery letter A-4

5. 07.05.2014 Sale deed (Doc.No.3291 of 2014) A-5

6. 25.07.2017 Memorandum of deposit of title deeds A-6

7. 25.07.2017 Documents of personal loan- 12827600106324 A-7

8. 29.08.2017 Confirmation of balance as on 28.08.2017 A-8

9. 25.08.2020 Confirmation of balance as on 24.08.2020 A-9

10. 31.05.2023 Recall notice A-10

11. 08.07.2023 Statement of accounts with interest calculation-12827300201102 A-11

12. 08.07.2023 Statement of accounts with interest calculation-12827600106324 A-12

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

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

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI