STATE BANK OF INDIA vs Sugumar on 13 October 2026

: - FINAL ORDER- :

1. This Original Application is filed on 16.04.2019 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.24,49,895.95/- (Rupees Twenty Four Lakhs Forty Nine Thousand Eight Hundred and Ninety Five and Ninety

Five Paise only) as follows: i. A sum of Rs.24,24,189.55p due in respect of Housing Loan (A/c No.65251017877) repayable together with further interest @ 9.6% p.a. with monthly rests from the date of Application till the date of realization in full, ii. A sum of Rs.25,706.40p due in respect of Additional Housing Loan Insurance (A/c No.65251017888) repayable together with further interest @ 9.7% p.a., with monthly rests from the date of Application till the date of realization in full; for sale 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.531 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.531 of 2019 stood transferred to this Tribunal and renumbered as TA No.1431 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. The applicant submits that the 1st defendant approached the

applicant bank during the February, 2016 seeking a housing loan for purchasing Flat No.S1, Plot No.8, Sakthi Gardens, Adhanoor village, Sriperumbudur taluk, Kancheepuram district morefully described in schedule hereunder. As per the request a housing loan of Rs.20,00,000/- along with Rs.43,665/- towards funding of home loan insurance cover totalling to Rs.20,24,665/- was sanctioned to the 1st defendant by the State Bank of Patiala, Ambal Nagar branch by way of arrangement letter dated 20.02.2016. The 2nd defendant is the guarantor for the said loan availed by the 1st defendant. The defendants executed the following documents towards the aforesaid loan: i. Memorandum of agreement for home loan granted to public dated 20.02.2016 executed by the 1st defendant ii. Agreement for additional housing loan insurance premium amount dated 20.02.2016 for the additional loan of Rs.45,665/- executed by the 1st defendant iii. Guarantee agreement dated 20.02.2016 executed by the 2nd defendant

5. The dues under the aforesaid loan are repayable in 240 equated monthly instalments of Rs.18,971/- each together with interest at 0.10 % above the base rate. The effective rate of interest on the date of availing the loan was 9.75% p.a. The rate of interest is subject to changes from time to time in accordance with the directions of the Reserve Bank of India. The present rate of interest is 9.6% p.a. towards the dues under the housing loan and 9.7% p.a. towards the dues under the additional

housing loan for insurance.

6. The dues under the aforesaid loan are secured by equitable mortgage of the schedule property belonging to the 1st defendant created by deposit of title deeds made on 23.02.2016 confirmed by a memorandum relating to deposit title deeds dated 23.03.2016 registered as Doc.No.1919 of 2016 in the office of the Sub Registrar of Guduvancherry, The 1st defendant deposited the following documents towards the said equitable mortgage i. Agreement for construction dated 22.01.2016 presented on 23.02.2016 for registration and registered as Doc.No.1917 of 2016 in the office of Sub-Registrar of Guduvanchery. ii. Sale deed dated 23.02.2016 registered as Doc.No.1918 of 2016 in the office of Sub-Registrar of Guduvanchery executed in favour of the 1st defendant

7. The 1st defendant was never regular in repayment of the monthly instalments and was making part payments on and off on various dates between 18.03.2016 to 20.07.2017 and the account became Non Performing asset on 31.05.2017. The applicant bank issued a notice dated 13.04.2018 under Section 13(2) of the SARFAESI Act demanding repayment and also a possession notice dated 25.06.2018 under Section 13(4). The defendants received the notice but failed to make any payment.

8. As per the statement of accounts of the applicant bank a sum of Rs.24,49,895.95/- as on 15.04.2019 is due and payable towards the loans

availed by the 1st defendant together with interest at 9.6% with monthly rests from 16.04.2019 on Rs.24,24,189.55/- being the dues under the housing loan and at 9.7% with monthly rests from 16.04.2019 on Rs.25,706.40/- being the dues under the additional housing loan for insurance till payment in full. The 1st defendant as the borrower and the 2nd defendant as the guarantor are jointly and severally liable to pay the aforesaid sums. Hence, 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 ‘Intimation delivered’ 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 20.10.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 20.10.2021. Heard the submissions of Applicant Bank and perused the records.

10. To prove the case of the Applicant Bank, Mr. D. Parthasarathi, 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-8.

11. A careful examination of the pleadings in the Proof Affidavit and

documents Exhibits A-1 to A-8 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 20.10.2021, 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.

13. The applicant bank in Proof Affidavit para 6 had submitted that the OA schedule mentioned property was sold by the applicant bank under SARFAESI Act and a sum of Rs.15,25,000/- was recovered vide sale certificate dated 28.08.2019.

14. 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 :

15. 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.24,49,895.95p (Rupees Twenty Four Lakhs Forty Nine Thousand Eight Hundred and Ninety Five and Ninety Five Paise only) as follows: i. A sum of Rs.24,24,189.55p due in respect of Housing Loan (A/c No.65251017877) repayable together with further interest @ 9.6% p.a. with monthly rests from the date of Application till the date of realization in full, ii. A sum of Rs.25,706.40p due in respect of Additional Housing Loan Insurance (A/c No.65251017888) repayable together with further interest @ 9.7% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

(b) The sum of Rs.15,25,000/- realized by applicant bank by way of sale of secured asset under SARFAESI Act is directed to be given credit to the borrower’s loan account as on the date of realization.

(c) 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.

(d) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

(e) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

16. 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 13th day of October, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Mr. D. Parthasarathi, Chief Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 20.02.2016 Sanction letter A-1

2. 20.02.2016 Memorandum of agreement of home loan granted to public A-2

3. 20.02.2016 Agreement for additional housing loan A-3

4. 20.02.2016 Guarantee agreement A-4

5. 13.04.2018 Notice under S.13 (2) of SARFAESI Act with acknowledgement cards A-5

6. 25.06.2018 Notice under S.13 (2) of SARFAESI Act with acknowledgement cards A-6

7. 20.02.2016 to 15.04.2019 Statement of accounts (Housing loan) A-7

8. 20.02.2016 to 15.04.2019 Statement of accounts(additional Housing loan) A-8

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

:-SCHEDULE-: Mortgaged property has been sold under SARFAESI Act.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI