STATE BANK OF INDIA vs Deepa on 6 November 2026

: - FINAL ORDER- :

1. This Original Application is filed on 11.03.2019 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, for recovery of a total sum of Rs.16,17,032/- (Rupees Sixteen Lakhs Seventeen Thousand and Thirty Two only) due in respect of SBI Car loan (A/c

No.36816459542) repayable together with further interest @ 10% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of hypothecated vehicle morefully detailed in the OA schedule and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.419 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 419 of 2019 stood transferred to this Tribunal and renumbered as TA No. 141 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 approached the applicant bank at its Branch Office in Velacherry, Chennai District for availing Car Loan facility and submitted their loan application on 27.04.2017 along with Proforma Invoice dated 19.04.2017. The applicant considered the proposal and sanctioned a sum of Rs.14,20,000/- under Auto Loan - SBI Car Loan scheme, sanctioned through Arrangement Letter dated 27.04.2017 was issued referred as said facility on the terms and conditions mentioned.

5. On accepting the terms and conditions of sanction letter and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the defendant signed and executed the loan documents in favour of the applicant. The defendant availed the said loan from the applicant and has become liable to repay the said loan amounts with the agreed rate of interest as per the RBI guidelines, which is at the time of availing the loan is 8.75% p.a. on daily balance with monthly rests which is repayable on demand. Such interest being added to the balance outstanding on the amount advanced. In case of any default in payment of any installment or irregularity in repayment penal interest over the agreed interest rate with monthly yearly rests will be charged for the overdue amount. Further the applicant bank is entitled to charge higher or lesser rate of interest than above stated the contractual interest rates with monthly rest as per the rule of Reserve Bank of India in force from time to time or State Bank of India Primary lending rate as notified. The defendant is deemed to have notice of changes in the rate of interest whenever the changes are notified by the bank.

6. The applicant bank submits that while availing loan, the defendant executed the following documents in favour of the applicant such as Operations Letter dated 27.04.2017, Loan cum Hypothecation Agreement dated 27.04.2017.

7. It is submitted by the applicant bank that the defendant hypothecated the car purchased out of bank loan and submitted the Vehicle Delivery Letter and Copy of Certificate of Registration dated 02.05.2017 for the vehicle morefully described in the Schedule A to the

OA.

8. The applicant bank submits that after availing the said loan amount from the applicant, the defendant failed and neglected to repay the same with interest and other charges. Therefore, as per the statement of account the principal and interest in the account was accumulating and as on 27.01.2019 a sum of Rs.16,17,032/- as book balance including accrued interest as principal and interest payable.

9. It is submitted by the applicant that despite all reminders calling upon the defendant to pay the amount dues, they did not pay any amount towards such dues till date. The defendant is liable to pay the said sum amount as per the statement of account and accrued interest filed herewith which is also the suit claim to the applicant as the principal borrower. The interest is claimed as per the terms of sanction and as per the guidelines of RBI and is therefore valid and the defendant is bound to pay the same. The defendant is due and liable to pay for the loan availed the aforesaid sum of Rs.16,17,032/- on 27.01.2019 with subsequent interest @10.75% p.a. with monthly rest from 28.01.2019 till the date of realization in full with cost. The defendant failed to pay the said amount to the applicant inspite of repeated demands. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

10. 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 ‘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 26.10.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 26.10.2021. Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Sh. Santosh Kumar Singh, 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.

12. 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.

13. The defendants were set ex-parte on 26.10.2021, 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.

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, a total sum of Rs.16,17,032/- (Rupees Sixteen Lakh Seventeen Thousand and Thirty Two only) due in respect of SBI Car loan (A/c No.36816459542) repayable together with further interest @ 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 hypothecated vehicle morefully detailed in the OA schedule.

(c) OA Schedule shall be appended to this final order.

(d) If the sale proceeds of the hypothecated assets are 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.

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 06th day of November, 2026) ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Sh. Santosh Kumar Singh, Chief Manager of the Applicant Bank.

Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. - Loan application A-1

2. 19.04.2017 Proforma invoices A-2

3. 27.04.2017 Arrangement letter A-3

4. 27.04.2017 Operation letter A-4

5. 27.04.2017 Loan-cum-hypothecation agreement A-5

6. 27.04.2017 Vehicle delivery letter A-6

7. 02.05.2017 Certificate of registration A-7

8. - Statement of account A-8

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

:-SCHEDULE-A: Vehicle Registration No.TN 12 T 1537 dated of registration 02.05.2017, Chasis No.MAIYU2HHUH6C16764, Engine No.HHH4C12426, Class of vehicle LMV, Maker-Mahindra and Mahindra, Body type-Saloon, Diesel, Colour-P White, Year of Manufacture-2017, seven seated car.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI