DENA BANK vs Mrs Swornalatha And Two Others on 11 November 2026

: - FINAL ORDER- :

1. This Original Application is filed on 03.07.2018 by Erstwhile Dena Bank (since merged with Bank of Baroda) 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 to 3, for recovery of a total sum of Rs.59,20,050/- (Rupees Fifty Nine Lakhs Twenty Thousand and Fifty only) due in respect of Housing Loan (A/c No.123551031523) repayable together with further interest @9.70% 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 OA and for costs of this OA.

2. Originally, this Application was filed before DRT-II, Chennai, assigned OA No.420 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 420 of 2018 stood transferred to this Tribunal and renumbered as TA No.1488 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 1 & 2 approached the applicant bank and gave application on 11.03.2016 for sanction of Housing Loan under Dena Niwas Housing Finance scheme. At the request of the defendants 1 & 2 and on the guarantee of the 3rd defendant, the applicant had sanctioned the Housing Loan on 14.03.2016 to the defendants 1 & 2 herein under Dena Niwas Housing Finance scheme for a sum of Rs.45,48,000/- as per the Sanction Ticket dated 14.03.2016 and the defendants 1 & 2 jointly executed Demand Promissory Note, Dena Niwas Loan Agreement, agreeing to repay the same with interest at 9.70% p.a. with monthly rests in 180 Equated Monthly Instalments at Rs.51,300/- per month.

5. The defendants 1 and 2 executed Undertaking (Housing finance), General undertaking in favour of the applicant bank, Letter of General Lien and Set Off from the borrower, while the 3rd defendant executed Letter of Guarantee and letter of general lien and set off from guarantor on the same date.

6. The applicant submits that as security for the said loan, the 1st defendant has deposited the title deeds pertaining to the property situated at Karanaipuducherry Village described in the schedule to the OA by executing Memorandum of Deposit of Title Deeds from time to time EM was created on 03.11.2009 by execution of memorandum of entry and memorandum of deposit of title deeds in favour of the applicant bank registered as Doc.No.2788/2016 in the office of SRO Guduvancheri which was purchased by her under the sale deed dated 14.03.2016 registered as Doc.No.2769/2016, SRO, Guduvancheri.

7. It is submitted by the applicant bank subsequent to availing of loan, by the defendants 1 & 2, they failed to repay the same as per the terms and conditions set out in the loan documents resulting the accounts have been classified as Non Performing Asset (NPA) on 30.09.2016. The 3rd defendant being guarantor and the guarantee is continuing one, is bound and liable to repay the debt to the applicant bank. The applicant bank had been repeatedly sending letters and reminders orally and personally to the defendants and they failed and neglected to repay the dues as promised by them and upgrade the account to performing asset.

8. The applicant submits that, left with no other option, except to proceed against the defendants under SARFAESI Act, the applicant bank through its Authorised Officer sent a notice under Section 13(2) of the Act to the defendants 1 & 2 on 29.11.2016 followed by other statuary notices in order to bring the property for sale under auction. However, the same has not been materialized, since there were no bidders to purchase the property.

9. The applicant submits that the applicant bank is an exempted creditor and hence the defendants are not entitled to the benefits under any of the Debt Relief Act. The applicant submits that the defendants are liable to pay a sum of Rs.59,20,050/- in respect of housing loan together with interest @9.70% p.a. with monthly rests from the date of application. Despite repeated requests and demands, as defendants 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 defendants.

10. After the filing of the OA, summons were sent to the Defendants 1

to 3 through Registered Post with Acknowledgment Due, which was served in respect of D-1 and D-2, while summons to D-3 returned with postal endorsement as ‘Left’. Applicant Bank had caused paper publication of the notice and filed proof thereof. Advocate Mr. Shesadri filed Vakalat for D-1 to D-3. Despite availing several opportunities, defenadnts did not choose to file any written statement. When OA was taken up on 16.04.2019 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 16.04.2019. Heard the submissions of Applicant Bank and perused the records.

11. To prove the case of the Applicant Bank, Smt. B. Ranjitha, Senior 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.

12. 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.

13. The defendants were set ex-parte on 16.04.2019, 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 to 3, a sum of Rs.59,20,050/- (Rupees Fifty Nine Lakh Twenty Thousand and fifty only) due in respect of Housing Loan (A/c No.123551031523) repayable together with further interest @9.70% p.a., with monthly rests from the date of Application till the date of realization in full and for 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) 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 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 11th day of November, 2026)

ANNEXURES WITNESSES EXAMINED FOR THE APPLICANT BANK: AW-1: Smt. B. Ranjitha, Senior Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 07.03.2016 Application form A-1

2. 11.03.2016 Appraisal cum sanction note by the applicant A-2

3. 14.03.2016 Demand promissory note of Rs.48,48000/- by the defendants 1 & 2 A-3

4. 14.03.2016 Dena Niwas loan agreement executed by defendants 1 & 2 in favour of applicant bank A-4

5. 14.03.2016 Undertaking (housing finance) executed by defendants 1 & 2 in favour of applicant bank A-5

6. 14.03.2016 General undertaking executed by defendants 1 & 2 in favour of applicant bank A-6

7. 14.03.2016 Letter of guarantee by 2nd defendant in favour of applicant bank A-7

8. 14.03.2016 Letter of general lien and set off from the borrowers by the defendants 1 & 2 A-8

9. 14.03.2016 Letter of general lien and set off from the guarantors by the 3rd defendants A-9

10. 14.03.2016 Memorandum of entry by 1st defendant A-10

11. 14.03.2016 Sale deed in favour of 1st defendant Regd as Doc.No.2769/2016 SRO, Guduvancheri A-11

12. 14.03.2016 Memorandum of deposit of title deeds by 1st defendant in favour of applicant bank regd as Doc.No.2788/2016, SRO, Guduvancheri A-12

13. 29.11.2016 Notice under Sec.13 (2) of SARFAESI Act to the defendants 1 & 2 A-13

14. 21.06.2018 Statement of account-Term loan A/c No.123551031526 A-14

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

:-SCHEDULE OF PROPERTY-: All that piece and parcel of land and building situated in Old Door No.70, New Door No.25 “Gokulam colony” 1st street, measuring an extent of 368sq.mtr (or) 3960sq.ft along with R.C.C. Terrace house measuring an extent of 450sq.ft comprised in Gramanatham Old Survey No.273/4 part, New Survey No.273/7, as per patta No.98, situated in No.7, Karanaipuducheri Village, Chengalpet Taluk, Kancheepuram District, Bounded on the North by: Mr. Jayaraman’s House site South by: Panchayat road East by: 5 feet wide road West by: Mr.Ponnaiyan’s House site In all admeasuring an extent of 3960sq.ft lying within the Registration District of Chennai South and Sub Registration District of Guduvancherry The above said property lies within the limits of Kattankulathur Panchayat.

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI