KARUR VYSYA BANK vs Vignesh on 11 November 2026

: - FINAL ORDER- :

1. This Original Application is filed on 29.04.2021 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 to 3, jointly and severally for recovery of a total sum of Rs.86,07,742.81p (Rupees Eighty Six Lakh Seven Thousand Seven Hundred and Forty Two and Eighty One Paise only) as follows: i. Directing the 1st and 2nd defendants to pay a sum of Rs.28,43,866.05p due in respect of Housing Loan (A/c No.1752753000000123) repayable together with further interest @11.25% p.a. with monthly rests from the date of Application till the date of realization in full; ii. Directing the 1st defendant to pay a sum of Rs.17,35,393.65p due in respect of Mortgage Loan (A/c No.1752226000000017) repayable together with further interest @ 15.75% p.a. with monthly rests from the date of Application till the date of realization in full; iii. Directing the 1st, 2nd and 3rd defendants to pay a sum of Rs.40,28,483.11p due in respect of SOD Loan (A/c No.1752280000000224) repayable together with further interest @15.75% p.a. with monthly rests from the date of Application till the date of realization in full; for sale of immovable properties 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.265 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 265 of 2021 stood transferred to this Tribunal and renumbered as TA No.1263 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 1st defendant approached applicant bank in 2015 and requested for Housing Loan for a sum of Rs.19,16,000/-. The applicant bank considering the request and sanctioned the said sum of Rs.19,16,000/- vide Credit Sanction Intimation dated 25.03.2015. The said loan was repayable in 184 equated monthly instalments of Rs.21,290/- together with interest @10.75% p.a. with monthly rests or at such rates as may be revised by bank from time to time.

5. It is submitted that the 1st defendant accepted the terms and conditions and executed Term Loan Agreement for Housing Finance and Letter of Undertaking to repay in instalments on 25.03.2015. Further to that the 2nd defendant stood as Guarantor and executed Agreement of Guarantee dated 25.03.2015 towards the loan availed by the 1st defendant.

6. The applicant bank submits that besides executing necessary loan documents, the 1st defendant mortgaged the property at Srinivasapuram Village vide Memorandum of Deposit of Title Deeds dated 30.03.2015 registered as Doc.No.4944/2015 as security towards the loan availed, which is morefully described in the schedule to the OA.

7. It is submitted that in the same year, the 1st defendant requested for Mortgage Loan (Fresh) for a sum of Rs.11,00,000/- to meet business and personal requirements. The applicant considering the request sanctioned the said loan of Rs.11,00,000/- vide Credit Sanction Intimation dated 16.04.2015. The said loan is repayable together with interest @14.25% p.a. from this date to the date of payment in full, compounded with monthly rests or at such rates and rests as may be revised by the bank from time to time. The 1st defendant executed Demand Promissory Note and Loan against the Property Agreement on 16.04.2015.

8. The 1st defendant extended the Mortgage vide Agreement relating to Deposit of Title Deeds for enhancement of loan dated 17.04.2015 registered as Doc.No.5857/2015 as security towards the Mortgage Loan availed.

9. The applicant submits that the 3rd defendant M/s Sakthee Associates, represented by its Partners, the 1st and 2nd defendants requested the applicant for a SOD limit of Rs.20,00,000/- and TL(O) limit of Rs.5,00,000/- in the year 2015 towards Working Capital requirements. The applicant bank considering the request sanctioned the said loan vide Credit Sanction Intimation dated 27.11.2015. The said loan is repayable together with interest @10.40% p.a. from this date to the date of payment in full compounded with monthly rest or at such rates and rests as may be revised by the bank from time to time. The 3rd defendant executed the following documents towards the loan availed on 27.11.2015: i. Demand Promissory Note (SOD-Rs.20,00,000/-) ii. Demand Promissory Note (TL(o)-Rs.5,00,000/-) iii. Agreement for Secured Overdraft - fixed assets (SOD- Rs.20,00,000/-) iv. Deed of Hypothecation of Current Assets (SOD-Rs.20,00,000) v. Agreement of hypothecation of movables TL

(o) - Rs.5,00,000/-

10. The applicant bank further submits that for the aforesaid credit facility, the 1st and 2nd defendants stood as guarantors and executed Agreement of Guarantee dated 27.11.2015 towards the loan availed by 3rd defendant. The 2nd defendant had mortgaged the property at Madhavaram Village vide Memorandum of Deposit of Title Deeds dated 27.11.2015 registered as Doc.No.6945/2015 as security towards the loan availed by 3rd defendant which is morefully described in the schedule to the OA. The applicant submits that the TL(o) account of Rs.5,00,000/-was closed in due course of time.

11. It is submitted by the applicant bank that even though the defendants have executed necessary documents towards the loan availed, the repayment towards the said loan was highly irregular and despite various demands and reminders made by the applicant bank, the defendants have failed and neglected to repay the amount dues. The accounts (Housing Loan and Mortgage Loan) of the 1st defendant had become Non-Performing Asset (NPA) on 24.08.2017 as per RBI norms. The applicant bank submits that since account turned NPA, the applicant bank issued separate Demand Notice to the 1st defendant on 04.11.2017, demanding the entire outstanding dues towards the Housing Loan and Mortgage Loan availed by the 1st defendant.

12. The account of the 3rd defendant (SOD) turned NPA on 26.09.2017. The applicant bank issued Demand Notice to the 3rd defendant on 02.11.2017 demanding the outstanding dues. Further the applicant bank also had taken symbolic possession of the property (Item No.2 of the schedule mentioned property) by issuing Possession Notice to the defendants on 06.02.2018.

13. The 1st and 2nd defendants executed Revival Letter dated 07.11.2018 reviving the Demand Promissory Note dated 27.11.2015 towards the SOD loan of Rs.20,00,000/- availed by 3rd defendant. Even after repeated reminders made by the applicant bank, the defendants have failed and neglected to repay the amount dues.

14. The applicant bank issued Legal Notice on 12.04.2021 to the defendants through its counsel demanding the entire outstanding dues. The notices sent to the 1st and 2nd defendants were returned and the notice sent to the 3rd defendant was acknowledged. The defendants availed the facilities for commercial activity and therefore they have to pay only the contracted rate of interest. Even after that, there was neither reply from the defendants nor any repayment. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

15. After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was returned with postal endorsement as ‘Unclaimed’ in respect of D-1 and D- 2, while summons to D-3 was duly served. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 05.01.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 05.01.2022. Heard the submissions of Applicant Bank and perused the records.

16. To prove the case of the Applicant Bank, Mr. P.S. Sundaravarathan, 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-31.

17. A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-31 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.

18. The defendants were set ex-parte on 05.01.2022, 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 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.

19. 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 :

20. The OA is allowed with costs,

(a) The applicant bank is allowed to recover from the Defendants 1 to 3, a total sum of Rs.86,07,742.81p (Rupees Eighty Six

Lakh Seven Thousand Seven Hundred and Forty Two and Eighty One Paise only) as follows: i. A sum of Rs.28,43,866.05p due in respect of Housing Loan (A/c No.1752753000000123) repayable by the 1st and 2nd defendants, together with further interest @11.25% p.a. with monthly rests from the date of Application till the date of realization in full; ii. A sum of Rs.17,35,393.65p due in respect of Mortgage Loan (A/c No.1752226000000017) repayable by the 1st defendant, together with further interest @ 15.75% p.a. with monthly rests from the date of Application till the date of realization in full; iii. A sum of Rs.40,28,483.11p due in respect of SOD Loan (A/c No.1752280000000224) repayable by the defendants 1 to 3, together with further interest @15.75% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

(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 properties morefully detailed in the OA schedule.

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

(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.

21. 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: Mr. P.S. Sundaravarathan, Chief Manager of the Applicant Bank Exhibits on the part of the Applicant:

Sl. No. Date Description of Documents Exhibit No.

1. 25.03.2015 Credit sanction intimation A-1

2. 25.03.2015 Term loan agreement for housing finance A-2

3. 25.03.2015 Letter of undertaking to repay in A-3

instalments

4. 25.03.2015 Agreement of guarantee A-4

5. 21.04.2010 Construction agreement A-5

6. 15.07.2010 Sale deed registered as Doc.No.7688/2010 A-6

7. 30.03.2015 Memorandum of deposit of title deeds registered as Doc.No.4944/2015 A-7

8. 16.04.2015 Credit sanction intimation A-8

9. 16.04.2015 Demand promissory note A-9

10. 16.04.2015 Loan against property agreement A-10

11. 17.04.2015 Agreement relating to deposit of title deeds for additional/enhancement loan registered as Doc.No.5857/2015 A-11

27.11.2015 Credit sanction intimation A-12

27.11.2015 Demand promissory note A-13

14. 27.11.2015 Demand promissory note A-14

15. 27.11.2015 Agreement for secured overdraft-fixed assets A-15

16. 27.11.2015 Deed of hypothecation of current assets A-16

17. 27.11.2015 Agreement of hypothecation of movables A-17

18. 27.11.2015 Agreement of guarantee A-18

19. 14.06.2013 Memorandum of agreement for construction of flats A-19

20. 27.11.2015 Sale deed registered as Doc.No.6944/2015 A-20

21. 27.11.2015 Memorandum of deposit of title deeds registered as Doc.No.6945/2015 A-21

22. 02.11.2017 Demand notice A-22

23. 04.11.2017 Demand notice A-23

24. 04.11.2017 Demand notice A-24

25. 06.02.2018 Possession notice A-25

26. 07.11.2018 Revival letter A-26

27. 12.04.2021 Legal notice with postal covers A-27

28. - Return covers & acknowledgement card A-28

29. - Statement of accounts A/c No.175273000000123 A-29

30. - Statement of accounts A/c No.1752226000000017 A-30

31. - Statement of accounts A/c No.1752280000000224 A-31

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

:-SCHEDULE OF PROPERTIES-: Property of Mr.D.Vignesh

All that piece and parcel of flat bearing No.S-1 having a super built up area of 972sq.ft in the 2nd floor, block A together with 441sq.ft undivided share of land including common passage in and out of 1822sq.ft bearing Plot No. A comprised in Survey No.91 (Part), Patta No.29, S.NO.91/7 as per patta No.48, S.No.91/7 and 91/8 in door No.2/81, A Block, “MIDAS NIVAS” MGR street, Srinivasapuram village, Sriperumbudur taluk, Kancheepuram district bounded on the: Boundaries of Survey No.91/7 & 91/8 (1822sq.ft) Item No.1 North by: Survey No.916 South by: MGR Street East by: Kanniammal land West by: Paul Joseph Item No.2 North by: Survey No.91/6 South by: MGR Street East by: Ettiappan land West by: Parthasarathy land Plot No. A North by: Plot No. B South by: MGR Street East by: 16 feet common passage West by: land belonging to Mr. Parthasarathy

Within the sub registration district of Kundrathur the registration district of Chennai south. Item No.2: Property of Mrs.Sandhya Vignesh All that piece and parcel of the property bearing Flat No.F1 in the first floor having plinth area of 940sq.ft together with 357sq.ft undivided share of land out of 2700sq.ft comprised in Survey No.1120/1 part, T.S.No.49, Block No.111, Wards E Bearing Plot No.2, Roy Nagar, now called as Chandra Prabhu colony, 5thstreet, layout approved No.61/1971 situated at Madhavaram village, Madhavaram taluk, within the limits of Chennai Corporation bounded on the: North by: Plot No.1 South by: Plot No.3 East by: 20 feet road West by: vacant land Within the Registration District of Madhavaram and Sub Registration District of Chennai North

Sd/- (S.V. GOWRAMMA)

PRESIDING OFFICER, DRT-III, CHENNAI