Allowed

State Bank of India v. Saravanan

DRT17 Sept 2025OA/102/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India for recovery of Rs. 55,53,891/- plus interest from a home loan defaulting borrower. The court held the bank entitled to recover dues through sale of mortgaged property.

What did the court decide?

Recovery of Rs. 55,53,891/- with interest at 7.5% p.a. and costs; liberty to sell mortgaged property if payment fails.

State Bank of India versus Saravanan — Banking and Recovery | DRT (2025)

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O.A. No. 102 of 2022

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17.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 17^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 102 of 2022

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State Bank of India Vandalur Branch, 1/3, Walajabad Road, Vandalur, Chennai – 600 048. Rep. by its Branch Manager. ….Applicant

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-Vs-

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B. Saravanan, S/o. Mr. Bhaskaran 4/3, Sivakami Street, Devi Nagar, Annanoor, Chennai – 600 109. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. O. Padmaprakash

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Defendant was set ex-parte on 08.07.2022

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: - FINAL ORDER - :

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This Original Application is filed on 02.02.2021 by the Applicant

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Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendant, for recovery of a total sum of Rs.55,53,891/- (Rupees Fifty Five Lakhs Fifty Three Thousand

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Eight Hundred and Ninety One Only) due in respect of Home Loan Facility (Account No.35783415573) repayable together with further

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O.A. No. 102 of 2022

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17.09.2025

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interest @ 7.5% p.a. with monthly rests from the date of filing the OA, till date of realization in full, for sale of immovable property morefully detailed in Schedule to the OA, and for costs of this application.

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Brief Facts of the case:

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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.

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It is the case of the applicant bank that the defendant had approached the applicant during the year 2016, seeking a loan for purchase of a 553 square feet undivided share out of the land of an area of 7497 square feet, vide Patta No.2320, (Plot Nos. 1,2,3,4,5 and 6), comprised in Survey Nos. 281/3 and 280/5, situated in Thiruverkadu Road, Ayyapakkam village, Ambattur Taluk, Thiruvallur District, Tamil Nadu approved by Villivakkam Town Panchayat, for CMDA, vide Planning Permit No.14333, Letter No.1749/12/13 and for construction of a flat of an area of 1196 square feet, bearing Block A. Flat No.G-1, in the ground floor, together with a reserved car parking area earmarked in the stilt floor, as No.G-1 in the building known as ‘KARAL PLATINA’, thereon, more fully described in the schedule to the OA.

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It is submitted that considering the said request, the applicant sanctioned a Home Loan of Rs.50,00,000/- to the defendant vide

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O.A. No. 102 of 2022

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arrangement letter dated 21.05.2016. In order to secure the loan, the defendant had executed Memorandum of Loan Agreement for Home Loan Granted to Public dated 21.05.2016 in favor of the applicant and Agreement to Mortgage dated 21.05.2016 agreeing to mortgage the schedule property towards the above loan and availed the loan.

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The applicant submits that in terms of the Arrangement Letter and Memorandum of Loan Agreement for Home Loan Granted to Public dated 21.05.2016, the dues under the above loan are repayable in monthly installments of Rs. 46,526/- together with interest at 0.2% above the one year MCLR rate, the effective rate being 9.35% with monthly rests on the date availing the loan. The present rate of interest payable by the defendants is 7.5% on the outstanding amount.

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It is further submitted by the applicant bank that the mortgage of the schedule property to secure the dues under the loan was created by deposit of title deeds with the applicant, by the defendant on 05.07.2016, who deposited the following documents with the applicant bank:-

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i. Construction agreement dated 23.05.2016, registered as document No. 7021 of 2016 in the office of the sub-registrar of Ambattur entered into by the Teamwork Developers Pvt. Ltd. with the defendant;

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ii. Sale deed dated 23.05.2016, registered as document No.7022 of 2016 in the office of the sub-registrar of Ambattur executed by

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G. Seetharamapandian in favour of the defendant.

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It is submitted that the said mortgage was confirmed by a Memorandum Relating to Deposit of Title Deeds dated 10.08.2016, registered as document No.11094 of 2016 in the office of the SubRegistrar, Ambattur executed by the defendant.

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The applicant submits that after availing the said loan the defendant failed and neglected to pay the dues properly and consequently, the home loan was classified as Non-Performing Asset (NPA) on 20.12.2018. The applicant made several demands on the defendant to make payment and also issued a notice dated 09.01.2019 under Section 13 (2) of the SARFAESI Act to the defendant demanding payment, followed by a possession notice dated 28.05.2019 under Section 13 (4). The applicant also caused a counsel's notice dated 20.04.2019 issued to the defendant demanding payment. But the defendant failed to make any payment. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its amounts due from the defendants.

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After the filing of the OA, summons were sent to sole defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘unclaimed’. When OA was taken up on 08.07.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-

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parte on 08.07.2022.

Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. S. Ashok Kumar, City Case Officer representing the Applicant Bank, has filed his 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-10 . As the Defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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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:

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: O R D E R :

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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendant, a sum of Rs.55,53,891/- (Rupees Fifty Five Lakhs Fifty Three Thousand Eight Hundred and Ninety One Only) due in respect of Home Loan Facility (Account No.35783415573) repayable together with further interest @ 7.5% p.a. with monthly rests from the date of filing the OA, till date of realization in full along with costs.

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(b) In the event of failure of the Defendant to pay the aforesaid

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amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property.

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(d) If the sale proceeds of the immovable property are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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(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 Defendant to the applicant bank.

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

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

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A copy of this order be communicated to the parties concerned.

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Sd/-

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(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 17^th day of September, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Ashok Kumar, City Case Officer representing the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Arrangement Letter dated 21.05.2016.	A-1
2.	Memorandum of Loan Agreement for Home Loan Granted to Public dated 21.05.2016.	A-2
3.	Agreement to mortgage dated 21.05.2016.	A-3
4.	Construction Agreement (No. 7021 of 2016) dated 23.05.2016.	A-4
5.	Sale deed (No. 7022 of 2016) dated 23.05.2016.	A-5
6.	Memorandum of deposit of title deeds dated 10.08.2016.	A-6
7.	Notice under Section 13(2) 09.01.2019.	A-7
8.	Possession Notice dated 28.05.2019.	A-8
9.	Notice dated 20.04.2019.	A-9
10.	Statement of accounts dated 21.05.2016 to 31.01.2021.	A-10

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Witness Examined for the Defendants: -Nil-

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List of Documents Exhibited for the Defendants: -Nil –

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O.A. No. 102 of 2022

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:- SCHEDULE -:

All that flat of an area of 1196 square feet, bearing Block A, Flat No. G-1, in the ground floor, together with a reserved car parking area earmarked in the stilt floor, as No. G-1 in the building known as ‘KARAL PLATINA’, together with a 553 square feet undivided share out of the land of an area of 7497 square feet, vide Patta No.2320, (Plot Nos. 1,2,3,4,5 and 6), comprised in Survey No.281/3 and 280/5, situated in Thiruverkadu Road, Ayyapakkam village, Ambattur Taluk, Thiruvallur District, Tamil Nadu approved by Villivakkam Town Panchayat, for CMDA, vide Planning Permit No.14333, Letter No.1749/12/A3 Bounded on the:

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North By: Land in Survey No.281/1,

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South By: 30 feet wide Thiruverkadu Road, East By: Land in Survey Nos. 281/3 and 20 feet wide road West By: Land in Survey No.289 and 281/2A

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Situate within the registration district of North Chennai and subregistration district of Ambattur.

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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

State Bank of India v. Saravanan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Saravanan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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