Allowed

Indian Bank v. Sivasuryan

DRT28 May 2025OA/198/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank applicant's recovery application against the defaulting borrower. The tribunal confirmed the claim for principal, interest, and costs, gave credit to the bank for proceeds realized from the sale of mortgaged property, and empowered the bank to sell other assets to recover the balance. A Recovery Certificate is directed to be issued.

What did the court decide?

Applicant allowed to recover Rs. 44,08,453/- with interest; sale proceeds credited; liberty to sell other assets; Recovery Certificate to be issued.

Indian Bank versus Sivasuryan — Money Laundering | DRT (2025)

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O.A. No. 198 of 2022

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28.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 198 of 2022

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Indian Bank Anakaputhur Branch No.72, Kamarajar Salai, Anakaputhur, Chennai – 600 070 Rep. by its Chief Manager

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….Applicant

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-Vs-

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Mr. S. Sivasuryan, S/o. Mr. S. Suyumbu, No.202-1B, Periyar Pathai, Choolaimedu, Chennai – 600 094 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Hemalatha Suresh

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Defendant was set ex-parte on 09.09.2022

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: - FINAL ORDER - :

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This original application is filed on 17.05.2022 by the applicant bank

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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 defendant jointly and severally for recovery of a sum of

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Rs.44,08,453/- (Rupees Forty Four Lakhs Eight Thousand Four

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Hundred & Fifty Three Only) due in respect of Housing Loan A/c

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No.6757290728 together with further interest thereon @ 7.60% p.a., with

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O.A. No. 198 of 2022

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28.05.2025

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monthly rests along with penal interest @ 2% p.a., from the date of application till the date of realization in full 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 Defendant had applied for Home Loan of Rs.39,00,000/-, which was accordingly considered and sanctioned by the Applicant vide Sanction Letter dated 16.05.2019.

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The Defendant availed the said loan and had executed the following documents on 18.05.2019 as security for the loan availed in favour of applicant bank:

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i. Demand Promissory Note

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ii. Term Loan agreement for Home Loan

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iii. Declaration by the borrower

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iv. Letter of Authority from the borrower

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v. Letter from the borrower regarding details of family members

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vi. Letter from party to Bank confirming the creation of equitable mortgage dated 24.05.2019.

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O.A. No. 198 of 2022

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28.05.2025

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The Applicant Bank submitted that as further and additional security, the Defendant had mortgaged his property at Flat No.S-1, II Floor having s super plinth area of 926 Sq.ft., including common area and car parking together with 413 Sq.ft., of undivided share out of 1440 Sq.ft., out of 2400 Sq.ft., at Plot No.37, Sri Venkateswara Nagar, Thiruvallur Street, Anakaputhur, Chennai – 600 070 by executing a letter confirming creation of equitable mortgage dated 24.05.2019. The Defendant also executed Memorandum of Deposit of Title Deeds dated 24.05.2019 registered as Doc. No.4229/2019 with SRO, Pammal in favour of the Applicant and by deposited the following documents with the Applicant Bank:

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i. Sale Deed dated 23.05.2019

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ii. Construction Agreement dated 23.05.2019

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iii. Encumbrance Certificate

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It is submitted by Applicant Bank that the defendant had made a last payment of Rs.200/- on 31.12.2021. After availing the said facility, the defendant deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendant miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 15.04.2022, as per the guidelines issued by the RBI. On 04.05.2022, the Applicant Bank issued Legal Notice to repay the outstanding loan amount and the defendant evaded to receive the same

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O.A. No. 198 of 2022

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28.05.2025

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and returned cover with an endorsement “Left” on 05.05.2022 and the said Defendant has not bothered to repay the outstanding amount. Hence, this Original Application (OA) has been filed to recover the dues from the Defendant.

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After the filing of the OA, Summons was sent to Sole Defendant through Registered Post with Acknowledgement due, which was returned unserved with postal endorsement ‘no instructions’. Applicant Bank had caused Paper Publication of Notice and filed proof thereof. When OA was taken up on 09.09.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant were placed ex-parte on 09.09.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Mrs. M. Sowndari, Chief Manager of the Applicant Bank, has filed her 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 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.25,60,000/- by way of sale of Schedule mentioned property in the OA and realized a sum of

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O.A. No. 198 of 2022

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28.05.2025

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Rs.25,60,000/- on 07.12.2024 and issued a Sale Certificate on 26.12.2024. Accordingly, part satisfaction of sum of Rs.25,60,000/- is duly recorded vide proceedings dated 28.03.2025.

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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.44,08,453/- (Rupees Forty Four Lakhs Eight Thousand Four Hundred and Fifty Three Only) due in respect of Housing Loan (A/c No.6757290728) together with further interest thereon @ 7.60% p.a., with monthly rests along with penal interest @ 2% p.a., from the date of application till the date of realization in full along with costs of this application.

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(b) The sum of Rs.25,60,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the dues as ordered above, the

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O.A. No. 198 of 2022

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28.05.2025

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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;

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(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 defendants 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.

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(e) The applicant bank shall file memo of costs within ten days from

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the date of this final order.

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

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(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 28^th day of May, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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O.A. No. 198 of 2022

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28.05.2025

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AW-1: Mrs. M. Sowndari, Chief Manager of 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.	Sanction Ticket dated 16.05.2019	A-1
2.	Demand Promissory Note dated 18.05.2019	A-2
3.	Term Loan Agreement for Home Loan dated 18.05.2019	A-3
4.	Declaration by the borrower dated 18.05.2019	A-4
5.	Letter of Authority from the borrower dated 18.05.2019	A-5
6.	Letter from the borrower regarding details of family members.	A-6
7.	Letter for creation of mortgage dated 24.05.2019	A-7
8.	Memorandum of Deposit of title deeds dated 24.05.2019	A-8
9.	Sale Deed dated 23.05.2019	A-9
10.	Construction Agreement dated 23.05.2019	A-10
11.	Encumbrance certificate dated 12.05.2022	A-11
12.	Notice issued by the Applicant’s Counsel dated 04.05.2022	A-12
13.	Returned cover/acknowledgement card dated 05.05.2022	A-13
14.	Certified statement of account dated 13.05.2022	A-14

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Witness Examined for the Defendant: -Nil-

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List of Documents Exhibited for the Defendant: -Nil-

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

Indian Bank v. Sivasuryan

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sivasuryan

Case brief

What is this about?

What did the court decide?

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