Allowed

Central Bank of India v. M Karthick

DRT8 Jul 2025OA/221/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by the Central Bank of India for recovery of dues. Being an ex-parte order, the Tribunal accepted the bank's claim for recovery of Rs. 32,99,310 along with interest and costs, permitting realization through sale of secured property.

What did the court decide?

Allowed recovery of Rs. 32,99,310 plus interest and costs to be realized from defendants jointly and severally or by sale of scheduled property.

Central Bank of India versus M Karthick — Banking and Recovery | DRT (2025)

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O.A. No. 221 of 2022

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08.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of July, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 221 of 2022

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Central Bank of India Maraimalai Nagar Branch, MMDA Building, Maraimalai Nagar, Chengalpattu District, Pincode – 603 209. Rep. by its Authorized Officer & Chief Manager (Recovery)

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….Applicant

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-Vs-

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Mr. M. Karthick,

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S/o. S. Murugesan,

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No.16A/10, EWS – NH2,

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Kannadasan Fourth Cross Street,

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Maraimalai Nagar,

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Chengalpattu District.

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Pincode – 603 209.

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Mr. S. Murugesan,

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S/o. Shanmugaraj.

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No.16A/10, EWS – NH2,

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Kannadasan Fourth Cross Street, Maraimalai Nagar,

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Chengalpattu District.

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Pincode – 603 209.

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Both are also at the following addresses:

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Plot No. 132-D-2, Annai Aradhana, Astalakshmi Nagar, Gudalur Village, Chengalpattu District.

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Pincode – 603 209.

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No. 19/23, Muthu Mariamman Koil Street, J.K. Patti,

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Bodinayakkanur – 625 513. …..Defendants

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O.A. No. 221 of 2022

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08.07.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s. K. Nazir Ahmed

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Defendants 1 & 2 were set ex-parte on 09.09.2022

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: - FINAL ORDER - :

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This Original Application is filed on 22.06.2022 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 & 2, jointly and severally for recovery of a total sum of Rs.32,99,310/- (Rupees Thirty Two Lakhs Ninety Nine Thousand Three Hundred and Ten only) due in respect of Housing Loan (Account No. 4006706431) repayable together with further interest @ 7.1% p.a., with monthly rests from the date of this Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this Original 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 first defendant as borrower had approached the Applicant bank and gave Loan Application dated 20.11.2017 for availing Housing loan facility for outright

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O.A. No. 221 of 2022

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08.07.2025

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purchase of a residential Semi-Independent Duplex House.

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It is submitted by the applicant bank that considering the same, applicant bank had sanctioned the said Housing loan facility and accordingly the first defendant availed the Housing Loan facility to the extent of Rs. 25,07,000/- (Rupees Twenty Five Lakhs and Seven Thousand only) on 04.01.2018 under Loan Account No. 4006706431 from the applicant bank for the purpose of purchasing the Schedule mentioned property viz., a residential Semi-Independent Duplex House, bearing Unit No.132-D2, measuring to an extent of 1155 Sq.ft., of building consisting of Ground and First floor together with proportionate undivided share of land measuring to an extent of 796 Sq.ft., out of 2388 Sq..ft., of total land and situated in Plot No.132, Ashtalakshmi Nagar, Gudulur Village, Chengalpattu Taluk, Kancheepuram District and comprised in Survey No.80/1 in the revised lay-out plan approved vide PPD/LO No.78/2010 and more fully described in the schedule given hereunder. The second defendant stood as guarantor and guaranteed the due repayment of the loan amount along with interest thereon.

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It is submitted that upon availing the aforesaid facility, the first defendant executed necessary loan documents and the second defendant executed document of guarantee on 04.01.2018 in favour of the applicant bank.

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It is submitted that the defendants had agreed to pay interest at the rate of 8.30% (floating) per annum on monthly rest basis. As

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security for the above said loan, the first defendant had executed the following loan documents and the document of guarantee by the second defendant on 04.01.2018.

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(i) Loan Agreement dated 04.01.2018

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(ii) Interest Variation Letter dated 04.01.2018

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(iii) Form of Guarantee for advances and credits dated 04.01.2018 executed by the second defendant.

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(iv) Agreement for non-diversion of funds dated 04.01.2018 executed by the first defendant.

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The Applicant submits that the First defendant with an intent created equitable mortgage of the Schedule mentioned property, on 05.01.2018 deposited the following title document viz.,

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(a) The Original Title deed in respect of a residential SemiIndependent Duplex House, bearing Unit No.132-D2, measuring to an extent of 1155 Sq.ft., of building consisting of Ground and First floor together with proportionate undivided share of land measuring to an extent of 796 Sq. ft., out of 2388 Sq.,ft., of total land and duly executed in favour of the First defendant vide Sale Deed dated 19.01.2018 and registered as Document Sub-Registrar, Chengalpattu, in respect of the No. 510 of 2018, in the office of the Joint-II Schedule mentioned property.

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(b) And the First defendant executed the Memorandum of Deposit of Title Deeds (MOD) dated 19.01.2018 in favour of the applicant bank and the same was registered as Document No.530 of 2018 in the office of the Joint-11 Sub Registrar, Chengalpattu, and deposited the said MOD with the applicant bank.

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The Applicant submits that in terms of the loan documents executed by the defendants on 04.01.2018, the said defendants undertook to repay the availed Loan amount of Rs.25,07,000/together with contracted interest and etc., thereto, in the aforesaid Loan Account No. 4006706431.

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It is further submitted that having availed the said loan amount of Rs.25,07,000/-, the defendants chronically failed to pay the EMIs (Equated monthly instalments) towards the said loan availed. Since the defendants have not been making payments of the EMIs and defaulted in repayment of their full liabilities, the loan account has been classified as Non Performing Asset (NPA) on 01.05.2019 in accordance with RBI guidelines. The applicant bank through its Authorised Officer initiated SARFAESI proceedings and issued Statutory Notice dated 05.02.2021 under Section 13(2) of SARFEASII Act, to the aforesaid defendants, thereby calling upon them to discharge their full liabilities within 60 days and the defendants chronically failed to discharge their full liabilities towards the said loan account. Inspite of repeated

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demands and reminders on subsequent days, which the Applicant Bank continued to prevail upon the above said defendants to repay the outstanding liability in the said limits, the defendants did not bother to make the repayments hue and payable, despite the applicant's earnest efforts. Hence the present Original Application (OA) has been filed for recovery of the amounts dues from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 & 2 through Registered Post with Acknowledgment Due in the three addresses, which returned unserved with postal endorsement as ‘refused’, which is deemed service. When OA was taken up on 09.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 & 2 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, Sh. S. Ravichandran, Chief Manager (Recovery) and Authorized Officer of 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 Defendants 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

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conduct and operations in the account and the default committed, this Tribunal comes to the conclusion that the applicant bank is entitled for

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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 Defendants 1 & 2 jointly and severally for recovery of a total sum of Rs.32,99,310/- (Rupees Thirty Two Lakhs Ninety Nine Thousand Three Hundred and Ten only) due in respect of Housing Loan (Account No. 4006706431) repayable together with further interest @ 7.1% p.a., with monthly rests from the date of this Application till the date of realization in full along with costs of this application.

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(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 schedule mentioned immovable property morefully detailed in the OA schedule.

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(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

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the Tribunal particulars of other properties or assets owned by the Defendants.

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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 Defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the date of receipt 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/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 08^th day of July, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Ravichandran, Chief Manager (Recovery) and Authorized Officer of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	20.12.2017	Loan Application for Housing Loan facility	A-1
2.	30.12.2017	Housing Loan sanction letter duly acknowledged by the 1^stdefendant	A-2
3.	04.01.2018	Loan Agreement	A-3
4.	04.01.2018	Interest Variation Letter	A-4
5.	04.01.2018	Form of Guarantee for advances and credits generally	A-5
6.	04.01.2018	Agreement for non-diversion of funds	A-6
7.	19.01.2018	Sale Deed registered as Doc. No. 510 of 2018	A-7
8.	19.01.2018	Memorandum of Deposit of Title Deeds (MOD) in Doc. No. 530 of 2018	A-8
9.	28.02.2022	Statutory Notice under Section 13(2) of SARFEASI Act (Demand Notice)	A-9
10.	--	Statement of Accounts in Home Loan A/c. No. 4006706431	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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:SCHEDULE:

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All that piece and parcel of a residential Semi-Independent Duplex House, bearing Unit No. 132/D2, measuring to an extent of 1155 Sq.ft. of building, consisting of Ground and First Floor together with proportionate undivided share of the land measuring to an extent of 796 Sq.ft., out of 2388 Sq.ft. of entire land and situated in Plot No. 132, Ashtalakshmi Nagar, Gudalur Village, Chengalpattu Taluk, Kancheepuram District and comprised in Survey No. 80/1, in the revised layout plan approved vide PPD/LO No. 78/2010 and the Building Plan approved vide Na.Ka. No. 200/2012-2013 and Na.Ka. No. 812/012 dated 14.05.2012 sanctioned by the Commissioner, Maraimalai Nagar Municipality within the limits of Maraimalai Nagar Municipality and situate within the Registration Sub

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District of Joint-II, Sub Registrar. Chengalpattu and Registration District of Chengalpattu and the entire land with the following boundaries:

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North by : Plot No. 133 South by : 30’ Wide Road East by : 30’ Wide Road West by : Children’s Play Ground

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And the entire land with the following linear measurements:

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East to West on the Northern side : 60 Feet East to West on the Southern side : 60 Feet North to South on the Eastern side : 40 Feet North to South on the Western side : 40 Feet

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

Central Bank of India v. M Karthick

Case brief

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Central Bank of India v. M Karthick

Case brief

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