Allowed

Indian Bank v. Mr. S. Jaganathan

DRT23 Oct 2025OA/229/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under the RDB Act for an aggregate recovery of over Rs. 2.5 crores arising from three housing loans. The bank successfully proved the liability through supporting documents and unchallenged affidavits. The recovery includes principal amounts along with simple interest at 9% from the filing date. Penal interest was rejected, but costs of proceedings were

What did the court decide?

Recovery Certificate issued for Rs. 2,50,61,388.63 plus 9% simple interest pendency; costs awarded to Applicant.

Indian Bank versus Mr. S. Jaganathan — Banking and Recovery | DRT (2025)

¶1

BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 23^rd day of October, 2025

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PRESENT: SHRI SHARANG DHAR UPADHYAY PRESIDING OFFICER

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OA No.229 of 2023

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Indian Bank Stressed Asset Management Branch Rep. by its Chief Manager No.55, Ethiraj Sakai, II Floor Wellington Estate Egmore, Chennai – 600 008 …Applicant

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Versus

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Mr. S. Jaganathan 42, 6^th Avenue, RWD Palm, Babu Nagar 3^rd Main Road, Medavakkam Chennai – 600 100

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Also at No.150, New No.40, Flat No.6, 7^th Floor Pace Aagam, Tambaram Velachery Main Road Medavakkam, Chennai – 600 100

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Mrs. R. Muthulakshmi W/o S. Jaganathan 42, 6^th Avenue, RWD Palm, Babu Nagar 3^rd Main Road, Medavakkam Chennai – 600 100

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Also at No.150, New No.40, Flat No.6, 7^th Floor Pace Aagam, Tambaram Velachery Main Road Medavakkam, Chennai – 600 100 ... Defendants

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Counsels on Record / Appeared

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Counsel for Applicant Bank : Mr. C. Ramaiah Defendants ex-parte on 21.12.2023

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FINAL ORDER

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This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants seeking issuance of a Recovery Certificate for recovery of an aggregate sum of Rs.2,50,61,388.63p comprising a sum of Rs.74,61,494.83p together with interest at the rate of 9.90% per annum being amount due under Housing Loan-I account; a sum of Rs.76,10,579.11p together with interest at the rate of 9.90% per annum being amount due under Housing Loan-II account and a sum of Rs.99,89,314.69p together with interest at the rate of 9.90% per annum being amount due under Housing Loan-III account from the date of the application till the date of realisation along with costs of the application and for schedule mentioned properties.

¶16

The subject matter of the case is the housing loans availed by the defendants from the Applicant Bank.

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Housing Loan Account – I

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It is the case of the applicant that the defendants approached the applicant for grant of loan for purchase of the property more fully described in Item No. I of the schedule mentioned property and considering the said request the applicant vide sanction dated 30.01.2018 sanctioned a sum of

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Rs.51.52 lakhs to the defendants repayable in 348 equated monthly installments of Rs.41,190/- each commencing from 10.02.2018. The defendants executed Term Loan Agreement on 31.01.2018. The defendants deposited the title deeds of the property with the applicant bank on 1.2.2018 with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 1.2.2018 registered as Doc. No.558/2018, SRO, Chennai South Joint-I.

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Housing Loan-II

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It is the case of the applicant that the defendants approached the applicant for grant of loan for purchase of the property more fully described in Item No. IIof the schedule mentioned property and considering the said request the applicant vide sanction dated 31.01.2018 sanctioned a sum of Rs.52.52 lakhs to the defendants repayable in 348 equated monthly installments of Rs.41,989/- each commencing from 10.02.2018. The defendants executed Term Loan Agreement on 31.01.2018. The defendants deposited the title deeds of the property with the applicant bank on 1.2.2018 with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 1.2.2018 registered as Doc. No.555/2018, SRO, Chennai South Joint-I.

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Housing Loan-III

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It is the case of the applicant that the defendants approached the applicant for grant of loan for purchase of the property more fully described in Item No. III of the schedule mentioned property and considering the said request the applicant vide sanction dated 12.02.2018 sanctioned a sum of Rs.74 lakhs to the defendants repayable in 348 equated monthly installments of Rs.59,162/- each commencing from 12.03.2018. The defendants executed Term Loan Agreement on 14.02.2018. The defendants deposited the title deeds of the property with the applicant bank on 19.2.2018 with an intention to create equitable mortgage over the same and confirmed the same by executing Memorandum of Deposit of Title deeds dated 19.2.2018 registered as Doc. No.1692/2018, SRO, Chennai South Joint-I.

¶26

It is the case of the applicant that having availed the loan the defendants defaulted in repayment and failed to regularize the loan account despite repeated request and hence the loan account was classified as NPA on 31.01.2019. As no payment was forthcoming the applicant issued a demand notice dated 14.02.2019 calling upon the defendants to pay the outstanding dues. Despite the said notice the defendants did not come forward to clear the dues. Hence the applicant is filing this OA for recovery of its dues.

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Summons was taken out to the defendants. 2^nd defendant was served and 1^st defendant was served by way of substituted service by causing paper publication. As there was no representation on behalf of the defendants on 21.12.2023, the defendants were called absent and placed ex-parte on that day. Applicant Bank filed Proof Affidavit along with 27 documents, which were marked as Ex. A-1 to A-27 on 25.04.2024, however Exhibits A- 17 to A-22 and A-24 were marked subject to proof. The Ld. Counsel for Applicant Bank made his submissions on 26.09.2025 and thereafter the matter stood till this date for passing final orders.

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The following issues arise for consideration in the matter: -

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(a) Whether the applicant had succeeded in proving the liability of the defendants?

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(b) What order as to cost of the proceedings need be passed?

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These issues are considered together.

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Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

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The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-27 along with the proof affidavit. The documents produced

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in evidence are all found admissible. The proof affidavit of the applicant

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bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker‟s Book Evidence Act, clearly indicates that the amount claimed by the applicant is due from the defendants. It is clear from the statement of accounts that penal interest is not capitalized.

¶38

In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

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In view of the fact that the loan facility availed by the defendant are housing loans and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates and prayer for award of penal interest is rejected.

¶40

In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the

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disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: -

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(a) OA No.229 of 2023 stands allowed.

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(b) Applicant is permitted to realize an aggregate sum of Rs.2,50,61,388.63p together with interest at the date of 9% (Simple) from the date of filing of the application till the date of realization in full, from the defendants jointly and severally after deducting all the amounts received / realized by them during the pendency of OA and also by selling the schedule mentioned properties and other assets of the defendants.

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(c) If the sale proceeds are not found sufficient to cover the amount due and payable to the Applicant Bank the defendants are personally liable for all such amounts due as ordered above.

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(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

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

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Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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Sd/-

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(SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 23^rd day of October, 2025)

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EXHIBITS MARKED BY APPLICANT BANK

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S. No.	Date	Description of Documents	Exhibit Nos.
1.	31-01-2018	Sanction letter of Home Loan -I (A/c. No.66026225303)	A-1
2.	31-01-2018	Term loan Agreement for Home Loan	A-2
3.	01-02-2018	Letter from party to Bank confirming the creation of Equitable Mortgage	A-3
4.	01-02-2018	Memorandum of Agreement by deposit of Title Deeds( Doc No.558/2018)	A-4
5.	07-01-2018	Registered Construction Agreement ( Doc No.556/2018)	A-5
6.	01-02-2018	Sale deed(RegDoc;No.557/2018)	A-6
7.	31-01-2018	Sanction letter of Home Loan -II ( A/c No.6602620451)	A-7
8.	31-01-2018	Term loan Agreement for Home Loan	A-8
9.	31-01-2018	Letter of Authorityfrom Borrower	A-9
10.	31-01-2018	Demand Letter by Harini Construction to applicant Branch	A-10
11.	01-02-2018	Letter from party to Bank confirming the creation of Equitable Mortgage	A-11
12.	01-02-2018	Memorandum of Agreement by deposit of Title Deeds( Doc No.555/2018)	A-12

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13.	07-01-2018	Sale Agreement	A-13
14.	07-01-2018	Registered Construction Agreement ( Doc No.553/2018)	A-14
15.	01-02-2018	Sale deed(Reg, Doc;No.554/2018)	A-15
16.		Home Loan Application	A-16
17.	12.02.2018	Sanction letter of Home Loan -III	A-17
18.	14.02.2018	Term loan Agreement for Home Loan	A-18
19.	14-02-2018	Letter of Release of payment To Pace Builders(M)Pvt Ltd	A-19
20.	19.02.2018	Memorandum of Agreement by deposit of Title Deeds(Doc No.1692/2018)	A-20
21.	28-09-2017	Unregistered Sale Agreement	A-21
22.	19.02.2018	Sale deed(RegDoc;No.1691/2018)	A-22
23.	11-12-2020	Acknowledgement of Debt –Cum Security	A-23
24.	14.02.2019	Demand Notice issued U/s 13 (2) of SARFAESI Act	A-24
25.		Statement of Accounts – HL1	A-25
26.		Statement of Accounts – HL2	A-26
27.		Statement of Accounts – HL3	A-27

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Sd/- (SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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DESCRIPTION OF PROPERTY

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SCHEDULE “A” ( Total Property )

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All that piece and parcel of house site, bearing Plot No.4, measuring an extent of 3,620 Square Feet (2,795 Square Feet + 825 Square Feet), comprised in Survey No.25/1A, Patta No.8325, as per Patta Sub-Division Survey No.25/1A2, in the layout named “Sri Meenakshi Nagar”, layout approved by CMDA, approval P.P.D./L.O.No.98/2006, dated 25.9.2006, vide Letter No.L1/18380/2006, dated 25.9.2006, for Member Secretary, Chennai – 600 008, Planning Permit

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No.2319/2006 and vide E.O. Perungalathur Town Panchayat, Chennai – 600 063, Letter No.802/2005 dated 03.11.2006 situated in Old No.167, New No.28, Perungalathur Village, TambaramTaluk, KancheepuramDistrict.The Building Planning Permit P.P.A No.293/2013 dated 6.6.2013, Commissioner, Perungalathur Town Panchayat, Chennai 600063 / Member Secretary, C.M.D.A. Chennai 600 008. Bounded on the

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Boundaries and Measurement for 2795 Sq.Ft of land Bounded on the

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North by	:	Vacant Land in Survey No.250;
South by	:	Plot No. 9 & 10;
East by	:	Vacant Land; and
West by	:	Plot No.5,6 and Pathway.

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Measuring on the

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North by	:	29 Feet
South by	:	40 Feet
East by	:	84 Feet
West by	:	81 Feet

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Boundaries and Measurement for 825 Sq.Ft of land Bounded on the

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North by	:	Vacant Land in Survey No.250;
South by	:	Plot No. 5;
East by	:	Plot No. 4 (Part); and
West by	:	24 Feet Road.

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Measuring on the

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North by : 61 Feet South by : 60 Feet East by : 17 Feet West by : 10 Feet

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The above property is situated within the Perungalathur Town Panchayat Limits and within the Registration District of Chennai South and Registration Sub District of Padappai.

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SCHEDULE “B”

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2,852 Square Feet Undivided Share of Land (out of “A” schedule mentioned property).

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SCHEDULE “C”

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452 square feet Undivided Share of Land in „B‟ schedule mentioned property together with 1,200 Square Feet R.C.C . Terraced building in First Floor, bearing Flat No.F2 including all its amenities and common area.

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ITEM-II

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„A‟ SCHEDULE (Total Property)

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All the piece and parcel of House Site, bearing Plot No.4 , measuring an extent of 3620 Sq.Ft ( 2,795 Sq.Ft + 825 sq.ft), comprised in Survey No.25/1A, Patta No.8325, as per patta, Sub-Division Survey No.25/1A2, in layout named “ sri Meenakshi Nagar‟‟ layout approved by CMDA, Approval P.P.D/L.O.No.98/2006, dated 25.09.2006, Vide Letter No.L1/18380/2006, dated 25-09-2006, for Member Secretary Chennai-600 008, planning Permit No.2319/2006 and vide E.O. Perungalathur Town Panchayat , Chennai-600063, Letter No.802/2005, dated 03-11-2006, situated at Old No.167, New No.28 Perungalathur Village , Tambaram Taluk, Kancheepuram District.

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The Building Permit P.P.A No.293/2013 dated 06-06-2013 ,

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Commissioner Perungalathur Town Panchayat , Chennai-600063, Member Secretary, C.M.D.A Chennai-600008.

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Boundaries and Measurement for 2795 Sq.Ft of land Bounded on the

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North by	:	Vacant Land in Survey No.250;
South by	:	Plot No. 9 & 10;
East by	:	Vacant Land; and
West by	:	Plot No.5,6 and Pathway.

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Measuring on the

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North by	:	29 Feet
South by	:	40 Feet
East by	:	84 Feet
West by	:	81 Feet

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Boundaries and Measurement for 825 Sq.Ft of land Bounded on the

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North by	:	Vacant Land in Survey No.250;
South by	:	Plot No. 5;
East by	:	Plot No. 4 (Part); and
West by	:	24 Feet Road.

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Measuring on the
North by	:	61 Feet
South by	:	60 Feet
East by	:	17 Feet
West by	:	10 Feet

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The above property is situated within the Perungalathur Town Panchayat Limits and Registration District of Chennai South and Registration Sub District of Padapai.

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„ B‟SCHEDULE

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(Property for which the power was given)

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Land of 2852 Square Feet undivided share (Out of „A‟ Schedule mentioned property)

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„C‟ SCHEDULE

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( Property hereby Conveyed))

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452 square feet Undivided Share of Land in „B‟ schedule mentioned property together with 1,200 Square Feet R.C.C . Terraced building in Second Floor, bearing Flat No.S1 including all its amenities and common area.

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ITEM-III

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Schedule - A

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All that piece and parcel of land situate on the northern side in No. 150 (New No. 40) Medavakkam Village, Ranganathapuram, forming part of TambaramTaluk presently comes under SholinganallurTaluk, Kancheepuram District comprised in Punja Survey No.392/1A, Re Survey No.392/1A & 392/1B as per Patta Nos.2583 & 2584, Survey Nos.392/1A2 (part), 392/1A3 & 392/1A4, total measuring about 3652.65 sq.mtr or 39318 sq.ft bounded on the (Approval No. C/PP/MSB-IT/55 A-F/2012) North by: Gifted property and TambaramVelachery Main Road, South by: S. No.392/20B, 20A, 392/17, 18 & 19, East by : 392/1A5, 2 & 3A, West by : 30 feet Patel Road. Situated within the Sub- Registration District of Saidapet Joint I and Registration District of Chennai South.

Schedule – B

(Power Holder Share)

55.80% (21939.44 Sq. ft., or 2038.22 Sq. mt.) undivided share of Schedule A Property.

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Schedule – C

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(Property covered hereby)

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Flat bearing Flat No.6 , in Seventh Floor, with super Build up area1847 sq. ft . approximately, including common rights and benefits, together with undivided share of land measuring an extent of 438.85 Sq. ft. out of whole property mentioned in the Schedule B Property above herein.

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Sd/-

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(SHARANG DHAR UPADHYAY) PRESIDING OFFICER DRT-II, CHENNAI

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Indian Bank v. Mr. S. Jaganathan

Case brief

What is this about?

What did the court decide?

Indian Bank v. Mr. S. Jaganathan

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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Case details

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