Allowed

State Bank of India v. Rajeswari

DRT8 Jul 2025OA/243/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Bank's original application for recovery of a housing loan default. The court accepted the bank’s evidence and, in the absence of the defendants, ordered recovery of the principal amount with interest and costs, granting the bank liberty to sell mortgaged properties if payment is not made.

What did the court decide?

Recovery of Rs. 40,82,296/- with interest and costs; liberty to sell mortgaged properties.

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

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O.A. No. 243 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. 243 of 2022

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State Bank of India, Rep. by its Manager, Retail Asset Central proceeding Centre (OMR) New No.4/952 & 4/952A, 3^rd Floor Rajiv Gandhi Salai Perungudi Chennai 600 096 ….Applicant -Vs-

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Mrs. S. Rajeswari W/o Mr. M. Nataraj No.7, Sunkripa Apartments, II Floor Srinivasa Naidu Street Chrompet Chennai 600 044

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Also at Mrs. S. Rajeswari W/o Mr. M. Nataraj Flat No. S-1, Second Floor Dhanam Flats Plot No.1-A, Chrompet Salai 3^rd Street, Nanmangalam Chennai 600 117.

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Mr. M. Nataraj No.7, Sunkripa Apartments, II Floor Srinivasa Naidu Street Chromepet Chennai 600 044 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Parthasarathy Defendants 1 and 2 were set ex-parte on 16.11.2022

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O.A. No. 243 of 2022

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08.07.2025

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: - FINAL ORDER - :

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This original application is filed on 16.07.2022 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 and 2, jointly and severally for recovery of a total sum of Rs.40,82,296/- (Rupees Forty Lakhs Eighty Two Thousand Two Hundred and Ninety Six only) due in respect of Housing Loan (Account No.36840559624) repayable together with further interest @ 8.60% p.a. with monthly rests and 2% additional interest chargeable for defaulted period from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable properties and for costs of this OA.

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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 defendants have approached the Applicant Bank for sanction of Housing Loan facility for Rs.40.00 lakhs for the purpose of purchase of Apartment.

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It is submitted by the Applicant Bank that on the request of the

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O.A. No. 243 of 2022

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defendants, applicant bank had sanctioned Housing Loan facility on 05.05.2017 for Rs.40.00 lakhs, which is repayable together with the interest at the rate of 8.60% p.a., with repayment terms of 360 EMIs each for Rs.32,480/- commencing from 10.07.2017. Loan is availed for purchase of Apartment bearing Flat No.S-1, Second Floor with super built up area measuring 1295 sq.ft together with an undivided share of land measuring 601 sq.ft in and out of 1784 sq.ft comprised in O.S.No.57, Patta no.336 New Survey No.57/3 situated in Nanmangalam Village, Sholinganallur Taluk, Kancheepuram District.

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The Applicant submits that in order to secure the loan, he following documents were executed by the defendants:

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a) Memorandum of Loan Agreement for Home Loan Granted to Public, dated 05.05.2017 for Rs.40.00 lakhs in favour of the Applicant.

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b) Affidavit dated 05.05.2017 that they undertake not to hold the bank

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responsible or liable for any loss or damage which may suffer as a result of any of omission or commission amounting to negligence or default on the part of the said builder.

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c) Agreement to Mortgage dated 05.05.2017 to and in favour of the applicant

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d) Duly signed confirmation letter dated 03.06.2017 confirming that

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the said property is free from encumbrance and there is no pending attachments, notices, claims.

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e) Deed of Undertakings dated 05.05.2017 in favour of the applicant

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f) Memorandum of Deposit of Title Deeds dated 02.06.2017

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g) The Defendants have executed Memorandum Confirming the extension of existing Equitable Mortgage dated 16.09.2017 in favour of applicant for the enhanced limit.

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It is submitted that in order to further secure the advance, the defendants have mortgaged the immovable property which was purchased under the Registered Sale Deed in Doc.No.3542 of 2017, dated 10.05.2017 held in the name of the defendants to in favour of Applicant Bank. The Construction Agreement for the built up area is registered as Doc.No.3541 of 2017, dated 07.02.2017 on the file of SRO, Pallavaram.

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The applicant submits that in order to secure the advance, the defendant has mortgaged the immovable property by way of Deposit of Title Deeds registered as Doc.No.4455 of 2017, dated 07.06.2017. The Defendant has deposited the above referral sale deed and other documents pertaining to their immovable property Flat No.S-1, Second Floor with super built up area measuring 1295 sq.ft together with an undivided share of land measuring 601 sq.ft in and out of 1784 sq.ft comprised in O.S. No.57, Patta No.336 New Survey No.57/3 situated in Nanmangalam Village, Sholinganallur Taluk, Kacheepuram District within the registration district of Chennai south and SRO of Pammal.

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It is submitted by the applicant bank that subsequent to availing of

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loan, the defendant had defaulted in repayment in Housing Loan facility. Defendant failed to respond to the reminders, personal contacts and repeated demands made by the Applicant Bank. Hence the loan account was classified as Non-performing asset (NPA) on 02.10.2020 in accordance to RBI guidelines. The applicant bank through its Authorised Officer had initiated measures against the secure assets under SARFAESI Act and issued Section 13(2) Demand Notice dated 19.10.2020 calling upon them to repay the outstanding dues, followed by Section 13(4) Possession notice dated 27.01.2021. A Legal Notice was issued to the defendants on 27.06.2022, however there was no response to the legal notice. Hence the present Original Application (OA) has been filed by applicant bank for recovery of its dues from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was unserved with postal endorsement as “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 16.11.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 16.11.2022.

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Heard the submissions of Applicant Bank and perused the

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records .

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O.A. No. 243 of 2022

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08.07.2025

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To prove the case of the Applicant Bank, Sh. A. Maniraja, Manager 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-15 . 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 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 Defendants jointly and severally, a total sum of Rs.40,82,296/- (Rupees Forty Lakhs Eighty Two Thousand Two Hundred and Ninety Six only) due in respect of Housing Loan (Account No.36840559624) together with further interest @8.60% p.a., with monthly rests from the date of Application till the date of realization in full and for 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 A and B mentioned immovable properties more fully

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O.A. No. 243 of 2022

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detailed in the OA schedule.

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

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from the date of receipt 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 (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 08^th day of July, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Mani Raja, 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 letter for Rs.40.00 lakhs towards Housing Loan 05.05.2017	A-1
2.	Memorandum of Loan Agreement 05.05.2017	A-2
3.	Affidavit for Housing loans for purchase of Flat 05.05.2017	A-3
4.	Agreement to mortgage 05.05.2017	A-4
5.	Confirmation Letter for Equitable Mortgage 03.06.2017	A-5
6.	Deed of Undertaking 05.05.2017	A-6
7.	Memorandum of Deposit 02.06.2017	A-7
8.	Memorandum confirming the extension of existing Mortgage 16.09.2017	A-8
9.	Sale deed in Doc.No.3542 of 2017 10.05.2017	A-9
10.	Construction Agreement in Doc.No.3541 of 2017 07.02.2017	A-10
11.	Memorandum of Deposit of Title Deeds in Doc.No.445 of 2017 07.06.2017	A-11
12.	Demand Notice under Section 13 (2) of SARFAESI Act. 19.10.2020	A-12
13.	Possession Notice issued under Section 13(4) of the Act 27.01.2021	A-13
14.	Legal Notice issued to the defendants 27.06.2022	A-14
15.	Statement of Account for Loan Account No.36840559624 along with Certificate under Bankers Book Evidence Act. 25.05.2022	A-15

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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 A -:

All that piece of vacant land measuring an extent of 1784 sq.ft bearing Plot No.1-A, Sub division plan approved by St. Thomas Mount Panchayat vide planning permit No.4090/10-11, Office Letter No.1555/2011, dated 24.03.2011 and also approved by Nanmangalam Panchayat vide No.243/10-11 comprised in Old S.No.57, Patta No.3365 as per Patta New S.No.57/3 situated at Old No.98, New No.19, Nanmangalam Village, Chromepet Salai, 3^rd Street in Tambaram Taluk presently sholinganalur Taluk, Kancheepuram district within the Sub Registration district of Pallavaram and Registration District of Chennai – South and bounded on the

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North by: Plot No.2A South by: 20 Feet Road East by: 20 Feet Road West by: Land in S.No.56

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Admeasuring North to South on the Eastern side – 35 feet and on the Western side – 35 feet, East to West on the Northern Side – 50 feet 3 inches and Southern side – 50 feet.

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SCHEDULE – B

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An undivided share on 601 sq.ft. out of 1784 sq.ft of land in Plot No.1A and including common passage of right, title and interest in the above said Schedule – A mentioned property together with all its common rights, super plinth area 1295 sq.ft bearing Flat No.S-1 in Second Floor.

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The title deeds were deposited by the said defendant by way of Memorandum of Deposit of Title Deeds registered as Doc.No.4455 of

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2017, dated 07.06.2017 on the file of the office of Sub Registrar, Pallavaram.

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

State Bank of India v. Rajeswari

Case brief

What is this about?

What did the court decide?

State Bank of India v. Rajeswari

Case brief

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