Allowed

State Bank of India v. Razal Rose

DRT25 Mar 2025OA/247/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the State Bank of India's original application for recovery of dues under Section 19 of the Recovery of Debts and Bankruptcy Act. The Defendant failed to appear, and the claim was unchallenged. The Tribunal ordered recovery of the principal sum, accrued interest, and costs, while granting the bank liberty to sell schedule properties in case of non-payment.

What did the court decide?

Recovery of Rs.23,62,497/- plus interest at 9.30% p.a. and additional 2% for defaulted period, costs, and liberty to sell schedule property.

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

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O.A. No. 247 of 2022

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25.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 247 of 2022

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

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-Vs-

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Dr. A. Razal Rose S/o Mr. D. Antony No. 47-B, K.K. Nagar Ganapathypuram Srinivasan Nagar Guduvancherry 603 203.

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Also at

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Dr. A. Razal Rose S/o Mr. D. Anotony No.9, Devapiran Street, Murugankurinchi CSI Cathedral Church Palayamkottai Tirunelveli – 627 002 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Sh. S. Parthasarathy

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Defendant was set ex-parte on 30.09.2022

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: - FINAL ORDER - :

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This Original Application is filed on 15.07.2022 by the Applicant

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O.A. No. 247 of 2022

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25.03.2025

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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 Defendant for recovery of a total sum of Rs.23,62,497/- (Rupees Twenty Three Lakhs Sixty Two Thousand Four Hundred and Ninety Seven Only) due in respect of Housing Loan facility (Loan A/c No.36164754987) together with further interest at contractual rate of 9.30% p.a. with monthly rests and 2% additional interest chargeable for defaulted period from the date of filing the OA, till date of realization in full, for sale of schedule mentioned immovable property 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 Hon’ble Tribunal.

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It is the case of the Applicant Bank that the Defendant had approached the Applicant Bank on 29.09.2016 for sanction of Housing Loan Facility for Rs.23.00 Lakhs for the purpose of purchase of Apartment.

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It is submitted that by the Applicant Bank that on the request of the Defendant, applicant bank had sanctioned Housing Loan facility on 13.10.2016 for Rs.23.00 Lakhs, which is repayable with the interest at

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the rate of 9.3% per annum with repayment terms of 240 Equated Monthly Installments each amounting to Rs.21140/- commencing from November, 2016 for purchase of bearing Flat No. C111, in the first floor, Block C in the building complex named as “VIVACITY” with super built-up area measuring 935 Sq.ft, including common area with an undivided share of 447 Sq.ft, land in and out of 147879 Sq.ft, comprised in survey Nos. 28 (part) and 33 (part) and DTCP Planning Permit No.15/2013 Dated 07.02.2013 situated in Kannivakkam Village, Chengalpet Taluk, Kanchipuram District within the Sub Registrar District of Thiruporur and Registration District of Chengalpat.

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In order to secure the loan, defendant had executed the following documents in favour of applicant bank:

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a) The Defendant has executed Memorandum of Loan Agreement for Home Loan Granted to Public, dated 13.10.2016 for Rs.23.00 Lakhs in favour of the Applicant.

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b) The Defendant has deposed an Affidavit, Dated 13.10.2016 that they undertake not to hold the Bank 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) The Defendant has executed an Agreement to Mortgage, dated 13.10.2016 to and in favour of the Applicant.

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d) The Defendant has executed Deed of Undertakings, Dated

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13.10.2016 in favour of the Applicant.

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e) The Defendant has executed Memorandum of Deposit, dated 19.11.2016 confirming that the said property is free from encumbrance and there are no pending attachments, notices, claims in favour of the Applicant.

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f) The Defendant has submitted the original documents for creation of equitable Mortgage dated 19.11.2016 in favour of the Applicant.

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g) The Defendant has executed Memorandum of Deposit of Title Deeds dated 24.11.2016 in Doc. No. 13349 of 2016 in favour of the applicant

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It is further submitted by the Applicant Bank that subseqeutn to availing of loan, the Defendant had defaulted in repayment in Housing Loan facility despite repeated demands and requests made by applicant bank. The Defendant is failed to respond to the reminders, personal contacts and repeated demands made by the Applicant Bank. Hence the loan account of the defendant was classified as Non-Performing Asset on 27.06.2021 as per RBI guidelines. The Applicant has initiated SARFAESI proceedings against the secure assets and issued Demand Notice under Section 13(2) of the Act to the Defendants on 26.07.2021 calling upon him to repay the outstanding, followed by the Possession Notice under

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25.03.2025

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section 13(4) of the Act dated 09.11.2021. A legal notice was issued to the Defendants on 27.06.2022 and there is no response to the legal notice. 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 defendants through Registered Post with Acknowledgement Due, which were duly served to the defendant. When OA was taken up on 03.09.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendants were placed ex-parte on 03.09.2022.

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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, Mr. A. Maniraja, Manager, SARC wing, RACPC/OMR 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-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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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 :

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.23,62,497/- (Rupees Twenty Three Lakhs Sixty Two Thousand Four Hundred and Ninety Seven Only) due in respect of Housing Loan facility (Loan A/c No.36164754987) together with further interest at contractual rate of 9.30% p.a. with monthly rests and 2% additional interest chargeable for defaulted period from the date of filing the OA, till date of realization in full and for costs of this application;

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(b) In the event of failure of the Defendant to pay the aforesaid amount, the applicant bank is at liberty to sell the immovable properties (Mortgaged schedule mentioned property) towards the dues.

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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 Defendant 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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(e) The applicant bank shall file memo of costs within ten days from 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 PS, transcribed by her, corrected, signed and pronounced by me on this the 25^th day of March, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. A. Maniraja, Manager, SARC wing, RACPC/OMR 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.	Application form of the Borrower 29.09.2016	A-1
2.	Sanction Letter for Rs.23,00,000/- Lakhs towards Housing Loan 13.10.2016	A-2
3.	Memorandum of Loan Agreement 13.10.2016	A-3
4.	Affidavit for housing loans for purchase of Flat 13.10.2016	A-4
5.	Agreement to mortgage 13.10.2016	A-5
6.	Deed of Undertaking 13.10.2016	A-6
7.	Memorandum of Deposit 19.11.2016	A-7
8.	Sale Deed in Document No. 12100 of 2016	A-8

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	14.09.2016
9	Development Agreement in Document No. 12099 of 2016 14.10.2016	A-9
10	Memorandum of Deposit of Title Deeds in Document No.13499 of 2016 24.11.2016	A-10
11	Demand Notice under Section 13 (2) of SARFAESI Act 26.07.2016	A-11
12	Possession Notice under Section 13(4) of the Act 09.11.2021	A-12
13	Legal Notice issued to the Defendant 27.06.2022	A-13
14	Statement of Account for Loan Account No.40077795158 along with Certificate under Bankers Book Evidence Act 26.05.2022	A-14

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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 OF PROPERTY -:

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(As per Memorandum of Deposit of Title Deeds in Document No.13449 of 2016)

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All piece and parcel of 447 Sq.ft. of undivided share of land in the total extent of 147879 Sq. ft together with Apartment No. C111 being built on the 1^st Floor in Block-C in the Building Complex named as “VIVACITY” with a built up area measuring about 935 Sq. Ft. (including a share in Common Built up area) comprised in Survey Nos. 28 (part), 32 and 33 (part) and situate at Kannivakkam Village, Chengalpattu Taluk, Kancheepuram District and is bounded on the

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North by: Land in S.Nos. 29,30,31 and 33 (Part)

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South by: Existing Public Road in S. Nos 16/142 & 33 (Part)

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Land in S.Nos. 27, 28 (Part) and 18

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East by: Land in S. Nos. 34 and 35

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West by: Land in S. Nos. 28 (Part), 29 and 33 (Part)

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Lying within the Sub Registrar District of Thiruporur and Registration District of Chengalpat.

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

State Bank of India v. Razal Rose

Case brief

What is this about?

What did the court decide?

State Bank of India v. Razal Rose

Case brief

What is this about?

What did the court decide?

What the court decided

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