Allowed

Indian Overseas Bank v. Mrs. K. Subhashini

DRT22 Oct 2025OA/274/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for a Recovery Certificate regarding a defaulted housing loan. The Tribunal confirmed the defendants' liability based on unchallenged documentary evidence but awarded interest at a reduced rate of 8% while rejecting the prayer for penal interest.

What did the court decide?

Issuance of Recovery Certificate for Rs.53,87,993/- plus interest at 8% per annum from the date of filing.

Indian Overseas Bank versus Mrs. K. Subhashini — Money Laundering | DRT (2025)

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BEFORE THE DEBTS RECOVERY TRIBUNAL –II AT CHENNAI

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Dated this 22^nd day of October, 2025

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PRESENT: SHRI SHARANG DHAR UPADHYAY PRESIDING OFFICER

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OA No.274 of 2023

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Indian Overseas Bank Arumbakkam Branch No.1063, E.V.R. Periyar High Road Arumbakkam, Chennai – 600 106 Rep. by Branch Manager …Applicant

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Versus

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Mrs. K. Subhashini W/o Kamalakannan No.41/66, Bajanai Koil Street Choolaimedu, Chennai – 600 094

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Mr. Kamalakannan No.41/66, Bajanai Koil Street Choolaimedu, Chennai – 600 094 ... Defendants

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Counsels on Record / Appeared

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Counsel for Applicant Bank : Mr. N.K.S. Rukmangathan Defendants ex-parte on 15.02.2024

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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 a sum of Rs.53,87,993/- together with interest at the rate of 8.15% per annum with

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monthly rests plus 2% penal interest from the date of the application till the

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date of realisation along with costs of the application and for schedule mentioned property.

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

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It is the case of the applicant that the defendants approached the applicant for grant of loan for purchase of flat by submitting loan application dated 23.12.2015 and the applicant considering the said request sanctioned housing loan of Rs.32,00,000/- under Subha Gruha Housing Loan Scheme for purchase of the property more fully described in the schedule to the OA.

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It is also the case of the applicant that the 1^st defendant executed various loan and security documents on 30.12.2015. The 2^nd defendant executed guarantee agreement dated 30.12.2015 thereby guaranteeing due repayment of the credit facility availed by the 1^st defendant.

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It is the further case of the applicant that the 1^st defendant deposited the title deeds of the property with the applicant on 20.01.2016 and confirmed the same by executing Memorandum of Deposit of Title deeds dated 20.01.2016 registered as doc. No.478/2016.

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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

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repeated request and hence the loan account was classified as NPA on 27.10.2016. As no payment was forthcoming the applicant issued a lawyer’s notice dated 11.10.2017 calling upon the defendants to pay the outstanding dues of Rs.37,26,589/- as on 11.10.2017. 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 are served. As there was no representation on behalf of the defendants continuously and on 15.02.2024, the defendants were called absent and placed ex-parte on that day. Applicant Bank filed Proof Affidavit along with 19 documents, which were marked as Ex. A-1 to A-19 on 27.05.2024, however Exhibits A- 16 to A-18 are marked subject to proof. The Ld. Counsel for Applicant Bank made his submissions on 23.09.2025 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-19 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant 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.

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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 is a Housing Loan 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

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lite interest can be awarded at reduced rates and prayer for award of penal interest is rejected.

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In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the 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.274 of 2023 stands allowed.

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(b) Applicant is permitted to realize a sum of Rs.53,87,993/- together with interest at the date of 8% (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 property 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

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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 22^nd 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.	23.12.2015	Loan application by defendants		A-1
2.	30.12.2015	Sanction letter of the applicant bank		A-2
3.	30.12.2015	Demand Promissory Note executed defendant	by 1^st	A-3
4.	30.12.2015	Undertaking letter by 1^stdefendant		A-4
5.	30.12.2015	Housing Loan (Term Loan Agreement)		A-5
6.	30.12.2015	Guarantee agreement by 2^nddefendant		A-6
7.	20.01.2016	Letter regarding deposit of title deeds		A-7
8.	28.09.2015	Sale agreement		A-8
9.	28.09.2015	Construction agreement		A-9
10.	20.01.2016	Sale deed – Doc. No.477/2016, Guduvancherry	SRO,	A-10

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11.	20.01.2016	Memorandum relating to deposit of title deeds – Doc. No.478/2016	A-11
12.	29.12.2018	Revival letter by the borrower	A-12
13.	29.12.2018	Revival letter by guarantor	A-13
14.	27.12.2021	Revival letter by the borrower	A-14
15.	27.12.2021	Revival letter by guarantor	A-15
16.	11.10.2017	Lawyer’s notice	A-16
17.		Acknowledgements	A-17
18.	22.01.2016	Encumbrance Certificate No.772	A-18
19.		Statement of Account	A-19

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

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DESCRIPTION OF PROPERTY

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All that part and parcel of the property bearing Flat No.S-2, Second Floor, measuring area of 915 sq. ft., at Plot No.17, MG Nagar VI, Aathanur Village, Kundrathur Panchayat Union, Sriperumbudur Taluk, Kancheepuram District comprised in S. No.376/6C1, 376/6C2, 376/6C3 & 376/6B1 of Aathanur Village, Sriperumbudur Taluk, Kancheepuram District, along with 319 sq. ft., of UDS in 1593 sq. ft., of land, and bounded on the North by: 23 Feet Road, South by: Land in Survey No.375/6B5, East by: 23 Feet Road, West by: Vacant land and lying within the Registration District of South Chennai and Sub Registration District of Guduvancherry,

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

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Indian Overseas Bank v. Mrs. K. Subhashini

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Mrs. K. Subhashini

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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