Allowed

State Bank of India v. Pravin George

DRT9 Jun 2025OA/343/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application under Section 19 RDB Act by State Bank of India against a borrower for recovery of a housing loan. The Tribunal confirmed the bank's claim after excluding the amount already realized through a SARFAESI sale of mortgaged property.

What did the court decide?

Recovery of Rs. 35,25,105 (balance after SARFAESI sale realization) plus interest @ 8.95% p.a. directed; Recovery Certificate to be issued.

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

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O.A. No. 343 of 2022

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09.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 343 of 2022

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State Bank of India ARM Branch Chennai, 44, 1^st Floor, Eldams Road, Teynampet, Chennai – 600 018 IFSC Code: SBIN0070674 Rep. by its Chief Manager ….Applicant

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-Vs-

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Mr. Pravin George Merlin S/o Mr. George Merlin Having address at a) PO BOX No.49267, Dubai, UAE-108819

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b) Johnson Controls & Global Communication LLC, PO BOX No.49267, Dubai, UAE-108819

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c) No.1-12/A4, Siriyakattuvilai, Pammam Marthandam Post, Kanniyakumari – 629 165

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d) Flat No.F-2 1^st Floor, Plot No.30 Vaigai Nagar, Urapakkam Village, Chengalpattu Taluk, Kancheepuram district. ….Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. E. Kumar Defendant was set ex-parte on 13.02.2023

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O.A. No. 343 of 2022

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09.06.2025

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: - FINAL ORDER - :

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This original application is filed on 14.10.2022 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 defendant for recovery of a total sum of Rs.35,25,105/(Rupees Thirty Five Lakhs Twenty Five Thousand One Hundred and Five only) due in respect of Housing Loan (Account No.35659150276) repayable together with further interest @ 8.95% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property 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 the defendant approached applicant bank for purchasing a new flat by availing Housing loan and submitted an application dated 20.02.2016. Defendant was also willing to execute necessary loan documents and offered the immovable property proposed to be purchased as security for the loan.

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O.A. No. 343 of 2022

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09.06.2025

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It is submitted by applicant bank that, after applying their mind and analysing various aspects as per the banking norms and upon getting clearance on the title of the property to be mortgaged in the form of legal opinion had decided to sanction the loan to the defendant. At request of the defendant, the applicant bank had sanctioned an Housing Loan for amount of Rs.30,00,000/- vide Arrangement Letter dated 30.06.2021 under the Home Loan for NRI/PIO’S for purchase of the residential property morefully mentioned in the schedule to OA.

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The applicant submits that in order to avail the aforesaid facility, defendant executed the following loan documents in favour of applicant bank:

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a) Memorandum of loan agreement for Home Loan Granted to Public dated 30.03.2016 in favour of the applicant bank executed by the defendant.

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b) Agreement to mortgage dated 30.03.2016 in favour of the applicant bank executed by the defendant.

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c) Annexure-I precondition letter dated 30.03.2016 in favour of the applicant bank executed by the defendant.

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d) Affidavit dated 30.03.2016 executed by the defendant

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e) Deed of Undertaking dated 30.03.2016 executed by the defendant

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f) Memorandum of deposit of Title Deeds dated 05.04.2016 in favour of

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the applicant bank executed by the defendant.

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It is further submitted that the defendant deposited the following documents with applicant bank:

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a) Construction Agreement dated 05.02.2016 registered as Doc.No.3433/2016 with SRO Guduvancheri executed by M/s. Sri Raama Builders in favour of S/o Mr. George Merlin who is the defendant herein

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b) Sale deed dated 30.03.2016 registered as Doc. No.3436/2016 with SRO Guduvancheri executed by Mr. A.S. Ravichandar represented by his Power Agent Mr. P. Mariappan in favour of Mr. Pravin George Merlin who is the Defendant here in to protect the loan availed with the bank.

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The applicant submits that the defendants also mortgaged the schedule mentioned property herein to and in favour of applicant bank and registered the same vide Memorandum Relating to Deposit of Title Deeds dated 05.04.2016 registered as Doc.No.3605 of 2016 with SRO Guduvancheri to protect the loan availed with the bank with an intention to create security interest u/s 58(f) of T.P Act in favour of the applicant bank

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It is submitted by the applicant bank that defendant availed credit facility, but defaulted in repayments. The operation of the account was highly unsatisfactory and they remitted a sum of Rs.2,216/- on 24.06.2021 being the last remittance made by him, which is not sufficient to regularize

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O.A. No. 343 of 2022

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the loan amount. Since the defendant failed and neglected to clear the loan, the loan account was classified as Non-Performing Asset (NPA) on 28.02.2021. The applicant bank through its Authorised Officer had initiated proceedings under the SARFAESI Act and issued demand notice under Section 13(2) of the Act on 12.04.2021 for an amount of Rs.30,94,823/- as on 11.04.2021 with subsequent interest, costs and other charges and there after taken physical possession of the schedule property by following the rules laid down under SARFAESI Act. Inspite of issuance of the notice, defendant did not come forward to repay the dues. Hence the present Original Application (OA) has been filed for recovery of amount due from defendant.

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After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left’ and ‘missed delivery’ in respect of two addresses of Defendant. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 13.02.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendant were placed ex-parte on 13.02.2023.

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Heard the submissions of Applicant Bank and perused the

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records .

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To prove the case of the Applicant Bank, Sh. Govind L Ballal, Chief Manager of the Applicant Bank, has filed his Affidavit by way of evidence

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O.A. No. 343 of 2022

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09.06.2025

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and same was considered as evidence of AW-1 and list of documents came to be marked as Ex A-1 to A-9 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.26,35,000/- by way of sale of Schedule immovable property under SARFAESI Act on 30.01.2023. Accordingly, part satisfaction of sum of Rs.26,35,000/- is duly recorded vide order dated 27.05.2024.

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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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13. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendant a total sum of Rs.35,25,105/- (Rupees Thirty Five Lakhs Twenty Five Thousand One Hundred and Five only) due in respect of Housing Loan (Account No.35659150276) together with further interest @ 8.95% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

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(b) The sum of Rs.26,35,000/- recovered by way of SARFAESI sale

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is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) The applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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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 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

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this the 09^th day of June, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Govind L Ballal, Chief 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.	Loan application Submitted by the defendant 20.02.2016	A-1
2.	Arrangement Letter between Applicant bank and defendant 30.03.2016	A-2
3.	Memorandum of Loan agreement for Home Loan Granted to Public in favour of the applicant bank executed by the defendant 30.03.2016	A-3
4.	Agreement to Mortgage in favour of the applicant bank executed by the defendant 30.03.2016	A-4
5.	Annexure-I Precondition Letter in favour of the applicant bank executed by the defendant 30.03.2016	A-5
6.	Affidavit executed by the defendant 30.03.2016	A-6
7.	Deed of undertaking executed by the defendant 30.03.2016	A-7
8.	Memorandum of deposit of title deeds in favour of the applicant bank executed by the defendant 05.04.2016	A-8
9.	Statement of Account for A/c. No.35659150276 from 30.03.2016 to 12.10.2022	A-9

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

State Bank of India v. Pravin George

Case brief

What is this about?

What did the court decide?

State Bank of India v. Pravin George

Case brief

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