Allowed

State Bank of India v. a Joseph

DRT24 Oct 2025OA/347/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal granted the applicant bank's application for recovery of a home loan under the RDB Act. The court ruled in favor of the bank allowing recovery of the principal and interest, with liberty to sell both schedule and personal assets upon default.

What did the court decide?

Recovery of Rs. 25,40,974/- plus interest at 10.65% p.a.; liberty to sell schedule and personal assets to recover dues.

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

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O.A. No. 347 of 2022

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24.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 347 of 2022

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State Bank of India, R.A.C.P.C, Tambaram Branch, Rep. by it’s Chief Manager, No.388, Satheesh Paradise, Velachery Main Road, Selaiyur, Chennai -600 073. ….Applicant

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-Vs-

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Mr. A. Joseph, S/o. Mr. A. Malakondaiah, No.11, Indira Nagar, St. Thomas Mount, Near Police Joint Commissioner Officer, Chennai-600 016. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. N.S. Revathi

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Defendant was set ex-parte on 01.02.2023

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: - FINAL ORDER - :

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This Original Application is filed on 01.10.2022 by the Applicant Bank under Section 19 (1) 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.25,40,974/-

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(Rupees Twenty Five Lakhs Forty Thousand Nine Hundred and

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Seventy Four Only) due in respect of Home Loan (Account No.36472644985) repayable together with further interest @ 10.65%

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p.a. with monthly rests from the date of filing the OA, till date of realization in full and for sale of immovable property more fully detailed in Schedule to the OA 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 Tribunal.

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It is the case of the applicant bank that the defendant herein had approached the applicant bank seeking for a ‘Home Loan’ and submitted lon application on 05.01.2017.

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It is submitted by the applicant bank that pursuant to the request of the defendant to sanction the ‘Home Loan’ facility to the tune of Rs.22,50,000/- on 13.01.2017, the applicant bank has sanctioned the said credit facility subject to the terms and conditions as envisaged under the Arrangement Letter and Memorandum of Loan Agreement For “Home Loan” dated 20.01.2017, executed by the defendant herein. The loan is to be repaid in equated monthly installment of Rs.18,453/-. The Defendant herein had executed all the documents in favour of applicant bank on 20.01.2017. The defendant had guaranteed for the due repayment of the aforesaid loan amount availed by him by executing the necessary security documents.

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It is submitted by the applicant bank that the defendant herein had executed the following loan documents thereby not only acknowledging the said loan amount availed from the applicant bank but also undertaken to

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repay the loan amount in time without committing any default:-

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Sanction Letter dated 13.01.2017.

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Arrangement Letter dated 20.01.2017.

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Agreement to Mortgage dated 20.01.2017.

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Memorandum of Loan Agreement for Home Loan granted to public dated 20.01.2017, with terms and conditions duly accepted by the defendant.

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Affidavit dated 20.01.2017.

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Deed of Undertaking dated 20.01.2017.

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Form-A dated 15.03.2017.

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The applicant bank submits that the defendant have undertaken to repay the loan amount together with interest as per the terms and conditions of the ‘Arrangement Letter’ dated 20.01.2017.

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It is submitted that the applicant bank had been repeatedly making representations to the defendant to regularize the loan account but the defendant did not take any concrete steps to regularize the loan account or to repay the loan amount.

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The defendant has availed the facility in the year 2017 onwards and

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the defendant never shown any improvement to the utmost satisfaction of

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the applicant bank which is in utter contravention of the projections given at the time of availing of the loan. The applicant bank further submits that since the defendant have failed to service the interest and principal due under the loan account, consequently it has become Non-Performing Asset (NPA) on 13.06.2021 in the books of the applicant bank in terms of internal policy of the bank and as per the guidelines of the Reserve Bank of India, including matters connected with institution and conduct of legal proceedings for the said purpose. As the defendant did not come forward to repay the dues, the present Original Application has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due. Summon to sole defendant was duly served. When OA was taken up on 01.02.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 01.02.2023.

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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, Sh. P.M. Ravi Chandran, Chief Manager 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-11 . As the Defendant

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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 Defendant, a total sum of Rs.25,40,974/- (Rupees Twenty Five Lakhs Forty Thousand Nine Hundred and Seventy Four Only) due in respect of Home Loan (Account No.36472644985) repayable together with further interest @ 10.65% p.a. with monthly rests from the date of filing the OA, till date of realization in full along with costs.

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(b) In the event of failure of the Defendants to pay the aforesaid

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amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property.

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(d) If the sale proceeds of the immovable property is not sufficient

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to satisfy the dues as ordered above, the applicant bank is at liberty to

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sell the personal assets of the Defendant (both movable and

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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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(e) 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 Defendant to the applicant bank.

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

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the date of receipt of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the

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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 (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 24^th day of October, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P.M. Ravi Chandran, Chief Manager 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.	Loan Application dated 05.01.2017.	A-1
2.	Sanction Letter dated 13.01.2017.	A-2
3.	Arrangement Letter dated 20.01.2017.	A-3
4.	Agreement to Mortgage dated 20.01.2017.	A-4
5.	Memorandum of Loan Agreement for Home Loan granted to public executed by the defendant dated 20.01.2017.	A-5
6.	Affidavit dated 20.01.2017.	A-6
7.	Deed of Under Taking dated 20.01.2017.	A-7
8.	From A executed by the defendant dated 15.03.2017.	A-8
9.	Agreement of project Promotion and Construction, registered as Document No.885/2017 dated 16.12.2016.	A-9
10.	Sale Deed, registered as Document No.886/2017 dated 01.02.2017.	A-10
11.	Statement of Accounts for A/c. No.36472644985 from 13.06.2021 to 24.09.2022 & Memorandum of calculation of interest for the period from 13.06.2021 to 24.09.2022.	A-11

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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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SCHEDULE "A "

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All that piece and parcel of land comprised in Survey Numbers with an extent (which is more particularly described below) is situated at

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Kundrathur Village, Kundrathur Town Panchayat, Sriperumbudur Taluk and Kancheepuram District.

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Ite m	Sur vey	Exte nt in		Bounda	ries
No.	No.	Cent s	North by Survey Nos	South by Survey Nos	East by Surv ey Nos	West by Survey Nos
I	707 /1A	103	628	708/1,70 8/3 & 707/3	628, 707/ 1B & 707/ 3	628 & 721/2
II	707 /1B	120	628	707/3	675 & 628	707/1A
III	707 /3	187	707/1A & 707/1B	709 & 706	675 & 676	708/3 & 707/1A
IV	708 /3	93	707/1A & 707/3	709	707/ 3 & 709	708/1,70 8/2 & 718/1
V	727 /1A & 727 /1B	67	727/2	726/2 & 625	625	728/1
VI( a)	709 par t	33.1 5	708/3 & 707/3	Proposed 9M wide link Road in S.No.709 part	706	708/3 & 718/1
(b)	709 par t	39.4 5	Proposed 9M wide link Road in S.No.709 part	710/1	709 part	710/1,71 2 & 718/1

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VII	726 /1& 2	82	727/1A, 727/1B & 728/1	725 & 625	625 & 725	728/1
VIII (a)	721 /1	69	723/1, 725	720/1 & 719/1	725 & 721/ 2	723/1, 722 & 720/1
(b)	721 /2	152	725	719/1 & 708/1	628 & 707/ 1A	721/1, 719/1 & 725
IX	710 /1	37	709 part	710/2	710/ 2	712
X	734 par t	0.4	728/2 part	724	728/ 2 part	Proposed 12M wide link Road in S.No.734 part
XI	616 /1	16	615/3 & 616/2	727/2	617	616/2 & 615/2
XII	728 /1	250	728/3, 728/4, 613/2 & 615/2	726/1, 726/2, 725 & 727/2 : 11 :	727/ 1A, 727/ 2, 726/ 1 & 728/ 4	728/2 & 725
XIII	727 /2	129	616/1, 728/1	727/1A, 1B & 624	624, 625 & 617	728/1
XIV	728 /2 par t	177. 02	613/2	724 & 734	613/ 2, 728/ 1 & 724	Proposed 12M wide link Road in S.No.734 part, 728/2 part and 724

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Item No. I to item No XIV admeasuring to a total extent of 15 Acres and 55.02 Cents.

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SCHEDULE "B"

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238 sq.ft of undivided share measuring of land right, title and interest in the Schedule- A.

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SCHEDULE "C"

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Apartment No.I115 in the First Floor, Block No.L. Phase No.05 of the residential project "Temple Waves" with super Built up area 633 sq.ft (including proportionate undivided share in the common constructed area) and private terrace Area 0 sq.ft with features detailed in the annexure to the Agreement, lying within the Registration District of Chennai South, and in the Sub Registration District of Kundrathur.

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

State Bank of India v. a Joseph

Case brief

What is this about?

What did the court decide?

State Bank of India v. a Joseph

Case brief

What is this about?

What did the court decide?

What the court decided

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