Allowed

Indian Bank v. P v Krishna Prasad

DRT17 Jul 2025OA/358/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal disposed of an original application filed by Indian Bank for recovery of a home loan balance. The defendants were tried ex-parte as they failed to appear. The Tribunal allowed the application and directed recovery of the outstanding sum with interest.

What did the court decide?

Direct recovery of outstanding balance of Rs. 29,30,608/- with interest at 8.35% p.a. and costs; liberty to sell personal assets; issuance of recovery certificate.

Indian Bank versus P v Krishna Prasad — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 358 of 2022

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17.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 17^th day of July, 2025

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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ORIGINAL APPLICATION No. 358 of 2022

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INDIAN BANK,

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MGT Branch, Door No. Old 155, New No.331 Thambu Chetty Street, Chennai – 600 001. Represented by its Chief Manager.

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….Applicant

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-Vs-

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Mr. P.V. Krishna Prasad,

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No. 21, Flat No. S1,

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Aradana Apartments,

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21, Temple Avenue,

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Chennai – 600 015.

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Mrs. K. Sumana, W/o. Mr. P.V. Krishna Prasad,

No. 21, Flat No. S1,

Aradana Apartments,

21, Temple Avenue,

Chennai – 600 015. ….. Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. P. Sivasubramania Pandian

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Defendants 1 & 2 were set ex-parte on 09.03.2023

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: - FINAL ORDER - :

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This Original Application is filed on 11.10.2022 by the Applicant

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Bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993

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(formerly Recovery of Debts Due to Banks and Financial Institutions

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Act, 1993) against the defendants 1 & 2, jointly and severally for recovery of a total sum of Rs. 29,30,608 /- (Rupees Twenty Nine

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Lakhs Thirty Thousand Six Hundred and Eight only) due in respect

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O.A. No. 358 of 2022

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17.07.2025

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of Home Loan (Account No. 6461081222) repayable together with further interest @ 8.35% p.a., compounded with monthly rests from the date of Application till the date of realization in full and for costs of this Original 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 1^st and 2^nd defendants approached the Applicant Bank seeking Term Loan facilities for the purpose of purchasing a Flat under Home Loan vide Application for Home Loan dated 04.08.2016.

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It is submitted by the applicant bank that the request of the 1st and 2nd Defendants was considered, and the Term Loan facility was sanctioned on 08.08.2016 vide sanction No. IHL8304/2016-17 dated 08.08.2016 by IRB Chennai North for purchase of flat under construction under Home Loan for residents scheme for a Limit of Rs.1,69,00,000/- (Rupees One Crore Sixty Nine Lakhs Only) and thereafter to be serviced by the Indian Bank MGT Branch, Chennai600001. The 1^st and 2^nd Defendants also agreed to repay the loan in 222 months with holiday period of 18 months with interest at 10.75% (i.e. above 1.30% of MCLR i.e. 9.45% at the time of sanction) with

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O.A. No. 358 of 2022

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monthly compounding besides penal interest of 2% on overdue amount. The Rate of interest changes with reference to the increasing or decreasing of the MCLR as revised by the bank from time to time.

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The Applicant submits that pursuant to such sanction, the 1^st defendant as Borrower and the 2^nd defendant as Guarantor agreed to the terms and conditions of the sanction. In order to secure the loan, the the following documents were executed by the 1^st and 2^nd Defendants on 10.08.2016 and availed the loan in account bearing No.6461081222:

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(i) The 1^st Defendant executed Demand promissory Note dated 10.08.2016 for Rs.1,69,00,000/- (Rupees One Crore Sixty Nine Lakhs Only);

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(ii) The 1^st Defendant also executed a Term Loan Agreement for Rs.1,69,00,000/- (Rupees One Crore Sixty Nine Lakhs Only) with the Applicant on 10.08.2016.

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(iii) The 2^nd Defendant executed Agreement of Guarantee for Rs. 1,69,00,000/- (Rupees One Crore Sixty Nine Lakhs Only) with the Applicant on 10.08.2016.

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(iv) The 1^st and 2^nd Defendants executed Acknowledgement of Debt-cum-security dated 04.06.2019 and Acknowledgement of Debt-cum-security dated 15.10.2019 with the Applicant.

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(v) The 1^st Defendant also executed a memorandum of deposit

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of Title Deeds dated 30.08.2016 and registered as Doe. No.

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10390/2016 in SRO, Tirupporur as security for the credit facility availed for Rs.1,69,00,000/- (Rupees One Crore Sixty Nine Lakhs Only) with the Applicant on 10.08.2016.

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The Applicant submits that subsequent to availing of loan, the 1^st and 2^nd Defendants failed to repay the amount regularly and consequently the account was classified as Non Performing Asset (NPA) on 12.03.2018 as per the guidelines of the Reserve Bank of India. The repeated requests of the Applicant to clear the outstanding amount failed to evoke any response and the Defendants 1 & 2 did not care to discharge their liability.

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It is submitted that the Applicant subsequently recalled the entire dues and proceeded against the defendants under SARFAESI Act. Accordingly the applicant took steps and brought the mortgaged property more fully described in the schedule for E-auction in exercise of the powers conferred under Section 13 read with Rules 8 & 9 of the Security Interest Enforcement Rules 2002 and sold the mortgaged property free from all encumbrances to and in favour of M/s Utracon Structural systems Pvt Ltd., Chennai for the sale price of Rs.2,05,50,000/- (Rupees Two Crores Five Lakhs and Fifty Thousand only) vide Sale certificate Dated 30.07.2021 issued by the applicant.

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The sale proceeds were credited to the loan account of the 1^st defendant. After adjustment of the sale proceeds, as per the accounts maintained by the Applicant, the Defendants are jointly and severally

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liable to pay the remaining balance outstanding being the sum of Rs. 29,30,608/- (Rupees Twenty Nine Lakhs Thirty Thousand Six Hundred and Eight only) as on 07.10.2022.

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The Applicant submits that since the defendants have failed to discharge their liability in full, the Applicant is constrained to file the present O.A. for the recovery of the balance amounts due to it. The Defendants are jointly and severally liable to pay the amounts due to the Applicant.

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After the filing of the OA, summons were sent to the Defendants 1 & 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left’ in respect of the 1^st and 2^nd defendants. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 09.03.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 & 2 were placed ex-parte on 09.03.2023.

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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. Rengam Khongsai, Senior 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-8 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no

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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 1 & 2 jointly and severally for recovery of a total sum of Rs.29,30,608 /- (Rupees Twenty Nine Lakhs Thirty Thousand Six Hundred and Eight only) due in respect of Home Loan (Account No. 6461081222) repayable together with further interest @ 8.35% p.a., compounded 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 applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) to recover the balance dues as required under law for which the defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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(c) 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

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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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(d) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(e) 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 (Ponmalar), transcribed by her, corrected, signed and pronounced by me

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on this the 17^th day of July, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Rengam Khongsai, Senior Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Document	s	Exhibit No.
1.	08.08.2016	Copy of the Sanction Letter		A-1
2.	10.08.2016	Demand Promissory Note		A-2
3.	10.08.2016	Tem Loan Agreement		A-3
4.	10.08.2016	Agreement of Guarantee		A-4
5.	04.06.2019	Acknowledgement of debt security	cum	A-5
6.	15.10.2019	Acknowledgement of debt security	cum	A-6

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7.	30.07.2021	Copy of the Sale Certificate	A-7
8.	07.10.2022	True extract of the Statement of A/c.	A-8
		No. 6461035638 with details of MOI
		and BBE Certificate
Witne	ss Examined f	or the Defendants : Nil

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List of Documents Exhibited for the Defendants :

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Nil

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Sd/-

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

Indian Bank v. P v Krishna Prasad

Case brief

What is this about?

What did the court decide?

Indian Bank v. P v Krishna Prasad

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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