Allowed

State Bank of India v. Senthil

DRT30 Jul 2025OA/36/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of a housing loan default. Unchallenged due to the defendant's ex-parte status, the court validated the bank's claim of ₹38,25,799/- and authorised recovery via sale of mortgaged property.

What did the court decide?

Recovery of Rs.38,25,799/- with interest at 7.55% p.a.; liberty to sell mortgaged immovable property for recovery.

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

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O.A. No. 36 of 2022

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30.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 30^th day of July, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 36 of 2022

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State Bank of India RACPC, Tambaram, Represented by its Asst. General Manager, “Satheesh Paradise” No.388, Velachery Main road, Selaiyur, Chennai – 600073. ….Applicant

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-Vs-

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Mr.S. Senthil, S/o M. Selvam, Aged about 34 years Residing at No.44/34, Kamarajar Street, B.V.Nagar, Nanganallur, Chennai – 600 061. …..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 09.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 10.02.2021 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.38,25,799/- (Rupees Thirty Eight Lakhs Twenty Five Thousand

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O.A. No. 36 of 2022

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30.07.2025

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Seven Hundred and Ninety Nine Only) due in respect of Housing Loan (Account No.37977185453 : Rs. 3700880/- plus SBI Suraksha for HTL Account No.37983172456 : Rs. 1,24,919/- as on 24.10.2020) repayable together with further interest @ 7.55% p.a. with monthly rests from the date of filing the OA, till date of realization in full and for sale of immovable property morefully 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 had approached the applicant for Sanction of Housing Loan. The Applicant Bank based on loan application dated 20.09.2018 processed the application and sanctioned Housing Loan of Rs. 32,00,000/- (Rupees Thirty Two Lakhs Only), and another Loan for securing Housing Loan through Insurance a Suraksha for HTL also sanctioned for Rs. 1,11,846/vide their Credit Sanction Advice dated 28.09.2018. The Defendant availed the Housing Loan facility and executed loan and security documents in favour of applicant bank:

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Home Loan Application dated 20.09.2018.

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30.07.2025

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Sanction Letter dated 28.09.2018.

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Arrangement Letter dated 28.09.2018.

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Deed of Undertaking dated 28.09.2018.

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Affidavit to Mortgage dated 28.09.2018.

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Memorandum of Loan Agreement for Home Loan dated 28.09.2018.

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Memorandum of Deposit dated 28.09.2018.

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Confirmation Letter (E M of Borrowers property) dated 28.09.2018.

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Sale Deed dated 31.10.2018 executed by K. Govindarajulu, represented by General Power of Attorney Agent V Sadayappan to and in favour of S Senthil and registered as Document No.

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11890/2018, SRO, Selaiyur.

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Valuation report dated 31.07.2018.

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Construction agreement executed by M/s M M engineer, Rep. by its Prop:P.Durairaaj to and in favour S Senthil and registered as

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Document No. 11889/2018, SSRO, Selaiyur.

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Notice U/s 13(2) of SARFAESI Act, 2002 dated 26.07.2019.

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Possession Notice dated 02.01.2020.

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Statement of account dated 29.09.2018 to 24.10.2020.

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The applicant submits that in pursuance of the sanction of said loan facility, the defendant after agreeing and accepting the terms and

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O.A. No. 36 of 2022

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30.07.2025

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conditions laid down in the sanction advice, executed the following loan and security documents in favour of the applicant for Housing loan availed by the defendant firm by executing the loan documents.

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The applicant Bank submits that as per the loan documents, the applicant Bank disbursed the loan amount by way of Housing Loan. The outstanding on the account was acknowledged by the Defendant.

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It is submitted by the Applicant Bank that subsequent to availing of loan, defendant was not regular in repayment despite repeated reminders from applicant bank to regularize the above said loan facility. But the defendant neglected to make any remittance in the said loan account thereby committing default in repaying the outstanding dues to the applicant bank. Consequently, the loan account as declared as NonPerforming Asset (NPA) on 15.09.2019. Hence, the applicant bank was constrained to issue Notice U/s 13(2) of SERFAESI Act, 2002 on 26.07.2019 calling upon the defendant to repay the outstanding due amount payable to the applicant bank. As defendant did not come forward to repay the dues, the present Original Application (OA) has been filed by applicant bank for recovery of its dues from defendant.

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After the filing of the OA, Summons to sole defendant was sent through Registered Post with Acknowledgement Due, returned unserved. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 09.05.2022, even after giving

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sufficient time, there was no appearance or representation from the defendant. Hence, defendant were placed ex-parte on 09.05.2022.

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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. N.V Radhakrishna, 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-18. 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 :

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10. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendant jointly and severally, a sum of Rs.38,25,799/- (Rupees Thirty

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Eight Lakhs Twenty Five Thousand Seven Hundred Ninety Nine Only) due in respect of Housing Loan (Account No.37977185453

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: Rs. 3700880/plus SBI Suraksha for HTL Account

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O.A. No. 36 of 2022

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30.07.2025

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No.37983172456 : Rs. 1,24,919/-) repayable together with further interest @ 7.55% 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 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 are not sufficient to satisfy the dues as ordered above, 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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(e) The applicant bank shall file the latest memo of calculation of

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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

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from the date of receipt of this final order.

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O.A. No. 36 of 2022

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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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 30^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: Mr. N.V Radhakrishna, 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.	Home loan application dated 20.09.2018.	A-1
2.	Sanction Letter dated 28.09.2018.	A-2
3.	Arrangement Letter dated 28.09.2018.	A-3
4.	Memorandum of Loan Agreement for Home Loan dated 28.09.2018.	A-4
5.	Deed of undertaking dated 28.09.2018.	A-5
6.	Affidavit of Mortgage executed by the borrower dated 28.09.2018.	A-6
7.	Memorandum of Deposit dated 10.12.2018.	A-7
8.	Memorandum of Deposit	A-8
9.	Agreement of Mortgage dated 28.09.2019.	A-9
10.	Consent letter by the borrower dated 28.09.2018.	A-10
11.	Operation letter dated 28.09.2018.	A-11
12.	Confirmation Letter (E M of Borrower’s Property)	A-12
13.	Sale Deed dated 31.10.2018 executed by	A-13

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	K.Govindarajulu, represented by General Power of Attorney Agent V Sadayappan to and in favour of S Senthil and registered as Document No. 11890/2018, SRO, Selaiyur dated 31.10.2018.
14.	Valuation Report dated 31.07.2018.	A-14
15.	Construction agreement executed by M/s M M engineer, Rep. by its Prop:P.Durairaaj to and in favour S Senthil and registered as Document No. 11889/2018, SRO, Selaiyur dated 30.10.2018.	A-15
16.	Notice U/s 13(2) of SERFAESI Act 2002 dated 26.07.2019.	A-16
17.	Possession Notice dated 02.01.2020.	A-17
18.	Statement of Account and Accrued interest statement dated 29.09.2018 to 24.10.2020.	A-18

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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 – A-:

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All that piece and parcel of Building site admeasuring an extent of 11 cents or 4875 Sq.Ft and marked as Plot No. A,B and C bearing Old Door No. 53, New Door No. 22, situated in BajanaimKoilm street, Chithalapakkam, Chennai 600123 and comprised in Gramanatham Old Survey No. 119/10(part) as per Natham Survey Patta No. 179 new Survey N.22 in Tambaram Taluk, now village N.21, Chithalapakkam Village formerly as Saidapet Taluk, chengalpattu District, previous Tambaram Taluk, now Sholinganallur Taluk, Kancheepuram District within the Registration District of Chennai South and Sub Registration District of Selaiyur in the ivil Jurisdiction Limits of Chithalapakkam Panchayat in St. Thomas Mount Panchayat Union of Land measuring 4875 Sq.Ft or thereabout

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Bounded on the

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North by : Remaining Land belongs to Mrs. T Rkmani Vahayara

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O.A. No. 36 of 2022

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30.07.2025

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South by : Bajanai Koil Street

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East by : Property belonged to Mr. Dhanasekaran

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And West by : Property belongs to Bangaru Ammal and Soundararajan

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Measuring of Land

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East to West on the Northern side : 60Ft

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East to West on the Southern side: 60Ft

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North to South on the Easstern side: 821/2 Ft

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North to South on the Western side: 80 Ft

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In the above said all measuring 11 cents or 4875 Sq.Ft of the property of Land only referred as the Total Property

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SCHEDULE – B

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All that piece and parcel of 500 Sq.Ft of Undivided share in 475 Sq Ft forming part in Schedule “A” property of UDS Land only referred as only basic land in this agreement.

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SCHEDULE – C

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Flat Building super Built up area of 1100 Sq.Ft inclusive of proportionate share in a; common area as described by the bye laws of the society bearing Flat No S1 on the second Floor in “A” Block “Sadayappan Enclave”.

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

State Bank of India v. Senthil

Case brief

What is this about?

What did the court decide?

State Bank of India v. Senthil

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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