Allowed

Union Bank of India v. Anjana

DRT5 Dec 2025OA/43/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application and adjudicated that the legal heirs of the deceased borrower are jointly and severally liable to repay the outstanding dues along with interest and costs, subject to credit for amounts already realized via asset sale.

What did the court decide?

Recovery of Rs. 60,24,123/- along with interest; sale proceeds of Rs. 26,75,000/- credited to account; issuance of Recovery Certificate.

Union Bank of India versus Anjana — Banking and Recovery | DRT (2025)

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O.A. No. 43 of 2022

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05.12.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of December, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 43 of 2022

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Union Bank of India, Keelkattalai Branch, No. 85, Medavakkam Main Road, Chennai – 600 017.

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Rep. by its Branch Manager. ….Applicant

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-Vs-

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Mrs. Anjana,

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Wife of Late Mr. Udhaya Sankar U,

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No. 8, Sankarapuram 3^rd Street,

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Choolaimedu,

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Chennai – 600 094.

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Master U. Vaibhav,

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S/o. Late Mr. Udhaya Sankar U,

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No. 8, Sankarapuram 3^rd Street,

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Choolaimedu,

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Chennai – 600 094.

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Mrs. Andal,

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M/o. Late Mr. Udhaya Sankar U,

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Door No. 16-B, Swismith Apartment,

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Kandappan Colony,

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Near (R.J. Complex),

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Choolaimedu, Chennai – 600 094 .…. Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. T. Narayanasamy

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Defendants 1 to 3 were set ex-parte on 19.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 19.12.2018 by the Applicant

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

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O.A. No. 43 of 2022

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05.12.2025

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 3, jointly and severally for recovery of a total sum of Rs. 60,24,123/- (Rupees Sixty Lakhs Twenty Four Thousand One Hundred and Twenty Three only) due in respect of Housing Loan (Account No.127630100089624) repayable together with further interest @ 9.65% p.a. with monthly rests plus additional interest at 2% p.a. from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this Original Application. The liability of the defendants is restricted to the extent of estate inherited by them from the deceased borrower.

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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 borrower Mr. Udayasankar, since deceased, had approached the erstwhile Andhra Bank, Keelkattalai Branch seeking for Housing Loan for purchase of the schedule mentioned property. The first defendant is wife of the deceased borrower Udayasankar and the 2^nd defendant is son, 3^rd defendant is mother of the deceased Udayasankar. It is submitted that the borrower Udayasankar had approached the Andhra Bank, Keelkattalai Branch for Housing Loan of Rs.49,70,000/- (Forty Nine lakhs Seventy Thousand

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only) for purchase of flat.

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Considering the said request, Andhra Bank, Keelkattalai Branch sanctioned Housing Loan limit of Rs. 49,70,000/-(Rupees Forty Nine Lakhs Seventy Thousand only) to the defendants vide Sanction Letter No. 12760000201 dated 9.5.2016 against primary security of land and building at Door No.11, Flat No.S1, Second floor, 'B' Block admeasuring 1395 Sq.ft. of Flat with 546 sq. ft. of undivided share of land one covered car parking in S.No.66/1 and 65 as per patta No. 5540 comprised in S.No.66/1D, Vel Nagar in Plot Nos. 11,12 and 13 comprised in Kundrathur village, Sriperumbudur Taluk, Kancheepuram District - 600 069, Tamil Nadu (Doc. No.2). To secure the repayment of loans/credit facilities the Udayasankar has mortgaged his immovable properties more-fully described in the schedule. As per the terms and conditions of the sanction, the rate of interest is 9.65% p.a. monthly rest. The loan amount is repayable in 300 equated monthly installment at the rate of Rs.43942/per month. Udayasankar executed necessary following loan and security documents and availed the loan facilities H.L. 127630100089624. Composite Agreement dated 26.08.2016 is executed by the Udayasankar in favour of Andhra Bank, agreeing the terms and conditions contained thereof for Rs.49.70 lakhs. RF 255 dated 26.8.2016 is executed by Udayasankar in favour of Applicant Bank confirming the deposit of title deeds made on 25.8.2016, which is executed by the Udayasankar in favour of Andhra Bank, Keelkattalai Branch. Memorandum of Deposit of

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05.12.2025

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Title Deeds dated 11.05.2016 executed by Udayasankar in favour of Andhra Bank, Keelkattalai Branch for a sum of Rs.49.70 lakhs vide Doc. No.7122/2016.

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The Applicant submits that subsequent to availing of loan, the repayments of the said loan/facilities are not made as per the terms and conditions of loan documents executed by Udayasankar. The borrower defaulted in respect of repayment of the above said secured debt and the account has been classified by the Andhra Bank as Non Performing Asset (NPA) on 10.01.2017 in accordance with RBI guidelines. The Bank issued Demand Notice dated 04.04.2017 through Authorized Officer under Section 13(2) of SARFAESI Act to the borrower and Mortgagor/Guarantor demanding Rs.52,03,569/- as on 31.3.2017 with subsequent interest within 60 payment days from the date of notice and the same is received on 4.4.2017 by Udayasankar as per endorsement. Although the said period of 60 days from the date of notice as prescribed, the Defendant has not come forward to repay the secured debt.

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As no payments were forthcoming, the applicant bank had issued Possession Notice under Sec. 13(4) of the Act possession on 03.07.2017. Despite repeated demands and requests, the borrower failed to repay the loan. Sh. Udayasankar died in April 2018 leaving behind his wife - 1^st defendant, son - 2^nd defendant, mother – 3^rd defendant as legal heirs. In exercise of powers conferred by Section 9 of the Banking Companies Acquisition & Transfer of Undertaking Act 1970 (5/1970) II & Section 9 of

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O.A. No. 43 of 2022

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Banking Companies of the commencement of the scheme of undertaking Andra Bank shall be transferred and shall vest to the Union Bank of India. The present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons was sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left without instruction’ in respect of D-1, D-2 and as ‘No such person’ in respect of D-3. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 19.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 19.05.2022.

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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. M.L.R. Srikanth, Assistant General 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-12 . 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. 26,75,000/- by way of sale of

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Schedule immovable property under SARFAESI. Accordingly, part satisfaction of sum of Rs. 26,75,000/- is duly recorded vide order dated 16.10.2025 and documents unmarked as Ex A-6 and A-11 were returned to applicant bank on 31.10.2025 under proper acknowledgement.

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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 to 3, jointly and severally for recovery of a total sum of Rs. 60,24,123/- (Rupees Sixty Lakhs Twenty Four Thousand One Hundred and Twenty Three only) due in respect of Housing Loan (Account No.127630100089624) repayable together with further interest @ 9.65% p.a. with monthly rests plus additional interest at 2% p.a. 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. 26,75,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realisation.

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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

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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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(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 PS, transcribed by her, corrected, signed and pronounced by me on this the 05^th day of December, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. M.L.R. Srikanth, Asst. General 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 Documents	Exhibit No.
1.	09.05.2016	Housing Loan Application	A-1
2.	09.05.2016	Sanction Letter	A-2
3.	11.05.2016	^Composite Agreement signed by Udhaya Shankar	A-3
4.	29.04.2016	Offer of Security (RF 256)	A-4
5.	26.08.2016	RF-255 confirming the deposit of title	A-5

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		deeds
6.	11.05.2016	Memorandum of Deposit of Title Deeds executed by Udhayasankar to Andhra Bank Branch Doc. No. 7122/2016	A-6
7.	04.04.2017	^{Notice under Section 13(2) of SARFAESI} Act 54 (Act 54/2002)	A-7
8.	03.07.2017	^Possession Notice u/s.13(4) of SARFAESI Act	A-8
9.	04.07.2017	Acknowledgement Card	A-9
10.	27.07.2017	Valuation Report	A-10
11.	11.05.2016	Sale Deed by C. Raji to Udayasankar	A-11
12.	--	Statement of Accounts	A-12

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Witness Examined for the Defendants

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: -Nil-

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List of Documents Exhibited for the Defendants : -Nil –

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SCHEDULE

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Schedule of property was sold under SARFAESI Act

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Sd/-

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

Union Bank of India v. Anjana

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Anjana

Case brief

What is this about?

What did the court decide?

What the court decided

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