Allowed

State Bank of India v. T K Sunil Mithran and Ors.

DRT26 Nov 2025OA/57/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under the RDB Act for recovery of an educational loan defaulting after notice under SARFAESI Act and ex-parte conduct by defendants.

What did the court decide?

Recovery of Rs.37,79,252.83 plus interest until realization granted. Liberty to recover via sale of schedule property granted.

State Bank of India versus T K Sunil Mithran and Ors. — Banking and Recovery | DRT (2025)

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O.A. No. 57 of 2022

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26.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 26^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 57 of 2022

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State Bank of India, Madurantakam Branch, No.100, G.S.T. Road, Madurantakam – 603 306 Rep. by its Chief Manager ….Applicant

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-Vs-

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T.K. Sunil Mithran S/o A.S. Kannan New No.58, Old No.29, Malai Nagar, Sathyaboomi, Acharapakkam & Post, Maduranthakam Taluk, Kancheepuram – 603 301

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A.S. Kannan, S/o P. Sundararajan New No.58, Old No.29, Malai Nagar, Sathyaboomi, Acharapakkam & Post, Maduranthakam Taluk, Kancheepuram – 603 301

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K. Usha, W/o A.S. Kannan New No.58, Old No.29, Malai Nagar, Sathyaboomi, Acharapakkam & Post, Maduranthakam Taluk, Kancheepuram – 603 301 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. O. Padmaprakash

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Defendants 1 to 3 were set ex-parte on 11.07.2022

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O.A. No. 57 of 2022

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26.11.2025

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: - FINAL ORDER - :

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This Original Application is filed on 09.09.2021 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 defendants for recovery of a sum of Rs.37,79,252.83p (Rupees Thirty Seven Lakhs Seventy Nine Thousand Two Hundred and Fifty Two and Eighty Three Paisa only) due in respect of Education Loan (Account No.32013172661) repayable together with further interest @ 14.25% per annum 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 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 1^st defendant is borrower, 2^nd defendant, being co-borrower and 3^rd defendant being guarantor, are father and mother of 1^st defendant respectively. The defendants had approached the applicant during the year 2011, seeking an educational loan for pursuing B.sc. Astrophysics at University of Hertforshire, UK.

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O.A. No. 57 of 2022

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26.11.2025

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Considering the said request, Education Term Loan of Rs.20,00,000/- was sanctioned by the applicant for the said course on 27.09.2011, vide Arrangement Letter dated 27.09.2011. The 2^nd defendant, as the father and natural guardian of the 1^st defendant and also as a co-applicant, executed an Agreement for Term Loan for SBI Education Loan Scheme on 27.09.2011 in favour of the applicant bank in respect of the above loan. The 3^rd defendant is the guarantor for the said educational loan and accordingly executed a guarantee agreement dated 27.09.2011 in favour of the applicant guaranteeing repayment of the above loan.

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It is submitted by the applicant bank that in terms of the Arrangement Letter and the Agreement for Term Loan for SBI Educational Loan Scheme dated 27.09.2011, the dues under the above loan are repayable in Equated Monthly Installments, which commence one year after the course period of 84 months, i.e., from July 2016 or after six months from the date of getting a job, whichever is earlier. The dues are repayable together with interest at 4.25% above base rate with monthly rests. The effective rate of interest on the date of availing the loan was 14.25%.

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The applicant bank submitted that the dues under the aforesaid loan are secured by equitable mortgage of immovable property, described in the schedule to the OA, belonging to the 3^rd defendant. The equitable mortgage was created by deposit of title deeds made on 19.09.2011,

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O.A. No. 57 of 2022

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confirmed by a Memorandum relating to deposit of title deeds dated 27.09.2011, registered as document No. 9302 of 2011, in the office of the sub-registrar of Acharapakkam, executed by the 3^rd defendant.

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It is further submitted by the applicant bank that subsequent to the availing of the said loan, the defendants failed and neglected to pay the dues properly and the loan became a Non Performing Asset (NPA) on 01.03.2017, which was classified in accordance with RBI guidelines. The applicant bank, through its Authroised Officer had issued a notice dated 04.05.2017 to the defendants under Section 13(2) of the SARFAESI Act demanding payment, followed by Possession Notice dated 10.07.2017 under Section 13(4) of the SARFAESI Act. The 1^st and 2^nd defendants as the borrowers and the 3^rd defendant as the guarantor and mortgagor are jointly and severally liable to pay the aforesaid sum to the applicant. The defendants neither sent any reply to these notices nor regularized the account. Hence, 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 were sent to Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was duly served. Although defendants entered appearance through their counsel and filed vakalat, did not choose to file Written Statement despite availing four adjournments. When OA was taken up on 11.07.2022 even after

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O.A. No. 57 of 2022

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giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 11.07.2022.

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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. S. Surendar, City Case Officer 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-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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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 jointly and severally, a sum of Rs.37,79,252.83p (Rupees Thirty Seven Lakhs Seventy Nine Thousand Two Hundred and Fifty Two and Eighty Three Paisa only) due in respect of Education Loan (Account No.32013172661)

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O.A. No. 57 of 2022

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26.11.2025

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repayable together with further interest @ 14.25% per annum with monthly rests from the date of application till the date of realization in full along with costs.

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(b) In the event of failure of the Defendant 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) 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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(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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 26^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Surendar, City Case Officer 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.	Arrangement Letter dated 27.09.2011.	A-1
2.	Agreement for term loan for SBI education loan scheme dated 27.09.2011.	A-2
3.	Guarantee Agreement dated 27.09.2011.	A-3
4.	Memorandum relating to deposit of title deeds dated 27.09.2011.	A-4
5.	Settlement deed No.505 of 2011 dated 31.01.2011.	A-5
6.	Notice under Section 13(2) of SARFAESI Act dated 04.05.2017.	A-6
7.	Notice under Section 13(2) of SERFAESI Act dated 04.05.2017.	A-7
8.	Possession Notice dated 10.07.2017.	A-8
9.	Statement of accounts dated 01.11.2011 to 29.08.2021.	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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O.A. No. 57 of 2022

26.11.2025

:- SCHEDULE -:

All that land of an area of 7 grounds and 1592 square feet (Total 18,392 square feet) out of 0.45.0 Hec. (1.11 Acres) together with well and building with E.B. Connection comprised in Survey Nos. 315/15A, 315/7A, 315/8A and 303/B1 of Acharapakkam Village, Maduranthakam Taluk, Kancheepuram District within the sub-registration district of Acharapakkam and registration district of Kancheepuram Bounded on the:

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North by : Vacant land in Survey No.315/6 and 317/2B, South by : Proposed Evergreen Public School, East by : Malai Nagar Road, West by : Proposed Evergreen Public School

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

State Bank of India v. T K Sunil Mithran and Ors.

Case brief

What is this about?

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State Bank of India v. T K Sunil Mithran and Ors.

Case brief

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What did the court decide?

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