Allowed

Union Bank of India v. Madusudhanan

DRT9 Sept 2025OA/76/2022

Case brief

AI extract

What is this about?

The Delhi Debt Recovery Tribunal allowed an original application filed by Union Bank of India for recovery of approximately Rs. 22.37 Lakhs from borrowers who defaulted on a secured loan. With defendants absent, the court granted a final order permitting debt recovery and sale of mortgaged property, directing issuance of a recovery certificate.

What did the court decide?

Allowed OA with costs. Directed recovery of Rs. 22,37,579.69 plus interest and costs. Granted liberty to recover amount by sale of schedule immovable property if not paid. Directed filing of latest ca

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

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O.A. No. 76 of 2022

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09.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 76 of 2022

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Union Bank of India, Porur Branch,

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Plot No. 2 & 9, Mount Poonamallee Road, Sakthi Nagar, Porur, Chennai – 600 116. Rep. by its Branch Manager ….Applicant

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-Vs-

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M/s. M.V. Construction,

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Mr. K.G. Madhusudanan, Proprietor, S/o. Kannaiah Naidu Govindasamy, No. 302-B, Akme par, Sabarai Nagar, Mount Poonamallee High Road,

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Porur, Chennai – 116.

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V. Stella Mary

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W/o. G. Madhusudanam, No. 302-B, Akme Par, Sabarai Nagar, Mount Poonamallee High Road,

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Porur, Chennai – 116. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. T. Narayanasamy

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Defendants were set ex-parte on 15.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 13.08.2021 by the Applicant

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Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993

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O.A. No. 76 of 2022

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09.09.2025

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants jointly and severally for recovery of a total sum of Rs.22,37,579.69p (Rupees Twenty Two Lakhs Thirty Seven Thousand Five Hundred and Seventy Nine and Sixty Nine Paisa Only) due in respect of SOD Loan facility (Account No.123331100000168) repayable together with further interest @ 16.15% p.a. with monthly compounded rests and penal interest @2% p.a., from the date of filing the OA, till date of realization in full, 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 defendants approached the erstwhile Andhra bank, Porur Branch seeking financial assistance for their business purpose.

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It is submitted by the applicant bank that considering the said request, applicant bank had sanctioned SOD loan limit Rs.25.00 Lakhs to the defendants vide sanction letter No. 1233/16/SOD/82 dated 08.06.2017 and the defendants availed the limits by deposit of the title

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O.A. No. 76 of 2022

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09.09.2025

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deeds. Loan is secured against primary security of equitable mortgage of Land and building, Vacant Residential House Sites with an extent of 1800 Sq.Ft for (each plot) Located at Plot No.11 & 13, Yogalakshmi Nagar, Kovilpadagai, Near Avadi, Chennai – 600 062, belonging to Mrs. Stella Mary W/o. Mr. K. G. Madhusudhanan 2^nd defendant (Doc.No.2). The 2^nd defendant stood as guarantor/co-obligant.

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The Applicant submits that as per the terms and conditions of the sanction, the loan amount is repayable in one year. The Defendants executed the following loan and security documents and availed the loan facilities:

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(i) Composite agreement dated 08.06.2017 executed by the 1^st defendant in favour of Andhra Bank, Porur Branch, agreeing to pay interest 16.15 p.a. monthly rest agreeing the terms and conditions contained thereof.

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(ii) Demand promissory note dated 08.06.2017 executed by Defendants.

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(iii) R.F.256 dated 08.06.2017 executed by the 2^nd Defendant in favour of Andhra Bank Porur Branch

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(iv) R.F.255B dated 08.06.2017 executed by 1^st defendant in favour of Andhra Bank, Porur Branch (v) Memorandum of deposit of title deeds executed by the 2^nd Defendant in favour of Andhra Bank Porur Branch, vide

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09.09.2025

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Doc.No.342/2012 dated 13.01.2012.

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(vi) Settlement deed dated 24.11.2011 executed by Lurthu Mary

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in favour of 2^nd defendant vide Doc No.12169/2011 for Plot No.13.

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(vii) Sale Deed dated 13.01.2012 executed by Lurthu Mary through GPA in favour of 2^nd defendant vide registered Doc No.341/2012 for plot No.11.

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(viii) Consent for Disclosure of Information to CIBIL by 1^st & 2^nd Defendants dated 08.06.2017

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(ix) General form of Guarantee executed by the 2^nd defendant in favour of Andhra Bank, Porur Branch dated 08.06.2017.

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(x) Property Statements by 1^st and 2^nd Defendants dated 08.05.2017.

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(xi) Valuation report dated 29.11.2018.

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It is submitted by the applicant bank that subsequent to availing of loan, the repayment of loan facilities were not made as per the terms and conditions of loan documents executed by the Defendants. The Defendants defaulted in respect of the above said secured debt and the account has been classified by the Andhra Bank as Non-Performing Asset (NPA) on 31.08.2017 in accordance with RBI guidelines. The applicant bank through its Authorised Officer had issued Demand notice on 27.06.2018 under Sec. 13(2) of SARFAESI Act to the Borrower / Mortgagor demanding payment of Rs.25,43,886/- as on 01.09.2017 with

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the subsequent interest within 60 days from the date of notice. As the Defendants did not come forward to repay the secured debt, applicant bank issued Possession Notice followed by Sale Notice for sale of the secured assets.

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As per MOD, the 2^nd defendant mortgaged two items of properties Plot No.11 and Plot No. 13 both situated koil Padhagai, Yogalakshmi Nagar, Ambattur Taluk. Thiruvallur District to measuring an extent of 3600 Sq.ft. 1800 + 1800 Sq.ft. but of which one of the items of properties Plot No.11 measuring 1800 sq.ft. situated in S.No.407/1, 407/2, 407/3, 407/4 Kovil Pathagai Village. Avadi Municipality, Ambattur TK, Thiruvallur District, covered under title sale deed dated 13.01.2012 Doc. No.341/2012 S.R.O. Ambattur, North Madras D.R.O. was sold in E-auction on 07.01.2020 under SARFAESI Act for Rs.18,25,000/- and the same was credited into the defendant’s account on 13.03.2020. In respect of the other items of properties (Plot No.13), the defendants have not come forwarded and cleared the balance amount raising false claim over the properties. Hence the applicant Bank has no other option except to file this Original Application (OA) to recover the balance amount by selling the 2^nd item of mortgaged property.

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After the filing of the OA, summons were sent to defendants through Registered Post with Acknowledgment Due, summons to defendants 1 and 2 returned unserved. Applicant bank had caused paper publication of the

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O.A. No. 76 of 2022

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09.09.2025

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notice and filed proof thereof. When OA was taken up on 15.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 15.06.2022.

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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 representing the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW1 and list of documents came to be marked as Ex A-1 to A-19 . 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.22,37,579.69p (Rupees

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Twenty Two Lakhs Thirty Seven Thousand Five Hundred

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and Seventy Nine and Sixty Nine Paisa Only) due in respect of SOD Loan facility (Account

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No.123331100000168) repayable together with further interest @ 16.15% p.a. with monthly compounded rests and penal interest @2% p.a., 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) 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 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/-

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(S.V. GOWRAMMA)

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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 09^th day of September, 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, Assistant General 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.	Sanction letter dated 08.06.2017.	A-1
2.	Composite agreement dated 08.06.2017.	A-2
3.	Demand Promissory note dated 08.06.2017.	A-3
4.	RF 256 executed by 2^ndDefendant in favour of the applicant bank dated 08.06.2017.	A-4
5.	R.F.255 executed by 2^nddefendant in favour of the applicant bank dated 08.06.2017.	A-5
6.	Memorandum of Deposit of title deeds executed by the 2^nddefendant dated 13.01.2012.	A-6
7.	Settlement by Lurthu Mary to the 2^ndDefendant Plot No.(13) dated 24.11.2011.	A-7
8.	Sale deed by Lurthu Mary to the 2^ndDefendant Plot No.(11) dated 13.01.2012.	A-8
9.	Consent for disclosure of information to CIBIL by 1^stdefendant dated 08.06.2017.	A-9
10.	Consent for disclosure of information to CIBIL by 2^nddefendant	A-10
11.	General form of guarantee executed by the 2^nd the defendant in favour of applicant bank dated	A-11

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	08.06.2017.
12.	Property statement of defendants	A-12
13.	Valuation Report dated 29.11.2018.	A-13
14.	Notice under section 13(2) of ACT 54 of 2002 for enforcement of security interest demand notice dated 27.06.2018.	A-14
15.	In terms of Rule 8 Possession of the properties U/s. 13(4) dated 08.11.2018.	A-15
16.	Sale notice to the borrower to bring bidders dated 02.11.2019.	A-16
17.	Confirmation of Sale dated 10.01.2020.	A-17
18.	Sale Certificate dated 21.02.2020.	A-18
19.	Statement of Accounts dated 26.04.2021.	A-19

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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 -:

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All that piece and parcel of the property Mortgaged by Mrs. Stella Mary consisting of

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Urban Land admeasuring approximately 1800 Sq.Ft. situated at Plot 13, Survey No. 407/1, 407/2, 407/3 and 407/4, Yogalakshmi Nagar, Kovilpathagai, Ambattur Taluk, Tiruvallur district, Avadi, Chennai – 600 062 and

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Bounded on the:

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East : 20 feet Road West : Plot No. 14 North : Land in S.No. 31 South : Plot No.12

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Measuring Northern Side : 50 feet Southern Side : 50 feet

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Eastern Side : 36 feet Western Side : 36 feet In all 1800 Sq.Ft.

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

Union Bank of India v. Madusudhanan

Case brief

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Union Bank of India v. Madusudhanan

Case brief

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