Allowed

State Bank of India v. Valarmathi Shanmugam

DRT5 Jun 2025TA/1010/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDB Act filed by State Bank of India. With the defendants absent, the Tribunal directed the recovery of the Home Loan dues along with the liberty to sell mortgaged and other assets

What did the court decide?

Recovery of Rs.25,42,776/- plus 8.75% interest; liberty to sell mortgaged properties and other assets of the respondents to recover dues.

State Bank of India versus Valarmathi Shanmugam — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1010 of 2023

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05.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1010 of 2023

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(Originally filed before DRT- II, Chennai as OA 231/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1010 of 2023)

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State Bank of India Retail Assets Central Processing Centre, MRC Nagar, No.4, Santhome High Road, Mylapore, Chennai 600 004. Rep. by its Chief Manager ….Applicant

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-Vs-

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Mrs. Valarmathi Shanmugam

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W/o Shanmugam, No.98/16, CIT Nagar, 5^th Main Road,

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Nandanam, Chennai 600 035

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Mr. Prabhuraj Shanmugam, S/o Shanmugam, No.98/16, CIT Nagar, 5th Main Road, Nandanam, Chennai 600 035 …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Suresh

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Defendants 1 and 2 were set ex-parte on 20.04.2022

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: - FINAL ORDER - :

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This original application is filed on 23.03.2020 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of a total

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T.A. No. 1010 of 2023

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05.06.2025

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sum of Rs.25,42,776/-(Rupees Twenty Five Lakhs Forty Two Thousand Seven Hundred and Seventy Six only) due in respect of Home Loan (Account No.37603525680) together with further interest @ 8.75% p.a., 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 OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.231 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.231 of 2020 stood transferred to this Tribunal and renumbered as TA No.1010 of 2023.

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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 are the borrowers, who have approached applicant bank seeking financial assistance for purchase of house.

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It is submitted by applicant bank that considering the said request of the defendants, applicant bank had sanctioned “Home Loan” facility to the tune of Rs.24,00,000/- to the defendants subject to the terms and

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T.A. No. 1010 of 2023

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05.06.2025

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conditions as envisaged under the Arrangement Letter dated 14.03.2018 and Memorandum of Loan agreement for Home Loan granted to public herein dated 14.03.2018. The defendants have executed a confirmation letter dated 25.04.2018 in favour of applicant bank.

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It is further submitted by the Applicant that defendants herein have executed the following loan documents thereby the defendants acknowledging the said loan amount availed from the applicant bank. The defendants had undertaken to repay the loan amount in time without committing any default.

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a) Sanction Letter dated 14.03.2018

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b) Arrangement Letter dated 14.03.2018

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c) Memorandum of Loan Agreement for Home Loan granted to Public dated 14.03.2018

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d) Agreement to Mortgage dated 21.03.2018

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e) Confirmation Letter dated 25.04.2018

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It is submitted by applicant bank that although the defendants had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 14.03.2018, subsequent to the disbursement of the aforesaid “Housing Loan” the defendants were operating the account as per the terms and conditions. As the defendants failed to service the interest and principal due under the

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“Housing Loan” account, the same was classified as Non-performing Asset (NPA) on 12.05.2019 as per RBI guidelines. Despite repeated reminders and requests, the defendants did not come forward to repay the dues. Hence the present Original Application (OA) has been filed for recovery of amount due from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which returned with postal endorsement as ‘left’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 20.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 20.04.2022.

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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, Mr. Seket Kumar, Manager / Authorised Officer 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-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

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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

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and 2 jointly and severally, a total sum of Rs.25,42,776/- (Rupees

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Twenty Five Lakhs Forty Two Thousand Seven Hundred and

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Seventy Six only) due in respect of Home Loan (Account No.37603525680) together with further interest @ 8.75% p.a., 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) 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 A and B mentioned immovable properties more fully detailed in the OA schedule.

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(d) If the sale proceeds of the mortgaged properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 1^st and 2^nd Defendants (both movable and immovable) to recover the balance dues as

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required under law for which the 1^st and 2^nd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the 1^st and 2^nd Defendants.

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(e) 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 Defendants to the applicant bank.

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

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(g) 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 (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 05^th day of June, 2025)

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T.A. No. 1010 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Seket Kumar, Manager and Authorised 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.	Sanction Letter 14.03.2018	A-1
2.	Arrangement letter 14.03.2018	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public 14.03.2018	A-3
4.	Agreement to Mortgage 21.03.2018	A-4
5.	Confirmation Letter 25.04.2018	A-5
6.	Sale Deed executed by A.Panbarasu infavour of S.Valarmathi and S.Praburaj (Doc.No.2423/2018) 13.04.2018	A-6
7.	Section 13(2) notice and returned covers 22.05.2019	A-7
8.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 23.03.2018 to 10.01.2020	A-8
9.	Authorization Circular	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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:- SCHEDULE A -:

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All that piece and parcel of Land and Building measuring 1155 sq.ft, bearing Plot No5, Regularized Plot, Regularized under Regularization Scheme vide Regularization No.655/2001 approved by the C.M.D.A Throuogh Anakaputhur town Panchayat, Situated at Old No.128 & 99, New No.87, Anakaputhur Village, Annadurai Street, Comprised in Survey No.316, Patta No.608 and 2010 as per patta New Survey No.316/1A2A I

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T.A. No. 1010 of 2023

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05.06.2025

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Tambaram Taluk, Kancheepuram District. Within the Registration District of Chennai South and Sub – Registration district of Pammal Bounded on the

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North By: Plot belongs to Ettiappan South By: 100 Feet Road East By: Plot No.6 West By: Plot No.4

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Measuring:-

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East to West on the Northern side: 33 feet East to West on the Southern side: 33 feet North to South on the Eastern side: 35 feet North to South on the Western side: 35 feet

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:- SCHEDULE B -:

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577 ½ Sq.ft undivided Share of land out of 1155 sq.ft., land measuring in “A” Schedule property and Building in the First along with Electricity Service Connection and half Undivided share in Common Facilities as bore Well, metro water and compound wall.

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

State Bank of India v. Valarmathi Shanmugam

Case brief

What is this about?

What did the court decide?

State Bank of India v. Valarmathi Shanmugam

Case brief

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What did the court decide?

What the court decided

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