Allowed

Bank of Maharashtra v. Lakashmanan

DRT21 May 2025TA/1045/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues. The court approved the claim for Rs. 29,58,222/- along with interest and costs, permitting the bank to recover the amount via sale of the secured property if not paid.

What did the court decide?

Recovery of Rs. 29,58,222/- plus interest and costs from defendants; liberty to sell schedule property for recovery.

Bank of Maharashtra versus Lakashmanan — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1045 of 2023

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21.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 21^st day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1045 of 2023

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(Originally filed before DRT- II, Chennai as OA 421/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1045 of 2023)

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Bank of Maharashtra, Represented by its Manager, Valmiki Nagar Branch, Thiruvanmayur, Chennai 600 041 ….Applicant

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-Vs-

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Mr. N. Lakashmanan,

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S/o A.V. Narayanan,

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No.10 Kaveri Street,

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Muthusamy Nagar, Nemilicheri, Chrompet-Chennai 600 044.

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Mrs. Subulakshmi,

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C/o. Lakshmanan,

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No.10 Kaveri Street,

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Muthusamy Nagar, Nemilicheri,

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Chrompet, Chennai 600 044 …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. N. Sivabalan

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Defendants 1 and 2 were set ex-parte on 21.06.2022

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: - FINAL ORDER - :

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This original application is filed on 18.03.2020 by the applicant

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bank 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

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of a total sum of Rs.29,58,222/- (Rupees Twenty Nine Lakhs Fifty

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T.A. No. 1045 of 2023

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21.05.2025

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Eight Thousand Two Hundred Twenty Two Only) due in respect of Housing Loan (Account No.60167013944) repayable together with interest @ 12.25% p.a. with monthly rests from the date of filing the OA, till the date of realization in full, for sale of schedule mentioned property and morefully detailed in Schedule to the OA, and for costs of this Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.421 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.421 of 2020 stood transferred to this Tribunal and renumbered as TA No.1045 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 Hon’ble Tribunal.

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It is the case of the applicant bank that the defendants being the son and mother as Co-Borrower approached the approached the Applicant Bank for a Housing Loan for Rs.24,00,000/- for purchase of a Flat measuring 596 sq.ft. with 596 undivided share of 292 sq.ft of land i.e, F-1 in the “Angel Home” to be constructed at Survey No.141/2 Ward No. F Block No.16 in Raja Thottam 2^nd street at Irumbuliar Village Tambaram vide loan application dated 24.03.2014.

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T.A. No. 1045 of 2023

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21.05.2025

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It is submitted that the Applicant Bank had duly considered the request of the first Defendant and sanctioned Housing Loan vide their sanction letter dated 29.03.2014. The said housing loan is repayable in 357 monthly instalment of Rs.21,600/- each on the 1^st of every month.

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It is further submitted that the Defendants had duly accepted the terms and conditions of the aforesaid sanction. In consideration of and to secure the Housing Loan, the Defendants had executed the following documents in favour of the Applicant Bank on 10.04.2014:

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a) The defendants executed a request letter requesting the bank for making credit facility available to them.

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b) The defendants executed an On Demand Promissory Note for Rs.24,00,000/- agreeing to repay the same on demand with interest at 10.25% with monthly rest.

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c) The 1^st defendant had executed an agreement for Housing Loan for Rs.24,00,000/- lakhs agreeing to repay the same with interest at 10.25% P.A with monthly rest and also additional interest at 2% P.A with monthly rest in case of delay in payment of monthly instalments, and also agree to repay the loan in 352 monthly instalment of Rs.21,600/- each.

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d) The defendants have executed a letter of authority authorizing the applicant bank to debit their account and undertake to abide all the applicable provisions of the scheme.

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T.A. No. 1045 of 2023

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21.05.2025

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The applicant bank submitted that the 1^st defendant on 11.04.2014 with an intent to give security to secure the repayment of housing loan deposited title deeds pertaining to the property morefully detailed in the OA and executed a memorandum of deposit title deeds on 28.05.2014 registered as document No.4193 of 2014 before the SRO, Tambaram.

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It is further submitted that the applicant bank entitled to charge additional interest 2% on monthly rest, in case of delay in payment of monthly instalments. The second defendant stood as guarantor for the repayment of the housing loan.

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The applicant bank submitted that the defendants failed to repay the housing loan to the applicant bank in terms of sanction, despite repeated request by applicant bank to the first defendant to regularize and repay the housing loan availed which was highly running irregular. Hence the loan account of the defendants became a Non-Performing Asset (NPA) on 10.07.2017 as per the guidelines of the RBI under prudential norms. The applicant bank initiated proceedings under SARFAEASI Act through a notice under Sec.13(2) of the Act dated 09.07.2017 demanding a sum of Rs.24,26,707/-, followed by possession notice, sale notice and the brought the property for sale but there were no bidders. As defendants did not come forward to clear the outstanding dues, the present Original Application (OA) has been filed for recovery of dues from the defendants.

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After the filing of the OA, Summons were sent to D1 and D2

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T.A. No. 1045 of 2023

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21.05.2025

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through registered post with acknowledgment, which returned unserved. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 21.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 21.06.2022.

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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, Mr. Tulasi Ram Sahoo, Chief Manager, Asset Recovery Branch 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-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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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

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1 and 2 jointly and severally, a sum of Rs.29,58,222/-

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(Rupees Twenty Nine Lakhs Fifty Eight Thousand Two

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T.A. No. 1045 of 2023

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21.05.2025

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Hundred Twenty Two Only) due in respect of Housing Loan (Account No.60167013944) repayable together with interest @ 12.25% p.a. with monthly rests from the date of filing the OA, till the 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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T.A. No. 1045 of 2023

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21.05.2025

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

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(Dictated to Steno (Surya), transcribed by him, corrected, signed and pronounced by me on this the 21^st day of May, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Tulasi Ram Sahoo, Chief Manager, Asset Recovery Branch 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.	Loan application dated 24.03.2014.	A-1
2.	Hosing Loan Sanction Letter dated 29.03.2014.	A-2
3.	Application request Letter for making credit facility available dated 10.04.2014.	A-3
4.	On Demand Promissory Note dated 10.04.2014.	A-4
5.	Agreement for Housing Loan dated 10.04.2014.	A-5
6.	Letter of authority dated 10.04.2014.	A-6
7.	Memorandum of deposit of title dated 28.05.2014.	A-7
8.	Agreement of construction dated 21.03.2014.	A-8
9.	Sale deed dated 28.05.2014.	A-9
10.	Balance and Security confirmation Letter dated 04.04.2017.	A-10
11.	Sec.13(2) Demand Notice dated 09.10.2017.	A-11
12.	Account Statement.	A-12

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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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T.A. No. 1045 of 2023

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21.05.2025

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:- SCHEDULE OF PROPERTY -:

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A Flat No.F-1 measuring an extent of 596 sq.feet constructed with 292 sq.feet of land in that piece and parcel of house site measuring an extent of 875 sq.feet and 428 sq.feet totally measuring an extent of 1303 sq.feet comprised in Survey No.141/2 as per Tambaram Town Survey Field registrar copy old survey No.141/2 (part) Survey No.149/6 Ward No.F Block No.16, in Raja Thottam 2^nd Street situated in No.31 Irumbuliar Village Tambaram Taluk, Kancheepuram District.

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Bounded on the

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North by : Mr. Samuel Westley and others property South by : Mr. Shanker’s Property East by : 20 feet Road West by : Land in Survey No.142

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Measuring on the

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North by : 37 ½ feet South by : 37 ½ feet East by : 35 feet West by : 35 feet

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Situated with in Tambaram Municipality Limits and within the Registration District of Chennai South and Registration Sub district of Tambaram.

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

Bank of Maharashtra v. Lakashmanan

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Lakashmanan

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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