Allowed

Uco Bank v. K Dilli Raj And Three Others

DRT28 Jul 2025TA/1070/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a Term Loan defaulting amount of Rs.15,10,428 with interest. The defendants were ex-parte and offered no evidence. The order mandates joint and several recovery and sale of mortgaged property.

What did the court decide?

Recovery of Rs.15,10,428 with interest @ 9.95% p.a. and costs; liberty to sell mortgaged property for recovery of dues.

Uco Bank versus K Dilli Raj And Three Others — Banking and Recovery | DRT (2025)

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T.A. No. 1070 of 2023

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28.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of July, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1070 of 2023

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(Originally filed before DRT- II, Chennai as OA 62/2018 and thereafter transferred to this Tribunal and renumbered as TA No 1070 of 2023)

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UCO Bank, Sowcarpet Branch, Chennai – 600 001. Represented by its Senior Manager.

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….Applicant

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-Vs-

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K.Dilli Raj,

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S/o R.Kannan

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Plot No.139, West Avenue, 23 Feet Road,

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Laxmi Villas Bank Employees United Housing Colony,

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Perumalpattu Village, Thiruvallur Taluk,

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Veppampattu, Chennai.

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D.Durai Raj, S/o K.Dilli Raj

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Plot No.139, West Avenue, 23 Feet Road,

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Laxmi Villas Bank Employees United Housing Colony, Perumalpattu Village, Thiruvallur Taluk, Veppampattu, Chennai.

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D.Jaya Raj, S/o K.Dilli Raj

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Plot No.139, West Avenue, 23 Feet Road, Laxmi Villas Bank Employees United Housing Colony, Perumalpattu Village, Thiruvallur Taluk,

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Veppampattu, Chennai.

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D.Thamayanthi, W/o K.Dilli Raj

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Plot No.139, West Avenue, 23 Feet Road, Laxmi Villas Bank Employees United Housing Colony,

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Veppampattu, Chennai. …..Defendants

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T.A. No. 1070 of 2023

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28.07.2025

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Counsels on record / appeared:

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Counsel for Applicant : Kvp.Mary Femimma

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Defendants 1 to 4 were set ex-parte on 06.09.2018

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: - FINAL ORDER - :

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This Original Application is filed on 12.09.2017 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 total sum of Rs.15,10,428/- (Rupees Fifteen Lakh Ten Thousand Four

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Hundred Twenty Eight only) due in respect of Term Loan under UCO Shelter Loan (A/c No.19030610006252) repayable together with further interest @ 9.95% 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 application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.62 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.62 of 2018 stood transferred to this Tribunal and renumbered as TA No.1070/2023.

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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

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T.A. No. 1070 of 2023

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28.07.2025

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within the jurisdiction of this Tribunal.

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It is the case of the applicant bank that the Defendants have initially approached UCO Bank, Karur Branch for a Term Loan under UCO Shelter Loan Scheme by submitting their Loan Application on 30.09.2011, for purchasing a Housing Plot and for Construction.

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It is submitted by the applicant bank that based on the documents furnished by the Defendants, UCO Bank, Karur Branch sanctioned the said Loan for a sum of Rs.22,69,000/- on 23.12.2011, Vide Account No.19030610006252. As per the terms of sanction the loan was repayable in 108 equated monthly instalments of Rs.33,744/each.

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The Defendants had executed all the necessary documents and agreed to pay interest at the rate of 11% per annum.

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The Defendants had executed the following documents for the loan facility of Rs.22,69,000/-:

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i. Promissory note dated 24.12.2011 executed by the 1^st Defendant in favour of the Applicant Bank.

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ii. Loan Agreement dated 24.12.2011 executed by the 1^st Defendant in favour of the Applicant Bank.

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iii. Promissory note dated 23.12.2011 executed by the 2^nd and 3^rd Defendants in favour of the Applicant Bank.

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iv. Loan Agreement dated 23.12.2011 executed by the 2^nd and 3^rd Defendants in favour of the Applicant Bank.

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v. Guarantee Agreement dated 23.12.2011 executed by the

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T.A. No. 1070 of 2023

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28.07.2025

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4^th defendant in her individual capacity in favour of the Applicant Bank.

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The Applicant submits that for the due repayment of the loan amount the 1^st Defendant has offered to create security on the property being Land together with a building, measuring an extend on 2400 Sq.ft., Comprised in Survey No.303/5, As per Patta No.5239, Survey No.303/15, bearing Plot No.139, “Lakshmivillas Bank Employees United Housing Colony, Perumalpattu Village, Thiruvallur Taluk, Thiruvallur District, more fully described in Schedule given hereunder. In pursuance of that, the 1^st Defendant had deposited the Original title deeds of the said property on 13.01.2012 with an intent to create security thereon, with the Applicant Bank, thereby creating a Mortgage over the said property in favour of the Applicant Bank. The 1^st Defendant had acknowledged the said creation of Mortgage by executing a Memorandum of Deposit of Title Deeds Registered as Document No.491/2012, SRO Thiruvallur.

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The Applicant Bank states that initially the loan was sanctioned by UCO Bank, Karur Branch and the Defendants have executed all the necessary documents with UCO Bank Karur Branch. Subsequently the loan account has been transferred to UCO Bank, Sowcarpet Branch and was continued to be operated by the Defendants. 10. The 1^st Defendant being the borrower and the 2^nd and 3^rd Defendants being the Co-applicants and the 4^th defendants being the Guarantor were irregular in repaying the amounts due under the said

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T.A. No. 1070 of 2023

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account and hence the account became irregular. The Loan Account became Non-Performing Asset on 31.12.2014. In spite of several demands and reminders made by the Applicant Bank, the defendants had failed and neglected to pay the amount due. The Applicant Bank issued a Legal notice dated 01.09.2017 to all the Defendants demanding the outstanding amount. The notice sent to all the Defendants to their residential address had been duly served. The 1st defendant on receipt of the notice, issued a reply dated 06.09.2017 raising frivolous defences and in spite of notice the defendants deliberately failed to repay the loan amount. Hence the present Original Application (OA) has been filed by applicant bank for recovery of its dues from defendants.

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After the filing of the OA, Summons were sent to defendants 1 to 4 through Registered Post with Acknowledgment due. Summons to D1 to D4 are duly served. Although defendants entered appearance through their counsel, they did not choose to file written statement despite availing substantial number of adjournments. When OA was taken up on 06.09.2018 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants

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1 to 4 were placed ex-parte on 06.09.2018.

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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. Kalakonda

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T.A. No. 1070 of 2023

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Hemanth Kumar, Chief Manager 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-14. 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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14. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants, jointly and severally, a sum of Rs.15,10,428/- (Rupees Fifteen Lakh Ten Thousand Four Hundred Twenty Eight only) due in respect of Term Loan under UCO Shelter Loan (A/c No.19030610006252) together with further interest @ 9.95% per annum compounded with monthly rests from the date of filing this application till the date of realization 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 mentioned immovable property morefully detailed in the schedule to OA.

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T.A. No. 1070 of 2023

28.07.2025

(d) If the sale proceeds of the immovable property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the 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 defendants 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 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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T.A. No. 1070 of 2023

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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 28^th day of July, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Kalakonda Hemanth Kumar, Chief 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.	Loan Application dated 30.09.2011	A-1
2.	Sanction Letter dated 23.12.2011	A-2
3.	Promissory Note executed by the 1^stdefendant in favour of the Applicant Bank dated 24.12.2011	A-3
4.	Loan Agreement executed by the 1^stdefendant in favour of the Application Bank dated 24.12.2011	A-4
5.	Promissory Note executed by the 2^ndand 3^rd defendants in favour of the Applicant Bank dated 23.12.2011	A-5
6.	Loan Agreement executed by the 2^ndand 3^rd defendants in favour of the Applicant Bank dated 23.12.2011	A-6
7.	Guarantee Agreement executed by the 4^th defendant in favour of the Applicant Bank dated 23.12.2011	A-7
8.	Memorandum of Deposit of Title Deeds Registered as Document No.491/2012 dated 18.01.2012	A-8
9.	Sale Deed Registered as Document No.17248/2011 dated 29.12.2011	A-9
10.	Planning Permit Vide No.17/2011 dated 17.12.2011	A-10

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T.A. No. 1070 of 2023

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11.	Copy of the Legal Notice sent by the Applicant Bank to the Defendants dated 01.09.2017.	A-11
12.	Acknowledgment Cards–4Nos	A-12
13.	Reply Notice sent by the 1^stDefendant dated	A-13
	06.09.2017
14.	Statement of Accounts.	A-14

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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 property being Land together with a building, measuring an extent of 2400 Sq.ft., Comprised in Survey No.303/5, As per Patta No.5239, Survey No.303/15, bearing Plot No.139, “Lakshmivillas Bank Employees United Housing Colony, (Approval No. L.P/DTCP No. 549/98) Perumalpattu Village, Thiruvallur Taluk, Thiruvallur District, and

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Bounded on the:

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North by : West Avenue – 12 (23 Feet Road), South by : Plot Nos.132 & 133, East by : Plot No.138, and West by : Plot No.140.

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Admeasuring

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Northern side : 40 Feet, Southern side : 40 Feet, Eastern side : 60 Feet, Western side : 60 Feet,

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And situated within the Registration District of Kancheepuram and SubRegistration District of Thiruvallur.

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

Uco Bank v. K Dilli Raj And Three Others

Case brief

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Uco Bank v. K Dilli Raj And Three Others

Case brief

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