Allowed

State Bank of India v. Pandian

DRT6 Jun 2025TA/1157/2023

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal allowed the banking company's application under the Recovery of Debts and Bankruptcy Act for recovery of dues from the respondent home loan borrower. The order quantified the outstanding principal and interest, directed credit for prior SARFAESI sales proceeds, and authorized sale of the respondent's assets for the balance due.

What did the court decide?

Recovery of Rs. 51,20,129.84p from the respondent principal and the respondent's other assets for balance, with issuance of recovery certificate.

State Bank of India versus Pandian — Banking and Recovery | DRT (2025)

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T.A. No. 1157 of 2023

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06.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1157 of 2023

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(Originally filed before DRT- II, Chennai as OA 79/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1157 of 2023)

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State Bank of India, Represented by its Chief Manager, Assets Recovery Management Branch, No.44, Eldams Road 1^st Floor, Teynampet, Chennai -600 018. ….Applicant

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-Vs-

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Mr. R. Pandian, S/o. Manickam Ramaswamy, No.4/16, Plot No.22, 5^th Street, Rayala Nagar, Ramapuram, Chennai -600 089.

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Also at

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Mr. R. Pandian, S/o. Manickam Ramaswamy, No.3 –B, Second Floor, J.N. Salai, Thirunagar, Vadapalani, 100 Feet Road, Chennai -600 026.

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Also at

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Mr. R. Pandian, S/o. Manickam Ramaswamy, Flat No.G2, Plot No.21, Sri Devi Nagar, 6^th Cross Street, Kobarasanallur, Kattupakkam, Near Aravind EYE Hospital, Chennai -600 056. …Defendant

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T.A. No. 1157 of 2023

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06.06.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s S. Prasadh

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Defendant was set ex-parte on 28.03.2022

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: - FINAL ORDER - :

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This original application is filed on 31.12.2019 by the applicant 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 defendant for recovery of a total sum of Rs.51,20,129.84p (Rupees Fifty One Lakhs Twenty Thousand One Hundred Twenty Nine and Eight Four Paise Only) as follows:

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(i) A sum of Rs.25,76,250.81p (Rupees Twenty Five Lakhs Seventy Six Thousand Two Hundred Fifty and Eighty One Paise Only) due in respect of Home Loan for Flat No.G1 facility (A/c No.36974397944) repayable together with further interest @ 8.80% p.a. with monthly rests plus penal interest @ 2% p.a., from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.25,43,879.03p (Rupees Twenty Five Lakhs Forty Three Thousand Eight Hundred Seventy Nine and

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Three Paise Only) due in respect of Home Loan for Flat No.G2 facility (A/c No.36974416787) repayable together with further interest @ 8.80% p.a. and with monthly rests plus penal interest @ 2% p.a. from the date of filing the OA, till date of realization in

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T.A. No. 1157 of 2023

06.06.2025

full;

for sale of schedule mentioned immovable property morefully detailed in schedule to OA and for costs of this Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.79 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.79 of 2020 stood transferred to this Tribunal and renumbered as TA No.1157 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 defendant had approached them seeking Home Loan for purchase of schedule mentioned flats.

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It is submitted that applicant bank, after considering the said request had sanctioned the following Two Home Loans, which was since availed by the defendants:

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a) Home Loan for Flat No.G1 dated 29.06.2017 A/c. No.36974397944 for a sum of Rs.22,27,000/-

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b) Home Loan for Flat No.G2 dated 29.06.2017 A/c. No.36974416787 for a sum or Rs.22,00,000/-, thus totaling to Rs.44,27,000/-

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T.A. No. 1157 of 2023

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06.06.2025

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It is further submitted by applicant bank that the Defendant had deposited original title deeds namely 1. Construction Agreement dated 30.06.2017, Doc.No.8531/2017, 2. Construction Agreement dated 30.06.2017, Doc. No.8533/2017, 3. Sale Deed dated 30.06.2017, Doc.No.8532/2017, 4. Sale Deed dated 30.06.2017, Doc.No.8534/2017 and the Defendant refused to create MODT in favour of State Bank of India and the Defendant has given a Two Agreement to Mortgage of the Schedule mentioned property dated 29.06.2017 for Flat No.G1 and G2.

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The Defendant availed the above Two Homes Loans executed the following documents in favour of the Applicant Bank.

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1. Application for Home Loan for Flat No.G1 dated 05.06.2017

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1. Application for Home Loan for Flat No.G2 dated 05.06.2017

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1. Agreement to Mortgage for Flat No.G1 dated 29.06.2017

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1. Agreement to Mortgage for Flat No.G2 Dated 29.06.2017

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1. Memorandum of Loan Agreement for Home Loan granted to Public for Flat No.G1 dated 29.06.2017

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1. Memorandum of Loan Agreement for Home Loan granted to Public for Flat No.G2 dated 29.06.2017

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1. Agreement to Mortgage for Flat No.G1 dated 29.06.2017

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1. Agreement to Mortgage for Flat No.G2 dated 29.06.2017

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1. Memorandum of Deposit for Flat No.G1 Dated 09.08.2017

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1. Memorandum of Deposit for Flat No.G2 Dated 09.08.2017

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T.A. No. 1157 of 2023

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Construction Agreement dated 30.06.2017, Doc. No.8531/2017 for Flat No.G1 Dated 30.06.2017

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Construction Agreement dated 30.06.2017, Doc.No.8533/2017 for Flat No.G2 Dated 30.06.2017

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Sale Deed dated 30.06.2017, Doc No.8532/2017 for Flat No.G1 Dated 30.06.2017

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Sale Deed dated 30.06.2017, Doc.No.8534/2017 for Flat No.G2 Dated 30.06.2017

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The Defendant agreed to repay the loan amount with interest of 8.80% towards two Home Loans. The Schedule properties more fully described in the schedule to OA were already mortgaged with Bank by the defendant for the Two Home Loan facilities availed by them.

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The Applicant Bank further submitted that they have repeatedly requested the Defendant to settle the dues. In fact, the Applicant bank had several rounds of discussions with the Defendant about the regularization of the loan accounts but of no avail. However, the defendant did not come forward to discharge the liability or take any Steps to settle the dues. Since the operation of the account was not satisfactory, the loan accounts (36974397944 and 36974416787) were classified as NPA on 21.01.2018 as per the guidelines of Reserve Bank of India. Applicant Bank issued Demand notice on 05.02.2018 for Home Loan Account Nos.36974397944 and 36974416787 to the Defendant. But there was no response from the Defendant. As the Defendant failed

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to discharge the liability, the present Original Application (OA) has been filed for recovery of dues from defendant.

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After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due, Summons to the sole defendant in the three address returned with the remarks “Left”, “No such person” and “Addressee cannot be located”. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 28.03.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-parte on 28.03.2022.

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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. Murali, Deputy 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-24 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.37,00,000/- by way of sale of Schedule mentioned immovable properties (Items 1 and 2 of OA

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T.A. No. 1157 of 2023

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06.06.2025

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scheudle) under SARFAESI Act on 03.09.2021. Accordingly, part satisfaction of sum of Rs.37,00,000/- is duly recorded vide order dated 18.05.2022.

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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 Defendant

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a total sum of Rs.51,20,129.84p (Rupees Fifty One Lakhs

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Twenty Thousand One Hundred Twenty Nine and Eight Four

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Paise Only) as follows:

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(ii) A sum of Rs.25,43,879.03p (Rupees Twenty Five Lakhs Forty Three Thousand Eight Hundred Seventy

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Nine and Three Paise Only) due in respect of Home Loan

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T.A. No. 1157 of 2023

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for Flat No.G2 facility (A/c No.36974416787) repayable together with further interest @ 8.80% p.a. and with monthly rests plus 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) A sum of Rs.37 lakhs realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) If the sale proceeds of the immovable properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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(d) The applicant bank shall file the latest memo of calculation

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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

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T.A. No. 1157 of 2023

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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) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 06^th day of June, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Murali, Deputy Manager representing the Applicant Bank Exhibits on the part of the Applicant:

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Sl. No.	Des	cription of Docume	nts		Exhibit No.
1.	Home Loan 05.06.2017.	Application Flat	No.G1	dated	A-1
2.	Home Loan 05.06.2017.	Application Flat	No.G2	dated	A-2
3.	Arrangement 29.06.2017	Letter for Flat	No.G1	dated	A-3
4.	Arrangement 29.06.2017.	Letter for Flat	No.G2	dated	A-4
5.	Agreement to 29.06.2017.	Mortgage for Flat	No.G1	dated	A-5
6.	Agreement to 29.06.2017.	Mortgage for Flat	No.G2	dated	A-6
7.	Operation Lette	r for Flat No.G1 date	d 29.06.	2017.	A-7
8.	Operation Lette	r for Flat No.G2 date	d 29.06.	2017.	A-8
9.	Deed of Und 29.06.2017.	ertaking for Flat	No.G1	dated	A-9
10.	Deed of Und 29.06.2017.	ertaking for Flat	No.G2	dated	A-10
11.	Memorandum granted to Publ	of Loan Agreement ic for G1 dated 29.0	for Hom 6.2017.	e Loan	A-11

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12.	Memorandum of Loan Agreement for Home Loan granted to Public for G2 dated 29.06.2017.	A-12
13.	Memorandum of Deposit for Flat No.G1 dated 09.08.2017.	A-13
14.	Memorandum of Deposit for Flat No.G2 dated 09.08.2017.	A-14
15.	Confirmation Letter for Flat No.G1 dated 10.08.2017.	A-15
16.	Confirmation Letter for Flat No.G2 dated 10.08.2017.	A-16
17.	Construction Agreement for Flat No.G1 dated 30.06.2017.	A-17
18.	Sale Deed for Flat No.G1 dated 30.06.2017.	A-18
19.	Construction Agreement for Flat No.G2 dated 30.06.2017.	A-19
20.	Sale Deed for Flat No.G2 dated 30.06.2017.	A-20
21.	Statement of Account No.36974397944 for Flat No.G1.	A-21
22.	Statement of Account No.36974416787 for Flat No.G2	A-22
23.	Valuation Report for Flat No.G1	A-23
24.	Valuation Report for Flat No.G2	A-24

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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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Sd/PRESIDING OFFICER, DRT-III, CHENNAI

State Bank of India v. Pandian

Case brief

What is this about?

What did the court decide?

State Bank of India v. Pandian

Case brief

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What did the court decide?

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