In an ex-parte application under the Recovery of Debts and Bankruptcy Act, 1993, the Tribunal allowed the bank's claim for recovery of home loan dues of Rs. 48.57 lakhs from the primary borrower and legal heirs, permitting asset sale for balance realization.
Recovery of Rs. 48,57,908 with interest and costs from borrowers and heirs; liberty to sell assets for balance dues.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
TA No.1165/2023 (E)
24.02.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 24th day of February, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
TRANSFERRED APPLICATION No. 1165 of 2023
(Originally filed before DRT- II, Chennai as OA 604/2019 and thereafter transferred to this Tribunal and renumbered as TA No. 1165 of 2023)
Bank of India Thousand Lights Branch, 406, Lloyds Road, Gopalapuram, Chennai – 600 086. Represented by its Constituted Attorney
….Applicant
-Vs-
(Minor represented by her Mother and Natural guardian, Mrs. K. Gunasundari the 1st defendant)
…..Defendants
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Counsels on record / appeared:
Counsel for Applicant : Sh. M.P. Venkateswaran
Defendants 1 to 4 were set ex-parte on 22.07.2021
: - FINAL ORDER - :
Brief Facts of the case:
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Birthichand Jain approached the applicant bank during April, 2017 seeking financial assistance for purchase of an apartment morefully detailed in schedule to the OA from M/s Hallmark Living Space Pvt. Ltd., the land owner and the promoter and submitted loan application form dated 04.04.2007 along with borrower’s profile giving details of the family.
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sanction;
(viii) Composite Letter of Authority to debit the savings account for monthly installments.
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Late Kishore Birthichand Jain.
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30.09.2017, as per RBI norms. As the dues remained unpaid, the Applicant Bank issued a Legal Notice dated 16.10.2018 to the defendants. The notice to Kishore Birthichand Jain returned unserved with endorsement as ‘deceased’. On further enquiries made by applicant bank, the death of Kishore Birthichand Jain was confirmed. On the basis of borrower’s profile given by 1st defendant and Late Kishore Birthichand Jain at the time of availing the loan, defendants 2 to 4 have been arrayed as parties in the OA. The 1st defendant apart from being liable to pay as borrower is also liable to pay the extent of value of assets inherited by her from Late Kishore Birthichand Jain. The defendants 2 to 4 are as legal heirs of Late Kishore Birthichand Jain are also liable to pay to the extent of value of the assets inherited by them from their father Late Kishore Birthichand Jain. Defendants did not repay the dues, despite several reminders. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.
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as Ex A1 to A17 . 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.
:O R D E R:
(a) The applicant bank is allowed to recover from Defendants, jointly and severally a sum of total sum of Rs.48,57,908/- (Rupees Forty Eight Lakhs Fifty Seven Thousand Nine Hundred and Eight Only) due in respect of Home Loan (A/c No. A/c No.800675510000010) together with further interest @ 8.3% p.a. compounded with monthly rests along with penal interest @ 2% p.a., from the date of application till the date of realization in full with costs.
(b) 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. The 1st defendant, apart from being liable to pay as borrower, is also liable to pay the extent of value of assets inherited by her from Late Kishore Birthichand Jain (the borrower). The defendants 2 to 4 are as legal heirs of Late Kishore Birthichand Jain are also liable to pay to the extent of value of the assets inherited by them from their father Late Kishore Birthichand Jain.
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(c) 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.
(e) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 24th day of February, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Smt. Gowri Ramachandran, Constituted Attorney of the Applicant Bank.
Exhibits on the part of the Applicant:
| **Sl. No. ** | Description of Documents | **Exhibit No. ** |
|---|---|---|
| 1. | Home loan application dated 04.04.2017 | A-1 |
| 2. | Borrowers profile dated 04.04.2017 | A-2 |
| 3. | Sanction letterdated 07.04.2017 | A-3 |
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| 4. | DemandPromissorynote dated 07.04.2017 | A-4 |
|---|---|---|
| 5. | Installmentletterdated 07.04.2017 | A-5 |
| 6. | Bearer letterdated 07.04.2017 | A-6 |
| 7. | Deed ofcontinuing security dated 07.04.2017 | A-7 |
| 8. | Agreementfor homeloandated 07.04.2017 | A-8 |
| 9 | Affidavit cumundertaking dated 07.04.2017 | A-9 |
| 10 | Letter of declaration undertaking and authority dated 07.04.2017 |
A-10 |
| 11 | Letter of authority to debit the savings account for monthlyinstalments dated 07.04.2017 |
A-11 |
| 12 | Tripartite agreement entered between the defendant, the bulilder M/s. Hallmark Living Space Pvt. Ltd, the late Kishore Birthichand Jain and the 1stdefendant and the Applicant dated 07.04.2017 |
A-12 |
| 13 | Allotment letter issued by M/s. Hallmark Living Space Pvtltd. Dated28.03.2017 |
A-13 |
| 14 | Agreement for sale entered between the M/s. Hallmark Living Space pvt. Ltd and the defendant dated 29.03.2017 |
A-14 |
| 15 | Construction agreement entered between the M/s. Hallmark Living Space pvt. Ltd and the 1stdefendant dated29.03.2017 |
A-15 |
| 16 | Recall notice issued by the Applicant’s lawyer dated 16.10.2018 |
A-16 |
| 17 | Statement ofaccounts | A-17 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil -
:- SCHEDULE -:
NIL
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
3 issues framed by the court
Whether the recovery application under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 is maintainable and admits sufficient evidence without defendant representation.
Whether the applicant bank is entitled to recover the said dues of ₹48,57,908 along with interest and costs.
Whether the legal heirs of the deceased borrower are liable to repay the balance dues to the extent of inherited assets.
2 provisions across 1 enactments
Bank of India Thousand Lights Branch
Mrs. K. Gunasundari
Ms. Deepika
Ms. Kajal
Ms. Sweety
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
