Allowed

Union Bank of India v. Jothi Prakash

DRT4 Jun 2025TA/1199/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application filed under Section 19 of the RBI Act for recovery of Rs.20.00.427/- due from housing loan defaulters where the respondents appeared ex-parte.

What did the court decide?

Recovery of Rs.20.00.427/- jointly and severally, with liberty to sell schedule immovable property or personal assets upon default in payment.

Union Bank of India versus Jothi Prakash — Banking and Recovery | DRT (2025)

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T.A. No. 1199 of 2023

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04.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1199 of 2023

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(Originally filed before DRT- II, Chennai as OA 250/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1199 of 2023)

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Union Bank of India, Rep. by its Branch Manager, Ashok Nagar Branch, Plot No.1209, 1^st Avenue, Near Police Training College, Ashok Nagar, Chennai -600 083. ….Applicant

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-Vs-

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Mr. A.C. Jyothiprakesh, S/o Mr. S.A. Chaveriappa,

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No.440A, S1, Second Floor,

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V Tech Arokya, TNHB, Mambakkam Main Road, Sithalapakkam,

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Chennai -600 126.

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Mrs. J. Jaya Rackkini Vinnarasi,

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W/o Mr. A.C. Jyothiprakesh,

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No.440A, S1, Second Floor,

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Tech Arokya, TNHB,

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Mambakkam Main Road, Sithalapakkam, Chennai -600 126. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. S. Parthasarathy

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Defendants 1 to 2 were set ex-parte on 23.05.2022

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: - FINAL ORDER - :

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This original application is filed on 19.02.2020 by the applicant bank

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T.A. No. 1199 of 2023

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04.06.2025

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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 sum of Rs.20,00,427/- (Rupees Twenty Lakhs Four Hundred and Twenty Seven Only) due in respect of Housing Loan (Account No.409206650002447) repayable tougher with interest @ 10.50% p.a. with monthly rests from the date of filing the OA till the date of realization in full, for sale of schedule mentioned immovable property 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.250 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.250 of 2020 stood transferred to this Tribunal and renumbered as TA No.1199 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 have approached the Applicant Bank for sanction of Housing Loan for an amount of Rs.16,39,000/- for purchase of Apartment bearing Flat No.S-1, Second Floor, with super build up area measuring 895 Sq.Ft. together with an

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T.A. No. 1199 of 2023

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04.06.2025

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undivided share of land measuring 415 Sq.Ft. in and out of total extent of 1800 Sq.ft, comprised in New Survey No.28/3A, bearing Plot No.183, Thiruverkadu Co-operative Nagar, Noombal Village, Ambattur Taluk, Thiruvallur District within the Sub Registration District of Kundrathur and Registration District of Chennai-South.

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It is submitted that the Applicant Bank considered their application and sanctioned Housing Loan at Retail Asset Hub vide Sanction Letter, dated 24.11.2012 for a sum of Rs.16,39,000/-.

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The Applicant Bank sanctioned the said loan at the rate of floating interest at 10.50%, which is repayable in Equated Monthly Installments of Rs.18,117/- each with the tenure of 180 months commencing from June, 2013. As per the terms of Sanction, the Defendants have to service interest to the loan account periodically as and when charged by the Applicant Bank before beginning of the payment of equal monthly installments.

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It is submitted by applicant bank that to secure the loan, the Defendants have executed the following documents in favour of the Applicant Bank:

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a) Housing Loan Agreement, dated 24.11.2012 for Rs.16,39,000/-

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b) Demand Promissory Note for Rs.16,39,000/- dated 24.11.2012

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promising the repay the said amount together with agreed interest thereupon.

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T.A. No. 1199 of 2023

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It is further agreed by the defendants that the Bank shall also be entitled to charge an additional interest at 2% per annum over and above the agreed rate of interest at such rests as agreed above in the event of non-payment of any installments of principle and/or interest, costs and other charges due or in the event of any other irregularity, during the period the amount due remains unpaid or the irregularity continues for the defaulted amount or an overdue outstanding as on that date.

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Applicant bank submitted that in order to further secure the advance, the Defendants mortgaged the immovable property which was purchased by availing the Housing Loan under the Registered Sale Deed in Document No.12026 of 2012, dated 04.10.2012 held in the name of the Defendants. The Defendants have deposited the above referred Sale Deed and other documents pertaining to his Residential Flat morefully detailed in the schedule to the OA by way of Memorandum of Deposit of Title Deeds executed on 27.11.2012.

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It is submitted by the applicant bank that subsequent to availing of loan, the Defendants have defaulted in repayment of Installment/interest and consequently Housing Loan account of the Defendants turned as NPA on 31.03.2018. Despite the reminders, personal contacts and repeated demands made by the Applicant Bank, the defendants failed to repay the dues in the Housing Loan account bearing No.409206650002447. The Applicant Bank caused a legal notice to the Defendants on 15.02.2018,

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T.A. No. 1199 of 2023

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despite which defendants did not come forward to repay the dues. Hence the present Original Application (OA) has been filed for recovery of dues from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 2 through Registered Post with Acknowledgment Due, Summons to D1 and D-2 were duly served. When OA was taken up on 23.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 23.05.2022.

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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. S. Balasubramaniam, Branch 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-8 . 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 :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a sum of Rs.20,00,427/- (Rupees Twenty Lakhs Four Hundred and Twenty Seven Only) due in respect of Housing Loan (Account No.409206650002447) repayable tougher with interest @ 10.50% 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) If the sale proceeds of the immovable property are 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

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T.A. No. 1199 of 2023

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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

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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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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 04^th day of June, 2025)

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T.A. No. 1199 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. S. Balasubramaniam, Branch 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 10.11.2012.	A-1
2.	Sanction Letter for Rs.16,39/- Lakhs issued to the Defendants dated 24.11.2012.	A-2
3.	Demand Promissory Note for Rs.33.20/- Lakhs dated 24.11.2012.	A-3
4.	Housing Loan Agreement for Rs.16.39/- Lakhs dated 24.11.2012.	A-4
5.	Memorandum of Deposit of Title Deeds dated 27.11.2012.	A-5
6.	Memorandum of Agreement dated 24.09.2012.	A-6
7.	Sale Deed in Document No.12026 of 2012 dated 04.10.2012.	A-7
8.	Statement of Accounts for Loan Account No.409206650002447 along with Certificate under Banker’s Book Evidence Act dated 03.02.2020.	A-8

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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 OF PROPERTY -:

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All that piece and parcel of Vacant Land bearing plot No.183, Thiruverkadu Co-Operative Nagar, Comprised in New Survey No.28/3A Part of NOOMBAL VILLAGE, measuring extent of 415 Sq.Ft., undivided share out of 1800 Sq.Ft., together with Flat No.S1 in the Second Floor, to the measuring 895 Sq.Ft., covered Car park Slot No.S1.

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Bounded on the :

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North by : Plot No.177 South by : 30 Feet Road

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T.A. No. 1199 of 2023

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East by : Plot No.183 West by : Plot No.182

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Situated within the Registration District of South Chennai and SubRegistrar of Kundrathur.

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Sd/PRESIDING OFFICER, DRT-III, CHENNAI

Union Bank of India v. Jothi Prakash

Case brief

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Union Bank of India v. Jothi Prakash

Case brief

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