Allowed

State Bank of India v. Abdul Khader

DRT29 May 2025TA/1251/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an unchanged application filed by a bank against borrowers for recovery of a defaulted car loan. The court affirmed the demand of principal, interest, and costs based on unchallenged documentary evidence including loan agreements and revival letters.

What did the court decide?

Recovery of Rs.20,98,775/- with further interest at 11.95% p.a. and costs; liberty to sell hypothecated vehicle; issuance of recovery certificate.

State Bank of India versus Abdul Khader — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1251 of 2023

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29.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 29^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1251 of 2023

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(Originally filed before DRT- II, Chennai as OA 91/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1251 of 2023)

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State Bank of India,

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ARMB Branch, Rep. by its Manager, Having its office at No.44, 1^st Floor, Eldams Road, Teynampet, Chennai – 600 018.

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….Applicant

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-Vs-

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Mr. A. Abdul Khader, S/o Aboobacker, Residing at No. 59, (Old No.74), Tirupur Kumaran Main Road, Puzhal, Chennai – 600 066.

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Mrs. Fairoja Begum, W/o Abdul Khader Residing at No.59 (Old No.74), Tirupur Kumaran Main Road, Puzhal, Chennai – 600 066. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. N. Kishore Kumar

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Defendants 1 to 2 were set ex-parte on 26.05.2022

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: - FINAL ORDER - :

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This original application is filed on 08.01.2021 by the applicant bank

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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)

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T.A. No. 1251 of 2023

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29.05.2025

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against the defendants 1 to 2, jointly and severally for recovery of a total sum of Rs.20,98,775/- (Rupees Twenty Lakhs Ninety Eight Thousand Seven Hundred and Seventy Five only) due in respect of Car Loan (Account No.67263170135) repayable together with further interest @ 11.95% p.a., with monthly rests from the date of Application till the date of realization in full, for sale of scheduled mentioned hypothecated vehicle and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.91 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.91 of 2021 stood transferred to this Tribunal and renumbered as TA No.1251 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 had availed Car Loan as Term loan of Rs.15,00,000/- from State Bank of Travancore, Chennai, Anna Nagar West Branch. The Car Loan that is subject matter of the present Plaint has become an NPA on 01.10.2016 and stood transferred to the present applicant branch being the Asset Recovery and Management

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T.A. No. 1251 of 2023

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Branch.

It is submitted by the applicant bank that the defendants submitted loan application along with their Bio Data, dated 03.02.2014 requesting for financial assistance.

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It is further submitted by applicant bank that consdiering the said reuest, applicant bank had sanctioned the loan vide Sanction Letter ated 05.02.2014, for the purpose of purchase of L.M.V., Mitsubishi Car Pajero Sport, which has to be repaid in 84 EMIs of Rs.25,684/-. The sanction letter dated 05.02.2014 was duly acknowledged by the defendants.

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The applicant submitted that defendants have entered into agreement for Medium Term Loan and hypothecation of Personal Vehicles dated 05.02.2014 with the applicant bank. The defendants have also hypothecated the said car in terms of the said agreement. Defendants have also executed a General Indemnity dated 05.02.2014. The defendants had purchased the Vehicle in terms of the loan agreement and submitted the Certificate of Registration with the applicant bank.

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It is submitted that subsequent to availing of loan, the defendants did not repay the loan as per the terms agreed upon and defaulted in repayment of EMIs. The applicant again requested the defendant to pay the monthly instalments in terms of the agreement. In spite of repeated requests the defendants failed to pay the EMIs and their loan accounts became NPA on

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01.10.2016 in term of RBI guidelines. The defendants have also executed Revival letter dated 01.02.2017 and 23.10.2019. Inspite of repeated requests and demands, as defendants did not come forward to repay the dues, 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 and 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘unclaimed’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 26.05.2022.

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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, Mrs. M. Sathiavanimuthu, Deputy Manager of the Applicant Bank, has filed her 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

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T.A. No. 1251 of 2023

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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 jointly and severally, a total sum of Rs.20,98,775/- (Rupees Twenty Lakhs Ninety Eight Thousand Seven Hundred and Seventy Five only) due in respect of Car Loan (Account No.67263170135) together with further interest @ 11.95% p.a., with monthly rests from the date of Application till the date of realization in full 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 hypothecated vehicle more fully detailed in the OA schedule.

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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 Defendants

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to the applicant bank.

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(e) The applicant bank shall file memo of costs within ten days from

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

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(Dictated to Mogesh, transcribed by him, corrected, signed and pronounced by me on this the

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29^th 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: Mrs. M. Sathiavanimuthu, Deputy Manager of 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 along with their Bio Data submitted by the Defendants to the Applicant Bank. 03.02.2014	A-1
2.	Sanction Letter given by Applicant Bank to the Defendants 05.02.2014	A-2
3.	Agreement for Medium Term Loan and Hypothecation of Personal Vehicles between the Applicant Bank and Defendants 05.02.2014	A-3

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4.	General 05.02.20	Indemnity given 14	by	the	Defendants	A-4
5.	Certifica	te of Registration gi	ven	by the	defendants	A-5
6.	Revival 01.02.20	Letter executed 17	by	the	Defendants	A-6
7.	Revival 23.10.20	Letter executed 19	by	the	Defendants	A-7
8.	Stateme	nt of Accounts for C	ar L	oan.		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 -:

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Car name L.M.V. (car), Mitsubishi Pajero Sport, Vehicle No. TN18 S 7557, Engine No. 4D56UCEP3902, Chassis No. MA700KH4WEA002442,

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Vehicle makes Hindustan Motors Limited

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

State Bank of India v. Abdul Khader

Case brief

What is this about?

What did the court decide?

State Bank of India v. Abdul Khader

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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