Allowed

State Bank of India v. Saravanan

DRT26 Mar 2025TA/1280/2023

Case brief

AI extract

What is this about?

DRT-III, Chennai allowed an Original Application filed by State Bank of India against a defaulting borrower for recovery of Home Loan and Top-Up Loan dues totaling over Rs. 81 lakhs, including future interest, based on unchallenged evidence due to the defendant's ex-parte non-appearance.

What did the court decide?

Recovery of Rs. 81,50,366/- plus future interest at prescribed rates, costs, and liberty to sell schedule immovable property and personal assets.

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

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T.A. No. 1280 of 2023

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26.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 26^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1280 of 2023

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(Originally filed before DRT- II, Chennai as OA 133/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1280 of 2023)

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STATE BANK OF INDIA Retails Assets Central Processing Centre, MRC Nagar, No.4, Santhome High Road, Mylapore, Chennai 600 004. Rep. by its Manager ….Applicant

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-Vs-

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Mr. S.Saravanan, S/o Mr. Sowdaiyan, Residing at No.215/17, 1^st Floor, Sai Dwaraka Portion, Sai Baba Garden, Akkarai, Chennai 600 015. …Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s M. Suresh

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Defendant was set ex-parte on 23.08.2023

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: - FINAL ORDER - :

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This Original Application is filed on 29.01.2020 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.81,50,366/- (Rupees Eighty One Lakhs Fifty Thousand Three

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T.A. No. 1280 of 2023

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26.03.2025

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Hundred and Sixty Six only) due in respect of Home Loan (Account No.37903561672) with further interest @ 8.80% p.a., Home Top Up Loan (Account No.37903573564) with further interest @ 8.75% p.a., from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.133 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.133 of 2020 stood transferred to this Tribunal and renumbered as TA No.1280 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 Hon‟ble Tribunal.

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It is the case of the applicant bank that the defendant is borrower.

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The defendant has executed a loan document dated 19.07.2018, in favour of applicant bank.

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The applicant bank further submits that pursuant to the request of the defendant to sanction the “Housing Loan” facility to the tune of Rs.62,30,000.00 and SBI Top Up Loan facility to the tune of Rs.13,00,000

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T.A. No. 1280 of 2023

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they have sanctioned said “Housing Loan” and SBI Home Top Up Loan facilities subject to the terms and conditions as envisaged under the Arrangement Letter and Loan Agreement Home Top-Up Loan dated 28.08.2018 and Memorandum of Loan agreement for Home Loan granted to public herein dated 23.08.2018. The defendant had executed confirmation letter dated 25.09.2018 and the memorandum relating to Deposit of Title Deeds dated 01.10.2018.

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The applicant bank submits that the defendant herein has executed the following loan documents thereby the acknowledging the said loan amount availed from the applicant bank. The defendant had undertaken

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to repay the loan amount in time without committing any default

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a) Sanction letter dated 28.08.2018

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b) Arrangement letter dated 25.09.2018

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c) Memorandum of Loan Agreement for Home Loan granted to public dated 28.08.2018

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d) Agreement Mortgage dated 28.08.2018

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e) Memorandum of Deposit of Title Deeds dated 25.09.2018

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f) Confirmation Letter dated 25.09.2018

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g) Memorandum Relating to Deposit of Title Deeds dated 01.10.2018

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h) Sanction Letter dated 28.08.2018

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i) Arrangement Letter dated 28.08.2018

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j) Loan Agreement Home Top-Up Loan dated 28.08.2018

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k) Memorandum Confirming the Extension of the Existing Equitable Mortgage dated 25.09.2018

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l) Confirmation Letter dated 25.09.2018

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The applicant bank further submits that subsequent to the disbursement of the aforesaid “Housing Loan” and “SBI Home Top Up Loan” the defendant has not operating the account as per the terms and conditions.

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The applicant bank further submits that they have been repeatedly making representations to the defendant to regularize the “Housing Loan” and “Home Top Up” loan accounts, but the defendant did not take any concrete steps to regularize the loan accounts or to repay the loan amounts.

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It is submitted that defendant has been enjoying the Housing Loan and Home Top Up Loan facility ever since from the year 2018 onwards. The defendant has not shown significant transactions to the utmost satisfaction of the applicant bank.

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The Applicant bank further submits that since the defendant has failed to service the interest and principal due under the Housing Loan and Home Top Up Loan accounts, consequently it has become NPA in the books of the applicant bank. The applicant bank through its Authorised Officer had send Demand Notice to the defendant to repay the Housing Loan and Home Top Up Loan amount together with accumulated interest

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but evoked no response from defendant. Hence the present OA is filed for recovery of dues from defendants.

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After the filing of the OA, summon was sent to the Defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as „left‟. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 23.08.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 23.08.2023.

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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. Seket Kumar, Chief Manager of 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-17 . As the Defendant remained exparte, 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 Defendant a sum of Rs.81,50,366/- (Rupees Eighty One Lakhs Fifty Thousand Three Hundred and Sixty Six only) due in respect of Home Loan (Account No.37903561672) with further interest @ 8.80% p.a., Home Top Up Loan (Account No.37903573564) with further interest @ 8.75% p.a., from the date of Application till the date of realization in full and for 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 OA schedule.

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(d) If the sale proceeds of the mortgage property is 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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(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 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 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

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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 Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 26^th day of March, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Seket Kumar, Chief Manager of the Applicant Bank

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T.A. No. 1280 of 2023

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Letter 28.08.2018	A-1
2.	Arrangement Letter 28.08.2018	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public 28.08.2018	A-3
4.	Agreement Mortgage 28.08.2018	A-4
5.	Memorandum of Deposit 25.09.2018	A-5
6.	Confirmation Letter 25.09.2018	A-6
7.	Memorandum relating to Deposit of Title Deeds (Doc.No.5891/2018) 01.10.2018	A-7
8.	Sale Agreement 25.10.2017	A-8
9	Sale deed executed by C.Rukmani infavour of S.Saravanan (Doc.No.8483/2017) 29.12.2017	A-9
10	Sanction Letter 28.08.2018	A-10
11	Arrangement Letter 28.08.2018	A-11
12	Loan Agreement Home Top-Up Loan 28.08.2012	A-12
13	Memorandum confirming the extension of existing Equitable Mortgage 25.09.2018	A-13
14	Confirmation Letter 25.09.2018	A-14
15	13(2) Notice and Acknowledgement 01.07.2019	A-15
16	Statement of Account and Certificate under Banker‟s Book Evidence Act, 1891 29.08.2019 to 17.12.2019	A-16
17	Statement of Account and Certificate Under Banker‟s Book Evidence Act,1891 01.10.2018 to 17.12.2019	A-17

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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 the piece and parcel of the Land and RCC Roof Building bearing Plot No.8, M.B.B.R Avenue, measuring AN extent of 1200 sq.ft., together with a building thereon including the MES connection Deposit etc., situated at Survey No.229/2, Patta No.12378, as per Survey No.229/11,

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Village No.83, NERKUNDRAM VILLAGE, Maduravoyal Taluk Thiruvallur District,

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BOUNDED ON THE

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North by: 15 feet Road, South by: Vacant Plot belongs to S. prema East by : House Plot to sakthi West by : Plot No.7

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Measuring

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East to West on the Northern Side – 30 feet East to West on the Southern Side – 30 feet North to south on the Eastern Side – 40 feet

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North to south on the Western Side – 40 feet

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Admeasuring plot No.8, measuring extent of 1200 sq.ft., together with a building thereon including the MES connection deposit etc., situate within the sub Registration District of Virugambakkam

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The property lies within the limits of Nerkundra Town panchayat.

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

State Bank of India v. Saravanan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Saravanan

Case brief

What is this about?

What did the court decide?

What the court decided

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