Allowed

State Bank of India v. Vasu

DRT27 May 2025TA/1281/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India against a borrower for recovery of home loan dues of roughly Rs. 48.67 lakhs along with interest. The bank was granted liberty to recover the amount via sale of mortgaged and personal assets.

What did the court decide?

Recovery of Rs. 48,67,664/- along with interest, costs, and liberty to sell mortgaged and personal assets for realization of dues.

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

¶1

T.A. No. 1281 of 2023

¶2

27.05.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 27^th day of May, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 1281 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 389/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1281 of 2023)

¶9

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

¶10

-Vs-

¶11

Mr. R. Vasu, S/o Mr. Ranganathan, Residing at, No.1596, TNHB Quarters Colony, Near S.S. Super Market, Ayapakkam, Chennai 600 077 .…Defendant

¶12

Counsels on record / appeared:

¶13

Counsel for Applicant : M/s. M. Suresh

¶14

Defendant were set ex-parte on 06.05.2022

¶15

: - FINAL ORDER - :

¶16

This original application is filed on 11.09.2020 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

¶17

Rs.48,67,664/- (Rupees Forty Eight Lakhs Sixty Seven Thousand

¶18

Six Hundred and Sixty Four Only) due in respect of Home Loan

¶19

(Account No.37676910654) together with an interest @ 7.95% p.a.

¶20

T.A. No. 1281 of 2023

¶21

¶22

27.05.2025

¶23

with monthly rests from the date of filing the OA, till the date of realization in full, for sale of scheduled mentioned property morefully detailed in Schedule to the OA, and for costs of this Application.

¶24

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.389 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.389 of 2020 stood transferred to this Tribunal and renumbered as TA No.1281 of 2023.

¶25

Brief Facts of the case:

¶26

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.

¶27

It is the case of the applicant bank that the defendant is borrower. The defendant has executed a loan document dated 30.04.2018 in favour of applicant bank.

¶28

It is submitted by applicant bank that pursuant to the request of the defendant to sanction the Housing Loan facility to the tune of Rs.49,70,000/-, they have sanctioned said facility subject to the terms and conditions as envisaged under the Arrangement Letter dated 30.04.2018 and Memorandum of Loan Agreement for Home Loan granted to public herein and Agreement to Mortgage dated 30.04.2018. The defendant had executed a confirmation letter dated 10.10.2019.

¶29

T.A. No. 1281 of 2023

¶30

¶31

27.05.2025

¶32

The applicant bank submits that the defendant herein has executed the following loan documents thereby acknowledging the said loan amount availed from the applicant bank. The defendant had undertaken to repay the loan amount in time without committing any default.

¶33

Sanction Letter dated 30.04.2018

¶34

1. Arrangement Letter dated 30.04.2018.

¶35

Memorandum of Loan Agreement for Home Loan granted to Public dated 30.04.2018.

¶36

Agreement to Mortgage dated 30.04.2018

¶37

Confirmation Letter dated 10.10.2019

¶38

The applicant bank submitted that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 30.04.2018.

¶39

It is further submitted that subsequent to the disbursement of the aforesaid Housing Loan, the defendant was not operating the account as per the terms and conditions. The applicant bank further submitted that they have been repeatedly making representations to the defendant to regularize the Housing Loan account, but the defendant did not take any concrete steps to regularize the loan account or to repay the loan amounts. Hence the loan account was classified as NPA on 29.11.2019 as per RBI guidelines. As defendant did not come forward to repay the dues, the present Original Application (OA) has been filed for recovery of dues from defendants.

¶40

T.A. No. 1281 of 2023

¶41

27.05.2025

¶42

¶43

After the filing of the OA, Summons was sent to sole defendant, through Registered Post with Acknowledgment Due, which returned unserved with the remarks as ‘left’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendant was placed exparte on 06.05.2022.

¶44

Heard the submissions of Applicant Bank and perused the records.

¶45

To prove the case of the Applicant Bank, Mr. Saket Kumar, Manager / Authorized Officer 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-9 . As the Defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

¶46

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:

¶47

T.A. No. 1281 of 2023

27.05.2025

: O R D E R :

The OA is allowed with costs,

¶52

(a) The applicant bank is allowed to recover from the Defendant a sum of Rs.48,67,664/- (Rupees Forty Eight Lakhs Sixty Seven Thousand Six Hundred and Sixty Four Only) due in respect of Home Loan (Account No.37676910654) together with interest @ 7.95% p.a. with monthly rests from the date of filing the OA, till the date of realization in full along with costs.

¶53

(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.

¶54

¶55

(d) If the sale proceeds of the schedule mentioned immovable

¶56

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.

¶57

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

¶58

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

¶59

T.A. No. 1281 of 2023

¶60

27.05.2025

¶61

¶62

Defendant to the applicant bank.

¶63

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

¶64

from the date of this final order.

¶65

(g) Recovery Certificate shall be drawn up and issued to the

¶66

Recovery Officer in terms of the final order.

¶67

A copy of this order be communicated to the parties concerned.

¶68

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

¶69

(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 27^th day of May, 2025)

¶70

ANNEXURES

¶71

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶72

AW-1: Mr. Saket Kumar, Manager / Authorized officer representing the Applicant Bank

¶73

Exhibits on the part of the Applicant:

¶74

Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Letter Original dated 30.04.2018.	A-1
2.	Arrangement Letter Original dated 30.04.2018.	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public Original dated 30.04.2018.	A-3
4.	Agreement to Mortgage Original dated 30.04.2018.	A-4
5.	Confirmation Letter Original dated 10.10.2019.	A-5
6.	Builders Agreement (Doc.no.1254/2018) Original dated 19.04.2018.	A-6
7.	Sale Deed executed by M/s Engineers Estates	A-7
	(Madras) Pvt. Ltd infavour of R. Vasu (Doc.No.1255/2018) Original dated 19.04.2018.

¶75

T.A. No. 1281 of 2023

¶76

27.05.2025

¶77

¶78

13(2) Notice and Returned cover Attested copy A-8 dated 03.12.2019. 9. Statement of Account and Certificate Under A-9 Banker’s Book Evidence Act, 1891 Attested copy dated 30.04.2018 to 13.08.2020.

¶79

Witness Examined for the Defendants: -Nil-

¶80

List of Documents Exhibited for the Defendants: -Nil –

¶81

:- SCHEDULE OF PROPERTY -:

¶82

SCHEDULE ‘A’

¶83

All that piece and parcel of the vacant land in S.No’s 57/2A1 (part) 57/2B, 57/3B2, 57/3B1A (part), 57/2C (part) measuring the total extent of 2.91 Acres in Umayalparancheri Village, Vlayankaranai Panchayat, Kundrathur Union, Sriperumbudur Taluk, Kancheepuram District.

¶84

SCHEDULE ‘B’

¶85

All that piece and parcel of the vacant land bearing Plot No.23, comprised Old S.No.57/2B, 57/3B1A, New S.No.57/2B1, 2B2 & S.No.57/3B1A1A1 as per patta No.765 measuring the extent of 1650 square feet in “PARK CITY” Phase-II Lay out vides Approval No.LP/DTCP (CR) No.308/2010 Umayalparancheri Village, Valayankaranai Panchayat, Kundrathur Union, Sriperumbudur Taluk, Kancheepuram District.

¶86

Bounded on the.

¶87

North by : Plot No.24, South by : 40 Feet Wide Road, East by : 23 Feet Wide Road, West by : Plot No.22 Measuring:-

¶88

East to West on the Northern Side : 30 Feet, East to West on the Southern Side : 30 Feet,

¶89

T.A. No. 1281 of 2023

¶90

¶91

27.05.2025

¶92

North to South on the Eastern Side : 55 Feet,

¶93

North to South on the Western Side: 55 Feet.

¶94

Lying within the Registration District of Sunguvarchatiram and Registration District of Chengalpattu.

¶95

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

State Bank of India v. Vasu

Case brief

What is this about?

What did the court decide?

State Bank of India v. Vasu

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

Similar cases

Indian Overseas Bank versus Kapil Singh

Hdfc Bank versus Mohit Rishi

Punjab National Bank versus Amarjit Singh

Hdfc Bank versus Baljodh Singh

Baby John versus Union Bank of India

Bank of Baroda versus Ms Selvi Construction Company