Allowed

State Bank of India v. Hemnath

DRT25 Nov 2025TA/1384/2023

Case brief

AI extract

What is this about?

The DRT allowed the Original Application by State Bank of India for recovery of home loan dues from two respondents. The court directed the bank to recover the principal amount with interest at agreed rates, recorded a partial satisfaction of Rs. 17 lakhs from a prior sale, and authorized recovery from personal assets if mortgaged property proceeds were insufficient.

What did the court decide?

Recovery of total sum Rs. 33,25,261.62p with interest; adjudication of late payment; order to realize balance from personal assets if mortgaged property proceeds are insufficient.

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

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T.A. No. 1384 of 2023

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25.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1384 of 2023

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(Originally filed before DRT- II, Chennai as OA 781/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1384 of 2023)

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State Bank of India,

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Asset Recovery Management Branch (ARMB), No.44, Eldams Road, 1^st Street, Teynampet, Chennai – 600 018. ….Applicant

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-Vs-

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Mr. M. Hemnath,

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S/o. Mr. P. Masilamani,

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No. 1/1, Manimegalai Street,

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Thiruvika Nagar, Hasthinapuram,

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Chennai – 600 064.

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Mrs. H. Hema, W/o. Mr. M. Hemnath,

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No. 1/1, Manimegalai Street,

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Thiruvika Nagar, Hasthinapuram,

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Chennai – 600 064.

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Counsels on record / appeared:

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Counsel for Applicant : M/s. L. Ramkumar

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Defendants 1 & 2 were set ex-parte on 23.11.2021

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: - FINAL ORDER - :

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This Original Application is filed on 24.07.2019 by the Applicant

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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 defendants 1 & 2, jointly and severally for recovery of a

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T.A. No. 1384 of 2023

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25.11.2025

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total sum of Rs. 33,25,261.62p (Rupees Thirty Three Lakhs Twenty

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Five Thousand Two Hundred Sixty One and Sixty Two Paise only)

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as follows:

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(i) A sum of Rs.27,54,502.73p due in respect of Home Loan

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(Account No. 65241461180) repayable together with further interest at the rate of 11.95% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.11,117.76p due in respect of Home Loan (Account No. 65241503596) repayable together with further interest at the rate of 11.95% p.a. with monthly rests from the date of Application till the date of realization in full;

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(iii) A sum of Rs.5,48,980.79p due in respect of Home Loan (Account No. 65274383394) repayable together with further interest at the rate of 11.45% p.a. with monthly rests from the date of Application till the date of realization in full;

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(iv) A sum of Rs.10,660.34p due in respect of Home Loan (Account No. 65276337287) repayable together with further interest at the rate of 11.45% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of schedule mentioned immovable property of the 1^st defendant and for costs of this Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 781 of 2019, and thereafter in pursuance to the

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T.A. No. 1384 of 2023

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25.11.2025

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notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 781 of 2019 stood transferred to this Tribunal and renumbered as TA No.1384 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 approached the State Bank of Patiala at its Branch Office in Ambal Nagar Branch for availing a home loan facility. The said State Bank of Patiala was merged with the State Bank of India. All the asset and liability of the State Bank of Patiala was transferred to the State Bank of India. For the

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purpose of clarity, the State Bank of Patiala and State Bank India are called in one name "Applicant Bank". The applicant bank considered the preliminary eligibility criteria of the respondents and issued a Proposal for sanction of Home Loan dated 11.09.2015 and asked the defendants to submit their application.

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The Applicant submits that the 1^st defendant being the principal borrower and 2^nd defendant being the guarantor submitted their application on 14.09.2015. The applicant bank considered the proposal and sanctioned a sum of Rs. 24,16,000/- (Rupees Twenty Four Lakhs

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25.11.2025

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Sixteen Thousand only) vide A/c. No. 65241461182 which includes Rs.59,355/- towards SBP Suraksha Insurance vide A/c.65241503596 forming part and parcel of the Home Loan facility, through a Sanction Letter dated 14.09.2015 on the terms and conditions mentioned therein.

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The Applicant submits that on accepting the said terms and conditions of sanction letter mentioned therein and duly promising and undertaking to abide by the same in repayment of the said loan amount with interest, the defendants signed and executed the loan documents in favour of the applicant.

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The Applicant submits that the defendants have thus availed the said loan from the applicant bank and have become liable to repay the said loan amount in 240 Equated monthly Instalment with the agreed rate of interest as per the RBI guidelines which is at the time of availing the Home loan Facility is 9.95% per annum on daily balance with monthly rest. Such interest being added to the balance outstanding on the amount advanced. In case of any default in payment of any instalment or irregularity in repayment, a penal interest over the agreed interest rate with monthly yearly rests will be charged for the overdue amount. Further, the applicant bank is entitled to charge higher or lesser rate of interest than the above stated the contractual interest rates with monthly rest as per the rules of Reserve Bank of India in force from time to time

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or State Bank Primary Lending Rate as notified. The defendants are deemed to have notice of changes in the rate of interest whenever the

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T.A. No. 1384 of 2023

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25.11.2025

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changes are notified by the applicant Bank.

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The Applicant submits that while availing loan, the defendants have executed the following documents in favour of the applicant:

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a. Arrangement Letter dated 14.09.2015;

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b. Memorandum for agreement for Home Loan dated 14.09.2015

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c. Guarantee Agreement dated 14.09.2015;

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d. Agreement to Mortgage dated 14.09.2015

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It is further submitted by the Applicant submits that the defendants approached the applicant bank seeking for additional Housing Loan of Rs. 5,00,000/-. The applicant bank considered the preliminary eligibility criteria of the respondents and issued a Proposal for Sanction of Home Loan dated 07.11.2016 and asked the respondents to submit their application. The defendants submitted their application on 07.11.2016. The applicant bank considered the proposal and sanctioned an additional loan for sum of Rs.5,00,000/- (Rupees Five Lakhs Sixteen Thousand only) vide A/c. No. 65274383394 through a sanction Letter dated 10.12.2016 on the terms and conditions mentioned therein. The applicant bank has also sanctioned for the SBP Suraksha Insurance coverage for a sum of Rs.11,840/- for the said additional loan vide A/c. No. 65276337287 forming part of the additional home loan facility availed.

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The Applicant submits that on accepting the said terms and conditions of sanction letter mentioned therein and duly promising and

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undertaking to abide by the same in repayment of the said loan amount with interest, the defendants signed and executed the loan documents in favour of the applicant.

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The Applicant submits that the defendants have thus availed the said loan from the applicant bank and have become liable to repay the said loan amount in 227 Equated monthly Instalment with the agreed rate of interest as per the RBI guidelines which is at the time of availing the Home loan Facility is 9.45% per annum on daily balance with monthly rest. Such interest being added to the balance outstanding on the amount advanced. In case of any default in payment of any instalment or irregularity in repayment, a penal interest over the agreed interest rate with monthly yearly rests will be charged for the overdue amount. Further, the applicant bank is entitled to charge higher or lesser rate of interest than the above stated the contractual interest rates with monthly rest as per the rules of Reserve Bank of India in force from time to time or State Bank Primary Lending Rate as notified. The defendants are deemed to have notice of change in the rate of interest whenever the changes are notified by the applicant Bank.

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While availing loan, the defendants have executed the following documents favour of the applicant:

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a. Arrangement Letter dated 07.11.2016;

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b. Memorandum for agreement for Home Loan dated 07.11.2016 c. Guarantee Agreement dated 07.11.2016;

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T.A. No. 1384 of 2023

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25.11.2025

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The Applicant submits that though the additional Home Loan of Rs.5,00,000/- and the insurance coverage was sanctioned on 07.11.2016, the formal sanction letter was issued only on 10.12.2016. The 1^st defendant executed the Memorandum of deposit of title deeds dated 14.09.2015, registered as Document No.11685 of 2015, in the office of Sub-Registrar, Guduvanchery by way of equitable mortgage for the Loan facilities availed and continue to avail by the defendants and deposited the following Original documents in favour of the applicant:

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a. Construction Agreement dated 26.05.2015, registered as document No.11683 of 2015, in the office of Sub-Registrar, Guduvanchery executed by M/s. Megala Constructions represented by its partner Mrs. N. Manimegalai in favour of Mr. Hemnath, the 1^st defendant;

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b. Sale Deed dated 14.09.2015, registered as document No.11684 of 2015 in the office of Sub-Registrar, Guduvanchery executed by Mrs. E. Chellammal represented by her agent, Mrs. N. Manimegalai in favour of Mr. M. Hemnath, the 1^st defendant and along with other documents relating to the mortgaged property.

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It is submitted by the Applicant Bank that despite all reminders calling upon defendants to pay the amount dues, they did not pay any amount towards such dues till this date. The 1^st defendant as the principal borrower and 2^nd defendant as the guarantor for the loan availed and their liability are joint, several and co-extensive. Consequently, the

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loan account was classified as Non-Performing Asset (NPA) on 13.05.2018 in accordance with RBI guidelines. Despite repeated reminders and demands, as defendants did not come forward to repay the dues, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 & 2 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 23.11.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, the defendants 1 & 2 were placed ex-parte on 23.11.2021.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. S.K. Subash, 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-20 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.17 lakhs by way of sale of

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T.A. No. 1384 of 2023

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25.11.2025

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immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs. 17,00,000/- is duly recorded vide proceedings dated 31.05.2022.

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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 :

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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 1 & 2, jointly and severally for recovery of a total sum of Rs. 33,25,261.62p (Rupees Thirty Three Lakhs Twenty Five Thousand Two Hundred Sixty One and Sixty Two Paise only)

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as follows:

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(i) A sum of Rs.27,54,502.73p due in respect of Home Loan (Account No. 65241461180) repayable together with further interest at the rate of 11.95% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.11,117.76p due in respect of Home Loan

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(Account No. 65241503596) repayable together with further interest at the rate of 11.95% p.a. with monthly rests from the date of Application till the date of realization in full;

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(iii) A sum of Rs.5,48,980.79p due in respect of Home

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T.A. No. 1384 of 2023

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25.11.2025

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Loan (Account No. 65274383394) repayable together with further interest at the rate of 11.45% p.a. with monthly rests from the date of Application till the date of realization in full; (iv) A sum of Rs.10,660.34p due in respect of Home Loan

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(Account No. 65276337287) repayable together with further interest at the rate of 11.45% p.a. with monthly rests from the date of Application till the date of realization in full along with costs this application.

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(b) The sum of Rs.17 lakhs realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) If the sale proceeds of the immovable property is 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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(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 to the applicant bank.

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T.A. No. 1384 of 2023

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25.11.2025

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(e) The applicant bank shall file memo of costs within ten days from the date of this final order.

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

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(Dictated to Steno (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 25^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S.K. Subash, Chief Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	11.09.2015	Proposal for sanction of Home Loan	A-1
2.	14.09.2015	Application	A-2
3.	14.09.2015	Sanction Letter	A-3
4.	14.09.2015	Arrangement Letter	A-4
5.	14.09.2015	Memorandum of Agreement for Home Loan	A-5
6.	14.09.2015	Guarantee Agreement	A-6
7.	14.09.2015	Agreement of Mortgagee	A-7
8.	07.11.2016	^{Proposal for sanction of additional} Home Loan include insurance coverage	A-8
9.	07.11.2016	Application	A-9
10.	10.12.2016	Sanction Letter	A-10
11.	07.11.2016	Arrangement Letter	A-11
12.	07.11.2016	^{Memorandum of Agreement for Home} Loan	A-12

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T.A. No. 1384 of 2023

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13.	07.11.2016	Guarantee Agreement		A-13
14.	14.09.2015	^{Memorandum of deposit of t} registered Doc. No. 11685/20	^{itle deeds,} 15	A-14
15.	26.05.2015	^Construction Agreement Doc. No. 11683/2015	registered	A-15
16.	14.09.2015	^{Sale Deed registered as} 11683/2015	^{Doc. No.}	A-16
17.	--	Statement of Account for 65241461180 and BBE Certifi	A/c. No. cate	A-17
18.	--	Statement of Account for 65241503596 and BBE Certifi	A/c. No. cate	A-18
19.	--	Statement of Account for 65274383394 and BBE Certifi	A/c. No. cate	A-19
20.	--	Statement of Account for 65276337287 and BBE Certifi	A/c. No. cate	A-20

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Witness Examined for the Defendants

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: -Nil-

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List of Documents Exhibited for the Defendants : -Nil –

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Sd/-

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

State Bank of India v. Hemnath

Case brief

What is this about?

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State Bank of India v. Hemnath

Case brief

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