Allowed

State Bank of India v. Dhinakaran

DRT16 Jun 2025TA/1398/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's recovery application against a defaulting borrower who failed to appear. The court directed recovery of the principal amount plus interest and costs, acknowledging prior SARFAESI sale proceeds.

What did the court decide?

Order to recover Rs.2,96,49,058/ plus interest @8.85% p.a. jointly and severally from defendant; credit Rs.2,31,70,000/- realized via SARFAESI sale to loan account.

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

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T.A. No. 1398 of 2023

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16.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 16^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1398 of 2023

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(Originally filed before DRT- II, Chennai as OA 63/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1398 of 2023)

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State Bank of India ARMB Branch, Represented by its Chief Manager, Having its office at No.44, I Floor, Eldams Road, Teynampet, Chennai -600 018. ….Applicant -Vs-

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Mr. D. Dhinakaran, Son of Dhakshnamurthy, No.89/23, Jeevan Bima Nagar, Anna Nagar West Extension, Chennai -600 101. …Defendant

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Counsels on record / appeared:

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

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Defendant was set ex-parte on 06.05.2022

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: - FINAL ORDER - :

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This original application is filed on 23.12.2019 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.2,96,49,058/-

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(Rupees Two Crores Ninety Six Lakhs Forty Nine Thousand and Fifty

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Eight Only) due in respect of Home Loan (Account No.32679888122)

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repayable together with interest @ 8.85% p.a. with monthly rests from the date of filing the OA, till the date of realization in full and for sale of schedule mentioned 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.63 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.63 of 2020 stood transferred to this Tribunal and renumbered as TA No.1398 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 Defendant had applied for Home Loan of Rs.2,69,00,000/- (Rupees Two Crores Sixty Nine Lakhs Only) on 20.10.2012 and Bank had favorably considered the same.

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The Defendant, had availed a Home Loan of Rs.2,69,00,000/-. The Letter of Arrangement dated 28.11.2012 was issued by the Bank, which was duly acknowledged by the Defendant. The Defendant had entered into a Memorandum of Loan Agreement dated 28.11.2012 with the Applicant Bank. The Defendant is liable to repay the loan in equated monthly installments (EMI) of Rs.2,62,270/- together with agreed rate of interest as

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T.A. No. 1398 of 2023

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per the terms of Agreement.

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It is submitted by applicant bank that the Defendant had created equitable mortgage and deposited the Title Deeds of the property being 379.56 sq.ft, of undivided share in the entire Schedule A property along with flat No.D13 extent of 1080 sq.ft., of build up area and 162 sq.ft., of common area in 13^th Floor, Open Terrace 340 sq.ft., along with Car Parking marked as 20A and 259.76 sq.ft., and undivided share in the entire Schedule A property along with Flat No.D14 extent of 740 sq.ft., of build up area and 110 sq.ft., of common area in 14^th Floor, Open Terrace 325 sq.ft., along with Car Parking marked as 20 more fully described in the ScheduleB and Schedule-C hereunder.

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The Defendant had deposited the Title Deeds of Schedule mentioned property by way of Equitable Mortgage on 28.11.2012 and executed a Confirmation Letter on 29.11.2012 as security for the loans granted. The Defendant had also executed a Memorandum of Deposit of Title Deed dated 28.11.2012, Registered as Document No.2573 of 2012 in the Sub-Registrar Office at Mylapore in favour of the Applicant Bank. The details of the title deeds deposited by defendant are as under:

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i) Agreement dated 30.06.2012, between Jain Housing and Constructions Ltd., represented by its Authorized Signatory Mr. R. Vasudevan, Rajah Muthiah Chettiar Charitable and Educational Trust represented by Power Agent Mr. Chenaram Seni and D. Dhinakaran.

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ii) Agreement dated 30.06.2012, between Jain Housing and Constructions Ltd., represented by its Authorized Signatory Mr. R. Vasudevan, Rajah Muthiah Chettiar Charitable and Educational Trust represented by Power Agent Mr. Chenaram Seni and D. Dhinakaran.

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iii) Sale Deed dated 24.09.2012 executed by Rajah Muthiah Chettiar Charitable and Educational Trust represented by Power Agent Mr. Chenaram Seni, in favour of Mr. D. Dhinakaran, Registered as Document No.2120 of 2012 in the Sub Registrar Office at Mylapore. iv) Sale Deed dated 24.09.2012 executed by Rajah Muthiah Chettiar Charitable and Educational Trust represented by Power Agent Mr. Chenaram Seni, in favour of Mr. D. Dhinakaran, Registered as Document No.2121 of 2012 in the Sub Registrar Office at Mylapore.

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The Applicant submits that subsequent of loan, the Defendant did not pay back the loan in terms of agreement and thereby committing default. The Applicant, in accordance with the directives of the RBI by way of Asset Classification and Income Recognition Norms had classified the accounts of the defendants as Non Performing Asset (NPA). The Applicant Bank submits that the Defendant had become un-cooperative. The Applicant Bank submits that in spite of repeated requests and demands made by the Applicant Bank to repay the Loan the Defendant had not repaid the loan amount. Hence the present Original Application (OA) has been filed for recovery of amount due from defendant.

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After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due, Summons to the sole defendant returned with the remark “No such person”. 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 were placed ex-parte on 06.05.2022.

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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, Mr. Selvamurugesh, Deputy Manager and the 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-5 . 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 at the time of filing proof affidavit and documents, applicant bank had reported that the secured asset was sold under SARFAESI Act for a sum of Rs.2,31,70,000/- in public auction and sale certificate dated 03.03.2020 was also issued to the successful bidder.

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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 Defendant jointly and severally, a sum of Rs.2,96,49,058/- (Rupees Two

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Crores Ninety Six Lakhs Forty Nine Thousand and Fifty Eight

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Only) due in respect of Home Loan (Account No.32679888122) with an interest @ 8.85% 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) The sum of Rs.2,31,70,000/- 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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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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(d) The applicant bank shall file the latest memo of calculation of

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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 Defendant to the applicant bank.

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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 (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 16^th day of June, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Selvamurugesh, Deputy Manager and the Authorized Officer 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 submitted by the Defendant to the Applicant Bank (Original) dated 20.10.2012.	A-1
2.	Letter of Arrangement given by Applicant Bank to the Defendant (Original) dated 28.11.2012.	A-2
3.	Memorandum of Loan Agreement for Home Loan between the Applicant Bank and Defendant (Original) dated 28.11.2012.	A-3
4.	Sale Certificated issued by the Applicant Bank (Copy) dated 14.03.2022.	A-4
5.	Statement of Accounts for Housing Loan and Additional (True Extract) dated 07.06.2022.	A-5

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

State Bank of India v. Dhinakaran

Case brief

What is this about?

What did the court decide?

State Bank of India v. Dhinakaran

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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Case details

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