The DRT allowed Canara Bank's application against three borrowers for recovery of a home loan default amounting to approximately Rs. 84.60 lakhs, including interest and costs, following an ex-parte default.
Recovery of Rs. 84,60,290.99 with interest @ 10.50% per annum; credit given to sum of Rs. 41,50,000/- recovered earlier via SARFAESI sale.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.A. No. 1414 of 2023
21.03.2025
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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 21st day of March, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
TRANSFERRED APPLICATION No. 1414 of 2023
(Originally filed before DRT- II, Chennai as OA 522/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1414 of 2023)
*Canara Bank (Erstwhile Syndicate Bank) Saidapet Branch,
Rep. by its Chief Manager No.54, Seshachala Mudali Street, Saidapet, Chennai 600 015. ….Applicant
(*Amended vide proceedings order dated 20.07.2021 in view of merger)
-Vs-
S/o.Neelakandan, No.3/5. Pillayar Koil 1st Cross Street, Kalaingar Karunanidhi Nagar,
Chennai 600 078.
Counsel for Applicant : M/s. V. Suthakar Defendants 1 to 3 were set ex-parte on 05.12.2019
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: - FINAL ORDER - :
Brief Facts of the case:
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loan, the 1st defendant agreed to hand over all the title documents in respect of the schedule property vide their Memorandum of Deposit of title deeds dated 18.07.2016 and had deposited all the title documents including the original registered sale deed dated 24.05.2016 bearing Doc.No.3130 of 2016 at the Sub Registrar Office, Madhavaram with the applicant bank. The defendant had also confirmed the creation of mortgage on 18.07.2016 and there is a clear intention to create mortgage of the property in favour of the applicant bank as a security for repayment of the loan amount.
a. Agreement to mortgage dated 20.05.2016 executed by 1st , 2nd and 3rd defendants.
b. Housing Loan Agreement dated 20.05.2016 executed by 1st and
2nd defendants and Guarantee of 3rd defendant.
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him. The details of the title documents are as follows.
a. Sale Deed dated 24.05.2016 executed M.Kannadasan & M.Thamizharasan rep. by his power agent Mr.Sunil Kumar and in favour of Mr.N. Kirusthudoss, bearing Doc.No.3130 of 2016 Registered at SRO, Madhavaram Chennai.
b. Construction Agreement dated 08.02.2016 executed by M/s. Venishaa Foundations, rep by its proprietor Mrs. S. Brindha Devi, and in favour of Mr.N.Kirusthudoss, bearing Doc.No.3129 of 2016 Registered at SRO, Madhavaram Chennai.
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to 3 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left’ for all defendants. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 05.12.2019 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants1 to 3 were placed ex-parte on 05.12.2019.
Heard the submissions of Applicant Bank and perused the records.
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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:
: O R D E R :
(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a total sum of Rs.84,60,290.99p (Rupees Eighty Four Lakhs Sixty Thousand Two Hundred Ninety and Ninety Nine Paisa only) due in respect of Home Loan (Account No.60369740000015) together with further interest @ 10.50% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application;
(b) A sum of Rs. Rs.41,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.
(c) 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;
OA amount together with interest, costs etc., to be paid by the
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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.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Sh. Kumar Gaurav, Chief Manager, Saidapet Branch of the Applicant Bank
Exhibits on the part of the Applicant:
| Sl. | Description of Documents | Exhibit |
|---|---|---|
| No. | No. | |
| 1. | Loan Application 22.03.2016 | A-1 |
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| 2. | Sanction Letter 20.05.2016 | A-2 |
|---|---|---|
| 3. | Agreement to mortgage 20.05.2016 | A-3 |
| 4. | Housing Loan Agreement 20.05.2016 | A-4 |
| 5. | Construction Agreement bearing Doc No.3129 of 2016 08.02.2016 |
Returned to |
| 6. | Sale deed bearing Doc.No. 3130 of 2016 24.05.2016 |
applicant bank on |
| 7. | Memorandum of deposit of title deeds bearing doc No.4461 of 2016 18.07.2016 |
17.12.2021 |
| 8. | Statement of Accounts 2016 to 2019 | A-5 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the Recovery Tribunal is justified in allowing the Applicant Bank's claim for recovery of dues.
Canara Bank (Erstwhile Syndicate Bank) Saidapet Branch
Mr. N. Kirusthu Doss
Mr. K. Arul Arasan
Mr. R. Anbarasan
S. V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
