Allowed

State Bank of India v. Santhiya

DRT6 Oct 2025TA/1439/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's ORIGINAL APPLICATION for recovery of dues from two borrowers. Evidence was accepted on behalf of the bank as respondents appeared ex-parte. The loan accounts were classified as NPAs due to default.

What did the court decide?

Recovery of Rs.38,90,167.28p principal and interest; liberty to sell personal assets if secured property proceeds are insufficient.

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

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T.A. No. 1439 of 2023

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06.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1439 of 2023

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(Originally filed before DRT- II, Chennai as OA 16/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1439 of 2023)

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STATE BANK OF INDIA, Asset Recovery Management, No.44, Eldams Road, Teynampet, Chennai 600 018 Rep. by its Manager.

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…Applicant

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-Vs-

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Mrs. L. Santhiya W/o Mr. S. Ganesh, No.15, Usha Street, Seethapathy Nagar, Velachery, Chennai 600 042.

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Mr. S. Ganesh, S/o Sankaranarayana, No.15, Usha Street, Seethapathy Nagar, Velachery, Chennai 600 042.

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…Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Suresh

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Defendants 1 and 2 were set ex-parte on 27.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 16.12.2020 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993

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T.A. No. 1439 of 2023

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06.10.2025

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.38,90,167.28p (Rupees Thirty Eight Lakhs Ninety Thousand Hundred and Sixty and Twenty Eight Paisa only) as follows:

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i. A sum of Rs.26,52,099.97p due in respect of Housing Loan (Account No.35248470816) repayable together with further interest @ 7% p.a., with monthly rests from the date of application till the date of realisation in full;

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ii. A sum of Rs.12,38,067.31p due in respect of Home Topup-loan (Account No.37186155186) repayable together with further interest @ 7% p.a., with monthly rests from the date of Application till the date of realization in full,

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for sale of immovable property morefully detailed in the schedule to the OA and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.16 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.16 of 2021 stood transferred to this Tribunal and renumbered as TA No.1439 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

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T.A. No. 1439 of 2023

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06.10.2025

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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 defendants approached applicant bank seeking Housing Loan for purchase of schedule mentioned property. Considering the said request, applicant bank had sanctioned the Housing loan of Rs.22,47,000/- and the defendants executed Arrangement letter and Memorandum of Loan Agreement for Home Loan Granted to Public and Agreement to Mortgage dated 01.10.2015 and Memorandum relating to Deposit of Title Deeds dated 27.11.2015 in favour of applicant bank, the amount due in the above said loan. The said loan is repayable together with interest thereon @ 9.7% p.a.

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It is submitted by the applicant bank that the defendants executed an Agreement letter dated 01.10.2015 & 22.09.2017 in favour of applicant bank.

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It is further submitted that the defendants have again approached the applicant bank and requested for Home Top-up Loan, which was accordingly considered and applicant bank had sanctioned Home Top-up loan of Rs.9,95,00,000/-. The defendants have executed Arrangement Letter and Loan Agreement Home Top-Up Loan and Memorandum Confirming the Extension of the Existing Equitable Mortgage dated 25.09.2017 in favour of applicant bank, the amount due in the above said

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T.A. No. 1439 of 2023

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06.10.2025

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loan. The said loan is repayable together with interest thereon @ 8% p.a.

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It is submitted by the applicant bank that the defendants had

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

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a) Loan application dated 18.08.2015

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b) Appraisal-cum-control Report dated 24.09.2015

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c) Arrangement Letter dated 01.10.2015

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d) Memorandum of Loan Agreement for Home Loan granted to Public dated 01.10.2015

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e) Agreement to Mortgage dated 21.10.2015

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f) Memorandum relating to Deposit of Title Deeds dated 27.11.2015

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g) Loan application dated 28.08.2017

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h) Sanction letter dated 19.09.2017

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i) Arrangement letter dated 22.09.2017

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j) Loan agreement Home Top-Up Loan dated 22.09.2017

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k) Memorandum confirming the Extension of the Existing Equitable Mortgage dated 25.09.2017

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The applicant submits that the defendants have under take to repay

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T.A. No. 1439 of 2023

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06.10.2025

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the loan amounts together with interest as per the terms and conditions of the Arrangement Letter dated 01.10.2015 & 22.09.2017, however subsequent to the disbursement of the aforesaid Housing Loan and Home Top-Up Loan, the defendants were not operating the accounts as per the terms and conditions.

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The applicant further submits that they have been repeatedly making representations to the defendants to regularize the “Housing Loan and Home Top-Up Loan” accounts, but the defendants did not take any concrete steps to regularize the loan account or to repay the loan amount. Since the defendants failed to service the interest and principal due under above loans, applicant bank had classified the loan account as NonPerforming Asset (NPA) on 30.12.2017 in accordance with RBI guidelines. Despite repeated demands and requests, defendants did not come forward to repay the dues. Hence 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 was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served to both the defendants. When OA was taken up on 27.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 27.05.2022.

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T.A. No. 1439 of 2023

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06.10.2025

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Smt. K. Vinodhini, Deputy Manager of the Applicant Bank, has filed her 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-16 . As the Defendants 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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During the pendency of OA, at the time of filing Proof Affidavit, applicant bank had reported part satisfaction of the OA claim by way of sale of secured asset under SARFAESI Act for a sum of Rs.22,65,000/-.

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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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15. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.38,90,167.28p (Rupees

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Thirty Eight Lakhs Ninety Thousand Hundred and Sixty and

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Twenty Eight Paisa only) as follows:

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T.A. No. 1439 of 2023

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06.10.2025

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(i) A sum of Rs.26,52,099.97p due in respect of Housing Loan (Account No.35248470816) repayable together with further interest @ 7% p.a., with monthly rests from the date of application till the date of realisation in full;

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(ii) A sum of Rs.12,38,067.31p due in respect of Home Top-up-loan (Account No.37186155186) repayable together with further interest @ 7% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application;

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(b) The sum of Rs.22,65,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization in full.

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(c) If the sale proceeds of the schedule mentioned 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

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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

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

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from the date of receipt 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 (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 06^th day of October, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. K. Vinodhini, Deputy Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl.	Description of Documents	Exhibit
No.		No.
1.	Loan application dated 18.08.2015	A-1
2.	Appraisal-cum-Control Report dated 24.09.2015	A-2
3.	Arrangement Letter dated 01.10.2015	A-3
4.	Memorandum of Loan Agreement for Home Loan granted to Public dated 01.10.2015	A-4
5.	Agreement to Mortgage dated 01.10.2015	A-5
6.	Memorandum relating to Deposit of Title Deeds	A-6

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T.A. No. 1439 of 2023

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06.10.2025

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	Doc.No.14599/2015 dated 27.11.2015
7.	Agreement for construction entered between Mrs.L.Santhiya and Mr. S. Ganesh and M/s DGM Home Creators dated 19.07.2013	A-7
8.	Sale Agreement entered between V.Kumar duly represented by Power Agent R.Prabhakaran in favour of Mrs. L. Santhiya and Mr. S. Ganesh dated 19.07.2013	A-8
9.	Sale deed executed by V.Kumar duly represented by Power Agent R. Prabhakaran in favour of Mrs. L. Santhiya and Mr. S. Ganesh Doc.No.10729/2013 dated 07.08.2013	A-9
10.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 25.09.2015 to 31.12.2017	A-10
11.	Loan application dated 28.08.2017	A-11
12.	Sanction letter dated 19.09.2017	A-12
13.	Arrangement Letter dated 22.09.2017	A-13
14.	Loan Agreement Home Top-Up Loan dated 22.09.2017	A-14
15.	Memorandum confirming the Extension of the existing Equitable Mortgage Doc.No.10044/2017 dated 25.09.2017	A-15
16.	Statement of Account and Certificate under Banker’s Book Evidence Act, 1891 dated 22.09.2017 to 31.12.2017	A-16

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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. Santhiya

Case brief

What is this about?

What did the court decide?

State Bank of India v. Santhiya

Case brief

What is this about?

What did the court decide?

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