Allowed

Indian Overseas Bank v. Rajeswari M

DRT24 Nov 2025TA/1509/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 44.87 lakhs due under a home loan. The Tribunal ruled in favor of the applicant, permitting recovery via sale of mortgaged property and personal assets if necessary, and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 44,87,291; liberty to sell mortgaged property and defendant's personal assets; issuance of recovery certificate.

Indian Overseas Bank versus Rajeswari M — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1509 of 2023

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24.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1509 of 2023

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(Originally filed before DRT- II, Chennai as OA 106/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1509 of 2023)

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Indian Overseas Bank Santhome Branch, Arch Bishop Arulappa Towers 128, Santhome High Road, Santhome, Chennai – 600 004 Rep. by its Branch Manager ….Applicant

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-Vs-

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M. Rajeswari, W/o. M. Srinivasa Rao No.49, Eden Garden Jamalia Chennai – 600 012 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Rajendran Raghavan

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Defendant was set ex-parte on 26.09.2022

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: - FINAL ORDER - :

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This Original Application is filed on 22.02.2019 by the applicant bank under Section 19(1) 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

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Rs.44,87,291/- (Rupees Forty Four Lakhs Eighty Seven Thousand

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Two Hundred and Ninety One only) due in respect of Home Loan (Account No. 010803464000003) repayable together with further interest @ 8.80% per annum with monthly rests from the date of

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T.A. No. 1509 of 2023

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24.11.2025

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application till the date of realization in full, for sale of immovable 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.106 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.106 of 2021 stood transferred to this Tribunal and renumbered as TA No.1509 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 approached the Applicant Bank seeking financial assistance for purchase of House. Based on request of the said borrower, credit sanction for Rs.41 Lakhs was accorded on 25.07.2016 with mortgage of the said House/Flat detailed against the Schedule to the OA.

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It is submitted by the applicant bank that the defendant in furtherance to the above and sanction of Home Loan vide Credit Sanction Advice to the extent of Rs.41 Lakhs on 25.07.2016, had executed the following loan documents in favour of the Applicant Bank:

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a) Borrowers Undertaking Letter for MCLR

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b) DPN for Rs.41 Lakhs

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c) Undertaking to pay Loan in 244 EMIs

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T.A. No. 1509 of 2023

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24.11.2025

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d) Housing Term Loan Agreement

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And further registered the MODT on 10.08.2016 at SRO

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Purusawalkam as Doc.No.3968/2016

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It is submitted by the applicant bank that subsequent to the availing of the above loan, the Defendant was irregular in making repayment and there was no repayment as per repayment schedule. Hence in view of nonrepayment for more than 90 days, the loan account has been classified as Non-Performing Asset (NPA) on 31.05.2018 in accordance with RBI guidelines. It is further submitted that whenever the defendant was followed up for the payment, she evaded with the denials seeking time without making any concrete efforts to liquidate the liability. The Applicant Bank through its Authorised Officer had issued Demand Notice to the Borrowers on 01.06.2018 under the SARFAESI Act and till now no recovery is made. As defendant did not come forward to repay the dues despite

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repeated reminders and demands, 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 sole defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement ‘No such person’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant was

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T.A. No. 1509 of 2023

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24.11.2025

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placed ex-parte on 26.09.2022.

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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, Sh. Palaniswamy, Branch Manager 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-10 . 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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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 a sum of Rs.44,87,291/- (Rupees Forty Four Lakhs Eighty Seven Thousand Two Hundred and Ninety One only) due in respect of Home Loan (Account No. 010803464000003) repayable together with further interest @ 8.80% per annum with monthly rests from the date of application till the date of realization in full along with costs.

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(b) In the event of failure of the defendants to pay the aforesaid

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T.A. No. 1509 of 2023

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amount, the bank is at liberty to recover the amount by sale of the schedule mentioned immovable property more fully detailed in the OA.

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

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T.A. No. 1509 of 2023

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(g) 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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 24^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. Palaniswamy, Branch Manager 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.	Credit Sanction Advice for Home Loan to M Rajeswari dated 25.07.2016.	A-1
2.	DPN for Rs.41 Lakhs dated 25.07.2016.	A-2
3.	Undertaking to pay loan in 244 EMIs dated 25.07.2016.	A-3
4.	Borrower’s Undertaking Letter dated 25.07.2016.	A-4
5.	Housing Term Loan Agreement dated 25.07.2016.	A-5
6.	MODT Registered as Doc.No.3968 of 2016 at SRO Pursawalkam dated 10.08.2016.	A-6
7.	Construction Agreement Registered as Doc.No.3371/2016 at SRO Pursawalkam dated 26.07.2016.	A-7
8.	Sale Deed Registerd as Doc.No.3371/2016 at SRO Pursawalkam dated 26.07.2016.	A-8
9.	Demand Notice to Borrower dated 01.06.2018.	A-9
10.	Statement of Account of IOB for Home Loan A/c No.010803464000003 with BBE Certificate dated 21.02.2019.	A-10

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T.A. No. 1509 of 2023

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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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SCHEDULE

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MORTGAGED PROPERTY

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Flat No.B1, 1^st Floor, with built up area of 800 Sq.ft. including common area and UDS of 400 Sq.ft. from the larger extent property of 2623 Sq.Ft. comprised in O.S.No.52 and RS No.67/3 in Perambur Village situated at Door No.18, New No.16, Narayanaswamy Naicken Street, Pullianthope, Chennai – 12

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Bounded on the:

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North by : RS No.67/2 South by : RS No.67/1 East by : Part of the property in S.No.67/3 and

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West by : Narayanaswamy Naicken Street

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All situate within SRO Purusawalkam and Registration District of Chennai Central.

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

Indian Overseas Bank v. Rajeswari M

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Rajeswari M

Case brief

What is this about?

What did the court decide?

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