Allowed

Bank of Baroda v. Rajasekar

DRT3 Oct 2025TA/1517/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of housing loan dues under the RDB Act. The Tribunal confirmed the debt amount, directed credit for an asset sale realized during pendency, and ordered issuance of a recovery certificate to enforce payment.

What did the court decide?

Allowed the application and passed final order for recovery of Rs. 49,70,261/- plus interest. Directed credit of Rs. 18,25,000/- realized from asset sale. Ordered issuance of Recovery Certificate.

Bank of Baroda versus Rajasekar — Banking and Recovery | DRT (2025)

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T.A. No. 1517 of 2023

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03.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 03^rd day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1517 of 2023

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(Originally filed before DRT- II, Chennai as OA 831/2019 and thereafter transferred to this Tribunal and renumbered as TA No.1517 of 2023)

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Bank of Baroda, Rep. by its chief Manager, Mr. R. Krishnan, Regional Stressed Asset Recovery Branch, Alwarpet, Chennai. ….Applicant

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-Vs-

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Mr. K.S. Rajasekar, S/o Thiru. Sundaralingam Karna, 22, Valieswaran Koil Street, R.K. Nagar, Mandaveli, Chennai -600 028. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Sh. S. Manikandan

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Defendant was set ex-parte on 19.07.2021

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: - FINAL ORDER - :

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This Original Application is filed on 16.08.2019 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 defendants jointly and severally for recovery of a total sum of Rs.49,70,261/- (Rupees Forty Nine Lakhs Seventy Thousand Two Hundred and Sixty One Only) due in respect of Housing Loan (A/c No.53030600000092), repayable

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together with further interest @ 9.30%, p.a. with monthly rests plus

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03.10.2025

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2% overdue interest from the date of filing the OA, till date of realization in full and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.831 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.831 of 2019 stood transferred to this Tribunal and renumbered as TA No.1517 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 defendant had approached the applicant bank seeking financial assistance for Housing Loan for purchase of schedule mentioned property. The Applicant Bank upon considering the application had sanction Housing Loan of Rs.32,12,000/- on 19.11.2014 towards purchase of flat which is more fully described in the schedule to the OA. Loan is repayable at the Rate of Interest 10.25% p.a. Floating rate, repayable in 202 equated monthly instalments of Rs.33,434/- commencing one month after completion of House/Taking Possession of flat/house, whichever is earlier.

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It is submitted by the applicant bank that the Defendant had

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T.A. No. 1517 of 2023

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03.10.2025

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executed the Housing Loan agreement on 15.12.2014 for Rs.32,12,000/- in favour of Applicant Bank agreeing to pay floating rate of interest with monthly rests. The applicant bank is also entitled to charge Overdue interest at 2% per annum over and above agreed rate of interest at such rests in the event of non-payment of nay instalments of principle and/or interest, costs and other charges due or in the event of any irregularity, during the period the amount due remains unpaid or the irregularity continues for the defaulted amount or an overdue outstanding as on that date. However, this right is in addition to and not in derogation of the Bank’s other right to immediately call upon the Defendants to repay the entire amount outstanding or to enforce the security as stipulated in the Housing Loan Agreement dated 15.12.2014.

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In order to further secure the advance, the Defendants had created equitable mortgage of the immovable property by depositing the Title deeds of the OA Schedule mentioned property on 15.12.2014 and by executing the Memorandum of Deposit of Title Deeds on 15.12.2014, which was purchased by availing the housing loan under the Registered Construction Agreement and Sale Deed Document No.16995/2014 dated 15.12.2014 held in the name of the defendant.

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It is submitted by the applicant bank that subsequent to availing of loan, the Defendant had defaulted in repayment of Installment/interest and consequently the Housing Loan Account of the

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Defendant was classified as NPA on 31.01.2015 in accordance with RBI guidelines. The Applicant had initiated proceedings under SARFAESI Act and issued demand notice dated 16.02.2016. The Defendant upon receipt of the said notice had failed to repay the Housing Loan dues towards the Loan account No.530306000000092. 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 were sent to the Defendant through Registered Post with Acknowledgment Due, which was returned unserved with postal endorsement as ‘Refused’, which is held as sufficient service. When OA was taken up on 19.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant was placed ex-parte on 19.07.2021.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Sh. Suresh Pasupuleti, Senior Manager of the applicant bank, Regional Stressed Asset Recovery Branch 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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T.A. No. 1517 of 2023

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03.10.2025

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During the pendency of OA, at the time of filing proof affidavit, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.18,25,000/- by way of sale of Schedule immovable property under SARFAESI Act.

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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 total sum of Rs.49,70,261/- (Rupees Forty Nine Lakhs Seventy Thousand Two Hundred and Sixty One Only)

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due in respect of Housing Loan (A/c No.53030600000092), repayable together with further interest @ 9.30%, p.a. with monthly rests plus 2% overdue interest from the date of filing the OA, till date of realization in full along with costs.

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(b) The sum of Rs.18,25,000/- realised by way of SARFAESI

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sale is directed to be given credit to the borrower’s loan account as on the date of realisation.

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(c) 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

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T.A. No. 1517 of 2023

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

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(e) 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 03^rd 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: Sh. Suresh Pasupuleti, Senior Manager, Regional Stressed Asset Recovery Branch.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Letter dated 19.11.2014.	A-1
2.	Loan Agreement for Individuals (Housing Loans) dated 15.12.2014.	A-2
3.	Letter of Installment with Acceleration Clause dated 15.12.2014.	A-3
4.	Letter of Undertaking to create equitable	A-4

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	mortgage dated 15.12.2014.
5.	Declaration in the matter of mortgage by deposit of title deeds in respect of immovable dated 15.12.2014.	A-5
6.	Memorandum of Deposit of Title Deeds – Document No.16996/2014 dated 15.12.2014.	A-6
7.	Construction Agreement dated 29.10.2014.	A-7
8.	Sale Deed in favour of the Defendant Document No.16995/2014 dated 15.12.2014.	A-8
9.	Demand Notice issued under SARFAESI Act dated 16.02.2016.	A-9
10.	Statement of Accounts	A-10

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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/-

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

Bank of Baroda v. Rajasekar

Case brief

What is this about?

What did the court decide?

Bank of Baroda v. Rajasekar

Case brief

What is this about?

What did the court decide?

What the court decided

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