Allowed

Indian Overseas Bank v. Premalatha

DRT26 Nov 2025TA/1569/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a housing loan default of Rs. 70.14 lakhs jointly and severally against the defendants, ordering a recovery certificate and permitting sale of mortgaged property.

What did the court decide?

Recovery of Rs. 70,14,805/- with interest and costs; sale of mortgaged property to satisfy dues; issue of recovery certificate.

Indian Overseas Bank versus Premalatha — Specific Performance | DRT (2025)

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T.A. No. 1569 of 2023

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26.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 26^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1569 of 2023

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(Originally filed before DRT- II, Chennai as OA 798/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1569 of 2023)

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Indian Overseas Bank, West Mamabalam Branch, No. 16, Thiruvengadam Street, Opp. Ayodhya Mandapam, West Mambalam, Chennai – 600 033. Rep. by its Chief Manager. ….Applicant

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-Vs-

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Mrs. B. Premalatha, W/o. U. Bhaskar,

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W1CC-10, I Floor, 6^th Street,

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Anna Nagar West,

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Chennai – 600 101.

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Mr. U. Bhaskar,

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S/o. Umapathy,

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W1CC-10, I Floor, 6^th Street, Anna Nagar West,

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Chennai – 600 101. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. K.Radhakrishnamurthy

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Defendants 1 & 2 were set ex-parte on 05.04.2022

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: - FINAL ORDER - :

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This Original Application is filed on 27.08.2019 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 defendants 1 & 2, jointly and severally for recovery of a

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26.11.2025

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total sum of Rs. 70,14,805/- (Rupees Seventy Lakhs Fourteen Thousand Eight Hundred and Five only) due in respect of Housing Loan (Account No. 086803351200003) repayable together with further interest @ 12.45% p.a., with monthly rests from the date of Application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.798 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.798 of 2019 stood transferred to this Tribunal and renumbered as TA No.1569 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 at the request of the first and second defendants by their joint application dated 02.02.2012 for sanctioning a Housing Loan, the Applicant Bank had sanctioned the Housing Loan of Rs.50,00,000/- on 29.02.2012 to the Defendants under Subha Gruha Housing Scheme for purchase of residential flat.

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It is submitted by the Applicant Bank that the Defendants have

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26.11.2025

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jointly availed of the Housing Loan under Housing Scheme on 29.02.2012 for a sum of Rs.50,00,000/- for which the Defendants have jointly executed the following documents on 29.02.2012 in favour of applicant bank:

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(a) Demand Promissory Note for Rs.50 lakhs agreeing to repay the same with interest at 11.75% per annum with monthly rests or rests at such rates and rests as may be revised by the Bank on the own or as per instructions from the RBI from time to time.

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(b) Letter of repayment in Instalments

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(c) Housing Loan Agreement for Housing Finance with Terms and conditions of sanction of Housing Loans wherein they agreed to repay the loan with interest in 240 equal monthly instalments of Rs.54,250/- per month commencing from September 2013 and thereafter the subsequent instalments on or before the same

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day of each month as the case may be and promising to repay the said sum on demand together with interest at 11.75% per annum compounded at monthly rests as such rates or other rates as may be revised by RBI / Bank from time to time.

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(d) Letter of Authorization

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The Applicant submits that as security for the advance made to the Defendants, the First Defendant, on 28.02.2012, deposited with the Applicant's branch at West Mambalam, Chennai-600033, the Title Deeds relating to her property more fully described in Schedule to the OA with

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intent to create an Equitable Mortgage as security for the advances made to the Defendants. The deposit of Title Deeds was confirmed by her by executing a letter evidencing Deposit of Title deeds dated 29.02.2012. The above mortgage of property had been also registered before the Sub Registrar, Villivakkam on 05.03.2012 vide Registered Document No. 867/2012 by way of Memorandum of deposit of title deeds, by the defendant.

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The Applicant submits that subsequent to availing of the loan, the repayment of the instalments towards the loan by the Defendants was very irregular and inspite of several requests the Defendants have not regularized the account. Till date the Defendants have not cleared the outstanding. The Applicant also made Demands to the Defendants but there was no response. The Applicant also sent demand notices to the Defendants on 09.02.2015, 05.05.2015 and 25.08.2016 respectively, but there was neither any response and nor repayment. However, the Second Defendant by his reply dated 06.09.2018 admitted his liabilities and requested time to repay the outstanding amount. The Defendants have jointly executed Revival Letters on 01.10.2014 & 13.10.2016 respectively and Balance Confirmation Letter on 13.04.2018 wherein they admitted their liabilities. The applicant bank had issued Legal Notices dated 15.10.2013 and 26.11.2013 to the Defendants but there was no response. Consequently, the loan account was classified as NonPerforming Asset (NPA) on 31.12.2017 in accordance with RBI guidelines.

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T.A. No. 1569 of 2023

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It is submitted that the Applicant bank through its Authorised Officer had sent Demand Notices dated 03.10.2016 and 02.01.2018, U/s. 13(2) of SARFAESI Act followed by Possession Notice dated 03.05.2018, U/s. 13 (4) of Act, to the Defendants but the defendants paid only Rs 4,98,000/-. Finally, the Applicant also issued Sale Notices dated 06.12.2018, 26.04.2019 and 09.07.2019, to the Defendants but there were no response. Moreover, there were also no bidders to the sale. Despite several demands, as defendants did not come forward to repay the dues, 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 Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served to the defendants. When OA was taken up on 05.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 05.04.2022.

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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. Subhasish Ratha, Chief Manager of 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-26 . As the Defendants remained ex-

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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 defendants, jointly and severally for recovery of a total sum of Rs. 70,14,805/- (Rupees Seventy Lakhs Fourteen Thousand Eight Hundred and Five only) due in respect of Housing Loan (Account No. 086803351200003) repayable together with further interest @ 12.45% 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) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the immovable property morefully detailed in the OA schedule.

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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

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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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(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 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.

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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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(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 (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 26^th day of November, 2025)

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T.A. No. 1569 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Subhasish Ratha, Chief Manager representing the Applicant

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Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	02.02.2012	Application by the defendants	A-1
2.	29.02.2012	Sanction Letter by applicant	A-2
3.	29.02.2012	^{Demand Promissory Notice for Rs. 50} Lakhs by defendants	A-3
4.	29.02.2012	Letter of repayment by defendants	A-4
5.	29.02.2012	^Housing Loan Agreement by defendants	A-5
6.	29.02.2012	Letter of Authorization by defendants	A-6
7.	29.02.2012	^{Confirmation of E.M. Letter by 1st} defendants	A-7
8.	05.03.2012	MOD by defendants	A-8
9.	15.10.2013	Legal Notice by applicant counsel	A-9
10.	26.11.2013	Legal Notice by applicant counsel	A-10
11.	01.10.2014	Revival Letter by defendant	A-11
12.	13.10.2016	Revival Letter by defendant	A-12
13.	09.02.2015	Demand Letter by applicant	A-13
14.	05.05.2015	Demand Letter by applicant	A-14
15.	25.08.2016	Demand Letter by applicant	A-15
16.	03.10.2016	^{Demand Notice under Sec. 13(2) by} applicant	A-16
17.	02.01.2018	^{Demand Notice under Sec. 13(2) by} applicant	A-17
18.	03.05.2018	^{Possession Notice under Section 13(4)} by applicant	A-18
19.	13.04.2018	^Balance Confirmation Letter by defendants	A-19
20.	06.09.2018	Letter by 2^nddefendant	A-20
21.	06.12.2018	Sale Notice by Applicant	A-21
22.	26.04.2019	Sale Notice by Applicant	A-22
23.	09.07.2019	Sale Notice by Applicant	A-23
24.	--	Certified Statement of Account	A-24
		Sale cum Construction Agreement
25.	02.05.2011	between Mrs. B. Premalatha and Mr. Kumaravel	A-25

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12.05.2011^{Sale deed in favour of Mrs. Premalatha} A-26 by regd. Doc. No. 1876/2011

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Witness Examined for the Defendants

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: -Nil-

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List of Documents Exhibited for the Defendants : -Nil –

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:SCHEDULE:

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All that piece and parcel of land and building bearing Flat No. 2, 6^th Floor, Block No. III at Padikuppam Road of Padi Village, Ambattur Taluk, Thiruvallur District comprised in Survey No. 224/1 (part), 224/2 and 225 New T.S. No. 113/3 (Part), 113/4 (Part) & 113/5 (Part) 298.35 Sq.ft. of larger extent of 273.64 Cents of lands along with flat measuring 924 Sq.ft. situated within the Sub-Registration District of Villivakkam, Registration District of Central Chennai and bounded on the

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North by : New T.S. No. 113/2 South by : New T.S. No. 113/1 & CMDA Property East by : New T.S. No. 113/1, 114, 115, CMDA Property and Road West by : New T.S. No. 113/2, 50, 52, 53, 54, 55, 102, 104, 105, 106 & 107

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

Indian Overseas Bank v. Premalatha

Case brief

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Indian Overseas Bank v. Premalatha

Case brief

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