Allowed

State Bank of India v. Sivasankari

DRT6 May 2025TA/1772/2023

Case brief

AI extract

What is this about?

The Dunats Recovery Tribunal allowed an application filed by State Bank of India for recovery of dues of Rs.77.86 lakhs arising from defaulted home loans. The Tribunal confirmed the NPA status, rejected the ex-parte defendant's submission, and granted the applicant the right to recover dues and sell assets.

What did the court decide?

Recovery of sum of Rs.77,86,638/- including interest; liberty to sell personal assets; issuance of Recovery Certificate.

State Bank of India versus Sivasankari — Execution and Attachment | DRT (2025)

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T.A. No. 1772 of 2023

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06.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1772 of 2023

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(Originally filed before DRT- II, Chennai as OA 50/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1772 of 2023)

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State Bank of India ARM Branch Chennai, 44, 1^st Floor, Eldams Road, Teynampet, Chennai – 600 018 IFSC Code:SBIN0070674 Rep. by its Chief Manager ….Applicant

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-Vs-

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Mrs. S. Sivasankari D/o Mr.Ekambaram & w/o Mr. Sathyanarayana PAN No.CGLPS9103F Plot No.7, Asthalakshmi Avenue, II Cross Street, Flat S I, II Floor, Anjali Nest, Seneerkuppam, Chennai – 600 056

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Also at AGMA Elegant, Flat No.G 1, Ground Floor, Plot No.33, Bharathiar Street, Prashanthi Nagar, Pammal, Chennai – 600 075.

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Also at AGMA Elegant, Flat No.F 3, 1^st Floor, Plot No.33, Bharathiar Street, Prashanthi Nagar, Pammal, Chennai – 600 075.

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Also at M/s. Cynox Networks Pvt. Ltd., Z – 77, 1^st Floor, 11^th Cross Street, Anna Nagar, Chennai – 600 040.

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Also at M/s. Cynox Networks Pvt. Ltd., C 4, B 4, 1^st Floor, PARSN Complex No.1,

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T.A. No. 1772 of 2023

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06.05.2025

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Kodambakkam High Road, Nungambakkam, Chennai – 600 006. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s K.N. Chinnakrishnan

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Defendant were set ex-parte on 04.05.2022

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: - FINAL ORDER - :

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This original application is filed on 13.12.2019 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 defendant for recovery of a total sum of Rs.77,86,638/-

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(Rupees Seventy Seven Lakhs Eighty Six Thousand Six Hundred and

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Thirty Eight Only) due in respect of Flexipay Home Loan of Rs.74,48,903/- (Account No.36188807149) and SBI Suraksha Loan of Rs.3,37,735/- (Account No.36190916131) together with further interest @ 8.25% p.a. compounded with monthly rests along with penal interest @ 2% p.a. from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.50 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.50 of 2020 stood transferred to this Tribunal and renumbered as TA No.1772 of 2023.

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T.A. No. 1772 of 2023

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06.05.2025

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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 Hon’ble Tribunal.

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The case of applicant bank is that the defendant had approached the applicant bank branch at Ayyappanthangal RACPC, and submitted an application on 29.09.2021 for the grant of Home Loan and the defendant was willing to execute necessary loan documents and offered her immovable property as security for the loan.

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It is submitted by applicant bank that the Ayyappanthangal RACPC Branch after applying their mind and analysing various aspects as per the banking norms and upon getting clearance on the title of the properties to be mortgaged in the form of legal opinion had decided to sanction the loan to the defendant.

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Applicant submitted that at the request of the defendant, branch of Ayyappanthangal RACPC had sanctioned Home Loan amount of Rs.68,65,000/- vide letter of arrangement dated 19.10.2016 under the Housing Finance for the residential property schedule mentioned herein and the same was repayable as Monthly instalments of Rs.52,918/- from 10.12.2016 to 10.01.2017 & Rs.58,791/- from 10.02.2017 to 10.01.2020

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T.A. No. 1772 of 2023

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& Rs.61,731/- from 10.02.2020 to 10.01.2023 and Rs.57,942/- from 10.02.2023 to 10.10.2041

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It is submitted by applicant bank that in order to secure the aforesaid loan, the defendant executed the following documents in favour of the applicant bank on 19.10.2016:

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a. Memorandum of loan agreement for Home Loan granted to public

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b. Agreement of Mortgage

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c. Deed of undertaking

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d. Precondition Letter

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e. Affidavit

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It is further submitted by applicant bank that defendant approached the applicant for additional loan amount of Rs.4,62,630/- for payment of Life Insurance Premium Home Loan account and executed Specimen Agreement for additional loan granted to existing Home loan borrowers for insurance premium amount.

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It is submitted by applicant that the defendants deposited the following documents,

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a) Construction Agreement dated 22.09.2016 (registered on 19.10.2016), registered as Doc.No.6914/2016

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b) Construction Agreement dated 22.09.2016 (registered on 19.10.2016), registered as Doc.No.6916/2016

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T.A. No. 1772 of 2023

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06.05.2025

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c) Sale deed dated 19.10.2016, registered as Doc.No.6916/2016

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It is submitted by the applicant that defendant had executed MODTD dated 11.11.2016 registered as Doc. No.7397/2016, with SRO Pammal in favour of applicant bank. The defendant had remitted a sum of Rs.60,800/on 25.03.2019 to the Home Loan account, being the last remittance made by them which is not sufficient to regularize the loan amount. The defendant though availed the loan did not kept up their promise regarding repayment of loan and not at all properly maintained the loan account. Since the defendant failed and neglected to clear the loan hence the loan account was classified as NPA on 10.01.2019. The account was transferred to the ARM branch and the legal proceedings initiated thereon.

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It is submitted that the loan account become sticky, the applicant bank recalled the entire loan amount by issuance of Section 13(2) Demand Notice on 28.01.2019 & the liability as on 27.10.2019 in both the account is Rs.72,78,009/- consisting of Flexipay Home Loan – Rs.69,64,637/- & SBI Suraksha – Rs.3,13,372. As defendant did not come forward to repay the dues, this Original Application (OA) has been filed to recover the dues from the defendant.

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After the filing of the OA, summons were sent to the sole defendant, through registered post with acknowledgement due, which was duly served. When OA was taken up on 04.05.2022 even after giving sufficient time,

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T.A. No. 1772 of 2023

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06.05.2025

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there was no appearance or representation from the defendant. Hence, sole defendant were placed ex-parte on 04.05.2022.

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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, Mr. S. Suresh, 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-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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.55.52 lakhs by way of sale of Schedule mentioned immovable properties (Item I and II) under SARFAESI Act on 02.09.2020. Accordingly, part satisfaction of sum of Rs.55.52 lakhs is duly recorded vide proceedings dated 12.09.2022.

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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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16. 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.77,86,638/- (Rupees Seventy Seven Lakh Eighty Six

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T.A. No. 1772 of 2023

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06.05.2025

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Thousand Six Hundred and Thirty Eight Only) due in respect of Flexipay Home Loan of Rs.74,48,903/(Account No.36188807149) and SBI Suraksha Loan of Rs.3,37,735/(Account No.36190916131) together with further interest @ 8.25% p.a., with monthly rests along with penal interest @ 2% p.a. from the date of Application till the date of realization in full and for costs of this application;

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

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T.A. No. 1772 of 2023

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06.05.2025

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(e) Recovery Certificate shall be drawn up and issued to the

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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 Mogesh, transcribed by him, corrected, signed and pronounced by me on this the 06^th day of May, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. S. Suresh, Chief Manager of 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.	Loan Application submitted by the defendant 29.09.2016	A-1
2.	Letter of Arrangement issued by the Applicant 19.10.2016	A-2
3.	Memorandum of Loan Arrangement for Home Loan Granted to Public executed by the defendant 19.10.2016	A-3
4.	Agreement of Mortgage executed by the defendant 19.10.2016	A-4
5.	Deed of Undertaking executed by the Defendant 19.10.2016	A-5
6.	Precondition Letter executed by the Defendant 19.10.2016	A-6
7.	Affidavit executed by the Defendant 19.10.2016	A-7
8.	Specimen Agreement for additional loan granted to existing Home loan for Life Insurance Premium Home Loan	A-8

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T.A. No. 1772 of 2023

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06.05.2025

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9	Statement of Accounts for Flexipay Home Loan – bearing account No.36188807149 covering the period from 19.10.2016 to 12.12.2019	A-9
10	Statement of Accounts for SBI Suraksha – bearing account No.36190916131 covering the period from 19.10.2016 to 12.12.2019	A-10
11	Certificate under Bakers’ Book Evidence Act & NPA Certificate 22.08.2022	A-11
12	Notification authorizing Branch Head to initiate legal proceedings.	A-12

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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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Item No. 1

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a. Construction Agreement dated 22.09.2016 (registered on 19.10.2016) registered as Doc.No.6914/2016, with SRO Alandur (LOD Page No.28 to 47) b. Sale Deed dated 19.10.2016 registered as Doc.No.6915/2016, with SRO Alandur, in favor of Mrs.Sivasankari (LOD Page No.48 to 79)

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All that piece and parcel of the land measuring an extent of 363 sq.ft. UDS out of 2425 sq.ft. comprised in S.No. 1774/177/5 & 177/6, having old Patta No.2940, New Patta No.9707, as per Patta New Sub Divided S.No. 177/16 of Pammal Village, having layout approval No.LPDM/DDTP 148/1975, together with the building constructed thereon with a super built area of 770 sq.ft. of saleable along with one covered car parking, bearing plot No.33, Flat No. F 3, Ground Floor, Apartment Known as AGMA Elegant, Bharathiyar Street, Prashanthi Nagar, Pammal, Chennai – 600 075, situated at Alandur Taluk (earlier Saidapet Taluk), Kancheepuram District (earlier Chengalpattu district) and bounded on the

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North by: Plot No.30

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T.A. No. 1772 of 2023

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06.05.2025

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South by: 20 feet road (Bharathiyar Street)

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East by : Plot No.34 West by : Plot No.32

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Admeasuring

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East to West on the Northern side: 60 Feet 6 Inches

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Southern side:60 Feet 9 Inches

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North to South on the Eastern Side: 40 Feet

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Western Side:40 Feet

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Situated within the Registration District of Chennai South and Sub Registration District of Pammal.

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Item No. 2

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a. Construction Agreement dated 22.09.2016 (registered on 19.10.2016) registered as Doc.No.6916/2016, with SRO Alandur (LOD Page No.80 to 99) b. Sale Deed dated 19.10.2016 registered as Doc.No.6917/2016, with SRO Alandur, in favor of Mrs.Sivasankari (LOD Page No.100 to 131)

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All that piece and parcel of the land measuring an extent of 499 sq.ft. UDS out of 2425 sq.ft comprised in S.No.1774/177/5 & 177/6, having old Patta No.2940, New Patta No.9707, as per Patta New Sub Divided S.No. 177/16 of Pammal Village, having Layout approval No.LPDM / DDTP 148/1975, together with the building constructed thereon with a super built area of 1075 Sq.ft of saleable along with one covered car parking, bearing Plot No.33, Flat No.G1, Ground floor, Apartment known as AGMA Elegant, Bharathiyar Street, Prashanthi Nagar, Pammal, Chennai – 600 075, situated at Alandur Taluk (earlier Saidapet Taluk), Kancheepuram District (earlier Chengalpattu District) and bounded on the

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North by : Plot No.30

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South by: 20 Feet Road (Bharathiyar Street) East by : Plot No.34 West by : Plot No.32

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T.A. No. 1772 of 2023

06.05.2025

Admeasuring

East to West on the Northern Side: 60 Feet 6 Inches

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Southern Side: 60 Feet 9 Inches

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North to South on the Eastern Side : 40 Feet

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Western Side : 40 Feet

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Situated within the Registration District of Chennai South and Sub Registration District of Pammal.

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

State Bank of India v. Sivasankari

Case brief

What is this about?

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State Bank of India v. Sivasankari

Case brief

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