Allowed

Karnataka Bank Limited v. Natarajan

DRT20 Mar 2025TA/227/2023

Case brief

AI extract

What is this about?

In an ex-parte transfer application under Section 19 of the RDB Act, 1993, the Debts Recovery Tribunal allowed the bank's application for recovery of dues totaling approximately Rs.99.60 lakhs, including future interest, and authorized enforcement through the sale of secured immovable properties.

What did the court decide?

Recovery of Rs.99,60,391.63p plus future interest; liberty to recover amount by sale of scheduled immovable properties; issuance of recovery certificate.

Karnataka Bank Limited versus Natarajan — Contract and Commercial Disputes | DRT (2025)

¶1

T.A. No. 227 of 2023

¶2

20.03.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 20^th day of March, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 227 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 168/2022 and thereafter transferred to this Tribunal and renumbered as TA No 227 of 2023)

¶9

Karnataka Bank Ltd. Anna Salai Branch, No.190/192, Hamid Complex, Anna Salai, Chennai – 600 006.

¶10

….Applicant

¶11

-Vs-

¶12

Mr.Natarajan R S/o. Mr. Ramanathan,

¶13

No.C-27, First Street, Chenduram Colony, Madippakkam, Chennai – 600 091.

¶14

Mrs.Santhi,

¶15

W/o. Mr.Natarajan, No.C-27, First Street, Chenduram Colony, Madippakkam,

¶16

Chennai – 600 091 …..Defendants

¶17

Counsels on record / appeared:

¶18

Counsel for Applicant : M/s.R.Thirumalai

¶19

Defendants 1 and 2 were set ex-parte on 03.10.2023

¶20

: - FINAL ORDER - :

¶21

This original application is filed on 14.03.2022 by the applicant bank

¶22

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

¶23

T.A. No. 227 of 2023

¶24

20.03.2025

¶25

¶26

(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, recovery of a total sum of Rs.99,60,391.63p (Rupees Ninety Nine Lakhs Sixty Thousand Three Hundred and Ninety One and Sixty Three Paise only) comprising of

¶27

(i) A sum of Rs.84,42,219.23p due in respect of Term Loan (Account No.8297) together with further interest @ 8.55% p.a., compounded with monthly rests from the date of Application till the date of realization in full;

¶28

(ii) A sum of Rs.15,18,172.40p due in respect of Term Loan (Account No.8307) together with further interest @ 8.55% p.a., compounded with monthly rests 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.

¶29

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.168 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.168 of 2022 stood transferred to this Tribunal and renumbered as TA No.227 of 2023.

¶30

Brief Facts of the case:

¶31

The Applicant submits that the application is filed within the period

¶32

T.A. No. 227 of 2023

¶33

¶34

20.03.2025

¶35

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.

¶36

It is the case of applicant bank that the defendant had approached the applicant bank for Housing Loan for purchase of the schedule mentioned property.

¶37

It is submitted by applicant bank that after due consideration, the applicant had sanctioned a Term Loan of Rs.75,00,000/- to the defendants on the terms and conditions stipulated in its Sanction Letter Ref: CMRS/RLPC/500/23715/2018-19 dated 19.09.2018. Loan is repayable in 156 equated monthly installments of Rs.80,014/- each together with interest thereon @ 8.60% p.a. The rate of interest is rising or falling with the MCLR as fixed by the Bank from time to time. In case of default in making the repayment, the defendants had agreed to pay 5% penal interest on the defaulted sum.

¶38

Accepting the said terms and conditions, the defendants had availed the above facility under Term Loan account No.4637001600829701, and purchased the schedule mentioned property being Residential Flat in the Apartment known as “KRISH CROCUS” situated at Plot No.6,7 & 8, Manohar Nagar Extension, Pallikaranai, Chennai, in the name of the first defendant.

¶39

T.A. No. 227 of 2023

¶40

20.03.2025

¶41

¶42

In consideration therefor and towards securing the due repayment thereof, the first and second defendants have executed the following documents on 28.09.2018 in favour of applicant bank:

¶43

(i) Term Loan Agreement;

¶44

(ii) Letter of declaration.

¶45

It is submitted by applicant bank that in order to secure the repayment, the first defendant had created equitable mortgage of the schedule mentioned properly in the favour of the applicant and executed Memorandum of Deposit of Title deeds dated 16/11/2018, registered as document No.12218 of 2018.

¶46

It is the further case of applicant bank that the defendants had availed another Term Loan of Rs.14,00,000/under Account No.4637001600830701 sanctioned vide Ref No. CMRS/RLPC/500/ 35064/2018-19 dated 03/12/2018 for the purpose of home comfort/interior works in the schedule mentioned property. The said loan is repayable in 120 equated monthly installments of Rs.18,502/- each together with interest thereon @ 10.00% p.a. compounded monthly. In case of default in making the repayment, the defendants have also agreed to pay 5% penal interest on the defaulted sum.

¶47

It is submitted by applicant bank that in order to secure the repayment, the defendants had executed the following documents on

¶48

T.A. No. 227 of 2023

¶49

20.03.2025

¶50

¶51

05.12.2018 in favour of applicant bank:

¶52

(i) Term Loan Agreement;

¶53

(ii) Letter of declaration

¶54

It is further submitted by applicant bank that in order to secure repayment of the loan availed, the first defendant had executed a letter of Authority dated 05.12.2013 extending/ensuring the aforesaid mortgage also as security for the aforesaid term loan. Subsequently, the first defendant had effected equitable mortgage of the schedule mentioned properly in favour of the applicant, under constructive Re-deposit of title deeds dated 09.02.2021, registered under document No.1568 of 2021.

¶55

The applicant bank submitted that after availing the above credit facilities, the defendants have been most irregular in effecting repayment, and failed to set right the matter despite repeated requests and reminders. Hence both the accounts slipped to NPA on 28.10.2020. The applicant’s caused Recall notice dated 19.04.2021 calling upon the defendants to effect repayment of the entire outstanding balance as on that date. Despite receipt of notice, the defendants they failed to comply make any payment. Hence the present OA (Original Application) is filed for recovery of dues from the defendants.

¶56

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly

¶57

T.A. No. 227 of 2023

¶58

20.03.2025

¶59

¶60

served. When OA was taken up on 03.10.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 03.10.2023.

¶61

Heard the submissions of Applicant Bank and perused the records.

¶62

To prove the case of the Applicant Bank, Mr. Fiyaz Ahmed, 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-15 . 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.

¶63

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:

¶64

: O R D E R :

¶65

The OA is allowed with costs,

¶66

(a) The applicant bank is allowed to recover from the Defendants 1 and 2, a sum of Rs.99,60,391.63p (Rupees Ninety Nine Lakhs Sixty Thousand Three Hundred and Ninety One and Sixty Three Paise only) comprising of

¶67

T.A. No. 227 of 2023

¶68

20.03.2025

¶69

¶70

(i) A sum of Rs.84,42,219.23p due in respect of Term Loan (Account No.8297) together with further interest @ 8.55% p.a., compounded with monthly rests from the date of Application till the date of realization in full;

¶71

(ii) A sum of Rs.15,18,172.40p due in respect of Term Loan (Account No.8307) together with further interest @ 9.70% p.a., compounded with monthly rests from the date of Application till the date of realization in full and for costs of this application;

¶72

(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 schedule mentioned immovable properties morefully detailed in the OA schedule.

¶73

¶74

(d) 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

¶75

T.A. No. 227 of 2023

¶76

¶77

20.03.2025

¶78

Defendants to the applicant bank.

¶79

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

¶80

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

¶81

Recovery Officer in terms of the final order.

¶82

A copy of this order be communicated to the parties concerned.

¶83

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

¶84

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 20^th day of March, 2025)

¶85

ANNEXURES

¶86

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶87

AW-1: Mr.Fiyaz Ahmed, Chief Manager of the Applicant Bank

¶88

Exhibits on the part of the Applicant:

¶89

Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Order (T/L 8297) dated 19.09.2018	A-1
2.	Term Loan agreement dated 28.09.2018	A-2
3.	Letter of Declaration dated 28.09.2019	A-3
4.	Sanction Order (T/L8307) dated 03.12.2018	A-4
5.	Term Loan Agreement dated 05.12.2018	A-5
6.	Letter of Authority dated 05.12.2018	A-6
7.	Recall Notice dated 19.04.2021	A-7
8.	Acknowledgment card	A-8
9.	Acknowledgment card	A-9
10.	Memorandum of Deposit of Title Deeds	A-10

¶90

T.A. No. 227 of 2023

¶91

20.03.2025

¶92

¶93

	(Doc.No.12218 of 2018) dated 16.11.2018
11.	Instrument of constructive Re-deposit of title deeds (Doc.No.1563 of 2021) dated 09.02.2021	A-11
12.	Sale deed infavour of R.Natarajan Executed by R.Vasanthi (Doc.No.10410 of 2018) dated 28.09.2018	A-12
13.	Construction agreement between C.V.Victor and M/s.Krish Homes (Doc.No.10409 of 2018) 19.07.2018 dated 28.09.2018	A-13
14.	Account Statement with certificated (T/L8297)	A-14
15.	Account Statement with certificated (T/L8307)	A-15

¶94

:- SCHEDULE -:

¶95

SCHEDULE A PROPERTY

¶96

(Total Property)

¶97

All that piece and parcel of land consisting of Plot Nos,6,7,8 in Manohar Nagar 15^th Street Extension, situated at Pallikaranai Village, Sholilnganallur Taluk, Kancheepuram District, comprised in Old Survey No.618/1, New Survey No..618/12, measuring about 5400 sq.ft.

Bounded on the

North by: Plot No.9

South by: Plot No.5,

East by: 20 feet road,

¶102

West by: vacant site,

¶103

Situated within the Registration Sub District of Joint-1 Saidapet, and Registration District of South Chennai.

¶104

T.A. No. 227 of 2023

¶105

20.03.2025

¶106

¶107

SCHEDULE B PROPERTY

¶108

(Mortgaged to the applicant)

¶109

732 sq.ft. out of 5400 sq.ft. undivided share of land in the ScheduleA mentioned property together with Flat bearing No.B in First Floor measuring 1435 sq.ft. of super built up area (inclusive of common area, and a covered Car parking in stilt floor) of the apartment known as “KRISH CROCUS” bearing Plot Nos.6,7 & 8, Manohar Nagar Extension, Pallikaranai, Chennai 600 100.

¶110

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

Karnataka Bank Limited v. Natarajan

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Natarajan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus James Saviour

State Bank of India versus M/S J J Chaat and Beverage

Subramani Ravi versus India Infoline Housing Finance Limited

Murugan and others versus Hdfc Bank

R Karthikeyan versus Rbl Bank Limited

Velmurugan versus State Bank of India