Allowed

Canara Bank v. Deric Vincent

DRT27 May 2025TA/31/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues of Rs. 22.28 lakhs plus interest arising from a defaulted housing loan, defaulting on repayment, and issued a final order directing the sale of mortgaged properties to satisfy the debt.

What did the court decide?

Recovery of Rs. 22,28,027 plus interest at 9.60% p.a. and costs; liberty to sell mortgaged property and personal assets for recovery.

Canara Bank versus Deric Vincent — Contract and Commercial Disputes | DRT (2025)

¶1

T.A. No. 31 of 2023

¶2

27.05.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 27^th day of May, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 31 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 69/2020 and thereafter transferred to this Tribunal and renumbered as TA No 31 of 2023)

¶9

M/s. Canara Bank, Rep. by its Senior Manager, Spencer Tower Annexe – 4^th Floor, No.770A, Annasalai, Chennai – 600 002. ….Applicant -Vs-

¶10

Mr. E. Deric Vincent, S/o Sri Edvin, Phone No.7299007733. Door No.7, III Floor,

¶11

‘Pioneer Homes Nithya’ Chavalier Sivaji Ganesan Salai T. Nagar, Chennai 600 017.

¶12

Mrs. Subashini W/o Deric Vincent Door No.7, III Floor, ‘Pioneer Homes Nithya’ Chavalier Sivaji Ganesan Salai T. Nagar, Chennai 600 017. …Defendants

¶13

Counsels on record / appeared:

¶14

Counsel for Applicant : M/s. S. Parthasarathy

¶15

Defendants 1 and 2 were set ex-parte on 01.04.2022

¶16

: - FINAL ORDER - :

¶17

This original application is filed on 13.12.2019 by the applicant bank

¶18

T.A. No. 31 of 2023

¶19

¶20

27.05.2025

¶21

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 and 2, jointly and severally for recovery of a total sum of Rs.22,28,027/-(Rupees Twenty Two Lakhs Twenty Eight Thousand and Twenty Seven only) due in respect of Housing Loan (Account No.0907619000092) together with further interest @ 9.60% p.a., 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.

¶22

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.69 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.69 of 2020 stood transferred to this Tribunal and renumbered as TA No.31 of 2023.

¶23

Brief Facts of the case:

¶24

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.

¶25

It is the case of the applicant bank that 1^st and 2^nd defendants had approached the applicant bank for sanction of Housing Loan for an amount of Rs.24,30,000/- for purchase of Residential Flat No.F2 in the Ground Floor

¶26

T.A. No. 31 of 2023

¶27

¶28

27.05.2025

¶29

having 807 sq.ft., inclusive of common area and common shares together with 452.25 sq.ft of an undivided share of land out of 1809 sq.ft., bearing plot No.4, comprised in Survey No.534/1A (part), situated at No.58, Thirumullaivoyal Village, Saidapet Taluk, Chengalpet District within the sub Registration District of Ambattur and Registration district of North Chennai.

¶30

It is submitted that applicant bank had considered their application dated 26.03.2012 and sanctioned Housing Loan at Retail Asset. Hub-Central Processing Centre vide Sanction Memorandum, dated 07.05.2012 for a sum of Rs.24,30,000/-the applicant bank sanctioned the said loan at the rate of interest at 10.75% which is repayable in 240 EMIs each amounting to Rs.25585/- by defendants. As per the terms of sanction, the defendants have to service interest to the loan account periodically as and when charged by the applicant bank before beginning of the payment of EMIs.

¶31

The Applicant submitted that defendants have executed the Housing Loan Agreement on 18.05.2012 for Rs.24,30,000/- in favour of applicant bank. The defendants agreed to pay floating rate of interest at 10.75% p.a with monthly rests for the value received. The bank shall also be entitled to charge an additional interest at 2% p.a over and above the agreed rate of interest at such rests as agreed above in the event of non-payment of any instalments of principle and interest costs and other charges due or in event

¶32

of any other irregularity, during the period the amount due remains irregular and defaulted the amount as on the date. However, this right is in

¶33

T.A. No. 31 of 2023

¶34

27.05.2025

¶35

¶36

addition to and not in derogation of the Bank’s other rights to immediately call upon the borrower to repay the entire amount outstanding or to enforce the security as stipulated in Housing Loan Agreement, dated 08.05.2012.

¶37

It is further submitted by applicant bank that 1^st defendant mortgaged his immovable property, which was purchased by availing the Housing loan under the registered Sale Deed in Doc.No.5465 of 2012 dated 09.05.2012 in the name of 1^st defendant, Construction agreement executed between builder and the 1^st defendant dated 19.03.2012. The 1^st defendant had deposited the above referred sale deed and other documents pertaining to the residential flat No.F2 in the Ground Floor having 807 sq.ft inclusive of common area and common shares together with 452.25 sq.ft of an undivided share of land out of 1809 sq.ft., bearing Plot No.4, comprised in survey No.534/1A (part), situated at No.58, thirumullaivoyal Village, Saidapet Taluk, Chengalpet District within the Sub Registration District of Ambattur and Registration District of North Chennai by way of letter evidencing deposit of title deeds on 18.06.2012. The 1^st defendant has deposited in an affidavit, dated 26.04.2012 that he undertakes to indemnify the bank for any loss or damage which may occur in future on account of any deviation observed in the construction of said building resulting loss of value of the said property.

¶38

It is submitted that in order to secure the advance, the 1^st defendant mortgaged her immovable property of residential flat No.F2 in the Ground

¶39

T.A. No. 31 of 2023

¶40

27.05.2025

¶41

¶42

Floor having 807 sq.ft inclusive of common area and common shares together with 452.25 sq.ft of an undivided share of land out of 1809 sq.ft., bearing Plot No.4, comprised in survey No.534/1A (part), situated at No.58, thirumullaivoyal Village, Saidapet Taluk, Chengalpet District within the Sub Registration District of Ambattur and Registration District of North Chennai by way of letter evidencing deposit of title deeds on 18.06.2012.

¶43

It is submitted that subsequent to availing of loan, the defendants have defaulted in the repayment of instalment and consequently Housing loan account of the defendants turned as NPA on 12.05.2014 as per RBI guidelines. The applicant through its Authorised Officer had initiated proceedings under Act and issued demand notice dated 30.07.2014. Despite the reminders, personal contacts and repeated demands made by the applicant bank, the defendants failed to repay the dues in the housing loan account bearing No.1550619003812. The applicant bank caused a legal notice to the defendants on 05.12.2019. Hence, this Original Application (OA) has been filed to recover the dues from the defendant.

¶44

After the filing of the OA, summons were sent to the Defendants 1 to 2 through Registered Post with Acknowledgment Due, which returned with remarks as “Left” in respect of 1^st Defendant, while summon to 2^nd Defendant was duly served. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 01.04.2022 even after giving sufficient time, there was no appearance or representation

¶45

T.A. No. 31 of 2023

¶46

27.05.2025

¶47

¶48

from the defendants. Hence, Defendants 1 to 2 were placed ex-parte on 01.04.2022.

¶49

Heard the submissions of Applicant Bank and perused the records.

¶50

To prove the case of the Applicant Bank, Mr. Silu Behera, 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-8 . 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.

¶51

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:

¶52

: O R D E R :

¶53

The OA is allowed with costs,

¶54

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.22,28,027/-(Rupees Twenty Two Lakhs Twenty Eight Thousand and Twenty Seven only) due in respect of Housing Loan (Account No.0907619000092) together with further interest @ 09.60% p.a., with monthly rests from the date of Application till the date of realization in full along with costs of this application.

¶55

T.A. No. 31 of 2023

¶56

27.05.2025

¶57

¶58

(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 property morefully detailed in the OA schedule.

¶59

¶60

(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 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.

¶61

(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.

¶62

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

¶63

T.A. No. 31 of 2023

¶64

¶65

27.05.2025

¶66

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

¶67

Recovery Officer in terms of the final order.

¶68

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

¶69

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

¶70

(Dictated to Mogesh, transcribed by him, corrected, signed and pronounced by me on this the 27^th day of May, 2025)

¶71

ANNEXURES

¶72

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶73

AW-1: Mr. Silu Behera, Manager of the Applicant Bank

¶74

Exhibits on the part of the Applicant:

¶75

Sl. No.	Description of Documents	Exhibit No.
1.	Loan application 26.03.2012	A-1
2.	Sanction Letter for Rs.24,30,000/- issued to the 1^st defendant 07.05.2012	A-2
3.	Housing Loan Agreement 18.06.2012	A-3
4.	Letter Evidencing Deposit of Title Deeds dated 18.06.2012	A-4
5.	Affidavit Cum Undertaking 28.04.2012	A-5
6.	Construction Agreement 19.03.2012	A-6
7.	Sale Deed, Doc.No.5465 of 2012	A-7
8.	Statement of Accounts for Loan Account No.1550619003812 dated 04.07.2022	A-8

¶76

Witness Examined for the Defendants: -Nil-

¶77

List of Documents Exhibited for the Defendants: -Nil –

¶78

T.A. No. 31 of 2023

27.05.2025

:- SCHEDULE -:

A-Schedule

All that piece and parcel of vacant land bearing Plot No.4B, measuring an extent of 1809 sq.ft out of total extent in Plot No.4, situated at No.58, Thirumullaivoyal village, Thilakar Street (Senthil Nagar) comprised in Survey No.534/1A (part) within the Saidapet Taluk, Chengalpet District and bounded on the

¶84

North by: Plot No.3 South by: Plot No.5 East by : Plot No.4A belongs to Mr. Vijayaraghavan West by : Survey No.544 and Thilakar Street.

¶85

Admeasuring North by: 45 ½ Feet; South by: 45 ½ feet; East by: 39 ½ feet, and West by: 40 Feet.

¶86

Measuring to an extent of 1809 sq.ft and situate within registration District of North Chennai and SRO, Ambattur.

¶87

B-Schedule

¶88

452.25 Sq. Ft. Undivided Share of Land out of 1809 Sq. Ft. in ‘A’ Schedule property (i.e., 45.25 Sq. Ft. out of 1809 Sq. Ft.) is conveyed under this Deed of Sale.

¶89

C-Schedule

¶90

Location of the proposed Plot No.4B, Thilakar Street, Thirumullaivoyal, ‘Sai Home’, Flat No.F-2, Ground Floor having built up area of 807 Sq. Ft. (inclusive of common area and common shares)

¶91

T.A. No. 31 of 2023

¶92

¶93

27.05.2025

¶94

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

Canara Bank v. Deric Vincent

Case brief

What is this about?

What did the court decide?

Canara Bank v. Deric Vincent

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

Indian Overseas Bank versus Kapil Singh

Hdfc Bank versus Mohit Rishi

Punjab National Bank versus Amarjit Singh

Hdfc Bank versus Baljodh Singh

Baby John versus Union Bank of India

State Bank of India versus Vasu