Allowed

State Bank of India v. Srinivasan

DRT4 Jun 2025TA/343/2023

Case brief

AI extract

What is this about?

Allowed the debt recovery application filed by State Bank of India against the defendants. The court admitted the unchallenged claim for housing loan dues and ordered recovery of the principal sum, future interest, and costs via sale of mortgaged property.

What did the court decide?

Allowed recovery of Rs. 23,33,747/- plus future interest at 9.65% p.a. and costs; liberty to recover amount by sale of schedule property; order to draw Recovery Certificate.

State Bank of India versus Srinivasan — Banking and Recovery | DRT (2025)

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T.A. No. 343 of 2023

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04.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 343 of 2023

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(Originally filed before DRT- II, Chennai as OA 256/2020 and thereafter transferred to this Tribunal and renumbered as TA No 343 of 2023)

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State Bank of India ARMB Branch No.44, I Floor, Eldams Road, Teynampet, Chennai – 600 018 Rep. by its Chief Manager ….Applicant

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-Vs-

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1 Mr. M. Srinivasan

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S/o. Mr. Munusamy, No.1/10, Perumal Koil Street, Village No.3, Sivapuram Village, Sriperumbudhur Taluk Kancheepuram District – 602 002

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Mr. R. Prabakaran, S/o. Mr. Rajasekar, No.1/10, Perumal Koil Street, Village No.3, Sivapuram Village, Sriperumbudhur Taluk Kancheepuram District – 602 002 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. N. Kishore Kumar

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Defendants were set ex-parte on 04.01.2022

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: - FINAL ORDER - :

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This original application is filed on 21.05.2020 by the applicant bank

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

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T.A. No. 343 of 2023

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04.06.2025

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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.23,33,747/- (Rupees Twenty Three Lakhs Thirty Three Thousand

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Seven Hundred and Forty Seven Only) due in respect of Housing Loan (A/c No.64117509667 & 64117509816) together with further interest @ 9.65%, p.a. with monthly rests from the date of Application till the date of realization in full, for sale of Schedule mentioned immovable property morefully detailed in Schedule to the OA and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.256 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 256 of 2020 stood transferred to this Tribunal and renumbered as TA No.343 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 the Defendants had availed loan from State Bank of Mysore, Sriperumbudur Branch. It is submitted that pursuant to the Gazette Notification No. 158E, Dated 22^nd February, 2017, of the Government of India, State Bank of Mysore (SBM) has been acquired

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by the State Bank of India (SBI), under Section 35 of the State Bank of India Act, 1955 with effect from 01.04.2017. Since the said State Bank of Mysore, Sriperumbudur Branch has merged with State Bank of India and its loan accounts had been transferred to State Bank of India.

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It is submitted that the Defendants had applied and availed Housing Loan as Term Loan of Rs.14,50,000/-, as Housing Loan being a Term Loan and an Additional Loan of Rs.1,71,660/- as funding for Home Loan Insurance Cover in all a total of Rs.16,21,660/- was sanctioned by applicant bank. The Applicant Bank had issued a Sanction Letter dated 15.04.2013 duly acknowledged by the Defendants. The Applicant Bank had issued a Letter of Arrangement dated 15.04.2013 duly acknowledged by the Defendants. The Defendants had entered into a Memorandum of Loan Agreement dated 15.04.2013 with the Applicant Bank.

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The Applicant Bank submitted that the Defendants had created equitable mortgage and deposited the Title Deeds of the Property being Land comprised in Grama Natham Old Survey No.13, Part, New Grama Natham Survey No.78/10, admeasuring 5,136 Sq.ft., along with 927 Sq.ft., of built-up area and 275 Sq.ft., of thatched roof shed, situated at Sivapuram Village, Sriperumbudur Panchayath Union, Sriperumbudur Taluk, Kancheepuram District, more fully described in the Schedule to OA.

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The Applicant Bank submitted that the Defendants had deposited the

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Title Deeds of Schedule mentioned property by way of Equitable Mortgage and executed a confirmation letter on 15.04.2013 as Security for the loans granted. The defendants had also executed a Memorandum of Deposit of Title Deeds dated 25.07.2013 and the same is Registered as Document No.2977 of 2013 before the Sub-Registrar Office of Perumbakkam. The details of the Title Deeds deposited by the defendants are hereunder:

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Partition Deed dated 03.09.2010 between 1) M. Santha, 2) Pushpalatha, 3) M. Srinivasan 4) Elavarasi 5) Anjala 6) Santhi 7) Uma Registered as Document No.2420 of 2010 SRO: Perumbakkam.

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It is submitted by Applicant Bank that after availing the said facility, the defendants deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendants miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 28.04.2016, as per the guidelines issued by the RBI. As defendants did not come forward to repay the dues, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, Summons were sent to Defendants 1 & 2 through Registered Post with Acknowledgement due, which was returned unserved with postal endorsement as ‘Refused’ from D1, while summons

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D2 are duly served. Applicant Bank had caused Paper Publication of Notice and filed proof thereof. When OA was taken up on 04.01.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants were placed ex-parte on 04.01.2022.

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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. L. Govind L Ballal, 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-7 . 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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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 a total sum of Rs.23,33,747/- (Rupees Twenty Three Lakhs Thirty Three Thousand Seven Hundred and Forty Seven Only) due in respect of Housing Loan (A/c No.64117509667 &

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64117509816) together with further interest @ 9.65%, 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 schedule mentioned immovable property morefully detailed in the OA;

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

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(f) 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 PS, transcribed by her, corrected, signed and pronounced by me on this the 04^th day of June, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. L. Govind L Ballal, Chief Manager representing 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.	Sanction Letter given by Applicant Bank to the Defendants dated 15.04.2013	A-1
2.	Letter of arrangement given by Applicant Bank to the Defendants dated 15.04.2013	A-2
3.	Memorandum of Loan Agreement for Home Loan between the Applicant Bank and Defendants dated 15.04.2013	A-3
4.	Confirmation Letter given by the Defendants dated 15.04.2013	A-4
5.	Memorandum of Deposit of Title Deeds executed by the Defendant, Registered as Document No.2977 of 2013 in the Sub-Registrar Office at Perumbakkam, in favour of Applicant Bank dated 25.07.2013	A-5
6.	Partition Deed between 1) M. Santha, 2) Pushpalatha, 3) M. Srinivasan 4) Elavarasi 5) Anjala 6) Santhi 7) Uma Registered as Document No.2420 of 2010 SRO: Perumbakkam with English Translation dated 03.09.2010	A-6
7.	Statement of Accounts for Housing Loan and Additional dated 18.03.2020	A-7

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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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All that piece and parcel of land comprised in Grama Natham Old Survey No.13, Part, New Grama Natham Survey No.78/10, admeasuring 5,136 Sq.ft., along with 927 Sq.ft., of built-up area and 275 Sq.ft., of thatched roof shed, situated at Sivapuram Village, Sriperumbudur Panchayath Union, Sriperumbudur Taluk, Kancheepuram District, and situated within Registration of Kancheepuram and Sub-Registration District of Perambakkam, Bounded on the,

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North by :Nadu Street,

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South by :Perumal Koil Street

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East by :Land and House belonging to Dhamotharan Reddy and Velu West by :Land and House belonging to Subramani and Annandhammal

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

State Bank of India v. Srinivasan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Srinivasan

Case brief

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What did the court decide?

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