Allowed

State Bank of India v. R Prasanth

DRT15 Oct 2025TA/360/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of dues totaling Rs. 48.39 lakh. The court considered evidence of loan default, admission of non-performance by the defendant, and record of partial satisfaction via asset sale under SARFAESI Act, authorizing further recovery from personal assets.

What did the court decide?

Allowed OA for recovery of Rs. 48,39,601/- with interest, costs, and liberty to sell defendant's personal assets for balance dues after crediting SARFAESI sale proceeds.

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

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T.A. No. 360 of 2023

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15.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 15^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 360 of 2023

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(Originally filed before DRT- II, Chennai as OA 06/2022 and thereafter transferred to this Tribunal and renumbered as TA No 360 of 2023)

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State Bank of India, Retail Assets Central Processing Centre, MRC Nagar, No.4, Santhome High Road, Mylapore, Chennai 600 004. Represented by its Deputy Manager

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….Applicant

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-Vs-

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Mr. R. Prasanth, S/o. Mr. Ramachandran, No.5/216, Bengal Mattern, Udhagamandalam, Nilgiris -643 204. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Suresh Law Associates

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Defendant was set ex-parte on 06.07.2022.

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: - FINAL ORDER - :

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This Original Application is filed on 16.10.2021 by the applicant bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly 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.48,39,601/- (Rupees Forty Eight

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Lakhs Thirty Nine Thousand Six Hundred and One Only) as follows:

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T.A. No. 360 of 2023

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15.10.2025

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(i) A sum of Rs.46,98,654/-(Rupees Forty Six Lakhs Ninety

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Eight Thousand Six Hundred and Fifty Four Only) due in respect of Term Loan (A/c No.38027116287), repayable together with further interest @ 7.40%, p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(ii) A sum of Rs.1,40,947/-(Rupees One Lakh Forty Thousand Nine Hundred and Forty Seven Only) due in respect of SBI SURAKSHA Loan (A/c No.38061103708), repayable together with further interest @ 7.35%, p.a. with monthly rests from the date of filing the OA till date of realization in full;

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for sale of immovable property morefully detailed in the 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.06 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.06 of 2022 stood transferred to this Tribunal and renumbered as TA No.360 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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T.A. No. 360 of 2023

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15.10.2025

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It is the case of the applicant bank that the defendant had approached the applicant bank and requested for financial assistance for purchase of schedule mentioned property and submitted Loan Application dated 03.10.2018. The defendant has executed an Arrangement Letter dated 23.10.2018 in favour of applicant bank.

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It is submitted by the applicant bank that at request of the defendant, the applicant bank has sanctioned Term Loan of Rs.40,00,000/- vide Sanction Letter dated 23.10.2018. The Loan is to be repaid in Equated Monthly Installments of Rs.31,425/- each together with interest at the rate of 8.9% p.a. with monthly rests.

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It is further submitted by the applicant bank that in order to secure the loan, the defendant had executed the following loan and security documents in favour of applicant bank on 23.10.2018:

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(i) Arrangement Letter;

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(ii) Memorandum of Loan Agreement for Home Loan granted to public;

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(iii) Agreement to Mortgage.

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It is submitted by the applicant bank that defendant had executed Memorandum of Deposit of Title Deeds in favour of applicant

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bank registered as Document No.12199/2018 dated 22.11.2018 and executed Confirmation Letter dated 23.11.2018. The defendant had deposited the following documents with the applicant bank at the time of creation of mortgage:

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T.A. No. 360 of 2023

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15.10.2025

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(i) Construction Agreement entered between R.B. Govindan and R. Prasanth – Doc. No.11207/2018 dated 24.10.2018. (ii) Sale Deed executed by G. Varalakshmi in favour of R. Prasanth – Doc. No.11208/2018 dated 24.10.2018.

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It is further submitted by the applicant bank that at request of the defendant, the applicant bank had sanctioned “SBI SURAKSHA LOAN” in a sum of Rs.1,21,256/- on 09.11.2018 to the defendant.

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The applicant bank submits that subsequent to availing of loan, the defendant did not operate the loan account in accordance to the terms of agreement and thus committed default in repayment of installments. Consequently, the loan account was classified as NonPerforming Asset (NPA) on 23.01.2020 in the books of the applicant bank as per RBI guidelines. The Applicant Bank through its Authorised Officer had issued statutory Demand Notice under Section 13(2) of the SARFAESI Act on 30.01.2020, which was duly served to the defendant. Despite repeated demands, the defendant did not come forward to repay the dues. Hence 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 Defendant through Registered Post with Acknowledgment Due, which was duly served. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.07.2022 even after

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T.A. No. 360 of 2023

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15.10.2025

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giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant was placed ex-parte on 06.07.2022.

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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, Smt. M. Sathiavanimuthu, Deputy Manager representing the Applicant Bank, has filed her 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 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.26,75,000/- by way of sale of Schedule immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.26,75,000/- is duly recorded vide order dated 17.09.2025.

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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

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T.A. No. 360 of 2023

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15.10.2025

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Defendant a total sum of Rs.48,39,601/- (Rupees Forty Eight

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Lakhs Thirty Nine Thousand Six Hundred and One Only) as follows:

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(i) A sum of Rs.46,98,654/-(Rupees Forty Six Lakhs

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Ninety Eight Thousand Six Hundred and Fifty Four Only) due in respect of Term Loan (A/c No.38027116287), repayable together with further interest @ 7.40%, p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(b) The sum of Rs.26,75,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) 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 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

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T.A. No. 360 of 2023

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15.10.2025

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other properties or assets owned by the Defendant.

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(d) The applicant bank shall file the latest memo of calculation

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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

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from the date of receipt of this final order.

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(f) 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/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 15^th day of October, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. M. Sathiavanimuthu, Deputy Manager representing the Applicant Bank.

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T.A. No. 360 of 2023

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15.10.2025

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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 dated 03.10.2018.	A-1
2.	Sanction Letter dated 23.10.2018.	A-2
3.	Arrangement Letter dated 23.10.2018.	A-3
4.	Memorandum of Loan Agreement for Home Loan granted to Public dated 23.10.2018.	A-4
5.	Agreement to Mortgage dated 23.10.2018.	A-5
6.	Memorandum of Deposit dated 22.11.2018.	A-6
7.	Memorandum relating of Deposit of Title Deeds (Doc. No.12199/2018) dated 22.11.2018.	A-7
8.	Confirmation Letter dated 23.11.2018.	A-8
9.	Construction Agreement entered between R,B, Govindan and R. Prasanth (Doc.No.11207/2018) dated 24.10.2018.	A-9
10.	Sale Deed executed by G. Varalakshmi infavour of R. Prasanth (Doc. No.11208/2018) dated 24.10.2018.	A-10
11.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 23.10.2018 to 24.09.2021.	A-11
12.	SBI Life Certificate dated 20.11.2018.	A-12
13.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 09.11.2018 to 24.09.2021.	A-13
14.	13(2) Notice & Ack. Dated 30.01.2020.	A-14
15.	Authorization Circular.	A-15

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

State Bank of India v. R Prasanth

Case brief

What is this about?

What did the court decide?

State Bank of India v. R Prasanth

Case brief

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What did the court decide?

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