Allowed

State Bank of India v. Dharmapadam Sriram

DRT24 Nov 2025TA/388/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank’s application for recovery of nearly Rs. 85 Lakhs arising from a defaulted home loan. The court confirmed the default and directed recovery jointly and severally, with provisions for realizing the balance from personal assets if the sold schedule property proceeds were insufficient.

What did the court decide?

Recovery of total sum of Rs. 85,08,166.13 plus interest and costs; sale of secured asset proceeds credited; liberty to sell personal assets for balance dues.

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

¶1

T.A. No. 388 of 2023

¶2

24.11.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 24^th day of November, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 388 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 205/2020 and thereafter transferred to this Tribunal and renumbered as TA No 388 of 2023)

¶9

State Bank of India, Asset Recovery Management Branch, No. 44, Eldams Road, 1^st Floor, Teynampet, Chennai – 600 018. Rep. by its Chief Manager, Mr. V.S. Venkatraman,

¶10

….Applicant

¶11

-Vs-

¶12

Mr. Dharmapadam Sriram,

¶13

S/o. A.V. Dharmapadam, K-105, Anna Nagar East,

¶14

Chennai – 600 102.

¶15

Also residing at:

¶16

Mr. Dharmapadam Sriram, S/o. A.V. Dharmapadam, Plot No. 89 & 90, Gomathy Nagar, Vijaya Nagar Extension, Opposite to Velachery Railway Station, Chennai – 600 042.

¶17

Also residing at:

¶18

Mr. Dharmapadam Sriram, S/o. A.V. Dharmapadam, Flat No. A, Floor 22, Block-2, Nan Fung Sun Chgen-34, Greig Road, Hong Kong City.

¶19

T.A. No. 388 of 2023

¶20

¶21

24.11.2025

¶22

And also residing at:

¶23

Mr. Dharmapadam Sriram, S/o. A.V. Dharmapadam, Hira House Limited, 24^th Floor, Hong Kong Tower, 8-12, Hennessy Road,

¶24

Wanchai, Hong Kong City.

¶25

Najre Rama Rao Shankar, S/o. Najre Chinnajirao Rama Rao,

¶26

Old No. 57-A, New No. 5, “M” Block, 9^th Street, Anna Nagar East,

¶27

Chennai – 600 102. …. Defendants

¶28

Counsels on record / appeared:

¶29

Counsel for Applicant : M/s. N. Elumalai

¶30

Defendants 1 & 2 were set ex-parte on 18.07.2022

¶31

: - FINAL ORDER - :

¶32

This Original Application is filed on 17.02.2020 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 defendants 1 & 2, jointly and severally for recovery of a total sum of Rs.85,08,166.13p (Rupees Eighty Five Lakhs Eight Thousand One Hundred and Sixty Six and Thirteen Paise only) due in respect of Home Loan Facility (Account No. 34209472851) repayable together with further interest @ 8.60% 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 Original Application.

¶33

T.A. No. 388 of 2023

¶34

¶35

24.11.2025

¶36

Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 205 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 205 of 2020 stood transferred to this Tribunal and renumbered as TA No. 388 of 2023.

¶37

Brief Facts of the case:

¶38

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.

¶39

It is the case of the Applicant Bank that that originally the 1^st defendant herein approached the State Bank of India, Mandaveli Branch, Chennai-4 through his Power Agent, the 2^nd defendant herein, for the purpose of sanction of a Housing Term Loan of Rs.75,00,000/-. On behalf of the 1^st defendant, the 2^nd defendant executed loan documents.

¶40

It is submitted by the applicant bank that the loan was sanctioned by the Applicant bank on 17.09.2014 with the facility of Additional Loan Sanction for SBI Life Premium of Rs.4,30,620/- on the same day towards SBI life premium under Home Loan Insurance.

¶41

The Applicant Bank submits that in connection with the sanction of the Home Loan, the defendants herein executed the following documents:

¶42

(a) Memorandum of loan Agreement dated 23.09.2014

¶43

(b) Affidavit and Deed of Undertaking dated 23.09.2014.

¶44

T.A. No. 388 of 2023

24.11.2025

(d) Operations letter dated 23.09.2014.

¶49

(e) Memorandum relating to Deposit of Title Deeds dated 13.01.2015.

¶50

The Applicant submits that the applicant Bank considering the execution of necessary documents as stated above, applicant bank sanctioned a sum of Rs. 75,00,000/- towards Housing Loan to the defendants herein vide Sanction Letter dated 17.09.2014.

¶51

It is submitted that subsequent to availing of loan, the defendants failed to discharge the above said loan amount in time and failed to pay the principal and interest. Therefore, the defendant’s loan account was classified as Non-Performing Asset (NPA) on 16.06.2019 in accordance with RBI guidelines. Thereafter the Applicant bank, through its Authorised Officer had issued notice under Section 13(2) of the SARFAESI Act on 18.05.2018 to the defendants, followed by Possession Notice dated 09.10.2019. Since the defendants failed to repay the loan liability, the loan records were transferred from State bank of India. Mandaveli Branch to RACPC MRC Nagar Branch initially and later to the Applicant Bank viz., ARMB Branch, Eldams Road, Teynempet, Chennai as an internal policy of bank, for effective and expeditious recovery of liability.

¶52

The Applicant further submits that having accepted the terms and conditions for grant of home loan, the defendants neglected to pay the said amount and the defendants defaulted in performance of their

¶53

T.A. No. 388 of 2023

¶54

24.11.2025

¶55

¶56

obligations towards the loan despite several remainders sent to them. The defendants had paid a sum of Rs.1,55,000/- on 30.06.2018 and thereafter there was no repayment from the defendants. In spite of repeated demands and requests and notices sent to the defendants, the defendants did not care and come forward to repay the loan. Therefore, the Applicant Bank finally caused a Legal Notice on 13.01.2020 and 28.01.2020 calling upon the defendants to re-pay the outstanding dues. The said notice dated 13.01.2020 was duly served on the 2^nd defendant. However 1^st defendant's Anna Nagar address was returned unserved with an postal endorsement of "LEFT" Another address namely Velacherry address was returned unserved with postal endorsement of "Un-claimed" and other two foreign addresses also returned unserved to the 1^st respondent. Despite receipt of notice by 2^nd defendant, the defendants have deliberately neglected to repay the said dues. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶57

After the filing of the OA, summons was sent to the Defendants 1 & 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘Unclaimed, No such Person, missed delivery deposit’ in respect of D-1, and the summons was duly served to the 2^nd defendant. When OA was taken up on 18.07.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 & 2 were placed ex-parte on 18.07.2022.

¶58

T.A. No. 388 of 2023

¶59

24.11.2025

¶60

¶61

Heard the submissions of Applicant Bank and perused the

¶62

records.

¶63

To prove the case of the Applicant Bank, Sh. C. Arun Prasath, Deputy 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-30 . 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.

¶64

During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs. 76,00,000/- by way of sale of Schedule mentioned immovable property under SARFAESI Act and the sale proceeds was credited to the borrower’s loan account. The original

¶65

Sale Deed dated 26.09.2014, original Construction Agreement dated 26.09.2014, original Memorandum of Deposit of Title deeds dated 13.01.2015 were handed over to the auction purchaser by the applicant bank.

¶66

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:

¶67

T.A. No. 388 of 2023

24.11.2025

: O R D E R :

The OA is allowed with costs,

¶72

(a) The applicant bank is allowed to recover from the defendants jointly and severally for recovery of a total sum of Rs.85,08,166.13p (Rupees Eighty Five Lakhs Eight Thousand One Hundred and Sixty Six and Thirteen Paise only) due in respect of Home Loan Facility (Account No. 34209472851) repayable together with further interest @ 8.60% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this application.

¶73

(b) A sum of Rs.76,00,000/- recovered by sale of secured asset under SARFAESI Act is directed to be given credit to the borrower’s loan account as on the date of realization.

¶74

(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 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.

¶75

(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

¶76

T.A. No. 388 of 2023

¶77

¶78

24.11.2025

¶79

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.

¶80

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

¶81

(f) Recovery Certificate shall be drawn up and issued to the 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 Steno (Ponmalar), transcribed by him, corrected, signed and pronounced by me on this the 24^th day of November, 2025)

¶85

ANNEXURES

¶86

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶87

AW-1: Sh. C. Arun Prasath, Deputy Manager of the Applicant Bank

¶88

Exhibits on the part of the Applicant:

¶89

Sl. No.	Date	Description of Documents	Exhibit No.
1.	07.07.2014	General Power of Attorney	A-1
2.	10.07.2014	Loan Application along with Guarantor Form	A-2
3.	21.07.2014	Sale Agreement	A-3
4.	03.09.2014	Forwarding Letter	A-4
5.	17.09.2014	Appraisal cum Control Report	A-5
6.	17.09.2014	Sanction Letter	A-6
7.	17.09.2014	Arrangement Letter	A-7
8.	23.09.2014	Operations Letter	A-8

¶90

T.A. No. 388 of 2023

¶91

¶92

24.11.2025

¶93

9.	23.09.2014	Memorandum of Loan Agreement for Home Loan	A-9
10.	23.09.2014	Deed of Undertaking	A-10
11.	23.09.2014	Affidavit	A-11
12.	23.09.2014	Agreement to Mortgage	A-12
13.	23.09.2014	Specimen Agreement for additional Loan	A-13
14.	23.09.2014	Request of loan for SBI Life Premium	A-14
15.	23.09.2014	Request letter for disbursement of Loan	A-15
16.	26.09.2014	Construction Agreement (vide Doc. No. 6587/2014)	A-16
17.	26.09.2014	Deed of Absolute Sale (vide Doc. No. 6588/2014)	A-17
18.	26.09.2014	Confirmation Letter	A-18
19.	13.01.2015	Memorandum relating to deposit of title deeds (vide Doc. No. 188/2015)	A-19
20.	18.05.2018	Notice under Section 13(2) of SARFAESI Act	A-20
21.	30.05.2018	Acknowledgement Card	A-21
22.	09.10.2019	Possession Notice	A-22
23.	13.01.2015	Legal Notice to the defendants	A-23
24.	--	Acknowledgement received from the 2^nd defendant	A-24
25.	--	Returned envelop from the 1^stdefedant	A-25
26.	28.01.2020	Legal Notice to the 1^stdefendant	A-26
27.	--	Returned envelopes from the 1^st defendant	A-27
28.	--	Acknowledgement	A-28
29.	--	Online tracking sheet	A-29
30.	18.09.2014 To 07.01.2020	Statement of Account with interest calculation sheet with certificates A/c. No. 34209472851	A-30

¶94

Witness Examined for the Defendants

¶95

: -Nil-

¶96

List of Documents Exhibited for the Defendants : -Nil –

¶97

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

State Bank of India v. Dharmapadam Sriram

Case brief

What is this about?

What did the court decide?

State Bank of India v. Dharmapadam Sriram

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

Indiabulls Asset Reconstruction Private Limited versus M/S Sheeba Enterprises

Hdfc Bank versus Abolfazl Nemati Pour

Stressed Assets Stabilization Fund versus S and S Industries and Enterprises Ltd.

Ms Deepa Stores K. Gurusamy K Jansi versus Union Bank of India (Corporation Bank)

State Bank of India versus Praveen

Tamilnad Mercantile Bank Limited versus M/S Bharath Kumar