Allowed

State Bank of India v. Jothi

DRT24 Oct 2025TA/485/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for the recovery of dues including principal, interest, and costs from the defendant, considering the claim unchallenged, and directed the issuance of a recovery certificate after accounting for SARFAESI realization.

What did the court decide?

Recovery of Rs.20,09,107.10p with interest and costs, adjusted for Rs.9,10,000/- realized via SARFAESI sale.

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

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T.A. No. 485 of 2023

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24.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 485 of 2023

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(Originally filed before DRT- II, Chennai as OA 354/2021 and thereafter transferred to this Tribunal and renumbered as TA No 485 of 2023)

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State Bank of India ARM Branch Chennai No.44, 1^st Floor, Eldams Road, Teynampet, Chennai -600 018 Rep. by its Chief Manager ….Applicant

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-Vs-

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Mrs. S. Jothi, W/o Mr. Kumar Door No.11/231, F2 Vijyalakshmi Avenue 1^st Street, 1^st Floor, Kollathuvancherry, Iyyappanthangal, Chennai – 600 012

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Also at M/s. Shirdisai Enterprises No. S16, 75^th Street, R V Nagar, Jaffarkhanpet (Nr. Kasi Theater) Chennai – 600 083

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Also at Mrs. S. Jothi, W/o Mr. Kumar Plot No.210, Vishnu Nagar Layout, Kilambakkam,

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Thiruvallur Taluk & District – 602 025 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. E. Kumar

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Defendant was set ex-parte on 17.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 13.08.2021 by the applicant

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bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993

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T.A. No. 485 of 2023

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24.10.2025

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant for recovery of a total sum of Rs.20,09,107.10p (Rupees Twenty Lakhs Nine Thousand One Hundred and Seven and Ten Paisa Only) due in respect of Housing Loan Facility (Account No.34559839447) repayable together with further interest @ 10% per annum compounded with monthly rests with Penal Interest @2% p.a. from the date of application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.354 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.354 of 2021 stood transferred to this Tribunal and renumbered as TA No.485 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 Defendant had approached the Applicant Bank seeking financial assistance for purchase of House and submitted the application for the same on 09.12.2012 and was willing to execute necessary loan documents.

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T.A. No. 485 of 2023

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24.10.2025

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The Applicant submits that after applying their mind and analyzing various aspects as per the banking norms and upon getting clearance on the title of the property to be mortgaged in the form of legal opinion had decided to sanction the loan to the Defendant.

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It is submitted that at the request of the Defendant, the Applicant Bank had sanctioned Home Loan to the tune of Rs.12,45,000/- (Rupees Twelve Lakh Forty Five Thousand only) vide Arrangement Letter dated 31.12.2014.

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The Applicant submits that, the Defendant at the time of availing of the said loan executed the following loan documents in favour of the Applicant Bank:

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i. Memorandum of Loan Agreement for Home Loan Granted executed by Defendant in favour of Applicant Bank dated 03.01.2015.

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ii. Agreement to Mortgage the property Defendant in favour of Applicant bank dated 03.01.2015.

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iii. Deed of Undertaking executed by the Defendant in favour of Applicant Bank dated 30.01.2015.

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iv. Affidavit executed by the Defendant in favour of Applicant bank dated 03.01.2015.

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v. Pre conditions letter executed by the Defendant in favour of the Applicant bank dated 03.01.2015.

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vi. Undertaking letter executed by the Defendant in favour of the Applicant bank dated 03.01.2015.

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vii. Operation letter executed by the Defendant in favour of the

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Applicant bank dated 03.01.2015.

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viii. Forwarding letter executed by the Defendant in favour of the Applicant bank dated 03.01.2015.

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ix. Memorandum of Deposit (Borrowers Property at RACPC) executed by the Defendant in favour of Applicant bank dated 12.10.2015.

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x. Confirmation Letter (EM of Borrower’s Property (At Home Branch/RACPC) executed by the Defendants in favour of Applicant bank dated 13.10.2015.

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xi. Confirmation Letter (EM of Borrower’s Property (At Home Branch/RACPC) executed by the Defendants in favour of Applicant bank dated 13.10.2015.

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The Applicant submits that the Defendant had also executed the Memorandum of Deposit of Title Deeds dated 31.12.2015 registered as Doc.No.13968 of 2015 with SRO Thiruvallur. The Defendant had also deposited the title deeds of the schedule mentioned property as security via Sale Deed dated 07.01.2015 registered as Doc.No.125/2015 with SRO Thiruvallur executed by Mr. S. Sasikumar in favour of Mrs. S. Jothi.

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It is submitted by the applicant bank that subsequent to availing of loan, the defendant had not kept up her promise/undertaking and had not at all properly maintained the loan account. Since the Defendant failed and neglected to clear the loans, the loan account was classified as NonPerforming Asset (NPA) on 29.10.2017 in accordance with RBI guidelines.

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As the loan accounts became sticky, the Applicant Bank recalled the

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T.A. No. 485 of 2023

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24.10.2025

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entire loan amount vide Demand Notice dated 16.11.2017 but there was no response from the Defendant. 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 was sent to the sole defendant through Registered Post with Acknowledgment Due, which returned with the remark ‘No such person’. However, defendant was represented by counsel, who had undertaken to file vakalat. Despite availing two adjournments, neither vakalath nor written statement has been filed by the defendant. When OA was taken up on 17.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-parte on 17.05.2022.

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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, Sh. S. Murali, Manager and City Case Officer representing 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-11 . 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 the OA claim by way of E-auction sale of the secured asset

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T.A. No. 485 of 2023

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held on 31.05.2020 under SARFAESI Act for a sum of Rs.9,10,000/-. Accordingly, part satisfaction of sum of Rs.9,10,000/- was duly recorded vide proceedings dated 17.08.2022.

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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 Defendant a sum of Rs.20,09,107.10p (Rupees Twenty Lakhs Nine Thousand One Hundred and Seven and Ten Paisa Only) due in respect of Housing Loan Facility (Account No.34559839447) repayable together with further interest @ 10% per annum compounded with monthly rests with Penal Interest @2% p.a. from the date of filing the OA till date of realization in full along with costs.

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(b) The sum of Rs.9,10,000/- realised by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realisation.

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(c) 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

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T.A. No. 485 of 2023

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24.10.2025

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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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(d) 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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(e) 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 Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 24^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: Sh. S. Murali, Manager and City Case Officer 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.	Application form submitted by the Applicant dated 09.12.2014.	A-1
2.	Arrangement/Sanction Letter issued by the Applicant Bank in favour of the Defendant dated 31.12.2014.	A-2
3.	Memorandum of Loan Agreement for Home Loan Granted executed by Defendant in favour of	A-3

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	Applicant Bank dated 03.01.2015.
4.	Agreement to Mortgage the property Defendant in favour of Applicant bank dated 03.01.2015.	A-4
5.	Deed of undertaking executed by the Defendant in favour of Applicant Bank dated 03.01.2015.	A-5
6.	Affidavit executed by the Defendant in favour of Applicant bank dated 03.01.2015.	A-6
7.	Pre-conditions letter executed by the Defendant in favour of Applicant Bank dated 03.01.2015.	A-7
8.	Undertaking letter executed by the Defendant in favour of Applicant bank dated 03.01.2015.	A-8
9.	Operation Letter executed by the Defendant in favour of Applicant bank dated 03.01.2015.	A-9
10.	Forwarding Letter executed by the Defendant in favour of Applicant bank dated 03.01.2015.	A-10
11.	Statement of account for Account No.34559839447 covering the period from 08.01.2015 to 10.08.2021.	A-11

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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 house site bearing plot no.210 in Vishnu Nagar (Approval Layout No. DTP No.87/513 Ma. Pa. No. 360) measuring an extent of 2200 Sq.Ft. comprised in Old Survey No.228/3, New Survey No.228/3I of Kilambakkam Village, situated at Thiruvallur Taluk & District and

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Bounded on the

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North by : Plot No.222 and 203

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South by : 40 Feet Road East by : Plot No.211 West by : Plot No.209

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Measuring on the

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T.A. No. 485 of 2023

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North by : 40 Feet

South by : 40 Feet

East by : 55 Feet

West by : 55 Feet

Situated within the Registration of Kancheepuram and Sub Registration District of Thiruvallur.

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

State Bank of India v. Jothi

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jothi

Case brief

What is this about?

What did the court decide?

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