Allowed

State Bank of India v. Karthick

DRT20 Mar 2025TA/526/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an applicant bank's claim for recovery of a defaulted home loan. The respondent was ex-parte. The Tribunal directed recovery of the principal sum, interest, and costs via the sale of secured properties and personal assets if necessary.

What did the court decide?

Recovery of Rs 24.10 Lacs with interest, costs, and liberty to sell schedule properties and personal assets for balance dues.

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

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T.A. No. 526 of 2023

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20.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 526 of 2023

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(Originally filed before DRT- II, Chennai as OA 116/2020 and thereafter transferred to this Tribunal and renumbered as TA No 526 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. Rep. by its Chief Manager ….Applicant

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-Vs-

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Mr. P. Karthick, S/o Periyasamy, Residing at Door No.47, 1^st Floor, Vani Homes, Kathirvedu, Mahalakshmi Nagar, 4^th Street, Chennai - 600 066. …Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s M.Suresh

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Defendant was set ex-parte on 26.05.2022

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: - FINAL ORDER - :

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This original application is filed on 29.01.2020 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 defendant for recovery of a total sum of Rs.24,10,878/- (Rupees Twenty Four Lakhs Ten Thousand Eight Hundred and Seventy Eight only) due in respect of Home Loan

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T.A. No. 526 of 2023

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20.03.2025

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(Account No.37478022074) together with further interest @ 9.05% p.a. with monthly rests, for sale of schedule mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.116 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.116 of 2020 stood transferred to this Tribunal and renumbered as TA No.526 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 Hon‟ble Tribunal.

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It is the case of applicant bank that pursuant to the request of the defendant, applicant bank had sanctioned the “Housing Loan” facility to the tune of Rs.22,50,000/- subject to the terms and conditions as envisaged under the Arrangement Letter dated 10.01.2018 and Memorandum of Loan Agreement for Home Loan granted to public herein and Agreement to Mortgage dated 17.02.2018, executed by defendant in favour of applicant bank.

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It is submitted by applicant bank that the defendant has executed a

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T.A. No. 526 of 2023

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Memorandum of Deposit dated 08.03.2018 and confirmation letter dated 09.03.2018 and Memorandum relating to Deposit of Title deeds dated 13.03.2018.

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The Applicant bank submitted that the defendant herein has executed the following loan documents thereby acknowledging the said loan amount availed from the Applicant Bank. The defendant had undertaken to repay the loan amount in time without committing any default,

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(i) Sanction letter dated 10.01.2018

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(ii) Arrangement Letter dated10.01.2018

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(iii) Memorandum of Loan Agreement for Home Loan granted to public dated 17.02.2018

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(iv) Agreement to Mortgage dated 17.02.2018

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(v) Memorandum of Deposit of Title deeds dated 08.03.2018

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(vi) Confirmation Letter dated 09.03.2018

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(vii) Memorandum Relating to Deposit of Title deeds dated 13.03.2018

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The Applicant bank submitted that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement letter dated 10.01.2018

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It is further submitted that subsequent to the disbursement of the

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aforesaid “Housing Loan” the defendant did not operate the account as per the terms and conditions. Applicant bank had been making representations to the defendant to regularize the “Housing Loan” account, but the defendant did not take any concrete steps to regularize the loan account or to repay the loan amounts. As no payments were forth coming the loan account of the defendants was classified as NonPerforming Assets as per RBI guidelines. Applicant bank through its Authorised Officer had issued Demand Notice to the defendant to repay the “Housing Loan” loan amount together with accumulated interest but evoked no response from the defendant. Hence the present OA (Original Application) is filed for recovery of dues from the defendant.

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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 unserved with postal endorsement as „left‟ in respect of the Defendant, Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant were placed ex-parte on 26.05.2022.

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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, Mr. Saket Kumar, 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

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T.A. No. 526 of 2023

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marked as Ex A-1 to A-13 . As the Defendant 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 Defendant severally, sum of Rs.24,10,878/- (Rupees Twenty Four Lakhs Ten Thousand Eight Hundred and Seventy Eight only) due in respect of Home Loan (Account No.37478022074) together with further interest @ 9.05% p.a. with monthly rests from the date of Application till the date of realization in full and for 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 properties morefully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are 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;

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(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.

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

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(g) 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 (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 20^th day of March, 2025)

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T.A. No. 526 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Saket Kumar, Manager of 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 10.01.2018	A-1
2.	Arrangement Letter 10.01.2018	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public 17.02.2018	A-3
4.	Agreement to Mortgage 17.02.2018	A-4
5.	Memorandum of Deposit 08.03.2018	A-5
6.	Confirmation Letter 09.03.2018	A-6
7.	Memorandum relating to Deposit of Title Deeds (Doc.No. 3260/2018) 13.03.2018	A-7
8.	Sale Agreement 21.06.2017	A-8
9	Construction Agreement (Doc.No.2588/2018) 21.06.2017	A-9
10	Sale Deed executed by C.Jaisankar in favour of P.Karthi. (Doc.No.2589/2018) 27.02.2018	A-10
11	13(2) Notice & Returned cover 22.07.2019	A-11
12	Statement of Account and Certificate Under Banker‟s Book Evidence Act, 1891 17.02.2018 to 19.12.2019	A-12
13	Authorization Circular	A-13

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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 A -:

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All that piece and parcel of Vacant Land bearing Plot No.38 part (Eastern Portion of plot No.38) in “ MAHALAKSHMI NAGAR” comprised in Survey Nos. 6/2B3, 84/1 and 84/1A1, patta bearing No.4425 as per patta Survey No.6/91 of Kathirvedu Village, Ambattur Taluk, presently Madhavaram

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Taluk, Thiruvallur District, within the limits of Puzhal Panchayat Union at present Corporation of Chennai,

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BOUNDED ON THE

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North by: Land belongs to Mr. C.V. Ramamurthy South by: 24 feet wide road East by : Plot No.39 West by : Remaining Portion of PLOT No.38 (western portion)

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Measuring :-

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East to West on the Northern Side: 20 feet 0 inches East to West on the Southern Side: 20 feet 0 inches North to South on the Eastern Side: 60 feet 0 inches North to South on the western Side: 60 feet 0 inches

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In all admeasuring an extent of 1200 sq.ft., of vacant land, situated within the Registration District of North Chennai and the Sub-Registration District of Ambattur.

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SCHEDULE-B

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All that 251 sq ft of Undivided share, right and interest in the Schedule-A mentioned Land.

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SCHEDULE-C

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All That flat bearing No.G1, situated at Ground Floor at “VANI ETHIC”, measuring 534 sq ft built up area, inclusive of proportionate common services/ space area constructed over the Schedule-A mentioned property. E.B. Connection No.051-002-3548.

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

State Bank of India v. Karthick

Case brief

What is this about?

What did the court decide?

State Bank of India v. Karthick

Case brief

What is this about?

What did the court decide?

What the court decided

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