Allowed

State Bank of India v. Jayaraj

DRT19 Feb 2025TA/528/2023

Case brief

AI extract

What is this about?

In a transferred application for recovery of dues arising from a housing loan default proceeded ex-parte, the Tribunal allowed the bank's claim for principal, interest, and costs, authorizing recovery through asset sale if not paid.

What did the court decide?

Recovery of Rs. 35,60,374/- plus further interest at 7.40% p.a. from date of application until realization, with liberty to recover by sale of schedule immovable property.

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

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TA No. 528 of 2023 (E)

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19.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 19^th day of February, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 528 of 2023

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(Originally filed before DRT- II, Chennai as OA 409/2021 and thereafter transferred to this Tribunal and renumbered as TA No 528 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 Chief Manager ….Applicant

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-Vs-

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Mr. K. Jayaraj, S/o. Mr. Kaliya Perumal, Rep by Power Agent Mrs. P. Maheshwari, W/o. Mr. K. Jayaraj

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Residing at: M/s. Gulf Turrets P. O. Box 16553 Doha, Qatar, AND

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Also residing at:

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No. 1269, Vadakkupatti, Maruthur, Udaiyar Palayam Taluk, Ariyalur, Pincode – 621 710. …..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 22.09.2023

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: - FINAL ORDER - :

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This original application is filed on 16.10.2021 by the applicant bank under

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

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TA No. 528 of 2023 (E)

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19.02.2025

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Debts Due to Banks and Financial Institutions Act, 1993) against the defendants for recovery of a total sum of Rs.35,60,374/- (Rupees Thirty Five Lakhs Sixty Thousand Three Hundred and Seventy Four only) due in respect of Housing Loan facility together with further interest @ 7.40% per annum 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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Originally, this application was filed before DRT-II, Chennai, assigned OA No.409/2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 409/2021 stood transferred to this Tribunal and renumbered as TA No.528/2023.

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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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3 The case of the applicant bank is that the Defendant approached the applicant bank seeking Housing Loan for purchase of an un-divided share of immovable property in Schedule A, morefully described in Schedule B to OA and submitted a Loan Application on 10.07.2018.

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It is submitted that upon request of defendants, the applicant bank had sanctioned the Home Loan of Rs.36,80,000/- vide Sanction Letter dated 24.07.2018, which is repayable in Equated Monthly Installments of Rs.30,364/- each together with

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TA No. 528 of 2023 (E)

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19.02.2025

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interest at the rate of 8.65% p.a. with monthly rests or at such other higher rates as may be notified from time to time with a moratorium period of 12 months.

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It is submitted by applicant bank that the defendant availed the loan and

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executed the following loan and security documents in favour of applicant bank:

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(i) Arrangement Letter dated 24.07.2018

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(ii) Memorandum of Loan Agreement for Home Loan granted to public dated 30.07.2018

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(iii) Agreement to Mortgage dated 30.07.2018

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(iv) Memorandum relating to deposit of title deeds dated 30.07.2018

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(v) Letter of Confirmation dated 10.10.2019

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It is submitted that utilizing a portion of the Housing Loan disbursed by the applicant, the property described in Schedule B to OA was acquired by first defendant under Registered Sale Deed bearing Doc No.8776 of 2018 on 30.07.2018. On the same day, defendant had deposited the title documents pertaining to the schedule B property with an intention to create equitable mortgage, which is also registered vide document bearing No.8777 of 2018 dated 30.07.2018 before SRO, Guduvancheri, duly acknowledging and confirming creation of equitable mortgage.

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It is further submitted that defendant has also put up a residential flat bearing No.F3 in First Floor, C Block, Sri Vari Nagar, Perumal Koil Street, Guduvanchery Village, Chengalpet Taluk, further utilising the subject Housing Loan, which is morefully described in Schedule C to the OA. The applicant has a lawful and enforceable equitable mortgage over the Schedule „C‟ property.

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TA No. 528 of 2023 (E)

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19.02.2025

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The Applicant Bank submits that the Defendant, after availing the said facilities, failed to repay the loan amount despite several reminders and thus committed default. The loan account was classified as NPA on 18.12.2020. The default in repayment continued and there was no positive response from the defendants. Hence, the applicant bank, through its Authorised Officer had issued Demand Notice dated 30.12.2020 under Section 13(2) of the SARFAESI Act calling upon the defendant to repay the dues within 60 days, despite which defendant did not come forward to repay the dues. Hence, this Original Application (OA) has been filed to recover the dues from the defendant.

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After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which was returned unserved with postal endorsement as „addressee absent‟. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 22.09.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 22.09.2023.

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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, Shri. Saket Kumar, Manager (Maintenance), RACPC, MRC Nagar, Mylapore, Chennai 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 A1 to A11 . As the defendants remained exparte, 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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TA No. 528 of 2023 (E)

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19.02.2025

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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 Defendants No.1 and 2 jointly, severally a sum of Rs.35,60,374/- (Rupees Thirty Five Lakhs Sixty Thousand Three Hundred and Seventy Four only) due in respect of Housing Loan facility together with further interest @ 7.40% per annum with monthly rests from the date of filing this application till the date of realization.

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(b) In the event of failure of the defendant 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) All IAs, if any pending, stands closed.

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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 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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(f) The applicant bank shall file memo of costs within ten days from the

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TA No. 528 of 2023 (E)

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19.02.2025

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date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the Recovery

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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) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 19^th day of February, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. Saket Kumar, Manager (Maintenance), RACPC, MRC Nagar, Mylapore, Chennai of 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.	Loan Applicationdated10.07.2018	A-1
2.	Sanction Letter dated24.07.2018	A-2
3.	ArrangementLetterdated24.07.2018	A-3
4.	Memorandum of Loan Agreement for Home Loan granted toPublic dated 30.07.2018	A-4
5.	Agreement toMortgage dated 30.07.2018	A-5
6.	Memorandum relating to Deposit of Title Deeds (Doc. No.8777/2018)	A-6
7.	Confirmation Letterdated10.10.2019	A-7
8.	Construction Agreement entered between M/s. Framework Infrastructure Private Limited and K. Jayaraj Power AgentP. MaheswariJayaraj (Doc. No.8774/2018)	A-8
9.	Sale Deed executed by V. Subramaniyan and others Power Agent M/s. Frame work Infrastructure Pvt. Ltd infavour of K. Jayaraj Power Agent P. Maheswari Jayaraj (Doc. No.8776/2018)	A-9
10.	Statement of Account and certificated under Banker‟s Book Evidence Act, 1891, for the period from 30.07.2018 to15.09.2021	A-10
11.	13(2)Notice &Ack. Dated 30.12.2020	A-11

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TA No. 528 of 2023 (E)

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19.02.2025

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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 OF PROPERTY:-

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‘A’ SCHEDULE

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(TOTAL PROPERTY)

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All that piece and parcel of vacant house site, bearing Plot Nos. A,B,C,D,E and 12 Feet Passage, totally measuring an extent of 9,232 square feet i.e.,

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Plot No. A, measuring an extent of 1,963 square feet,

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Plot No. B, measuring an extent of 1,578 square feet,

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Plot No. C, measuring an extent of 1,623 square feet,

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Plot No. D, measuring an extent of 1,570 square feet,

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Plot No. E, measuring an extent of 1,280 square feet, and

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12 Feet Passage, measuring an extent of 1,218 square feet, comprised in Survey No. 14/2, under Patta No. 500, situated in No. 5 Guduvanchery Village, Chengalpet Taluk, Kancheepuram District.

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The building planning permit NOS.

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Plot No. A : Ka. Vu. No. 121/2018, Ka Vi. No. 485/2017, Plot No. B : Ka. Vu. No. 124/2018, Ka Vi. No. 487/2017, Plot No. C : Ka. Vu. No. 122/2018, Ka Vi. No. 486/2017, Plot No. D : Ka. Vu. No. 123/2018, Ka Vi. No. 484/2017, Plot No. E : Ka. Vu. No. 125/2018, Ka Vi. No. 488/2017,

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Dated 11.12.2017, Executive Officer , Nandhivaram – Guduvanchery Town Panchayat

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Boundaries for Plot Nos. A,B,C,D,E and 12 Feet Passage,

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Extent of 9,232 square feet.

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Boundaries on the North By :Survey No. 7, South By :Survey No. 14/3B, East By :23 Feet Road and Survey No. 15,

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TA No. 528 of 2023 (E)

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19.02.2025

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West By :Survey No. 14/1.

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The above property is situated within the Registration District of Chennai South and Registration Sub – District of Guduvanchery.

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‘B’ SCHEDULE

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(Property hereby conveyed)

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400 square feet undivided share of land in „A‟ schedule mentioned property

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‘C’ SCHEDULE

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Built – up area 950 square feet in First Floor upon „B‟ Schedule of property including all its amenities, Flat No. F3 in C Block

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Property Address : “ Frame Work Construction”, Flat No. F-3, First Floor, C Block, Plot No. A, B, C,. D & E, Near Sri Vari Nagar & Perumal Koil Street, Guduvanchery Village, Chengalpet Taluk, Kancheepuram District – 603 202.

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Sd/-

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

State Bank of India v. Jayaraj

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jayaraj

Case brief

What is this about?

What did the court decide?

What the court decided

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