Allowed

Indian Overseas Bank v. Hari Baskar

DRT16 Sept 2025TA/531/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's recovery application filed under the RDB Act against the defendant for a housing loan default. As the respondent appeared ex-parte, the claim was unchallenged. The bank was ordered to recover the principal, interest, and costs, with a recovery certificate to be issued.

What did the court decide?

Allowed OA for recovery of Rs.42,10,308/- plus interest @ 10.6% p.a. and costs; issued recovery certificate.

Indian Overseas Bank versus Hari Baskar — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 531 of 2023

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16.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 16^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 531 of 2023

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(Originally filed before DRT- II, Chennai as OA 549/2020 and thereafter transferred to this Tribunal and renumbered as TA No 531 of 2023)

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Indian Overseas Bank, Dr. R.K. Salai Branch, 32, Dr. Radhakrishnan Salai, Chennai -600 004. Rep. by its Senior Manager / Constituted Attorney ….Applicant

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-Vs-

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Mr. M.C. Hari Baskar, S/o. A. Chandrasekaran, Flat No. D-302, Third Floor, ASPEN CORE D Block, Adhinath Shanthinikethan, Ramakrishna Street, Mannivakkam Village, Chengalpet Taluk, Kancheepuram District – 600 048. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Sh. K. Radhakrishnamurthy

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Defendant was set ex-parte on 26.08.2022

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: - FINAL ORDER - :

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This Original Application is filed on 26.10.2020 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 defendant for recovery of a total sum of Rs.42,10,308/- (Rupees Forty Two Lakhs Ten Thousand

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Three Hundred and Eight Only) due in respect of Housing Loan

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T.A. No. 531 of 2023

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(A/c No.029103464000007) repayable together with further interest @ 10.6%, p.a., with monthly rests from the date of filing the OA, till date of realization in full, for sale of immovable property morefully detailed in 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.549 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.549 of 2020 stood transferred to this Tribunal and renumbered as TA No.531 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 at the request of the Defendant by his application dated 17.11.2017, the applicant bank has sanctioned a Housing Loan of Rs.36,00,000/- on 30.11.2017 to the Defendant under Subha Gruha Housing Scheme for purchase of residential flat.

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It is submitted by the applicant that the Defendant had availed the Housing Loan on 30.11.2017 for a sum of Rs.36,00,000/- for which the Defendant has executed the following documents on 30.11.2017 in favour of the applicant bank:

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a) Demand Promissory Note for Rs.36 Lakhs agreeing to repay

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the same with interest (MCLR) at 8.5% per annum with monthly rests or rests at such rates and rests as may be revised by the Bank on the own or as per instructions from the RBI from time to time.

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b) Letter of undertaking repayment in Installments.

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c) Letter of undertaking regarding interest.

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d) Letter of consent to CIBIL.

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e) Undertaking letter (EM).

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f) Letter of Authorization.

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g) Housing Loan Agreement.

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It is submitted by the applicant bank that for the Housing Finance with Terms and Conditions of Sanction of Housing Loans wherein the defendant had agreed to repay the loan with interest in 240 equal monthly installments of Rs.31,242/- per month commencing from 31^st December 2017 and thereafter the subsequent installments on or before the same day of each month as the case may be and promising to repay the said sum on demand together with interest at 8.5% per annum compounded at monthly rests as such rates or other rates as may be revised by RBI/Bank from time to time.

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The applicant further submits that as security for the advances made to the Defendant, the Defendant on 20.06.2018 deposited with the Applicant’s branch at Dr. Radhakrishnan Salai, Chennai – 600 004, the Title Deeds relating to his property more fully described in Schedule to the OA with intent to create an Equitable Mortgage as security for

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the advances made to him. The deposit of Title Deeds was confirmed by him by executing a letter evidencing Deposit of Title deeds dated 21.06.2018. The above mortgage properties have been also registered before the Sub Registrar, Guduvanchery on 21.06.2018, vide Registered Document No.6789/2018 by way of Memorandum of deposit of title deeds, by the Defendant.

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It is submitted by the applicant that subsequent to availing of loan, the repayment of the installments towards the loan by the Defendant was very irregular and inspite of several requests the Defendant has not regularized the account. The applicant also made Demands to the Defendant but there is no response. The applicant sent Notice dated 02.02.2019 to the defendant for payment of outstanding dues, but there was no response. Hence the loan account was classified as Non-Performing Asset (NPA) on 30.04.2019 in accordance with RBI guidelines. The applicant bank through its Authorised Officer had sent Demand Notice under Section 13(2) of the SARFAESI Act dated 06.05.2019 and the Possession Notice dated 13.08.2019 U/s.13(4) of Act, to the Defendant, followed by the Sale Notices dated 25.11.2019, 30.01.2020 and 02.03.2020 to the Defendant fixing the date of auction on 18.12.2019, 18.02.2020 and 19.03.2020 respectively, but the auctions failed for want bidders. As defendant did not come forward to repay the dues, 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, however, the applicant bank could not furnish acknowledgment / returned cover. Hence applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.08.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 26.08.2022.

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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. Ratheesh, Manager, R.K. Salai Branch 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-21 . 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

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T.A. No. 531 of 2023

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Defendant a total sum of Rs.42,10,308/- (Rupees Forty Two Lakhs Ten Thousand Three Hundred and Eight Only) due in respect of Housing Loan (A/c No.029103464000007) repayable together with further interest @ 10.6%, p.a., with monthly rests from the date of filing the OA, till date of realization in full, along with costs.

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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 property more fully detailed in the OA.

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(d) 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 other properties or assets owned by the Defendant.

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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

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by defendants to the applicant bank.

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(f) 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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(g) 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/(S.V. GOWRAMMA) 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 16^th day of September, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Ratheesh, Manager, R.K. Salai Branch 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.	Applicant by Defendant dated 17.11.2017.	A-1
2.	Sanction Letter by Applicant dated 30.11.2017.	A-2
3.	Demand Promissory Notice for Rs.36 Lakhs by Deft. Dated 30.11.2017.	A-3
4.	Letter of repayment by Deft. Dated 30.11.2017.	A-4
5.	Letter of undertaking regarding interest by Deft. Dated 30.11.2017.	A-5
6.	Letter of consent by Deft. Dated 30.11.2017.	A-6
7.	Undertaking letter (EM) by Deft. Dated 30.11.2017.	A-7
8.	Letter of Authorization by Deft. Dated 30.11.2017.	A-8

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9.	Housing Loan Agreement by Deft. Dated 30.11.2017.	A-9
10.	Confirmation of E.M. Letter by Deft. Dated 21.06.2018.	A-10
11.	MOD by 1^stDeft. Dated 21.06.2018.	A-11
12.	Demand letter by Applicant dated 02.02.2019.	A-12
13.	Demand Notice under Sec.13(2) by Applicant dated 06.05.2019.	A-13
14.	Possession Notice under Sec.13(4) by applicant dated 13.08.2019.	A-14
15.	Sale Notice by applicant dated 25.11.2019.	A-15
16.	Sale Notice by applicant dated 30.01.2020.	A-16
17.	Sale Notice by applicant dated 02.03.2020.	A-17
18.	Certified Statement of Account.	A-18
19.	Sale Agreement between Mrs. R. Shanthi Power agent S. Vijayan Srinivasan) and Mr. M.C. Hari Baskar the borrower herein dated 05.10.2017.	A-19
20.	Construction agreement between Mr. M.C. Hari Baskar and M/s. Aston Constructions Pvt. Ltd., by Regd. Doc.No.3470/2017 dated 12.04.2017.	A-20
21.	Original Sale deed in favour of Mr. M.C. Hari Baskar by Regd. Doc.No.12580/2017 dated 30.11.2017.	A-21

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Witness Examined for the Defendant: -Nil-

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List of Documents Exhibited for the Defendant: -Nil –

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SCHEDULE ‘A’

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All that piece and parcel of land admeasuring an extent of 29643.85 sq.mts., (319083.81 sq.ft.,) from out of lands in Schedule A above, comprised in Survey Nos.233/1, 233/2A (Part), 233/2B (Part), 234/1A & 283/1 (Part), situated at Mannivakkam Village, Chengalpet Taluk, Kancheepuram District, lying within the following boundaries. Bounded on the total extent of land.

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North by: Property comprised in Survey No.227 (part), 284 and the open space reservation land

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South by: Property comprised in Survey No.234/1B, 283/2 and the open space reservation land

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East by: Road Widening Area comprised in Survey No.283/1, and the existing panchayat road and open space reservation land

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West by: Property comprised in Survey No.227

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And within the Sub Registration District of Guduvanchery and Registration District of Kancheepuram.

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SCHEDULE ‘B’

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Part of undivided share of 2516 sq.ft., of vacant land more fully described in Schedule A mentioned property. Constructed a Flat No. B 109, First Floor measuring an extent of 880 sq.ft., inclusive of sharing common areas, Flat No. B 209, Second Floor measuring an extent of 880 sq.ft., in Flat No. D 302, Third Floor, measuring an extent of 1045 sq.ft., Flat No. D 402, Fourth Floor measuring an extent of 1045 sq.ft., Flat No. A 403, fourth Floor measuring an extent of 1048 sq.ft.,

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SCHEDULE ‘C’

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537 sq.ft., undivided share out of A schedule mentioned property, together with Flat measuring 1045 sq.ft., Flat No. D 302, in Third Floor, with car park slot No.A122, in the block name ASPEN.

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Sd/-

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

Indian Overseas Bank v. Hari Baskar

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Hari Baskar

Case brief

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