Allowed

State Bank of India v. E Indhumathi

DRT24 Dec 2025TA/550/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application by State Bank of India for recovery of dues totaling Rs.1,10,74,234/- from the legal heirs of a deceased borrower. The court endorsed the bank's claim based on unchallenged documents and directed recovery via sale of assets, noting a partial satisfaction of Rs.80,10,000/-.

What did the court decide?

Recovery of Rs.1,10,74,234/- plus interest along with costs directed against the legal heirs; issuance of Recovery Certificate.

State Bank of India versus E Indhumathi — Execution and Attachment | DRT (2025)

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T.A. No. 550 of 2023

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24.12.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of December, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 550 of 2023

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(Originally filed before DRT- II, Chennai as OA 418/2021 and thereafter transferred to this Tribunal and renumbered as TA No 550 of 2023)

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State Bank of India

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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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Tmt. E. Indhumathi,

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W/o Late M.S.S. Elamurugu, Flat No.F1, 1^st Floor, “Vaika Valamudan Apartments” Old No.17, New No.37, Lakeview Road, Kotturpuram, Chennai 600 085

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Miss E. Shanmuga Priya, D/o Late M.S.S. Elamurugu,

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Flat No.F1, 1^st Floor, “Vaika Valamudan Apartments” Old No.17, New No.37, Lakeview Road, Kotturpuram, Chennai 600 085

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Miss. E. Dhaarani

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D/o Late M.S.S. Elamurugu, Flat No.F1, 1^st Floor, “Vaika Valamudan Apartments” Old No.17, New No.37, Lakeview Road, Kotturpuram, Chennai 600 085

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Minor E. Yuvamani Shankaran

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S/o Late M.S.S. Elamurugu,

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Flat No.F1, 1^st Floor, “Vaika Valamudan Apartments” Old No.17, New No.37, Lakeview Road, Kotturpuram,

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Chennai 600 085

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….Defendants

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T.A. No. 550 of 2023

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24.12.2025

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Counsels on record / appeared

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Counsel for Applicant : M/s. Suresh Law Associates

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Defendants 1 to 4 were set ex-parte on 21.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 04.09.2021 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 defendants jointly and severally for recovery of a total sum of Rs.1,10,74,234/- (Rupees One Crore

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Ten Lakhs Seventy Four Thousand Two Hundred and Thirty Four

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Only) as follows:

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(i) A sum of Rs.59,13,806/- due in respect of SBI MAXGAIN Home Loan facility (A/c No.35210932821), repayable together with further interest @ 7.80% p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(ii) A sum of Rs.51,60,428/- due in respect of Home Top-Up

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Loan Facility (A/c No.36712231105), repayable together with further interest @ 8.30%, p.a. with monthly rests from the date of filing the OA till date of realization in full;

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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.418 of 2021, and thereafter in pursuance to the

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T.A. No. 550 of 2023

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24.12.2025

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notification from Ministry of Finance, DFS dated 04.10.2022, OA No.418 of 2021 stood transferred to this Tribunal and renumbered as TA No.550 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 borrower, Mr. M.S.S. Elamurugu, the applicant bank had sanctioned the Term loan (MAX GAIN OD) in a sum of Rs.53,50,000/- sanctioned on 31.08.2015. In order to secure the loan, the borrower, Mr. M.S.S. Elamurugu executed Arrangement Letter Max Gain (OD) dated 31.08.2015, Memorandum of Loan Agreement for Home Loan Granted to Public and Agreement to Mortgage dated 21.09.2015, Memorandum of Deposit dated 01.10.2015, Confirmation Letter dated 03.10.2015 and Memorandum relating to Deposit of Title Deeds dated 06.10.2015. It is submitted by the applicant bank that the loan is repayable in Equated Monthly Instalments of Rs.50,746/-, together with interest thereon at 9.75% per annum for "TERM LOAN (MAX GAIN OD)".

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It is submitted by the applicant bank upon availing the aforesaid loan, the borrower had executed the following loan and security documents in favour of the applicant bank:-

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T.A. No. 550 of 2023

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24.12.2025

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i. Loan Application dated 09.08.2015

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ii. Sanction Letter dated 31.08.2015

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iii. Arrangement Letter-MAXGAIN (OD) dated 31.08.2015

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iv. Memorandum of Loan Agreement for Home Loan Granted to Public dated 21.09.2015.

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v. Agreement to Mortgage dated 21.09.2015

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vi. Memorandum of Deposit dated 01.10.2015

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vii. Confirmation Letter dated 03.10.2015

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viii. Memorandum relating to Deposit of Title Deeds dated

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06.10.2015

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It is the further case of the applicant bank that at the request of the borrower, Mr. M.S.S. Elamurugu, the applicant bank had sanctioned the Term loan amount of Rs.44,50,000/- on 25.02.2017. In order to secure the loan, the borrower, Mr. M.S.S. Elamurugu had executed Arrangement Letter (Home Top-Up Loan) dated 26.03.2017, Loan Agreement Home Top-Up Loan dated 26.03.2017, Confirmation Letter dated 26.03.2017 and Memorandum relating to Deposit of Title Deeds dated 28.03.2017. The said loan is repayable in Equated Monthly Instalments of Rs.42,510/- together with interest thereon 9.3% per annum for ‘Home Top Up Loan’.

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It is submitted by the applicant bank upon availing the aforesaid loan, the borrower had executed the following loan and security

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T.A. No. 550 of 2023

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24.12.2025

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documents in favour of the applicant bank:-

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i. Loan Application dated 10.02.2017

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ii. Sanction Letter dated 25.02.2017

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iii. Arrangement Letter-Home Top-Up Loan dated 26.03.2017

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iv. Loan agreement Home Top-Up Loan dated 26.03.2017

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v. Confirmation Letter dated 26.03.2017

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vi. Memorandum relating to Deposit of Title Deeds dated 28.03.2017

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The applicant bank submits that subsequent to availing of loan, the borrower Mr. M.S.S. Elamurugu, died on 02.11.2018. The defendants in the OA are Legal Heirs of the deceased borrower Mr. M.S.S. Elamurugu.

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It is further submitted by the applicant bank that subsequent to availing of loan, the borrower defaulted in repayment of dues as per the agreed terms of contract. As no payments were forthcoming, the applicant bank was constrained to classify the loan account as NonPerforming Asset (NPA) on 30.11.2019 in accordance with RBI guidelines. The applicant bank, through its Authorised Officer had issued Section 13(2) Demand Notice dated 09.12.2019 to the defendants. The applicant bank further submits that they have been repeatedly making representations to the defendants to regularize the "TERM LOAN (MAX GAIN OD)" and "HOME TOP-UP LOAN" accounts, but

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the defendants did not take any concrete steps to regularize the loan accounts or to repay the loan amounts. Hence, the present Original

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T.A. No. 550 of 2023

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24.12.2025

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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 Defendants

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1 to 4 through Registered Post with Acknowledgment Due, which was returned with the remarks “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 21.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 4 were placed ex-parte on 21.06.2022.

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Sh. R.G. Sivakumar, 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-22 . 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 OA claim in a sum of Rs.80,10,000/- by way of sale of immovable property morefully detailed in schedule to the OA under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.80,10,000/-

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is duly recorded vide order dated 06.11.2025 and documents marked

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T.A. No. 550 of 2023

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24.12.2025

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as Ex A-8 to A-10 were returned to applicant bank on 24.11.2025 under proper acknowledgement.

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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 Defendants jointly and severally for recovery of a total sum of

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Rs.1,10,74,234/- (Rupees One Crore Ten Lakhs Seventy

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Four Thousand Two Hundred and Thirty Four Only) as follows:

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(ii) A sum of Rs.51,60,428/- due in respect of Home Top-Up Loan Facility (A/c No.36712231105), repayable together with further interest @ 8.30%, p.a. with monthly rests from the date of filing the OA till date of realization in full along with costs of this application;

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T.A. No. 550 of 2023

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24.12.2025

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(b) The sum of Rs.80,10,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) If the sale proceeds of the immovable properties 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. However, as the defendants are legal heirs of the deceased borrower, their liability is restricted to the extent of estate inherited by them from deceased borrower.

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

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(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

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T.A. No. 550 of 2023

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24.12.2025

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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 Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 24^th day of December, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh.. R.G. Sivakumar, Deputy Manager 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.	Loan Application dated 09.08.2015.	A-1
2.	Sanction Letter dated 31.08.2015.	A-2
3.	Arrangement Letter dated 31.08.2015.	A-3
4.	Memorandum of Loan Agreement for Home Loan granted to Public dated 21.09.2015.	A-4
5.	Agreement to Mortgage dated 21.09.2015.	A-5
6.	Memorandum of Deposit dated 01.10.2015.	A-6
7.	Confirmation Letter dated 03.10.2015.	A-7
8.	Memorandum relating to Deposit of Title Deeds (Doc. No.2773/2015) dated 06.10.2015.	A-8
9.	Sale and Construction Agreement entered between M/s. RKR and Sharan Housing Promoters and M.S.S. Elamurugu dated 05.09.2011.	A-9
10.	Sale Deed executed by Mrs. T. Kalaivani Power Agent R. Rathakrishnan in favour of M.S.S. Elamurugu (Doc. No.2313/2011) dated 02.11.2011.	A-10
11.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 08.09.2015 to 23.08.2021.	A-11
12.	Loan Application dated 10.02.2017.	A-12
13.	Sanction Letter dated 25.02.2017.	A-13

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T.A. No. 550 of 2023

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24.12.2025

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14.	Arrangement Letter dated 26.03.2017.		A-14
15.	Loan Agreement Home Top Up Loan 26.03.2017.	dated	A-15
16.	EM Confirmation Letter dated 26.03.2017.		A-16
17.	Memorandum relating to Deposit of Title (Doc.No.743/2017) dated 28.03.2017.	Deeds	A-17
18.	Death Certificate of M.S.S. Elamurugu 10.11.2018.	dated	A-18
19.	Legal heir certificate of M.S.S. Elamurugu 27.11.2018.	dated	A-19
20.	Statement of Account and Certificate Banker’s Book Evidence Act, 1891 26.03.2017 to 21.08.2021.	Under dated	A-20
21.	Section 13(2) Notice & Ack. Dated 09.12.20	19.	A-21
22.	Authorisation Circular		A-22

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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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Properties sold under SARFAESI Act.

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

State Bank of India v. E Indhumathi

Case brief

What is this about?

What did the court decide?

State Bank of India v. E Indhumathi

Case brief

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What did the court decide?

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