Allowed

Bank of Maharashtra v. Sekar

DRT16 Sept 2025TA/577/2023

Case brief

AI extract

What is this about?

In this recovery application, the Debts Recovery Tribunal adjudicated in favor of the Bank of Maharashtra. The court confirmed the debtor's default, quashed the defense due to ex-parte proceedings, and ordered recovery of the principal sum with future interest and costs, authorizing asset sale for enforcement.

What did the court decide?

Recovery of Rs. 46,23,498/ with future interest @ 8.56% p.a., costs, and power to sell schedule property for realization.

Bank of Maharashtra versus Sekar — Execution and Attachment | DRT (2025)

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T.A. No. 577 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. 577 of 2023

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(Originally filed before DRT- II, Chennai as OA 42/2021 and thereafter transferred to this Tribunal and renumbered as TA No 577 of 2023)

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Bank of Maharashtra Having office at Mylapore Branch, 16, East Mada Street, Mylapore, Chennai – 600 004. Rep. by its Authorized Signatory ….Applicant

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-Vs-

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Mr. V. Sekar S/o. Venu 15, Veerapuram Main Road, Tirumalai Nagar, Morai, Chennai, Tamil Nadu.

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Also at,

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Mr. V. Sekar S/o. Venu No.362/1, Thottanvattam, K Bantharappalli, Thirupathur, Bandarapalli, Vellore, Tamilnadu – 635854. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Mr. T. Ravichandran Defendant was set ex-parte on 10.03.2022

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: - FINAL ORDER - :

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This Original Application is filed on 22.10.2020 by the applicant

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

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1993 (formerly Recovery of Debts Due to Banks and Financial

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T.A. No. 577 of 2023

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16.09.2025

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Institutions Act, 1993) against the defendant for recovery of a total sum of Rs.46,23,498/- (Rupees Forty Six Lakhs Twenty Three Thousand Four Hundred and Ninety Eight Only) due in respect of Housing Loan Facility (A/c. No. 60305193341) repayable together with further interest @ 8.56% per annum with monthly rests 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.42 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.42 of 2021 stood transferred to this Tribunal and renumbered as TA No.577 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 seeking financial assistance for the purpose of purchase of land and construction.

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It is submitted by the applicant bank that the said request of the Defendant was considered and Housing Loan was sanctioned on 20^th March 2018. Pursuant to the such sanction, the Defendant executed a

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T.A. No. 577 of 2023

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16.09.2025

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Demand Promissory Note on 31.03.2018 agreeing to pay the same on demand to the Applicant or order the sum of Rs.51,75,000/-(Rupees Fifty One Lakh Seventy five Thousand Only) together with interest at the rate of 8.56% per annum or at such other rate as may be determined compounded with monthly rest from the date of the execution till the date of realization. The Applicant had disbursed a sum of Rs.40 Lakhs to the Defendant.

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It is submitted by the applicant bank that on the said date itself, the Defendant had executed an Agreement Housing Loan on 31.03.2018 which sets out various terms and conditions for the grant of the said Housing Loan. In terms of the agreement for Housing Loan, the Defendant had agreed to repay the principal sum together with compound interest at the aforesaid rate in monthly installments of Rs.45,000/- each effective from April, 2018.

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The Applicant further submits that the Defendant, as security for the due repayment of the loan availed of by him, deposited the title deeds relating to the Schedule property with the Applicant's Branch at Mylapore, Chennai with an intention to create an equitable mortgage in respect of the same. The Defendant executed a M ortgagor's declaration for the proposed mortgage, a mortgagor's letter of confirm and a Memorandum of Record of Equitable Mortgage. The Applicant further submits that the Memorandum of Deposit of Title Deeds was registered with Sub Registrar Mylapore on 09.05.2018.

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T.A. No. 577 of 2023

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16.09.2025

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It is submitted by the applicant bank that subsequent to availing of loan, the Defendant was irregular in the payment of amounts legitimately due to it. Since the defendant was irregular, the account of the defendant was declared as a Non-Performing Asset (NPA) on 31.12.2018 per the instructions of the Reserve Bank of India. Since the defendant did not come forward with any response to the requests of the Applicant and in view of the fact that the defendant did not clear the outstanding due under the loan account, the Applicant issued a notice on 02.01.2019 under section 13(2) of the SARFAESI Act calling upon the defendant to make payment of Rs.39,76,754/- and the same was received by the Defendant, despite which the defendant did not bother to come forward to repay the dues. Hence the present Original Application has been filed for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to sole defendant,

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through Registered Post with Acknowledgment Due, summons to the first address of the defendant returned with the remark “No such person” and summons to the second address of the defendant returned with the remark “Unclaimed and Intimation Delivered”. When OA was taken up on 10.03.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 10.03.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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T.A. No. 577 of 2023

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16.09.2025

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To prove the case of the Applicant Bank, Mr. Tulsiram Sahoo, Authorized Signatory 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-9 . 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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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, (a) The applicant bank is allowed to recover from the Defendants a sum of total sum of Rs.46,23,498/- (Rupees Forty Six Lakhs Twenty Three Thousand Four Hundred and Ninety Eight Only) due in respect of Housing Loan Facility (A/c. No. 60305193341) repayable together with further interest @ 8.56% per annum 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 morefully detailed in the OA.

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T.A. No. 577 of 2023

16.09.2025

(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 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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(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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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 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: Mr. Tulsiram Sahoo, Authorized Signatory representing the Applicant Bank.

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T.A. No. 577 of 2023

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16.09.2025

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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 dated 20.03.2018.	A-1
2.	Demand Promissory Note dated 31.03.2018.	A-2
3.	Housing Loan Agreement dated 31.03.2018.	A-3
4.	Mortgagor’s declaration for the proposed mortgage dated 07.05.2018.	A-4
5.	Memorandum of Record of Equitable dated 09.05.2018.	A-5
6.	Memorandum of Deposit of Title Deeds dated 09.05.2018.	A-6
7.	Mortgagor’s letter of confirmation dated 10.05.2018.	A-7
8.	Office copy of notice u/s 13(2) along with AD card dated 02.01.2019.	A-8
9.	Certified copy of statement of accounts dated 20.10.2020.	A-9

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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 land situated in the Plot No.1545, Royappa Nagar, in Survey No. 255/2, 297 & 293 of Varadharajapuram Village, Chengalpet Taluk, Chengelpet District and measuring an extent of 4000 square feet and

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Bounded on the:

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North by :	Plot nos.1523, 1524,
South by :	Plot no.1546
East by :	K.R. Shenoy SPS Salai
West by :	Plot No.1534
And Measuring	on the
Northern side	: 86 feet
Southern side	: 80 feet
Eastern side	: 35 feet
Western side	: 65 feet

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T.A. No. 577 of 2023

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In all measuring 4000 square feet of land situated within the Registration District of Chennai South and Registration Sub-District of Padappai.

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

Bank of Maharashtra v. Sekar

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Sekar

Case brief

What is this about?

What did the court decide?

What the court decided

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