Allowed

Bank of Baroda v. Ramesh Ramaswamy

DRT22 Aug 2025TA/62/2023

Case brief

AI extract

What is this about?

The DRT allowed an application by Bank of Baroda for recovery of dues. The court found the claim unchallenged as defendants were ex-parte and granted an order allowing recovery of the principal amount with interest and costs through asset sale.

What did the court decide?

Recovery of Rs. 28,43,769 plus 11% interest with monthly rests, costs, and liberty to sell the mortgage property for realization.

Bank of Baroda versus Ramesh Ramaswamy — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 62 of 2023

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22.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 22^nd day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 62 of 2023

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(Originally filed before DRT- II, Chennai as OA 488/2019 and thereafter transferred to this Tribunal and renumbered as TA No 62 of 2023)

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*Bank of Baroda, (Erstwhile Dena Bank) Rep. by its Chief Manager, No.83, T.T.K, Road, Alwarpet Branch, Chennai – 600 018.

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….Applicant

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(Amended vide order in memo dated 11.10.2019 in view of merger)

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-Vs-

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1 Mr. M. Ramesh Ramaswamy, S/o Mr. A.R. Muthuraman, Chandra Flats, G-7, Ground floor, Block No.D, Plot No. 4,5,6 & 6A, Raghavendra Nagar, Korattur, Chennai – 600 076.

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Also at:

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Mr. M. Ramesh Ramaswamy, S/o Mr. A.R. Muthuraman, 150/2, Amuda Nilayam, Santhome High Road, Mylapore, Chennai – 600 004.

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Mr. K.Dhanasekar S/o Mr. G. Krishnaraj, Door No.B-603, MPT Quarters, Royapuram, Chennai – 600 081.

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Mr. T. Kannan, S/o Mr. Thanga Pandian No.9, School Cross Road, Koyambedu, Chennai – 600 107.

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T.A. No. 62 of 2023

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22.08.2025

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Mr. S. Ganesan,

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S/o Mr. Shanmugasundaram, Flat No. 16, Balamurugan Apartments, Door No.11, Amman Koil Street, Vadapalani, Chennai – 600 026. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. G.R. Lakshmanan

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Defendants 1 to 4 were set ex-parte on 25.11.2021

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: - FINAL ORDER - :

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This Original Application is filed on 05.09.2018 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 for recovery of a total sum of Rs.28,43,769/- (Rupees Twenty Eight Lakh Forty Three Thousand Seven Hundred and Sixty Nine only) due in respect of

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Housing Loan Facility together with further interest @ 11% 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.488 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.488 of 2019 stood transferred to this Tribunal and renumbered as TA No.62/2023.

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T.A. No. 62 of 2023

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22.08.2025

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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 Defendants have approached the Applicant bank for a Housing Loan of a sum of Rs.6,65,000/- for the purchase of 261 Sq.Ft., undivided share of land from and out of the land bearing Plot No. 4,5,6 and 6A, in the layout known as "Raghavendra Nagar Extension" comprised in Survey No. 379 and 383, Patta No. 6076, as per Patta S. No. 379/7, of Koratur Village. Ambatur Taluk, Thiruvellore District measuring to an extent of (1580+ 1550+2457+1320) 6,907 Sq.Ft, or thereabouts and for the construction of Flat bearing No. G-7, Ground Floor, in Block No. D, "Chandra Flats", measuring an extent of 559 Sq. Ft., of Plinth Area in the said property.

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It is submitted by the Applicant Bank that the 1^st defendant purchased the property and submitted necessary documents and based on his representations and also his eligibility for taking a Housing Loan, the applicant bank on 08.09.2005 sanctioned a Housing Loan of a sum of Rs.6,65,000/- bearing interest at the rate of 11.25% per annum with monthly rests. The loan amount is liable to be repaid in equated monthly instalments of Rs. 5,600/- each for a period of 240 months commencing from 10.10.2005. The applicant bank submits that the

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T.A. No. 62 of 2023

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22.08.2025

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Defendants accepted the terms and conditions of sanction of housing loan and agreed to abide by the same.

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The applicant bank submits that the 1^st defendant requested for the Housing Loan limit and the 2^nd defendant stood as guarantor for the sanctioned loan, by way of a collateral security created in the name of the applicant bank under the Terms and Conditions for sanction on 08.09.2005. The defendants in proof of the sanctioning of the limit has

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executed for Term Loan Agreement for Housing Loan individual borrower agreement on 08.09.2005 and executed the following

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documents in favour of the bank:

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(a) Demand Promissory Note,

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(b) Letter of General Lien and Set-off for borrowing arrangements from the borrowers,

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(d) Letter of Guarantee, (e) Agreement of sale,

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(f) Construction Agreement,

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(g) Sale deed,

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(h) Memorandum of deposit of title deeds by 1^st defendant to and in favour of applicant Bank in application made by the First Defendant for sanction of loan.

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The applicant submits that the defendants called on the branch

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office of the Applicant Bank an executed the Housing Loan Agreement

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T.A. No. 62 of 2023

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22.08.2025

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limit over the immovable property, described under Schedule below, and availed the loan facility. The 1^st Defendant as availed the said Housing Loan facility by accepting to the terms and conditions of the Applicant Bank and the defendants have executed the necessary documents and created equitable mortgage in favour of the applicant bank. As per the terms and conditions, the amounts were disbursed to the defendant and the sanctioned limit was Rs. 6,65,000/- (Rupees Sixty Lakhs Sixty Five thousand Only). All necessary documents executed in favour of the bank as initially provided, are annexed.

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The Applicant Bank submits that the 1^st Defendant has entered into Agreement of Sale with Mr. M. Palani under the Agreement of Sale Dated 24.08.2005 for the purchase of 261 Sq.Ft., undivided share of land from and out of the land bearing Plot No. 4,5,6 and 6A, in the layout known as "Raghavendra Nagar Extention" comprised in Survey No. 379 and 383, Patta No. 6076, as per Patta S. No. 379/7, of Koratur Village, Ambatur Taluk, Thiruvellore District measuring to an extent of (1580+1550+2457+1320) = 6,907 Sq.Ft., or thereabouts and has entered into construction agreement dated 24.08.2005, between M/s. Chandra Flats Promoters, Represented its Proprietor Mr. M. Palani and 1^st Defendant for the construction of Flat bearing No. G-7, Ground Floor, in Block No. D, "Chandra Flats", measuring an extent of 559 Sq. ft., of Plinth Area in the said schedule mentioned property.

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It is submitted that the 1^st defendant has purchased 261 Sq.Ft., undivided share of land from and out of the land bearing Plot No. 4,5,6

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and 6A, in the aforesaid property from Mr. M. Palani who is the Power of Attorney of Mrs. Rani Andrews Jacob, Mrs. Rosamma under the Sale Deed Dated 09.09.2005, registered as Document No. 3277 of 2005, on the file of Sub Registrar Office at Villivakkam.

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It is further submitted that the 1^st Defendant has executed a Memorandum of Deposit of Title Deeds in favour of the Applicant Bank, under the Memorandum of Deposit of Title Deed dated 09.09.2005, registered as Document No. 3278 of 2005, on the file of Sub Registrar Office at Villivakkam. The title deeds and other documents in respect of

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schedule mentioned property have been deposited with the applicant bank with an intention to create an equitable mortgage towards discharge of the liabilities. 11. Applicant Bank submits that the defendants had utilized the facility immediately but have failed and neglected to pay the interest and outstanding dues on its respective due dates, beginning from June 2006. The 1^st defendant has requested to Applicant vide letter dated 07.05.2008 that he will repay the EMI at the earliest. Hence the applicant bank initiated legal proceedings under the SARFAEST Act and the first notice under SARFARSI Act was initiated on 24.11.2009. 12. It is submitted that it has come to the knowledge of the applicant bank that the first defendant has appointed one Mr. T. Kannan, the third Defendant herein as his Power Agent and he is seeking to dispose of the property. Subsequently the bank found to its dismay the said Mr. T. Kannan, the third Defendant herein, the Power of Attorney

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T.A. No. 62 of 2023

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22.08.2025

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Holder has conveyed the whole of the property mortgaged in favour of the Applicant Bank to one Mr. S. Ganesan, the fourth Defendant herein under the Sale Deed Dated 09-Mar-2007, registered as Document No. 983/2007, for a consideration of Rs. 4 Lakhs Only. The property was worth more than Rs. 20 Lakhs even at the time and it is very clear that the first defendant, Mr. T. Kannan and Mr. S. Ganesan have all played a fraud with an intent to defraud the applicant bank with ulterior motive has conveyed the property. The said Mr. S. Ganesan and Mr. T. Kannan are also being added necessary parties as they have committed fraud in connivance with the first defendant is null and void and not binding of this applicant bank. Further the 1^st defendant had also requested to the Applicant bank vide his letter dated 07.05.2008 that he will repay his EMI instalments at the earliest. But in spite of repeated reminders dated 16.02.2009 and 30.05.2009 and the meeting with the defendants by applicant bank regarding the regularization of the account, which was acknowledged by the defendants, admitting the liability, defendants did not come forward to clear the dues. 13. The Applicant submits that the said factum of the sale was also brought to the notice of the other defendants and they being holding responsible employment have undertaken to discharge the loan. The first defendant, the 3^rd and the 4^th Defendant have also met the officials of the applicant bank on many occasions. Subsequently promised to discharge the loan in full and requested the applicant bank not to initiate any criminal action.

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No property which is mortgaged can be sold to another person and the sale becomes invalid in the eye of the law under the provisions of the Transfer of Property Act and the same is evident from many case laws and the sale becomes invalid as the original title deeds are deposited with the bank as early as 09.09.2005. After several written reminders for repayment of dues and continuous default by the defendants, the bank classified the account as Non-performing Asset (NPA), dated 30.09.2006 in accordance with RBI guidelines.

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Further the applicant bank has initiated proceedings under the SARFAESI Act under Section 13(2) and has issued statutory notice to the defendants on 24.11.2009. Further a sale notice was issued by the applicant bank seeking sealed bids to sell the scheduled mentioned mortgaged property for a sum of Rs. 9,18,000/- plus interest, which have been duly served on the 1^st defendant. The next Sale Notice was issued by the applicant bank on 25.08.2014 via e-auction mode and the final sale notice was issued by the applicant bank for sale of the scheduled mentioned mortgaged property on 18.07.2016. As defendants did not come forward to clear 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 Defendants 1 to 3 through Registered Post with Acknowledgment Due, which returned with the endorsement “door Locked” in respect of D1 and D3.

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22.08.2025

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Summons to D2 was duly served. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 25.11.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 4 were placed ex-parte on 25.11.2021.

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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. S. Rajasekar, Senior Manager 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-19 . 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,

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(a) The applicant bank is allowed to recover from the Defendants, a total sum of Rs.28,43,769/- (Rupees Twenty Eight Lakh Forty Three Thousand Seven

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Hundred and Sixty Nine only) due in respect of Housing

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T.A. No. 62 of 2023

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22.08.2025

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Loan Facility together with further interest @ 11% per annum with monthly rests from the date of application till the 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) 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)

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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 22^nd day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Rajasekar, Senior 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.	Original Section Terms and Condition of the Applicant dated 08.09.2005.	A-1
2.	Original Demand Promissory Note for Rs.6,65,000/- Executed by the defendants dated 08.09.2005.	A-2
3.	Original Term Loan (Land and Building) Agreement Housing Loan individual Borrower Executed by the defendants dated 08.09.2005.	A-3
4.	Original Letter of Guarantee Executed by the defendants dated 08.09.2005.	A-4
5.	Original Letter of General Lien and set off for Borrowers dated 08.09.2005.	A-5
6.	Original Consent Clause from borrower dated 08.09.2005.	A-6
7.	Original Letter of General Lien and Set off from Guarantors dated 08.09.2005.	A-7
8.	Original Consent Clause from Guarantor dated 08.09.2005.	A-8
9.	Original Agreement of Sale entered into between Mr. M. Palani, who is the Power of Attorney of Mrs. Rani Andrews Jacob, Mrs. Rosamma in favour of Mr. M. Ramesh Ramasamy dated	A-9

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	24.08.2005.
10.	Original Construction Agreement entered into Between M/s. Chandra Flat Promoters and Mr. M. Ramesh Ramasamy dated 24.08.2005.	A-10
11.	Original Sale deed Registered as document No. 3277/05, at SRO, VIIlivakkam, by Mr. M. Palani to in favour of Mr. M. Ramesh Ramasamy dated 09.09.2005.	A-11
12.	Original Memorandum of Deposit of Title Deed Registered as Document No. 3278 of 2005, on the file of SRO, Villivakkam in favour of the bank dated 09.09.2005.	A-12
13.	Copy of Letter from the first defendant to the Applicant Bank dated 07.05.2008.	A-13
14.	Copy of the Letter from the Applicant Bank to the Defendants 1 and 2 dated 16.02.2009.	A-14
15.	Copy of the Sale Notice issued by the Applicant Bank dated 24.11.2009.	A-15
16.	Original of the Sale Notice issued by the Applicant Bank dated 25.08.2014.	A-16
17.	Original of the Sale Notice issued by the Applicant Bank dated 18.07.2016.	A-17
18.	Original of Notice sent to the defendants from the Applicant Bank dated 30.05.2009.	A-18
19.	Statement of Account filed by the Applicant	A-19

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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 residential property bearing Flat No. G7, Ground Floor, Block D, Chandra Flats, Plot No. 4,5,6 and 6A, Raghavendra Nagar Extension, Korattur Village, Ambattur Taluk, Thiruvallur District, Chennai - 76, measuring 559 Sq. ft. of Ground floor and undivided share 261sq.ft., in S.No. 379 and 383, Patta No. 6076 as per patta S.No.379/7 and bounded on the North by 20 feet road and plot no.3, South by

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existing shops cum houses, East by Kaviya Nagar and West by Plot Nos.7,8 and 20 feet road, in the name of Mr.Ramesh Ramaswamy.

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

Bank of Baroda v. Ramesh Ramaswamy

Case brief

What is this about?

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Bank of Baroda v. Ramesh Ramaswamy

Case brief

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