Allowed

State Bank of India v. Devanand

DRT15 Oct 2025TA/663/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the applicant bank's application for recovery of a defaulting home loan amount of Rs.63,02,909/- with interest. The court confirmed the bank's right to recover dues from the defendant's assets or through sale of mortgaged property and ordered the issuance of a Recovery Certificate.

What did the court decide?

Allow the original application and order the applicants to recover Rs.63,02,909/- with interest, costs, or through sale of mortgaged/assets; issue Recovery Certificate.

State Bank of India versus Devanand — Specific Performance | DRT (2025)

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T.A. No. 663 of 2023

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15.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 15^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 663 of 2023

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(Originally filed before DRT- II, Chennai as OA 367/2022 and thereafter transferred to this Tribunal and renumbered as TA No 663 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 Rep. by its Chief Manager

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….Applicant

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-Vs-

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Mr. P. Devanand, S/o Mr. Ponniah No.42/3, Uthira Madha Koil Street, Old Town Vellore – 632001.

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Also at,

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Mr. P. Devanand, S/o Mr. Ponniah No. V-8, Rail Nagar, Padikuppam, Koyambedu, Chennai – 600107

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Mr. P. Devanand, S/o Mr. Ponniah Flat No.2, Cutty Sark Court, Stone, Greenhithe London, London – DA99PF

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Mr. P. Devanand, S/o Mr. Ponniah Kerry Logistics (UK) Ltd. Broadoak Industrial Park, Ashburton Road West, Trafford Park, Manchester, London – M171RW.

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Mr. P. Devanand, S/o Mr. Ponniah RKR Apartments, Flat No.F-5, First Floor, Plot No. 1A & 1B, Periyar Cross Street, Ponniamman Nagar, Ayanambakkam Village, Chennai – 600095

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T.A. No. 663 of 2023

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15.10.2025

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Mrs. A. Jancyrani, W/o Mr. P. Devanand No. V-8, Rail Nagar, Padikuppam, Koyambedu, Chennai – 600107 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Sh. S. Ambalvannan

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Defendants 1 and 2 were set ex-parte on 15.09.2023

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: - FINAL ORDER - :

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This Original Application is filed on 03.06.2022 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.63,02,909/- (Rupees Sixty Three Lakhs Two Thousand Nine Hundred and Nine Only) due in respect of Home Loan Facility

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(Account No.37980640521) repayable together with further interest @ 7.75% per annum compounded 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.367 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.367 of 2022 stood transferred to this Tribunal and renumbered as TA No.663 of 2023.

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T.A. No. 663 of 2023

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15.10.2025

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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 on 08.08.2018, the first defendant through his Power of Attorney i.e., the second defendant, who is none other than his wife had approached the applicant bank and submitted written application form to that effect to the Applicant Bank requesting financial assistance for a Home Loan on the strength of the Property mentioned in the Schedule of Property.

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It is submitted by the applicant bank that upon scrutiny of the documents, the Applicant bank in terms of the Arrangement Letter had sanctioned a sum of Rs.54,30,000/- (Rupees Fifty Four Lakh and Thirty Thousand Only) on 30.09.2018 towards principal amount vide A/c No.37980640521 to the first defendant.

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The applicant submits that the memorandum of Loan Agreement for Home Loan dated 30.09.2018 has been entered between the applicant bank and the first defendant represented by his Power of Attorney i.e., the second defendant. As per the terms of the Agreement, the Defendants had agreed to repay the said loan together with interest @8.75% p.a., by EMI of Rs.54,271/- per month. Further in terms of the Said Agreement, in the event of default committed by

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T.A. No. 663 of 2023

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15.10.2025

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the defendants, they had agreed and undertaken to pay a penal/additional interest on the balance amount that is due and payable by them. It is submitted that the rate of interest prevailing at that point of time was @7.75% p.a. for Home Loan account bearing A/c No.37980640521.

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It is submitted that the first defendant in order to secure the loan availed by him, had created Equitable Mortgage dated 27.11.2018 in favour of the applicant bank mortgaging the Residential Flat bearing Flat No. ‘F-5’, in the First Floor, measuring built up area of 1095 Sq.Ft. (including common area) in the building scheme known as “RKR APARTMENTS” together with 432 Sq.Ft. of undivided share of land out of 4800 Sq.Ft., Comprised in S.No.295/2, subdivided as S.No.295/2B1, situated at Plot No.1, Ayanambakkam Village, Ponniyamman Nagar, Ambattur, Chennai – 95, Thiruvallur District, within the Registration District of Chennai North and Registration Sub District of Ambattur under a Registered Memorandum Relating to Deposit of Title Deeds, registered as Document No.16181 of 2018, on the file of Sub Registrar office of Ambattur. It is further submitted that the first defendant represented by his Power of Attorney i.e., the second defendant had deposited the following original documents with the applicant bank:

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a) Sale Deed dated 08.10.2017, registered as Document No.13959 of 2018, on the file of Sub Reigstrar Office of Ambattur.

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b) Power of Attorney dated 19.07.2018, registered as Adjudication

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T.A. No. 663 of 2023

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15.10.2025

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No.1032/2018, on the file of Sub Registrar office of Sowcarpet.

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It is submitted by the applicant bank that subsequent to availing of loan, the first defendant in contradiction to the undertaking to abide by the terms of the agreement and duly repay the principal with interest, were irregular in repayment. In fact, the first defendant had committed default in repayment of the aforesaid Loan amount together with interest to the Applicant. Therefore, the applicant had classified the loan account as Non-Performing Asset (NPA) on 12.11.2021 in accordance with RBI guidelines. Even after repeated request made by the applicant bank, the defendants have not come forward to regularize the loan account. Hence, the applicant bank through its Authorised Officer had issued Demand Notice under S.13(2) dated 22.11.2021 under SARFAESI Act to the defendants calling upon them to pay a Loan bearing A/c No. 37980640521 for a sum of Rs.61,35,127/- (Rupees Sixty One Lakh Thirty Five Thousand One Hundred and Twenty Seven Only). The defendants despite receiving the notice, are intentionally evading payment of lawful dues to the applicant. Hence, 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 and 2 through Registered Post with Acknowledgment Due, which are duly served. When OA was taken up on 15.09.2023 even after giving sufficient time, there was no appearance or representation from the

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T.A. No. 663 of 2023

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15.10.2025

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defendants. Hence, defendants 1 and 2 were placed ex-parte on 15.09.2023.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. S. Mathiyazhagan, City Case Officer 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,

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(a) The applicant bank is allowed to recover from the Defendants a sum of Rs.63,02,909/- (Rupees Sixty Three Lakhs Two Thousand Nine Hundred and Nine Only) due in respect of Home Loan Facility (Account No.37980640521) repayable together with further interest @ 7.75% per annum compounded with monthly rests from the date of filing the OA till

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T.A. No. 663 of 2023

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15.10.2025

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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 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.

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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

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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

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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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T.A. No. 663 of 2023

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15.10.2025

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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/-

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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 15^th day of October, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. S. Mathiyazhagan, City Case Officer 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.	Application form for Housing Loan dated 08.08.2018.	A-1
2.	Sanction letter dated 30.08.2018.	A-2
3.	Arrangement Letter dated 30.09.2018.	A-3
4.	Loan Agreement dated 30.09.2018.	A-4
5.	Power of Attorney dated 28.08.2018.	A-5
6.	Sale Deed dated 08.10.2018.	A-6
7.	Memorandum Relating to Deposit of Title Deeds dated 27.11.2018.	A-7
8.	13(2) notice issued by the applicant bank and acknowledgement cards dated 22.11.2021.	A-8
9.	Statement of Accounts dated 16.05.2022.	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 vacant plot, bearing Plot No.1, measuring an extent of 4800 Square feet of land, comprised in S.No.

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T.A. No. 663 of 2023

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15.10.2025

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295/2, sub divided into Survey No.295/2B1, Patta No.381, Ayanambakkam Village, Ponniyamman Nagar, Ambattur Chennai – 95, Ambattur Taluk, Thiruvallur District, lies within the Registration District of Chennai North and Sub Registration District of Ambattur and Bounded on the:

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North by : Road, South by : Plot No.2 in S.No.295/2, East by : Vacant Land, West by : 32 Feet Road.

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Measuring

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East to West on the Northern side : 80 Feet East to West on the Southern side : 80 Feet North to South on the Eastern side : 60 Feet North to South on the Western side : 60 Feet In all measuring 4800 Sq.Ft. land only.

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SCHEDULE-B

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Undivided 432 Sq.Ft. share of land out of above said total property.

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SCHEDULE-C

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Residential Flat, measuring built up area of 1095 Sq.Ft. (including common area) car parking, Flat No. ‘F-5”, in the First Floor, with EB 3 Phase Connection, Sewerages and water connection, at RKR Apartments, with undivided 432 Sq.Ft. share of land out of above said total property.

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

State Bank of India v. Devanand

Case brief

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State Bank of India v. Devanand

Case brief

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