Allowed

Idbi Bank v. Murugan and Co.

DRT6 Oct 2025TA/708/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by IDBI Bank Ltd. for recovery of dues amounting to Rs. 4,93,99,216/-. The Bank was directed to recover the principal and interest from the respondents and, in default, sell the mortgaged immovable properties to satisfy the dues including the share of the legal heirs.

What did the court decide?

The bank is ordered to recover Rs. 4,93,99,216/- with interest and costs. In default, the immovable properties mentioned in the schedule shall be sold to satisfy the dues. The liability of legal heirs

Idbi Bank versus Murugan and Co. — Banking and Recovery | DRT (2025)

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T.A. No. 708 of 2023

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06.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 708 of 2023

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(Originally filed before DRT- II, Chennai as OA 381/2021 and thereafter transferred to this Tribunal and renumbered as TA No 708 of 2023)

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IDBI Bank Ltd., Rep. by its AGM, Regional Office, TN-1 Greams Road Chennai – 600 006 ….Applicant

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-Vs-

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M/s Murugan & Co.,

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Rep. by its Partners

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74, Odiampet Road

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Kanuvapet, Villanur

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Puducherry – 605110

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Mr. A. Sankar, S/o P. Anandha Baskaran No.18, Subramanian Street,

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Thillai Nagar, Villianur,

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Puducherry – 605110

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*3. Mrs. A. Gomathy (Deceased)

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Mr. A. Ramesh, S/o Ananda Baskaran No.18, Subramanian Street, Thillai Nagar, Villianur,

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Puducherry – 605110

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V. Vasanthy, D/o Ananda Baskaran AH-123, 4^th Cross, Anna Nagar West,

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Chennai – 600050

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S.B. Jayamalani, S/o Ananda Baskaran 74, Odiampet Road

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Kanuvapet, Villanur

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Puducherry – 605110 …..Defendants

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Claim against D-3 was abated vide order dated 20.06.2022.

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T.A. No. 708 of 2023

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06.10.2025

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Counsels on record / appeared:

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Counsel for Applicant : Mr. S. Parthasarathy

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Defendants 1, 2, 4 to 6 were set ex-parte on 20.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 24.03.2021 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.4,93,99,216/- (Rupees Four Crores

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Ninety Three Lakhs Ninety Nine Thousand Two Hundred and Sixteen Only) as follows:

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(i) Directing the 1^st to 3^rd Defendants to pay a sum of Rs.4,93,99,216/- due in respect of Mortgage Loan facility (A/c No.2001675100000170), repayable together with further interest @ 11.75%, p.a. with monthly rests and from the date of filing the OA, till date of realization in full;

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(ii) Directing the 4^th to 6^th Defendants to pay to an extent of value of share acquired from the estate of their deceased father to pay a sum of Rs.4,93,99,216/- due in respect of Mortgage

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Loan Facility (A/c No.2001675100000170), together with further interest @ 11.75%, 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 immovable properties morefully detailed in Schedule to

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T.A. No. 708 of 2023

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06.10.2025

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the OA, and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.381 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.381 of 2021 stood transferred to this Tribunal and renumbered as TA No.708 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 1^st Defendant represented by its Partners defendants 2 and 3 had approached the Applicant Bank for sanction of Loan against property and the Applicant Bank on the request of the 1^st defendant has sanctioned the Mortgage Loan to the tune of Rs.4.50 Crore on 22.03.2016 in Loan A/c No.2001675100000170 for the purpose of working capital requirements of the Partnership Firm, repayable together with the floating rate of interest at 11.75% per annum compounded with monthly rests with repayment terms for the tenure of 180 monthly installments with each EMI amounting to Rs. 5,32,859/-.

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It is submitted by the applicant bank that P.Ananda Baskaran, the deceased father of 2^nd Defendant has extended his properties as

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T.A. No. 708 of 2023

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collateral security for the said loan. They have also availed Mortgage Loan for Rs. 2.30 Crore against the property belonging to deceased father of 2^nd Defendant in Loan A/c No.2001675100000161 and the same was closed in an auction sale conducted by the Authorized Officer. The Sale Certificate was issued to the auction purchaser on 04.05.2019. The 4^th to 6^th Defendants are the legal heirs of the deceased P. Ananda Baskaran.

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The Applicant submits that the 1^st Defendant represented by its partners, the 2^nd Defendant's deceased father, the 2^nd Defendant and the 3^rd Defendant herein have executed the Loan Agreement, dated 23.03.2016 in favour of the Applicant for sanction of Rs.4.50 Crore in Loan Account No.2001675100000170. The 1^st Defendant represented by its partners, 2^nd Defendant's deceased father, the 2^nd Defendant and the 3^rd Defendant have executed Power of Attorney, 23.03.2016 in favour of the Bank for performing certain acts for and on behalf of the Defendants. The 2^nd Defendant's deceased father, P. Ananda Baskaran, has extended his property as collateral security by mortgaging the schedule mentioned property held in his name by way of Sale Deeds in Document Nos.1202 of 1979, dated 26.07.1979 and in Document No.1718 of 1990, dated 13.06.1990 and registered the same on the file of office of SRO, Puducherry.

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It is further submitted by the applicant bank that the security documents were duly signed by the M/s Murugan & Co., represented by

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T.A. No. 708 of 2023

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its Partners, 1) Mr. A. Sankar, 2) deceased Mr. P.Ananda Baskaran and 3) Mr. A. Gomathy. One of the partners, Mr. P.Ananda Baskaran has died intestate leaving behind his legal heirs viz., 1) Smt. A. Gomathy, 2), A. Sankar, 3) A. Ramesh, 4) V. Vasanthy and 5) S.B. Jayamalani.

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The deceased P. Ananda Baskaran who extended his properties for the financial facility sanctioned against the loan sanctioned to the Applicant by the 1^st Defendant to secure repayment of the said facilities.

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It is submitted that subsequent to availing of loan, the Partnership Firm represented by its Partners was irregular in making payment. Therefore, the loan account was classified and declared as Non Performing Asset (NPA) on 09.07.2017 in accordance with the guidelines issued by the RBI. The property at Property II - Item (1) in the OA schedule was sold in an auction sale under the provisions of SARFAESI Act for an amount of Rs.4,00,00,000/-, out of the sale proceeds, a sum of Rs.2,80,41,288.10p was appropriated in the loan account No.2001675100000161 on 30.04.2019. The balance sale proceeds of Rs.1,10,96,682.10 and the TDS amount of Rs. 4,00,000/was credited into the Loan Account 20016751000000170 on 30.04.2019. The total outstanding payable by the Applicant as on 17.03.2021 was Rs.4,93,99,216.90p in loan Account No.2001675100000170 after the appropriation of balance sale proceeds derived out of the above said property. The Sale Certificate was registered in favour of the auction Purchaser in Document No. 8814 of

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06.10.2025

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2019, dated 08.05.2019. The Applicant has challenged the Sale Certificate before this Tribunal in SA No.100 of 2021, which came to be dismissed vide order dated 13.04.2022.

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The Applicant submits that the Defendants have defaulted in repayment in Mortgage Loan and the same was accumulated to a sum of Rs.4,93,99,216.90 In Loan Account No.2001675100000170 as on 17.03.2021 with the further revised rate of interest at 11.75% per annum with monthly rests. The Defendants have failed to respond to the reminders, personal contacts and repeated demands made by the Applicant Bank. The Defendants are also liable to pay 2% additional interest chargeable for default in making repayment till the date of realization along with the costs due to the Applicant Bank. The applicant bank through its Authorised Officer had initiated SARFAESI proceedings against the secured asset and issued Demand Notice under Section 13 (2) of the Act, dated 07.12.2017 was sent by the Registered Post to the Borrower on 07.12.2017 and the same has been duly acknowledged by the Partnership Firm and the legal heirs of the one of the partners, deceased P. Ananda Baskaran on 08.12.2017. The Applicant has issued a possession notice, dated 12.02.2018 under Section 13 (4) of the SARFAESI Act and the same was duly acknowledged by them on 14.02.2018. The Applicant had approached District Magistrate to take actual possession of the said property before going for auction sale of the said properties. The 1^st to 3^rd Defendants

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are jointly and severally liable to pay a sum of Rs.4,93,99,216.90 which is rounded off to Rs.4,93,99,216/- as on 17.03.2021 to the Applicant Bank with applicable rate of interest at 11.75% per annum from the date of filing of this original application. The 4^th to 6^th Defendants are liable to an extent of value of the share derived out of the estate of their deceased father, P. Ananda Baskaran. 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 the defendants 1 to 6 through Registered Post with Acknowledgment Due, summons to D1, D2, D4 to D6 were duly served, while summons to the D3 returned with the remark “Deceased”. Applicant bank had filed memo stating that 3^rd defendant died intestate leaving behind the defendants 2, 4, 5 and 6 as her legal heirs, who are already on record. Accordingly, memo was recorded vide order dated 20.06.2022. The claim against D-3 was abated. When OA was taken up on 20.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1, 2, 4 to 6 were placed ex-parte on 20.06.2022.

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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, Mr. Naveen Kumar Agarwal, Deputy General Manager and Authorized Signatory representing

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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-15 . 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 total sum of Rs.4,93,99,216/- (Rupees

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Four Crore Ninety Three Lakh Ninety Nine Thousand Two

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Hundred and Sixteen Only) as follows:

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(i) Directing the 1^st and 2^nd Defendants to pay a sum of Rs.4,93,99,216/- due in respect of Mortgage Loan facility (A/c No.2001675100000170), together with further interest @ 11.75%, p.a. with monthly rests from the date of filing the OA, till date of realization in full;

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(ii) Directing the 4^th to 6^th Defendants to pay to an extent of value of share acquired from the estate of their deceased father

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to pay a sum of Rs.4,93,99,216/- due in respect of Mortgage

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T.A. No. 708 of 2023

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Loan Facility (A/c No.2001675100000170), together with further interest @ 11.75%, 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 I (Item 1 and 2), Property II (Item 2) more fully detailed in the OA;

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(d) 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 2^nd Defendant (both movable and immovable) to recover the balance dues as required under law for which the 2^nd Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd Defendant. The liability of defendants 4 to 6 are restricted to the extent of estate inherited by them from deceased 3^rd 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

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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 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 06^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: Mr. Naveen Kumar Agarwal, Deputy General Manager and Authorized Signatory 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 for Loan 21.03.2016.	against property	dated	A-1
2.	Sanction Letter for acknowledged by 22.03.2016.	Rs. 4.50 Crore the Borrowers	duly dated	A-2
3.	Sanction Letter fo acknowledged by 22.03.2016.	r Rs.2.30 Crore the Borrowers	duly dated	A-3
4.	Home Loan Agreem Borrowers for Rs.4.50	ent executed by Crore dated 23.03.20	the 16.	A-4
5.	Power of Attorney Borrowers in favour 23.03.2016.	duly executed by of Applicant Bank	the dated	A-5

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6.	Sale Deed in Document No. 1202 of 1979 stands in the name of deceased P. Ananda Baskaran dated 29.03.1979.	A-6
7.	Sale Deed in Document No. 1718 of 1990 stands in the name of deceased P. Ananda Baskaran dated 13.06.1990.	A-7
8.	Memorandum of Deposit of Title Deeds executed by Ananda Baskaran in favour of the Applicant in Document No. 7777 of 2016 dated 04.04.2016.	A-8
9.	Partnership Deed dated 02.05.2005.	A-9
10.	Demand Notice under Section 13 (2) of SARFAESI Act dated 07.12.2017.	A-10
11.	Possession Notice under Section 13 (4) of the SARFAESI Act dated 12.02.2018.	A-11
12.	Orders of District Magistrate, Pondicherry in Proceedings No. 7458/DRDM/C3/SARFAESI/2018	A-12
13.	Sale Certificate for sale of property in an auction sale in Document No.8814 of 2019 dated 08.05.2019.	A-13
14.	Orders of Hon'ble Supreme Court for extension of Limitation period in Suo Motu Writ Petition (Civil) No.3 of 2020	A-14
15.	Statement of Account for Loan A/c No.2001675100000170 along with Certificate under Banker's Book Evidence Act	A-15

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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 OF MORTGAGED PROPERTY

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(Stands in the name of Deceased Ananda Baskaran) (Covered under sale deed in Doc. No. 1202 of 1979 dated

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29.03.1979)

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Property – I

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All that piece and parcel of land together with house building measuring an extent of Item (1) 32,769 Sq.Ft. and land with Godown measuring to an extent of Item (2) 22,882 Sq.Ft. totally measuring to an extent of 55651 Sq.Ft, out of 1,12,176 Sq.Ft. or thereabouts (as per document i.e., 1 Kanie 94 Kuzhi 17 Veesam), Cadastre Plan No. 678 1/3, comprised in Paimash No.1, 689, 690, 687, New Survey No. 231/3 in

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Villianur Commune Panchayat together with building. As per present Settlement records R.S. No. 231/3/P and 231/3/Q and

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bounded on the

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North by : Canal

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South by : Land belonging to Victor Jegannatha Mudaliar Adheenam & others

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East by : Land belonging to Ananda Baskaran & Elango Street of Thillai Nagar

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West by : Land owned by Shanmugasundaram & compound wall of Ashok Theater

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Property – II (Covered under sale deed in Doc No.1718 of 1990 dated 13.06.1990)

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All that piece and parcel of Item (2) Another land situated at Door No.45, Ambalathadaiyar Madam, Puducherry Ward C, Block 14, T.S. No.144, T.S. No.239 pt., as per present settlement records T.S. No.144/1 measuring an extent of 1512 Sq.Ft.

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Item No. I bounded on the

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North by : Ambalathadaiyar Madam Land

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South by : House belonging to Adidhabi & others

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East by : Land belonging to Murugaiah Chettiar

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West by : House belonging to Seethalakshm

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Item No. II bounded on the

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North by : Ambalathadaiyar Madam Land

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South by : House belonging to Adidhabi & others

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East by : Land belonging to Murugaiah Chettiar

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West by : House belonging to Murugaiah Chettiar

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Situated within the Registration District of Pondicherry and Sub Registration District of Puducherry.

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Sd/-

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

Idbi Bank v. Murugan and Co.

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Murugan and Co.

Case brief

What is this about?

What did the court decide?

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