Allowed

State Bank of India v. Mahendran

DRT8 Sept 2025TA/712/2023

Case brief

AI extract

What is this about?

Final order allowing a dues recovery application filed by State Bank of India against two defendants. Outstanding housing loan dues were admitted unchallenged. A partial amount was recorded as satisfied. The bank was authorized to recover the balance from remaining dues and sell personal assets.

What did the court decide?

Allowed recovery of total dues and directed credit of Rs. 64,20,000 already realized. Bank authorized to recover balance from personal assets if mortgaged property proceeds are insufficient.

State Bank of India versus Mahendran — Banking and Recovery | DRT (2025)

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T.A. No. 712 of 2023

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08.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 712 of 2023

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(Originally filed before DRT- II, Chennai as OA 35/2020 and thereafter transferred to this Tribunal and renumbered as TA No 712 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 ….Applicant

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-Vs-

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Mr. D. Mahendran S/o Mr. Durai,

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No. A-6, 3^rd Floor, Arulvel Apartments,

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No.34, Vellalar Street, Kodambakkam,

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Chennai 600 024.

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Mrs. Kalpana, W/o Mahendran, No. A-6, 3^rd Floor, Arulvel Apartments, No.34, Vellalar Street, Kodambakkam,

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Chennai 600 024. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Suresh

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Defendants 1 and 2 were set ex-parte on 18.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 10.12.2019 by the applicant

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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

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08.09.2025

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sum of Rs.69,35,240/- (Rupees Sixty Nine Lakhs Thirty Five Thousand Two Hundred and Forty Only) due in respect of Housing Loan Facility (A/c No.35236932708) repayable together with further interest @ 9.10% per annum with monthly rests from the date of application till the date of realization in full, for sale of immovable property morefully detailed in the schedule to OA and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.35 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.35 of 2020 stood transferred to this Tribunal and renumbered as TA No.712 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 pursuant to the request of the defendants to sanction the "Housing Loan" facility to the tune of Rs. 67,66,000/-, applicant bank had sanctioned the same, subject to the terms and conditions as envisaged under the Arrangement Letter dated 19.09.2015 and Memorandum of Loan Agreement for Home Loan granted to public herein dated 25.09.2015. The defendants have executed a Memorandum relating to deposit of title deeds dated

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27.10.2015.

It is submitted by the applicant bank that the defendants herein have executed the following loan documents thereby acknowledging the said loan amount availed from the applicant bank. The defendants had undertaken to repay loan amount in time without committing any default.

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i. Application Form dated 24.08.2015

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ii. Sanction Letter dated 18.09.2015

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iii. Arrangement Letter dated 18.09.2015

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iv. Memorandum of Loan Agreement for Home Loan granted to Public dated 25.09.2015

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v. Agreement to Mortgage dated 25.09.2015

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vi. Confirmation Letter dated 16.10.2015

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vii. Memorandum relating to Deposit of Title deeds dated

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27.10.2015

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The applicant bank submitted that the defendants have undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 18.09.2015.

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The applicant bank further submitted that subsequent to the disbursement of the aforesaid Housing Loan, the defendants were not operating the account as per the terms and conditions. The applicant bank had been repeatedly making representations to the defendants to regularize the Housing Loan account, but the defendants did not take any concrete steps to regularize the loan account or to repay the loan

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amount.

It is submitted that the defendants have been enjoying the Housing Loan facility ever since from the year of 2015 onwards. The defendants have not shown significant transactions to the utmost satisfaction of the applicant bank. As the defendants failed to service the interest and principal due under the Housing Loan, the applicant bank was constrained to classify the loan account as Non-Performing Asset (NPA) on 18.06.2019 in accordance to RBI guidelines. As defendants did not come forward to repay 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 and 2 through registered post with acknowledgment due, which returned with the remarks “Left”. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 18.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 18.05.2022.

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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, Mr. R.R. Nanikumar, Assistant Manager representing the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of

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AW-1 and list of documents came to be marked as Ex A-1 to A-10 . 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. 64,20,000/- by way of sale of Schedule immovable property under SARFAESI Act on 31.08.2023. Accordingly, part satisfaction of sum of Rs. 64,20,000/- was duly recorded vide order dated 21.08.2024 and documents marked as Ex A- 7 and A-8 were returned to applicant bank on 03.10.2024 under proper acknowledgment.

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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.69,35,240/(Rupees Sixty Nine Lakh Thirty Five Thousand Two Hundred and Forty Only) due in respect of Housing Loan Facility (A/c No.35236932708) repayable together with further interest @ 9.10% per annum with

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monthly rests from the date of filing the OA till date of realization in full along with costs.

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(b) The sum of Rs. 64,20,000/- realized by applicant bank by towards part satisfaction of the OA claim 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 schedule mentioned mortgaged 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;

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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 08^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. R.R. Nanikumar, Assistant 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 24.08.2015.	A-1
2.	Sanction letter dated 19.09.2015.	A-2
3.	Arrangement Letter dated 19.09.2015.	A-3
4.	Memorandum of Loan Agreement for Home Loan granted to public dated 25.09.2015.	A-4
5.	Agreement to Mortgage dated 25.09.2015.	A-5
6.	Confirmation Letter dated 16.10.2015.	A-6
7.	Memorandum relating to Deposit of Title deeds (Doc. No. 2476/2015) dated 27.10.2015.	A-7
8.	Sale deed executed by V. Durai Power Agent S. Anbazhagan in favour of D. Mahendran & M. Kalpana (Doc. No. 2267/2015) dated 30.09.2015.	A-8
9.	13(2) Notice and Returned cover dated 01.07.2019.	A-9
10.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 23.09.2015 to 12.11.2019.	A-10

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

State Bank of India v. Mahendran

Case brief

What is this about?

What did the court decide?

State Bank of India v. Mahendran

Case brief

What is this about?

What did the court decide?

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