Allowed

Indian Overseas Bank v. Sivaraja

DRT20 Mar 2025TA/753/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application by Indian Overseas Bank for recovery of housing loan dues. The defendants remained in default after availing a ₹31.5 lakh loan. Being non-responsive throughout the trial, the Tribunal decreed the claim against the borrowers and guarantor, permitting the bank to recover the outstanding amount along with future interest from the mortgaged schedule.

What did the court decide?

Decree for recovery of Rs. 34,83,999/- along with future interest and cost, with liberty to sell schedule properties.

Indian Overseas Bank versus Sivaraja — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 753 of 2023

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20.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 753 of 2023

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(Originally filed before DRT- II, Chennai as OA 548/2020 and thereafter transferred to this Tribunal and renumbered as TA No 753 of 2023)

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Indian Overseas Bank, Dr. R.K. Salai Branch, 32, Dr. Radhakrishnan Salai, Chennai – 600 004. Rep. by its Senior Manager ….Applicant

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-Vs-

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Mr. N. Sivaraja,

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S/o. Natarajan Aspen B-304, Adhinath Foundation, Ramakrishna Road, Mannivakkam, Chennai – 600 048.

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Mrs. Yasmin, W/o N.Sivaraja, Aspen B-304, Adhinath Foundation, Ramakrishna Road, Mannivakkam, Chennai – 600 048. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. K. Radhkrishna Murthy

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Defendants 1 to 2 were set ex-parte on 30.08.2022

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: - FINAL ORDER - :

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This original application is filed on 26.10.2020 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act,

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T.A. No. 753 of 2023

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20.03.2025

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against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.34,83,999/- (Rupees Thirty Four Lakhs Eighty Three Thousand Nine Hundred and Ninety Nine only) due in respect of Housing Loan (Account No.029103464000013) together with further interest @ 10.05% p.a., with monthly rests from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.548 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.758 of 2018 stood transferred to this Tribunal and renumbered as TA No.753/2023.

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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 Hon’ble Tribunal.

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It is the case of applicant bank that at the request of the first defendant by his application dated 21.06.2018, the applicant bank has sanctioned a Housing Loan of Rs.31,50,000/- on 21.06.2018 to the 1^st defendant under Subha Gruha Housing Scheme for purchase of residential

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flat.

It is submitted by applicant bank that defendants availed the loan agreeing to the terms and conditions of sanction of Housing Loan, which is repayable in 240 equal monthly instalments of Rs.27,736/- per month commencing from September 2018 and thereafter the subsequent instalments on or before the same day of each month, as the case may be and promising to repay the said sum on demand together with interest at 8.7% p.a compounded at monthly rests as such rates or other rates as may be revised by RBI / Bank from time to time.

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It is further having availed the Housing Loan under Housing scheme on 21.06.2018 for a sum of Rs.31,50,000/-, the first defendant had executed the following documents on 21.06.2018 in favour of applicant bank:

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a) Demand Promissory Note for Rs.31.5 lakhs agreeing to repay the same with interest (MCLR) at 8.7% p.a. with monthly rests or rests at such rates and rests as my be revised by the Bank on the own or as per instructions from the RBI from time to time.

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b) Letter of undertaking repayment in Installments

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c) Letter of undertaking regarding interest

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d) Letter of consent to CIBIL

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e) Undertaking letter (EM)

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20.03.2025

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f) Letter of Authorization

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g) Housing Loan Agreement .

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It is submitted that, for the above facility availed by the 1^st defendant, the 2^nd defendant has executed a personal guarantee on 21.06.2018 for Rs.31,50,000/- guaranteeing the due repayment of the amount payable by the 1^st defendant with further interest and costs and also executed a letter of consent for disclosure of information to CIBIL.

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The applicant submitted that as security for the loan availed, the 1^st defendant on 21.06.2018 deposited with the applicant branch at Dr.Radhakrishnan salai, Chennai – 600 004 the title deeds relating to his property more fully described in Schedule hereunder with intent to create an Equitable Mortgage as security for the advances made to him. The deposit of title deeds was confirmed by him by executing a letter evidencing deposit of title deeds dated 22.06.2018. The above mortgage

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has been also registered before the sub registrar, Guduvanchery on 21.06.2018, vide registered Document No.6856/2018 by way of Memorandum of deposit of title deeds, by the First defendant.

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It is submitted by applicant bank that subsequent to availing of loan, the repayment of the instalments towards the loan by the defendants were very irregular and inspite of several requests the defendants have not regularized the account. Till date the defendants

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have not cleared the outstanding. The applicant also made demands to the defendants but there was no response. As no payments were forth coming the loan account of the defendants was classified as NonPerforming Assets on 31.09.2019 as per RBI guidelines. The defendants are jointly and severally liable to pay the outstanding dues and there is an outstanding of Rs.34,83,999/- as on 15.10.2020 due from the defendants. Hence the present OA (Original Application) is filed for recovery of dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left’ in respect of D-1 and D-2, Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 30.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 30.08.2022

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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. Ratheesh, Manager of 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-16 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on

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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 1 and 2 jointly and severally, a sum of Rs.34,83,999/- (Rupees Thirty Four Lakhs Eighty Three Thousand Nine Hundred and Ninety Nine only) due in respect of Housing Loan (Account No.029103464000013) together with further interest @ 10.05% p.a., with monthly rests from the date of Application till the date of realization in full and for costs of this application;

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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 A, B and C mentioned immovable properties morefully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets are not

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sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 1^st and 2^nd Defendants (both movable and immovable) to recover the balance dues as required under law for which the 1^st and 2^nd 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 Defendant 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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(f) The applicant bank shall file memo of costs within ten days from the date 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/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 20^th day of March, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. R. Ratheesh, Manager of 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 by 1^stdefendant 21.06.2018	A-1
2.	Sanction letter by Applicant 21.06.2018	A-2
3.	Demand Promissory Notice for Rs.31.5 lakhs 21.06.2018	A-3
4.	Letter of repayment by 1^stdefendant 21.06.2018	A-4
5.	Letter of undertaking regarding interest by 1^st defendant 21.06.2018	A-5
6.	Letter of consent by 1^stdefendant 21.06.2018	A-6
7.	Undertaking letter by 1^stdefendant 21.06.2018	A-7
8.	Letter of Authorization by 1^st defendant 21.06.2018	A-8
9	Housing Loan Agreement by 1^stdefendant 21.06.2018	A-9
10	Guarantee by 2^nddefendant 21.06.2018	A-10
11	Confirmatiion of E.M. Letter by 1^stdefendant 21.06.2018	A-11
12	MOD by 1^stdefendant 21.06.2018	A-12
13	Certified statement of Account.	A-13
14	Sale agreement between Mrs. R.Shanthi and Mr.N.Sivaraja the borrower herein 13.06.2018	A-14
15	Construction agreement between Mr.N.Sivaraja and M/s. Aston Constructions Pvt. Ltd. By Regd. Doc.No. 3470/2017	A-15
16	Original Sale deed in favour of Mr.N.Sivaraja by Regd. Doc.No.6812/2018 21.06.2018	A-16

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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 A -:

All that piece and parcel of land admeasuring an extent of 29643.85 sq.mts., (319083.81 sq.ft) from out of lands in Schedule A above, comprised in Survey Nos.233/1, 233/2A (part), 233/3B (part) 234/1A & 283/1 (part), situated at Mannivakkam Village, Chengalpet Taluk, Kancheepuram District, lying within the following boundaries.

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Bounded on the total extent of land:

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North by: property comprised in Survey No.227 (par), 284 and the open space reservation land

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South by: Property comprised in Survey No.234/1B, 283/2 and the open space reservation land

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East by : Road widening Area comprised in Survey No.283/1, and the existing panchayat road and the open space reservation land

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West by : Property comprised in Survey No.227

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And within the Sub Registration District of Guduvanchery and Registration District of Chennai South.

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SCHEDULE B

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Part of undivided share of 2516 sq.ft. of vacant land morefully described in Schdeule A mentioned property, constructed a Flat No. B 109, First Floor measuring an extent of 880 sq.ft inclusive of sharing common areas, Flat No. B 209, Second Floor measuring an extent of 880 sq.ft. in Flat No. D 302, Third floor, measuring an extent of 1045 sq.ft. Flat No. D 402 Fourth Floor measuring an extent of 1045 sq.ft. Flat No. A 403, Fourth floor measuring an extent of 1048 sq.ft.,

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SCHEDULE C

452 sq.ft., undivided share out of A Schedule mentioned property, together with Flat measuring 880 sq.ft., Flat No.B 109, in First Floor, with car park slot No.Oc 46, in the block name BLUE BELL.

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

Indian Overseas Bank v. Sivaraja

Case brief

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Indian Overseas Bank v. Sivaraja

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