Allowed

State Bank of India v. Vasu

DRT4 Mar 2025TA/877/2023

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 of the RDB Act, 1993, the Debt Recovery Tribunal allowed the claim of the State Bank of India against R. Vasu for recovery of an outstanding home loan amount along with interest and applicable costs, noting the lack of defense. Order 12.

What did the court decide?

Allowed the original application with costs. Directed recovery of Rs. 53,08,699/- plus interest @ 7.95% p.a. and costs. Directed sale of mortgaged and personal assets if dues remain unpaid.

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

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T.A. No. 877 of 2023 (E)

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04.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 04^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No. 877 of 2023

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(Originally filed before DRT- II, Chennai as OA 390/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1492 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. Represented by its Chief Manager ….Applicant

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-Vs-

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Mr. R. Vasu, S/o. Mr. Ranganathan, Residing at, No. 1596, TNHB Quarters Colony, Near S.S. Super Market, Ayapakkam, Chennai – 600 077. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Suresh

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Defendant was set ex-parte on 06.05.2022

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: - FINAL ORDER - :

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This original application is filed on 11.09.2020 by the applicant bank under

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Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendant for recovery of a total sum of Rs.53,08,699/- (Rupees Fifty Three Lakhs Eight Thousand Six Hundred Ninety Nine Only) due in respect of Home (HL) facility

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T.A. No. 877 of 2023 (E)

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04.03.2025

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(Account No.37676909025) together with interest thereon @ 7.95% p.a., with monthly rests from the date of Application till the date of realization in full, and for sale of mortgaged property morefully detailed in schedule to the OA, and for costs of this application.

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Originally, this application was filed before DRT-II, Chennai, assigned OA No.390 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.390 of 2020 stood transferred to this Tribunal and renumbered as TA No.877/2023.

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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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The case of the Applicant Bank is that the Defendant approached applicant bank seeking Housing Loan for purchase of schedule mentioned property and submitted Housing Loan application.

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The applicant bank, considering the said request of defendants, had sanctioned a sum of Rs.49,68,000/- towards Housing Loan facility vide Sanction Letter dated 30.04.2018. Loan is repayable in Equated Monthly Installments of Rs.44,637/- each together with interest at the rate of 8.15% with monthly rests as agreed upon between the parties.

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It is submitted by Applicant Bank that the defendant having availed the said loan, executed the following Loan and security documents in favour of applicant bank:

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T.A. No. 877 of 2023 (E)

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04.03.2025

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(i) Arrangement Letter dated 30.04.2018

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(ii) Memorandum of Loan Agreement for Home Loan granted to public dated 30.04.2018

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(iii) Agreement to Mortgage dated 30.04.2018

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(iv) Confirmation Letter (EM of borrowers property) dated 10.10.2019

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It is submitted by applicant bank that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 30.04.2018.

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It is submitted by applicant bank that after availing the loan, the defendant failed and neglected to repay the same with interest and other charges despite reminders by applicant bank. As no payments were forth coming, the loan account was classified as NPA on 29.11.2019 as per RBI guidelines. Applicant bank through its Authorised Officer had initiated SARFAESI proceedings and issued Demand Notice under Section 13(2) of the Act dated 03.12.2019. As defendants did not come forward to repay the dues, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due, which was returned unserved. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 06.05.2022.

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Heard the submissions of Applicant Bank and perused the records.

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T.A. No. 877 of 2023 (E)

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04.03.2025

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To prove the case of the Applicant Bank, Shri. Saket Kumar, Manager and Authorised Officer 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-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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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 Defendants Nos.1 to 3 jointly, severally a sum of Rs.53,08,699/- (Rupees Fifty Three Lakhs Eight Thousand Six Hundred Ninety Nine Only) due in respect of Home (HL) facility (Account No.37676909025) together with interest thereon @ 7.95% p.a., with monthly rests from the date of Application till the date of realization in full, along with 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 mentioned immovable property morefully detailed in the OA;

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T.A. No. 877 of 2023 (E)

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04.03.2025

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(d) 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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(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 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 PS, transcribed by her, corrected, signed and pronounced by me on this the 04^th day of March, 2025)

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T.A. No. 877 of 2023 (E)

04.03.2025

ANNEXURE

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. Shri. Saket Kumar, Manager and Authorised Officer 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.	Sanction Letterdated 30.04.2018	A-1
2.	ArrangementLetterdated 30.04.2018	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public dated 30.04.2018	A-3
4.	Agreement toMortgage dated 30.04.2018	A-4
5.	Confirmation Letterdated10.10.2019	A-5
6.	Builders Agreement (Doc. No. 1256/2018) dated 19.04.2018	A-6
7.	Sale Deed executed by M/s. Engineers Estates (Madras) Pvt. Ltd. in favour of R. Vasu (Doc. No. 1257/2018) dated 19.04.2018	A-7
8.	13(2)Notice andReturned Covers dated 03.12.2019	A-8
9	Statement of Account and Certificate Under Banker‟s Book Evidence Act, 1891 dated 30.04.2018 to 13.08.2020	A-9
10	Authorization Circular	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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:SCHEDULE:

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SCHEDULE ‘A’

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All that piece and parcel of the vacant land in S. No. „s 57/2A1 (part) 57/2B, 57/3B2, 57/3B1A (part), 57/2C(part) measuring the total extent of 2.91 Acres in Umayalparancheri Village, Vlayankaranai Panchayat, Kundrathur Union, Sriperumbudur Taluk, Kancheepuram District.

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T.A. No. 877 of 2023 (E)

04.03.2025

SCHEDULE – B

All that piece and parcel of the vacant land bearing Plot No. 12, comprised Old S. No. 57/3B1A, New S. No. 57/3B1A1A1 as per patta No. 765 measuring the extent of 1650 square feet in “ PARK CITY” Phase – II Lay out vides Approval No. LD/DTCP (CR) No. 308/2010 Umayalparancheri Village, Valayankaranai Panchayat, Kundrathur Union, Sriperumbudur Taluk, Kancheepuram District.

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BOUNDED ON THE

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North by : 40 Feet Road South by : Plot No. 10, East by : Plot No. 11, West by : Plot No. 13

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MEASURING:-

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East to West on the Northern side: 30 Feet, East to West on the Southern side: 30 Feet, North to South on the Eastern side: 55 Feet North to South on the Western side: 55 Feet

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Lying within the Registration District of Sunguvarchatiram and Registration District of Chengalpattu.

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

State Bank of India v. Vasu

Case brief

What is this about?

What did the court decide?

State Bank of India v. Vasu

Case brief

What is this about?

What did the court decide?

What the court decided

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