Allowed

State Bank of India v. Praveen

DRT24 Nov 2025TA/887/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a home loan default totaling Rs. 31,07,386/- with interest. The defendant, who did not appear, was debarred from contesting. The court ordered repayment, noting the bank's right to sell mortgaged or personal assets if necessary.

What did the court decide?

The applicant bank is allowed to recover Rs. 31,07,386/- with further interest at 9% p.a. and is at liberty to recover the amount by sale of schedule immovable properties or defendant's other assets.

State Bank of India versus Praveen — Insolvency and Bankruptcy | DRT (2025)

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T.A. No. 887 of 2023

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24.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 887 of 2023

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(Originally filed before DRT- II, Chennai as OA 263/2020 and thereafter transferred to this Tribunal and renumbered as TA No 887 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 -Vs-

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Mr. S. Praveen, S/o Sukumar, No.955, ‘B’ Type, TNHB, Avadi, Thiruvallur 600 054 …..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 26.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 15.06.2020 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 defendant for recovery of a total sum of Rs.31,07,386/- (Rupees Thirty One Lakhs Seven Thousand Three Hundred and Eighty Six only) due in respect of Home Loan Facility (Account No. 37604992734) repayable together with further interest @ 9.00% per annum with monthly rests from the date of application till the date of realization in full, for sale of

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T.A. No. 887 of 2023

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24.11.2025

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OA 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.263 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.263 of 2020 stood transferred to this Tribunal and renumbered as TA No.887 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 Hon’ble Tribunal.

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It is the case of the Applicant Bank that the defendant had approached applicant bank seeking financial assistance for purchaser of House. Pursuant to the request of the defendant to sanction the Housing Loan facility, applicant bank had sanctioned a sum of Rs.33,00,000/- towards Housing Loan facility subject to the terms and conditions as envisaged under the Arrangement Letter dated 20.03.2018 and Memorandum of Loan Agreement for Home Loan granted to public herein. The defendant had executed a Confirmation Letter dated 20.03.2018.

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It is submitted by the applicant bank that in order to secure the loan, the defendant herein executed the following loan documents

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T.A. No. 887 of 2023

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24.11.2025

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thereby acknowledging the said loan amount availed from the applicant bank. The defendant had undertaken to repay the loan amount in time

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without committing any default.

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i. Sanction Letter dated 20.03.2018

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ii. Arrangement Letter dated 20.03.2018

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iii. Memorandum of Loan Agreement for Home Loan granted to Public dated 20.03.2018

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iv. Agreement to Mortgage dated 20.03.2018

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v. Memorandum of Loan Agreement for Home Loan granted to Public dated 20.03.2018

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vi. Confirmation Letter dated 27.04.2018

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vii. Memorandum of Deposit of Title Deeds Doc No.4221/2018 dated 26.04.2018

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It is submitted by the applicant bank that the defendant had

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undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 20.03.2018. However, subsequent to the disbursement of the aforesaid “Housing Loan”, the defendant was not operating the account as per the terms and conditions. Despite repeated requests and demands by the applicant bank, the defendant did not take any concrete steps to regularize the loan account or to repay the loan amounts. As the defendant failed to service the interest and principal due under the Housing Loan account, the loan account was classified as NonPerforming Asset (NPA) on 01.12.2018 in the books of the applicant

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T.A. No. 887 of 2023

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24.11.2025

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bank, in accordance with RBI guidelines. The applicant bank through its Authorised Officer had issued Demand Notice under Section 13(2) of the Act dated 18.12.2018, however the said notice returned unserved. As the default of the borrower continued, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons was sent to sole defendant through Registered Post with Acknowledgment Due, which returned with an endorsement as ‘Left’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 26.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 26.05.2022.

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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, Sh. Saket Kumar, Manager 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-13 . As the defendant 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

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T.A. No. 887 of 2023

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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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10. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendant a sum of Rs.31,07,386/- (Rupees Thirty One Lakhs Seven Thousand Three Hundred and Eighty Six only) due in respect of Home Loan Facility (Account No. 37604992734) repayable together with further interest @ 9.00% per annum with monthly rests from the date of application till the 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 Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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T.A. No. 887 of 2023

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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

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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

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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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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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 24^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Saket Kumar, Manager representing the Applicant Bank.

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T.A. No. 887 of 2023

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24.11.2025

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Exhibits on the part of the Applicant:

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Sl.	Description of Documents	Exhibit
No.		No.
1.	Loan Application dated 02.03.2018.	A-1
2.	Sanction Letter dated 20.03.2018.	A-2
3.	Arrangement Letter dated 20.03.2018.	A-3
4.	Memorandum of Loan Agreement for Home Loan granted to public dated 20.03.2018.	A-4
5.	Agreement to Mortgage dated 20.03.2018.	A-5
6.	Memorandum of Deposit dated 26.04.2018.	A-6
7.	Confirmation Letter dated 27.04.2018.	A-7
8.	Memorandum of Deposit of Title Deeds (Doc. No.4221/2018) dated 26.04.2018.	A-8
9.	Agreement of Sale dated 26.12.2017.	A-9
10.	Construction Agreement (Doc. No. 2763/2018) dated 20.03.2018.	A-10
11.	Sale Deed executed by M/s Blue Stone Constructions in favour of S. Praveen (Doc. No. 2764/2018) dated 20.03.2018.	A-11
12.	Sec. 13(2) Notice & Returned covers dated 18.12.2018.	A-12
13.	Statement of Account and Certificate Under Bankers’ Book Evidence Act, 1891 dated 21.03.2018 to 11.02.2020.	A-13
14.	Authorization Circular	A-14

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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’

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All the piece and parcel of property being Land measuring an extent of 1695 square feet (including Land Area of 1368 square feet and Passage UDS area of 326 square feet) bearing Plot No.2A (Sub Division Maraimalai Nagar Municipality Na. Ka. NO. 1744/17/A1) Elliamman Kovil Street, comprised in S.No. 27/2 Old Patta No.21, Joint Patta No.146, and Patta No.150. As per the Patta New S.No. 27/2C situated at No.53, Konathi Village, Chengalpet Taluk, Kanchipuram District. North by : S.No.27/3, South by : S.No.27/1,

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T.A. No. 887 of 2023

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East by : Plot No.2B, belonging to Mr. Kumararaj, West by : Plot No. 1A

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Measuring on the:

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East to West on the Northern side : 32.3 feet, East to West on the Southern side : 33.3 feet,

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North to South on the Eastern side : 51.4 feet, North to South on the Western side : 51.4 feet

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Within the Sub Registration District of Chengalpattu Joint II and Registration District of Chengalpattu.

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SCHEDULE ‘B’

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363 square feet undivided share of Land out of 1695 square feet (i.e.) 289 square feet undivided share of Land out of 1368 square feet and 74 square feet, undivided share of Land out of Passage UDS 326 square feet more particularly described in the Schedule ‘A’ above mentioned property.

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SCHEDULE ‘C’

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A Three Bedroom Flat bearing No.S1, having super built up area of 906 square feet (including common area) situated in the Second Floor.

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

State Bank of India v. Praveen

Case brief

What is this about?

What did the court decide?

State Bank of India v. Praveen

Case brief

What is this about?

What did the court decide?

What the court decided

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