Allowed

Indian Bank v. Kalpana Sundari S

DRT29 May 2025TA/917/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a disputed home loan. The court confirmed the bank's entitlement based on unchallenged documentary evidence due to the respondents' ex-parte status.

What did the court decide?

Allowed recovery of Rs.41,99,565.42 plus contractual interest and costs; permitted sale of scheduled immovable properties if payment failed.

Indian Bank versus Kalpana Sundari S — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 917 of 2023

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29.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 29^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 917 of 2023

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(Originally filed before DRT- II, Chennai as OA 474/2019 and thereafter transferred to this Tribunal and renumbered as TA No 917 of 2023)

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Indian Bank,

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Rep. by its Asst. General Manager 69, I Avenue, Ashok Nagar, Chennai. 600 083.

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….Applicant

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-Vs-

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Mrs. S. Kalpana Sundari, W/o Mr. G. Somasundaram, No.18/A, Officers Colony, Padi, Chennai. 600 050.

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Mr. G. Somasundaram, S/o Mr. S. Ganapathy, No.18/A, Officers Colony, Padi, Chennai. 600 050. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. RRK Associates

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Defendants 1 to 3 were set ex-parte on 26.07.2021

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: - FINAL ORDER - :

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This original application is filed on 30.01.2019 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, 1993) against the defendants 1 to 2, jointly and severally for recovery of a total

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sum of Rs.41,99,565.42p (Rupees Forty One Lakhs Ninety Nine

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T.A. No. 917 of 2023

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29.05.2025

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Thousand Five Hundred and Sixty Five and Forty Two Paisa only)

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due in respect of Home Loan (Account No.6126105985) together with subsequent interest at contractual rate, 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.474 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.474 of 2019 stood transferred to this Tribunal and renumbered as TA No.917 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 1^st defendant along with 2^nd defendant had jointly approached the applicant bank for the purpose of availing a “Home Loan Facility” and had jointly submitted an application for the same to purchase an immovable property more fully described in the schedule.

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It is submitted by applicant bank that considering the proposal

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T.A. No. 917 of 2023

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29.05.2025

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submitted by the defendants 1 & 2, the applicant bank had sanctioned the credit facility under the head of “Home Loan” for a sum of Rs.30,00,000/through their Sanction Ticket dated 29.04.2013.

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The Applicant submitted that as per the terms of the Sanction Ticket, Defendants 1 & 2 herein undertook to repay the above facility with interest @ 10.20% p.a., in 240 EMIs @ Rs.29,400/- per month. In order to secure the loan defendants had jointly executed the following documents on 09.05.2013 in favour of the applicant bank:

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a) Single / joint Demand Promissory Note (DI) for a sum of Rs.30,00,000/- agreeing to repay the said loan with interest at the rate of 10.20% p.a., from the date of DPN to the date of payment in full with monthly rests or such rates as may be revised by the bank from time to time.

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b) Letter of Authority

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c) Disposal of Proceeds Letter (D-7)

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d) Declaration by the borrower on details of relatives etc. (F-172)

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e) Term Loan Agreement for Housing Finance (D-96).

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It is submitted by the applicant bank that defendants have deposited

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the Original Title Deeds relating to the schedule mentioned property with them on 11.07.2013 and had also jointly executed a letter from party to bank confirming the creation of Equitable Mortgage (D32) on 12.07.2013.

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T.A. No. 917 of 2023

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29.05.2025

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After availing the loan 1^st defendant had committed default in repaying the EMI, after repeated requests and reminders made by the applicant bank to the defendants to clear the outstanding balance, in the said loan account did not evoke any response from them. Since the defendants had failed to repay the loan amount for 3 consecutive months, the applicant bank was constrained to classify the loan account as NPA on 30.09.2015 in accordance to RBI guidelines.

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It is submitted that on 31.01.2016, defendants had jointly executed an acknowledgement of Debt cum Security (D11) acknowledging the liability as on 31.01.2016 a sum of Rs.29,85,171/- towards outstanding and a sum of Rs.1,46,385.55p towards Memorandum of Interest due as on 31.01.2016 and thereby acknowledged their liability. Inspite of repeated requests and demands, as defendants did not come forward to repay the dues, the present Original Application (OA) has been filed for recovery of dues from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 to 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken

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up on 26.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 2 were placed ex-parte on 26.07.2021.

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T.A. No. 917 of 2023

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29.05.2025

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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, Mrs. R. Bhuvaneshwari, Branch / Senior Manager of the Applicant Bank, has filed her 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 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 1 to 2 jointly and severally, a total sum of Rs.41,99,565.42p (Rupees

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Forty One Lakhs Ninety Nine Thousand Five Hundred and Sixty

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Five and Forty Two Paisa only) due in respect of Home Loan (Account No.6126105985) together with subsequent interest at contractual rate i.e., @ 10.20% 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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T.A. No. 917 of 2023

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29.05.2025

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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 and B mentioned immovable properties more fully detailed in the OA schedule.

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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 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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(e) The applicant bank shall file memo of costs within ten days from the date 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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T.A. No. 917 of 2023

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29.05.2025

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(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 29^th day of May, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mrs. R. Bhuvaneshwari, Branch / Senior Manager of the Applicant

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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 Home Loan	A-1
2.	Sanction Ticket for Home Loan for Rs.30,00,000/- 29.04.2013	A-2
3.	Single / Joint Demand Promissory Note (D-1) for Rs.30,00,000/-09.05.2013	A-3
4.	Letter of Authority 09.05.2013	A-4
5.	Disposal of Proceeds Letter (D-7) 09.05.2013	A-5
6.	Declaration by the Borrower on details of relatives etc., 09.05.2013	A-6
7.	Term Loan Agreement for Housing Finance 09.05.2013	A-7
8.	Letter from Party to bank confirming the creation of Equitable Mortgage 12.07.2013	A-8
9.	Acknowledgement of Debt cum Security 31.01.2016	A-9
10.	Statement of Accounts 22.01.2019	A-10
11.	Sale Deed dated 11.07.1996, Doc.No.2094 of 1996, SRO-Villivakkam, executed by M/s. Life Insurance Corporation of India in favour of Mrs. Aleyamma thomas	A-11
12.	Sale deed dated 13.05.2013, Doc.No.2747 of 2013, SRO – Villivakkam, execute by Mrs. Aleyamma Thomas in favour of Mr. G. Somasundaram	A-12
13.	Encumbrance Certificates	A-13

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T.A. No. 917 of 2023

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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 that piece and parcel of the property being the land measuring 278 grounds and 1164 sq.ft., comprised in Survey No.253, of Padi village, Ambattur Taluk, Thiruvallur District and the land bounded on the North By: TNHB Land

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South By: TNHB B.W.S. Building

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East By: Nallah (Canal)

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West By: 40 feet Road

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And situated within the Registration Sub District of villivakkam and Registration District of Chennai Central.

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:- SCHEDULE B-:

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E.M. of undivided share / interest of land measuring an extent of 592 sq.ft., undivided share of land out of 278 grounds and 1164 sq.ft., in survey No.253, mentioned in Schedule “A” property and building constructed thereon with built up area of 876 sq.ft. in Ground Floor, Flat No.119, Type II, New Block No.30, Old Block No.1, in Sector II in Jeevan Bhima Nagar, Anna Nagar West Extension, Chennai 600 001.

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

Indian Bank v. Kalpana Sundari S

Case brief

What is this about?

What did the court decide?

Indian Bank v. Kalpana Sundari S

Case brief

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