Allowed

State Bank of India v. Jayalakshmi

DRT18 Jul 2025TA/956/2023

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's original application for recovery of dues. The respondent failed to appear and was placed ex-parte. The court directed the realization of the principal, interest, and costs, and authorized the sale of the respondent's immovable and other assets to recover the balance dues.

What did the court decide?

Recovery of Rs. 34,58,591/- with interest and costs; liberty to sale schedule A and B immovable property and defendant's personal assets.

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

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T.A. No. 956 of 2023

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18.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 18^th day of July, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 956 of 2023

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(Originally filed before DRT- II, Chennai as OA 134/2020 and thereafter transferred to this Tribunal and renumbered as TA No 956 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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Mrs. S. Jayalakshmi, W/o Mr. R. Sudalai, Residing at New No.35A, Old No.49, Narayanaswamy 2^nd VGP Road, West Saidapet, (Near Annai Velanganni College)

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Chennai 600 015. …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 were set ex-parte on 05.08.2022

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: - FINAL ORDER - :

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This original application is filed on 29.01.2020 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, 1993) against the defendant, for recovery of a total sum of Rs.34,58,591/- (Rupees Thirty Four Lakhs Fifty Eight Thousand

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T.A. No. 956 of 2023

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18.07.2025

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Five Hundred and Ninety One only) as follows:

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(i) A sum of Rs.34,27,405/- due in respect of Home Loan(Account No.36238591348) repayable together with further interest @ 8.25% p.a. with monthly rests from the date of application till the date of realisation in full;

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(ii) A sum of Rs.31,186/- due in respect of SBI Suraksha (Account No.36688473149) repayable together with further interest @ 8.25% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of schedule 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.134 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.134 of 2020 stood transferred to this Tribunal and renumbered as TA No.956 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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T.A. No. 956 of 2023

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18.07.2025

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It is the case of the Applicant Bank that the defendant had approached applicant bank seeking financial assistance for purchase of house and executed a loan document dated 02.11.2016 in favour of the applicant bank.

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It is submitted by applicant bank that pursuant to the request of the defendant, applicant bank had sanctioned the “Housing Loan” facility to the tune of Rs.33,30,000/- and SBI Suraksha facility to the tune of Rs.64,530/- and the said facilities are sanctioned subject to the terms and conditions as envisaged under the Arrangement Letter dated 08.11.2016 and Memorandum of Loan agreement for Home Loan granted to public herein dated 08.11.2016. The defendant had executed a confirmation letter dated 27.11.2016.

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The Applicant further submits that the defendant herein had executed the following loan documents, thereby acknowledging the said loan amount availed from the applicant bank. The defendant had undertaken to repay the loan amount in time without committing any default.

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a) Sanction letter dated 02.11.2016

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b) Arrangement letter dated 08.11.2016

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c) Memorandum of loan agreement for Home Loan granted to public dated 08.11.2016

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T.A. No. 956 of 2023

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d) Agreement to Mortgage dated 08.11.2016

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e) Confirmation letter dated 27.11.2016

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It is submitted by the applicant bank that subsequent to the disbursement of the aforesaid “Housing Loan” and “SBI Suraksha” the defendant was not operating the account as per the terms and conditions. They have been repeatedly making representations to the defendant to regularize the Housing Loan and SBI Suraksha loan accounts, but the defendant did not take any concrete steps to regularize the loan accounts or to repay the loan amounts. Since the defendant failed to service the interest and principal due under the ‘Housing Loan’ and SBI Suraksha loan accounts, consequently it has become Non-Performing Asset (NPA) on 05.07.2019 in accordance to RBI guidelines. The applicant bank through its Authroised Officer had issued Demand Notice under Section 13(2) of the Act dated 17.08.2019 to the defendant to repay the Housing Loan and SBI Suraksha loan amount together with accumulated interest but evoked no response from defendant. Hence the present Original Application (OA) has been filed for recovery of amounts due from defendant.

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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 with an endorsement as “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 05.08.2022 even after giving sufficient time, there was no appearance or

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T.A. No. 956 of 2023

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18.07.2025

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representation from the defendants. Hence, Defendant was placed exparte on 05.08.2022.

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Heard the submissions of Applicant Bank and perused the record s.

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To prove the case of the Applicant Bank, Mr Saket Kumar, 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-10 . 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 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 Defendant

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and severally, a total sum of Rs.34,58,591/- (Rupees Thirty

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Four Lakhs Fifty Eight Thousand Five Hundred and Ninety One only) as follows:

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(i) A sum of Rs.34,27,405/- due in respect of Home Loan(Account No.36238591348) repayable together with

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T.A. No. 956 of 2023

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18.07.2025

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further interest @ 8.25% p.a. with monthly rests from the date of application till the date of realisation in full;

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(ii) A sum of Rs.31,186/- due in respect of SBI Suraksha

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Loan (Account No.36688473149) repayable together with further interest @ 8.25% 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 Defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule A and B mentioned immovable property more fully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable property is not sufficient

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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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(e) The applicant bank shall file the latest memo of calculation of

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OA amount together with interest, costs etc., to be paid by the Defendant duly considering the amounts, if any, paid by the

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T.A. No. 956 of 2023

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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 Defendant to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the date of receipt 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 18^th day of July, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr Saket Kumar, 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.	Sanction Letter dated 02.11.2016	A-1
2.	Arrangement Letter dated 08.11.2016	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public dated 08.11.2016	A-3

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T.A. No. 956 of 2023

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4.	Agreement to Mortgage dated 08.11.2016	A-4
5.	Confirmation letter dated 27.11.2016	A-5
6.	Construction Agreement (Doc.No.12564/2016) dated 27.09.2016	A-6
7.	Sale deed executed by T. Rajendran power agent S. Banumathy infavour of R.Jayalakshmi (Doc.No.12565/2016) dated 10.11.2016	A-7
8.	13(2) Notice & Returned cover dated 17.08.2019	A-8
9.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 08.11.2016 to 12.12.2019	A-9
10.	Statement of Account and Certificate under Banker’s Book Evidence Act, 1891 21.03.2017 to 12.12.2019	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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:-SCHEDULE-:

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All that piece and parcel of vacant house site, bearing northern portion of Plot No.95, measuring an extent of 951 sq.ft Plot No.95, measuring an extent of 2160 sq.ft., comprised in Old S.No.303/2B, Patta No.6615 as per patta new sub-division S.No.303/12, in the layout named ‘Highways Nagar’ approved by C.S.A.R./D.T.P. M. 86312/L.P. 234, situated in Old No.193, New No.112, Athanur Village, Sriperumbudur Taluk, Kancheepuram district. Bounded on the

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North by: Plot No.83, South by: Remaining part of Plot No.95, East by: 23 Feet Road, West by: Plot No.94

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Measuring on the North by: 37 Feet

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South by: 36’2” Feet

East by: 26 Feet

West by: 26 Feet

The above property situated within the Kundrathur Panchayat union limits and within the Registration District of Chennai south and Registration Sub-District of Guduvancherry.

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Schedule - B

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325 Square feet Undivided Share of land in ‘A’ schedule mentioned property

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

State Bank of India v. Jayalakshmi

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jayalakshmi

Case brief

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What did the court decide?

What the court decided

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