Allowed

Union Bank of India v. Mrs Sudha Sundaravaradhan And Another

DRT26 Feb 2025TA/957/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues totaling Rs. 28,01,248 along with interest and costs against the borrowers of a housing loan who failed to repay the sanctioned amount despite notices and default.

What did the court decide?

Recovery of Rs.28,01,248 with interest @11.65% above BPLR plus 2% penal interest, costs, and liberty to sell mortgaged property.

Union Bank of India versus Mrs Sudha Sundaravaradhan And Another — Banking and Recovery | DRT (2025)

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T.A. No. 957 of 2023(E)

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26.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 26^th day of February, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 957 of 2023

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(Originally filed before DRT- II, Chennai as OA 411/2018 and thereafter transferred to this Tribunal and renumbered as TA No 957 of 2023)

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M/s. Union Bank of India, Mylapore Branch, 86, P.S. Sivasamy Salai, Mylapore, Chennai – 600 004. Represented by its Constituted Attorney and Chief Manager

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….Applicant

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-Vs-

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Mrs. Sudha Sundaravaradhan

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. W/o. M. Sundaravaradhan

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PVM’s Villa, No. 30,10^th Avenue, Sea Shore Town,

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No. 104, East Coast Road, Akkarai, Chennai – 600 119.

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Mr. M. Sundaravaradhan, S/o. Meghanathan PVM’s Villa,

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No. 30,10^th Avenue, Sea Shore Town, No. 104, East Coast Road, Akkarai, Chennai – 600 119. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. B. Antony Royston

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Defendants were set ex-parte on 21.07.2022

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: - FINAL ORDER - :

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This original application is filed on 20.06.2018 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 defendants for

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T.A. No. 957 of 2023(E)

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26.02.2025

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recovery of a total sum of Rs.28,01,248/- (Rupees Twenty Eight Lakhs One Thousand Two Hundred and Forty Eight only) due in respect of Housing Loan facility together with further interest @ 1% per annum above BPLR, which is the current rate of interest, with monthly rests including penal interest @ 2% from the date of application till the date of realization in full, for sale of 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.411 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.411 of 2018 stood transferred to this Tribunal and renumbered as TA No.957/2023.

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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 had approached the applicant bank seeking financial assistance for purchase of the immovable property morefully detailed in Schedule to OA and submitted Loan Application on 19.01.2012.

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It is submitted that upon request of defendants, the applicant bank had sanctioned Housing Loan of Rs.25,00,000/- vide Letter of Sanction dated 28.02.2012 vide Account No.395706650008411 with certain terms and conditions, which were accepted by the defendants. The said loan is repayable in 282 equated monthly

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T.A. No. 957 of 2023(E)

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26.02.2025

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installments of Rs.25,974/- commencing from December, 2012 together with floating rate of interest of 1% above the Bank’s base rate or such other rates as may be prescribed by the Bank from time to time, with monthly rests. The Base Rate was 10.65% p.a. at that time and penal interest was 2% p.a.

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It is submitted by applicant bank that defendants had availed the Housing Loan and executed the following loan and security documents in favour of applicant bank on 29.02.2012:

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(i) Demand Promissory Note for Rs.25 lakhs;

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(ii) Housing Loan Agreement for Rs.25 lakhs

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(iii) Consent for take over penalty

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(iv) Letter of Undertaking from the borrowers.

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It is the case of applicant bank that the 1^st defendant offered her immovable property as primary security by way of created equitable mortgage in favour of applicant bank for availing the said Housing Loan. The 1^st defendant visited the applicant bank and deposited the following original title deeds duly recorded in Memorandum of deposit of title deeds dated 28.12.2012:

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(i) Sale Agreement dated 01.11.2011 between Mrs. K. Vimala through her POA Sh. D. Ilango and Mrs. S. Sudha, first defendant herein;

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(ii) Sale Deed dated 23.12.2011 registered as Doc. No.9551/2011 before SRO, Selaiyur by Mrs. K. Vimala through her POA Sh. D. Ilango favouring Mrs. S. Sudha, first defendant herein

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The Applicant Bank submits that the Defendants, after availing the said

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facilities, failed to repay the loan amount despite several reminders and thus committed default. The loan account was classified as NPA on 31.10.2017 in accordance with RBI guidelines. The default in repayment continued and there was no positive response from the defendants. The last payment made by defendants was in a sum of Rs.23,000/- on 28.09.2017 as against the monthly EMI of Rs.25,974/- and thereafter there has been no payment since then.

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Applicant bank had caused a Legal Notice on 12.02.2018 demanding payment of outstanding dues in a sum of Rs.26,50,873/- with interest calculated upto 31.10.2017. The notices sent to defendants returned unserved as ‘Door Locked, Unclaimed’. The applicant bank through its Authorised Officer had initiated SARFAESI proceedings and issued Demand Notice under Section 13(2) of the act on 19.01.2018 to the defendants, which were duly acknowledged by them. Despite receipt of notice, defendants did not come forward to repay the dues. Hence, 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 Defendants through Registered Post with Acknowledgment Due, which were returned with endorsement ‘unclaimed’. Applicant bank had caused paper publication of the notice and filed proof thereof. Defenadnts entered appearance through their counsel. Despite receipt of OA copy, defendants did not choose to file written statement. Hence opportunity to file Written statement was closed on 02.08.2021. Thereafter, applicant bank filed PA and OD. When OA was taken up on 21.07.2022, even after giving sufficient time, there was no appearance or representation from the defendants.

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T.A. No. 957 of 2023(E)

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26.02.2025

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Hence, defendants were placed ex-parte on 21.07.2022.

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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, Shri. Dileep Antony, Constituted Attorney 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-18. 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 Defendant a sum of

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Rs.28,01,248/- (Rupees Twenty Eight Lakhs One Thousand Two Hundred

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and Forty Eight only) due in respect of Housing Loan facility together with further interest @ 11.65% per annum above BPLR, which is the current rate of interest, with monthly rests including penal interest @ 2% from the date of filing this application till the date of realization.

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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 mortgaged property mentioned in the OA.

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T.A. No. 957 of 2023(E)

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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 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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(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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(g) All pending IAs, if any, stands closed.

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A copy of this order be communicated to the parties concerned.

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Sd/-

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(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 26^th day of February, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. Dileep Antony, Constituted Attorney of the applicant bank

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T.A. No. 957 of 2023(E)

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26.02.2025

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Powerof Attorney dated26.05.2015	A-1
2.	Application for HousingLoan	A-2
3.	Sanction Letterdated28.02.2012	A-3
4.	DP Note dated29.02.2012	A-4
5.	HousingLoan Agreement dated29.02.2012	A-5
6.	Consent to take overpenalty dated29.02.2012	A-6
7.	LetterofUndertaking byBorrower	A-7
8.	Memorandumofdeposit of TitleDeeds dated29.02.2012	A-8
9	AgreementforSale dated 01.12.2011	A-9
10	SaleDeedDoc.9551/2011dated23.12.2011	A-10
11	E.C. No. 1517dated12.01.2012	A-11
12	E.C. No.685 dated12.01.2012	A-12
13	E.C. No. 1578 dated13.01.2012	A-13
14	E.C. No. 1904dated19.02.2015	A-14
15	Legal Notice dated12.02.2018	A-15
16	Returned Cover & Acknowledgement Card dated 14.02.2018	A-16
17	Section 13(2) Notice Under SARFAESI Act with Acknowledgement Cards dated19.01.2018	A-17
18	Statement of Accounts & Certificates as per Bankers Books of EvidenceAct dated15.06.2018	A-18

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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 vacant land being Plot Nos. 1A, 1B & 2A Part, Jeyanthi Nagar, (Sub Division D. Dis. No. 331/2011 dated 16.03.2011, P.P.A. No. 331/201-2011 dated 16.03.2011, issued by President, Sithalapakkam Panchayat, Chennai – 600 073, and Planning Permit No. 3708/10-11, Office Letter No. 87/2011 dated 08.03.2011, issued for member secretary, CMDA by Commissioner, St. Thomas Mount Union at Chitalapakkam, Chennai – 600 064), comprised in Survey Nos. 26/1,26/2B1B, 26/2B1C, 26/2B1G, 26/2B1F (Survey Nos. 26/1,2,3,4,5 & 6 Part) of Old No. 148, New No. 53, Sithalapakkam Village, Sholinganallur Taluk, Kancheepuram District, measuring 2,617 sq.ft., and bounded on the

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T.A. No. 957 of 2023(E)

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26.02.2025

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North by : Sithalapakkam Main Road South by : Plot Nos. 1B & 2A Part East by : 15 feet Road West by : Land Survey No. 117

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Measuring 63 feet on the North, 58 feet 9 inches on the South, 43 feet on the East and 43 feet on the West, and situated within the Registration District of Chennai South and Sub Registration District of Selaiyur.

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SCHEDULE – B

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692 sq.ft., (64.28 sq.mt.) of Undivided Share of Land out of the Schedule –A Property

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SCHEDULE – C

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Flat No. F2, in the First Floor, measuring about 1209 sq.ft., constructed over Schedule – A property

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Sd/-

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

Union Bank of India v. Mrs Sudha Sundaravaradhan And Another

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Mrs Sudha Sundaravaradhan And Another

Case brief

What is this about?

What did the court decide?

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