Allowed

State Bank of India v. Ravikumar

DRT26 Mar 2025TA/973/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of dues totaling Rs. 20.97 lakhs from the defendant borrower of a non-performing home loan account. The tribunal found the claim unchallenged as the defendant remained ex-parte and permitted recovery via sale of mortgaged and personal properties.

What did the court decide?

Recovery of Rs. 20,97,075 plus future interest at 8.95% p.a. via sale of mortgaged property and defendant's personal assets; costs awarded.

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

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T.A. No. 973 of 2023

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26.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 26^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 973 of 2023

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(Originally filed before DRT- II, Chennai as OA 266/2020 and thereafter transferred to this Tribunal and renumbered as TA No 973 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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Mr. N. Ravikumar, S/o Nagappan, Residing at. No.79-B, Ground Floor, Pillayar Koil Street, Vaishnavi Apartments, Bharathy Nagar, Ambattur, Chennai 600 053. …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

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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 3, jointly and severally for recovery of a

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total sum of Rs.20,97,075/- (Rupees Twenty Lakhs Ninety Seven

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Thousand Seventy Five only) due in respect of Home Loan (Account No.37562817746) together with further interest @ 8.95% p.a., with monthly rests, from the date of Application, till the date of realization in full, 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.266 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.266 of 2020 stood transferred to this Tribunal and renumbered as TA No.973 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 defendant is borrower. The defendant has executed a loan document dated 27.02.2018 in favour of the applicant bank.

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It is further submitted by the applicant bank that pursuant to the request of the defendant to sanction the “Housing Loan” facility to the tune of Rs.33,00,000/-, applicant bank had sanctioned said “Housing

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T.A. No. 973 of 2023

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Loan” facility subject to the terms and conditions as envisaged under the Arrangement letter dated 27.02.2018 and Memorandum of Loan Agreement for Home Loan granted to public herein dated 27.02.2018. The defendant has executed a confirmation letter dated 21.04.2018.

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The applicant bank submits that the defendant herein has executed the following loan documents on 27.02.2018

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a) Sanction letter

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b) Arrangement Letter

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c) Memorandum of Loan Agreement for Home Loan granted to public

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d) Agreement to Mortgage

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e) Memorandum of Deposit dated 20.04.2018

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f) Confirmation Letter dated 21.04.2018

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g) Memorandum of Deposit of Title Deeds thereby acknowledging the said loan amount availed from the applicant bank.

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It is further submitted by the Applicant bank that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Agreement Letter dated 27.02.2018.

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The applicant bank further submits that subsequent to the disbursement of the aforesaid “Housing Loan” the defendant was not

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operating the account as per the terms and conditions. The Applicant bank further submits that they have been repeatedly making representations to the defendant to regularize the “Housing Loan” account, but the defendant did not take any concrete steps to regularize the loan account or to repay the loan amounts. It is submitted that since the defendant has failed to service the interest and principal due under the “Housing Loan” account, consequently it has become NPA on 27.12.2018 in the books of the applicant bank. The defendant is liable to pay a sum of Rs.20,97,075.00 due as on 18.02.2020 together with future interest and the statement of accounts is filed along with this O.A.

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After the filing of the OA, summons were sent to the Defendant 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 up on 26.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendant were placed ex-parte on 26.05.2022.

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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, 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-13 . As the Defendant remained ex-parte, the OA

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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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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 Rs.20,97,075/- (Rupees Twenty Lakhs Ninety Seven Thousand Seventy Five only) due in respect of Home Loan (Account No.37562817746) together with further interest @ 8.95% p.a., with monthly rests, from the date of Application till the date of realization in full and for 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 mentioned immovable property morefully detailed in the OA schedule.

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(d) If the sale proceeds of the mortgaged 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 OA amount together with interest, costs etc., to be paid by the Defendant 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 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 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 26^th day of March, 2025)

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Saket Kumar, Manager 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 Letter 27.02.2018	A-1
2.	Arrangement Letter 27.02.2018	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public 27.02.2018	A-3
4.	Agreement to Mortgage 27.02.2018	A-4
5.	Memorandum of Deposit 20.04.2018	A-5
6.	Confirmation Letter 21.04.2018	A-6
7.	Memorandum of Deposit of Title Deeds (Doc.No. 4018/2018) 23.04.2018	A-7
8.	Agreement of Sale 04.12.2017	A-8
9	Construction Agreement (Doc.No2171/2018) 05.03.2018	A-9
10	Sale Deed executed by M/s Blue stone Construction infavour of N.Ravikumar (Doc.No.2172/2018) 05.03.2018	A-10
11	13(2) Notice 12.01.2019	A-11
12	Statement of Account and Certificate Under Banker‟s Book Evidence Act, 1891 28.02.2018 to 11.02.2020	A-12
13	Authorization circular	A-13

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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 OF PROPERTY-:

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SCHEDULE A

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All that piece and parcel of property being land measuring an extent of 1695 sq.ft (including land area of 1368 sq.ft and Passage UDS area of 327

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sq.ft.) bearing Plot No.2B (Sub division Maraimalai Nagar Municipality Nagar 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.

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North by: S.No.27/3, South by: S.No.27/1, East by: Plot No.3A, belonging to Mr.Kumararaj, West by: Plot No.2A, belonging to Mr. Kumararaj and common passage

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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, 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 Passage UDS 327 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.F1, having super built up area of 906 sq.ft (including common area) situated in the First Floor.

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

State Bank of India v. Ravikumar

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ravikumar

Case brief

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