Allowed

Indian Overseas Bank v. Chandra Kumar

DRT25 Nov 2025TA/981/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by a bank for recovery of dues of Rs. 42,39,868.40 from a defendant defaulting on a housing loan. The respondent was ex-parte due to non-appearance, and the court approved recovery via sale of mortgaged property.

What did the court decide?

Recovery of Rs. 42,39,868.40 with interest; liberty to sell mortgaged property; recovery certificate to be issued.

Indian Overseas Bank versus Chandra Kumar — Banking and Recovery | DRT (2025)

¶1

O.A. No. 981 of 2023

¶2

25.11.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 25^th day of September, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 981 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 916/2019 and thereafter transferred to this Tribunal and renumbered as TA No 981 of 2023)

¶9

INDIAN OVERSEAS BANK, Teynampet Branch, DMS Campus, Anna Salai, Teynampet, Chennai – 600 006. ….Applicant -Vs-

¶10

Mr. Chandra Kumar, SVM Orchid, No. 86, Flat No. F-2, Abdul Kalam Azad Street, Vaishnavi Nagar, VGP Shanthi Nagar, Pallikaranai, Chennai – 600 100.

¶11

Also at:

¶12

Mr. Chandra Kumar, No. 120/69, College Road, Palavanthangal, Chennai – 600 061. …. Defendant

¶13

Counsels on record / appeared:

¶14

Counsel for Applicant : M/s. Sheela Venkatesh

¶15

Defendant was set ex-parte on 18.04.2022

¶16

: - FINAL ORDER - :

¶17

This Original Application is filed on 03.09.2019 by the Applicant Bank 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

¶18

O.A. No. 981 of 2023

¶19

¶20

25.11.2025

¶21

Rs.42,39,868.40p (Rupees Forty Two Lakhs Thirty Nine Thousand

¶22

Eight Hundred and Sixty Eight and Forty Paise only) due in respect of Housing Loan (Account No. 069803351400001) repayable together with further interest @ 9.45% p.a. compounded with monthly rests along with 2% over due interest, from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this Original Application.

¶23

Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 916 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 916 of 2019 stood transferred to this Tribunal and renumbered as TA No.981 of 2023.

¶24

Brief Facts of the case:

¶25

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.

¶26

It is the case of the applicant bank that the defendant had approached the applicant bank and sought for sanction of Housing Loan under Subha Gruha Housing Scheme for purchase of Flat. The same was considered by the applicant bank and Term Loan under Subha Gruha Housing Scheme for purchase of Flat to the tune of Rs. 31,00,000/(Rupees Thirty One Lakhs only) was granted to the defendant vide Credit

¶27

O.A. No. 981 of 2023

¶28

¶29

25.11.2025

¶30

Sanction Advice dated 06.01.2014.

¶31

It is submitted by the applicant bank that for the Term Loan under Subha Gruha Housing Scheme for purchase of Flat for Rs. 31,00,000/(Rupees Thirty One Lakhs Only) availed by the defendant, the following documents were executed by the defendant on 09.01.2014:

¶32

(a) Demand Promissory Note dated 09.01.2014 for a sum of Rs. 31,00,000/- (Rupees Thirty One Lakhs Only) with interest at the rate of 10.25% per annum compounded Monthly rests.

¶33

(b) Letter seeking permission to pay EMI for a sum of Rs. 27,850/-in 354 equal monthly instalments commence from 31" August 2014.

¶34

(c) Housing Loan Agreement for a sum of Rs. 31,00,000/- (Rupees Thirty One Lakhs Only) along with consent cum authorization letter.

¶35

(d) Equitable Mortgage followed by registered Memorandum of Deposit of Title Deeds dated 18.02.2014 and registered as document no: 1717 of 2014 on the file of SRO, Chennai South Joint 1, the immovable property viz., Registered Sale Deed Doc No.154 of 2014 dated 07.01.2014 executed by SVM Shelter Private Limited represented by its Director Mr. G. Manishankar to and in favour of the defendant before SRO, Joint 1, Saidapet, was executed by the defendant.

¶36

(e) Further the defendant executed a revival letter dated 28.07.2016 to revive the demand promissory note dated 09.01.2014 for a sum of Rs. 31,00,000/- (Rupees Thirty One Lakhs Only).

¶37

O.A. No. 981 of 2023

¶38

25.11.2025

¶39

¶40

The applicant bank submits that after availing the above facility, the defendant did not repay the amounts to the applicant bank inspite of repeated demands and incessant requests. The defendant did not keep up his commitment as per schedule. The operation of the accounts by the defendant was far from satisfactory and the account was classified as Non-Performing Asset (NPA) on 30.06.2016 in accordance with RBI guidelines.

¶41

It is submitted that the applicant bank issued Demand Notice dated 25.07.2016 under SARFAESI Act followed by the Possession Notice dated 07.01.2017 calling upon the defendant to regularize and clear the loan account, but in spite of the same the defendant did not make any attempt to discharge the loan as assured. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

¶42

After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left/ no such address’ from both the addresses. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 18.04.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, the defendant was placed ex-parte on 18.04.2022.

¶43

O.A. No. 981 of 2023

¶44

25.11.2025

¶45

¶46

Heard the submissions of Applicant Bank and perused the

¶47

records.

¶48

To prove the case of the Applicant Bank, Ms. Roshni Christina Daniel, Chief 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-12 . 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.

¶49

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:

¶50

: O R D E R :

¶51

The OA is allowed with costs,

¶52

(a) The applicant bank is allowed to recover from the defendant a

¶53

total sum of Rs.42,39,868.40p (Rupees Forty Two Lakhs Thirty Nine Thousand Eight Hundred and Sixty Eight and Forty Paise only) due in respect of Housing Loan (Account No. 069803351400001) repayable together with further interest @ 9.45% p.a. compounded with monthly rests along with 2% over due interest, from the date of Application till the date of realization in full along with costs of this application.

¶54

O.A. No. 981 of 2023

¶55

25.11.2025

¶56

¶57

(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 immovable property morefully detailed in the OA schedule.

¶58

¶59

(d) 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

¶60

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.

¶61

(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

¶62

(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶63

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

¶64

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

¶65

(Dictated to Steno (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 25^th day of November, 2025)

¶66

O.A. No. 981 of 2023

25.11.2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶71

AW-1: Ms. Roshni Christina Daniel, Chief Manager of the Applicant Bank

¶72

Exhibits on the part of the Applicant:

¶73

Sl. No.	Date	Description of Documents	Exhibit No.
1.	06.01.2014	Sanction Letter	A-1
2.	06.01.2014	Credit Sanction Advice	A-2
3.	09.01.2014	Demand Promissory Note for Rs. 31.00 Lakhs	A-3
4.	09.01.2014	Letter seeking permission to pay EMI	A-4
5.	09.01.2014	Housing Loan Agreement	A-5
6.	18.02.2014	Memorandum of Deposit of Title Deeds	A-6
7.	07.01.2014	Registered Sale Deed in favour of the defendant	A-7
8.	28.07.2016	Revival letter executed by the defendant	A-8
9.	25.07.2016	Demand Notice	A-9
10.	07.01.2017	Possession Notice	A-10
11.	--	Statement of Accounts and BBE Certificates	A-11
12.	--	Power of Attorney	A-12

¶74

Witness Examined for the Defendant

¶75

List of Documents Exhibited for the Defendant : -Nil –

¶76

: -Nil-

¶77

O.A. No. 981 of 2023

25.11.2025

:SCHEDULE:

All that piece and parcel of Flat No. F-2, First Floor, No. 86, Abdul Kalam Azad Street, VGP Shanthi Nagar, Pallikaranai, Chennai – 600 100 measuring 710 Sq.ft. Plinth area including common area along with one covered car parking comprised of 369 Sq.ft. of UDS in No. 129 totally measuring 3200 Sq.ft. at VGP Shanthi Nagar IV, comprised under Survey No. 625 Part, 625/2, 625/3 & 625/5 at Pallikaranai Village, Kancheepuram District, within the Registration District of South Chennai and SubRegistration District of Joint-I, Saidapet.

¶82

Bound on

¶83

North by : Plot No. 85 South by : Plot No. 87 East by : 30 Feet Road West by : Plot No. 78

¶84

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

Indian Overseas Bank v. Chandra Kumar

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Chandra Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Mr Kumar Son of Kutti versus Equitas Small Finance Bank Limited

Uma versus South Indian Bank

Indian Overseas Bank versus Rajeswari M

Central Bank of India versus Mr Kamaraj Prop Jayalakshmi Industries S

State Bank of India versus M/S Aikya Agency

State Bank of India versus Hemnath