Allowed

Shri Bharath Vasan v. State Bank of India

DRT3 Jul 2026MA/259/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an applicant's petition to remove attachment entries from land records after the bank respondent recorded a full satisfaction memo for a settled loan of Rs. 1.10 crore, despite the initial Recovery Application seeking higher recovery.

What did the court decide?

Attachment order dated 08.08.2013 withdrawn and lifted; Registrar directed to delete entry from Encumbrance Certificate; Registry to communicate order to SRO.

Shri Bharath Vasan versus State Bank of India — Banking and Recovery | DRT (2026)

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MA 259/25 in TA 02/2023

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03.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 03^rd day of July, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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M.A. Nos.259/25 in T.A. No.02 of 2023

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M/s. Bharath International Mfg. & Trading Pvt. Ltd. Private Limited Company Having its registered office at

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No.181, North Usman Road

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T. Nagar, Chennai – 600 017

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Shri R. Vasan S/o Shri K. Ramanujam

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No.181, North Usman Road

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T. Nagar, Chennai – 600 017

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Shri Bharath Vasan

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S/o Shri R. Vasan

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No.181, North Usman Road

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T. Nagar, Chennai – 600 017

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….Petitioner / Defendants

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-Vs–

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State Bank of India Stressed Assets Management Branch Red Cross Buildings, II Floor

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No.32, Montieth Road

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Egmore, Chennai – 600 008 Represented by its Chief Manager

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M/s Asset Reconstruction Company (India) Ltd., ARCIL Arms Office

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715 – C, 7^th Floor Spencer Plaza Phase – II 769, Anna Salai, Chennai – 600 002 ……Respondents/Applicants

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: - ORDER ON MA NO.259/25 - :

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The Original Application is filed by the Applicants viz., State Bank of

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India and M/s Asset Reconstruction Company (India) Ltd., against the

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MA 259/25 in TA 02/2023

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03.07.2026

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Defendants, seeking main relief to order the 1^st and 2^nd Defendants in the OA, to pay a sum of Rs.4,09,63,436/- (Rupees Four Crores Nine Lakhs

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Sixty Three Thousand Four Hundred and Thirty Six only) with further interest and costs.

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The Petitioners / defendants have filed the present petition MA No.259/25 along with affidavit of 2^nd Petitioner – Sh. R. Vasan, to direct the Registrar, Sub Registrar Officer, Thiyagaraya Nagar, Chennai – 600 017 to remove and delete the entry in their records (vide order dated 08.08.2013 in IA No.301/2013 in OA No.50 of 2013 passed by DRT-II, Chennai) i.e., Document No.1/2014 dated 21.01.2014 vide PR Nos. 427/2009 and 430/2009 in the schedule mentioned properties morefully detailed in the MA.

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It is submitted by the petitioners that the 1^st respondent bank filed OA No.50/2013 before DRT-II, Chennai on 07.03.2013 for relevant of a sum of Rs.4,09,63,436/- as on 06.03.2013 together with interest at the rate of 14.45% p.a. with monthly interest from the date of OA till the date of realization and costs. During the pendency of OA, the 1^st respondent bank filed IA No.301 of 2013 in OA No.50 of 2013 before DRT-II, Chennai praying to direct the defendants to furnish security to the tune of OA claim, failing which an order of attachment before judgment of the immovable properties (subject properties of the MA) and another IA No.318/2013 praying to restrain the respondents, their officers / servants / agents and persons acting through or under them, by passing an order of interim injunction,

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MA 259/25 in TA 02/2023

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03.07.2026

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from dealing with, disposing of, transferring, parting with possession of or in any way encumbering the properties set out in the schedule to the instant application. Both petitions were taken up for hearing and allowed vide order dated 08.08.2013.

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Consequent to the above order, the Tribunal sent a letter dated 12.08.2013 to the Sub Registrar Office, Thiyagaraya Nagar, Chennai – 600 017 about making an entry of the interim order of injunction in relevant records and not to register any document pertaining to the schedule property. Accordingly, the same was recorded and reflected in their records on 21.01.2014 vide Document No.1/2014 and the same is reflected till today.

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The 1^st respondent bank assigned the loan to the 2^nd respondent company. The 2^nd respondent company was impleaded vide order in IA No.283 of 2015 on 05.01.2025. After hearing both sides, final order was passed on 02.02.2016 and DRC No.172 of 2016 was issued on 04.03.2015. During the pendency of recovery proceedings, the OA along with DRC was transferred to this Tribunal due to bifurcation of jurisdiction and renumbered as TA No.02 of 2023 and TRC No.132 of 2023.

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The petitioners / defendants approached the 2^nd respondent for settlement under OTS for a sum of Rs.1,10,00,000/- and the same was paid on 08.07.2022. The 2^nd respondent filed full satisfaction memo on 12.01.2023 and the same was duly recorded and original documents were received by the 2^nd respondent from this Tribunal. In view of full settlement,

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MA 259/25 in TA 02/2023

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03.07.2026

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No Due Certificate dated 11.10.2022 was issued by the 2^nd respondent to the petitioners. Hence it is prayed to direct the SRO, T. Nagar, Chennai – 600 017 to delete and remove the entry in their records of the above schedule mentioned properties.

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Whereas the 2^nd respondent had filed counter submitting that the petitioners / defendants have approached them and offered to settle the dues for a sum of Rs.1,10,00,000/- under OTS. The Petitioners / defendants have agreed for the said OTS and had accordingly paid the amount on 08.07.2022 which was appropriated to the loan account of the first defendant. No due certificate has been given to the petitioner on 11.10.2022. The 2^nd respondent filed Full Satisfaction memo on 12.01.2023 which was also recorded by this Tribunal. Since the respondent had realized the entire dues from the petitioner, the 2^nd respondent does not have any objection to allow the above MA.

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Heard the counsel for both sides and perused the records of the case .

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The OA was filed before DRT-II, Chennai for recovery of a sum of Rs.4,09,63,436/- along with interest and for sale of mortgaged properties. During the pendency of OA, applicant bank had filed IA No.318/2013 praying to restrain the defendants, their officers/servants / agents and persons acting through or under them, from dealing with, disposing of, transferring, parting with possession of or any way encumbering the properties morefully detailed in the IA and to pass an order of interim injunction. After hearing both sides, the said IA was allowed vide order

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MA 259/25 in TA 02/2023

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03.07.2026

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dated 08.08.2013 and the Registry of the Tribunal was directed to forward copy of the order to the concerned Sub-Registrar Office with a request to make entries in the relevant register. Accordingly, the same was communicated to SRO, Thiyagaraya Nagar, Chennai by the Tribunal vide order dated 12.08.2013.

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The OA was contested by the defendants and was allowed vide final order dated 02.02.2016 and DRC No.172 of 2016 dated 04.03.2016 was issued in terms of the final order. Subsequently, due to bifurcation of jurisdiction, OA and DRC was transferred to this Tribunal and re-numbered as TA No.02 of 2023 and TRC No.132 of 2023 respectively.

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During the pendency of the recovery proceedings, the petitioners have approached the 2^nd respondent and settled the loan account on payment of Rs.1,10,00,000/- under OTS, which was duly accepted by the 2^nd respondent. The said settlement was also recorded by this Tribunal. No due certificate has been given to the petitioner on 11.10.2022.

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Now the petitioners have filed the present MA to direct the Registrar, SRO, Thiyagaraya Nagar, Chennai – 600 017 to remove and delete the entry in their records viz., Document No.01/2014 dated 21.01.2014 vide PR Nos.427/2009 and 430/2009 in respect of the schedule mentioned properties. As the matter is amicably settled between the parties, 2^nd respondent has also expressed their ‘No objection’ for the MA.

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In view of the submissions made and settlement reported by both parties, MA No.259/25 stands allowed. The order of attachment dated 08.08.2013 in IA No.301/2013 passed by Ld. Presiding Officer, DRT-II,

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MA 259/25 in TA 02/2023

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03.07.2026

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Chennai in respect of the property described in the Schedule hereunder is hereby withdrawn, raised, and lifted.

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The Registrar, SRO, Thiyagaraya Nagar, Chennai – 600 017 is directed to delete the entry of attachment, if any, recorded in the Encumbrance Certificate (EC) concerning the Schedule property.

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The Registry of this Tribunal is directed to communicate this order to the SRO, Thiyagaraya Nagar, Chennai – 600 017.

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Sd/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 03^rd day of July, 2026)

Shri Bharath Vasan v. State Bank of India

Case brief

What is this about?

What did the court decide?

Shri Bharath Vasan v. State Bank of India

Case brief

What is this about?

What did the court decide?

What the court decided

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