Allowed

Union Bank of India (Corporation Bank) v. Chandirasekaran

DRT23 Jun 2026OA/138/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Union Bank of India for recovery of Rs. 33.12 Lakhs against two borrowers. The Tribunal held that the bank proved its claim via affidavit and records, as defendants appeared ex-parte and failed to contest or produce evidence.

What did the court decide?

Recovery of Rs. 33,12,868.96 plus future interest at 12.90% p.a.; liberty to sell secured and personal assets.

Union Bank of India (Corporation Bank) versus… — Contract and Commercial Disputes | DRT (2026)

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O.A. No. 138 of 2022

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23.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 23^rd day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.138 of 2022

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Union Bank of India, (Erstwhile Corporation Bank) Sriperumbudur Branch,

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Plot No.3, Bangalore Main Road,

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Opp. Sumathi Theatre, Rep by its Branch Manager ….Applicant

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-Vs-

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R. Chandirasekaran,

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S/o Shri. Ramasamy Naicker,

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No.46, Pillayar Koil Street,

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Valasaivettikadu,

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Iluppur Post, 602 002,

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Tiruvallur Taluk & District

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Smt. C. Padmavathy,

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W/o Shri. R. Chandirasekaran

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No.46, Pillayar Koil Street,

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Valasaivettikadu,

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Iluppur Post, 602 002,

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Tiruvallur Taluk & District …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant: M/s. J.Harikrishna

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Defendants 1 and 2 were set ex-parte on 22.06.2022

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: - FINAL ORDER- :

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This Original Application is filed on 17.03.2022 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 defendants 1 and 2, jointly and severally for recovery of

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a total sum of Rs.33,12,868.96p (Rupees Thirty Three Lakhs Twelve

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O.A. No. 138 of 2022

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Thousand Eight Hundred and Sixty Eight and Ninety Six Paise only) due in respect of Corp Mortgage Loan under CC (CMTCC) (A/c No.560331000001213) repayable together with further interest @12.90% 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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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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It is the case of the applicant bank that first defendant is the borrower who had availed loan under CORP MORTGAGE LOAN UNDER CC (CMTCC) on 28.03.2009under sanction reference no. ZO/CHEN/ADV/NPS/ DGM/378/2008-09 for an amount of Rs.25,00,000/- vide Loan Account no. 560331000001213 (previous Account No.090002). The said loan is renewable from time to time every year.

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It is submitted by the applicant bank that as requested by the first defendant and after scrutinising the loan application of the first defendant, the applicant bank had sanctioned a loan for a sum of Rs.25,00,000/- on 28.03.2009 under Sanction Letter no. ZO/CHEN/ADV/NPS/ DGM/378/2008-9 under CORP MORTGAGE LOAN UNDER CC (CMTCC loan). The said account is renewable periodically by every year viz., is

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running account repayable on demand subject to annual renewal which is over and above the Corporation Bank Bench Mark Advances Rate (COBAR) under CMTCC loan account no. 560331000001213 (previously 090002). In evidencing the availment of loan and for the due repayment of loan, the first defendant had executed the following documents in favour of the applicant bank on 31.03.2009 and 15.04.2009 as a security:

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i) Demand promissory note for Rs.2500000-I.D.901;

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ii) Tale delivery letter to D.P.N-I.D.902;

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iii) Letter request for over draft facility in the current account I.D. No. 1104;

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iv) Letter of consent for disclosure of information/data relating to credit facility to CBIL;

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v) Undertaking letter that the loan amount will be utilizing for the business purpose viz. purpose for the availment;

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vi) Memorandum of deposit of title deeds registered as Document No. 1126/2009, SRO Manavalanagar dated 15.04.2009 presented on 16.04.2009.

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As per the terms and conditions, it is running account repayable on demand subject to annual renewal the first defendant should repay the loan amount on demand with interest at the rate of 14.00% p.a. (floating) at the banks ruling rate prevailing from time to time with monthly rests as per banking norms.

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The applicant bank submits at request of the first defendant the applicant bank had renewed the said loan account on 18.03.2010 for a

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total balance of outstanding of Rs.25,09,508.50p (Rupees Twenty Five Lakhs Nine Thousand Five Hundred Eight and Fifty Paise only). On 15.03.2012, the first defendant had acknowledged the liability for a sum of Rs.24,77,690/- as on 15.03.2012 and executed the Letter of Acknowledgement of Debt of liability on 15.03.2012.

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It is the further case of the applicant bank that the first defendant had requested the applicant bank and submitted an application form on 28.10.2013 to enhance the loan for a sum of Rs.37,50,000/- under CMTCC. The applicant bank did not enhance the loan to the first defendant since after availment of the loan, the first defendant had committed default in making payments. Instead the first defendant had acknowledged of liability of a sum of Rs.25,33,411/- as on 05.01.2015 to the applicant bank and executed the Letter of Acknowledgement of liability on 05.01.2015. Further the first defendant had renewed the loan account on 20.06.2015 for the period from 01.04.2013 to 17.06.2015 for the total outstanding balance of a sum of Rs.24,45306/- as on 20.06.2015.

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The applicant bank submits that first defendant along with the second defendant had requested the applicant bank to enhance the loan amount for a sum of Rs.50,00,000/- (Rupees Fifty Lakhs only) and submitted an application form on 23.05.2015, but the applicant bank did not enhance the loan for a sum of Rs.50,00,000/- (Rupees fifty lakhs only) under CMTCC. However, the first defendant had renewed the loan account for the period from 01.04.2015 to 26.07.2016 for the total outstanding balance of a sum of Rs.24,93,881/- as on 27.07.2016 and

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further the loan account had been renewed for further period from 01.04.2016 to 10.02.2017 for a total outstanding amount of Rs.25,00,000/- as on 31.03.2017.

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The applicant bank submits that the first defendant had been irregular in repayment of the loan with interest. Instead of making payment, the first defendant had acknowledged the liability to the applicant bank for a sum of Rs.25,10,702/- as on 12.07.2017 and executed a Letter of Acknowledgement of Debt on 12.07.2017 and also on 10.11.2017 for a sum of Rs.25,29,185/- as on 10.11.2017.

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The applicant bank submits that event after acknowledgement of debt of liability and even after assurances, the first defendant has failed to repay the loan amount, inspite of persistent requests of the applicant bank. Since the first defendant had failed to regularize the account, the applicant bank declared their account as Non Performing Asset (NPA) on 31.07.2020. As on date the defendants are due and liable to pay a sum of Rs.33,12,868.96p to the applicant bank.

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The applicant bank through its Authorised Officer had issued notice to the first defendant on 03.09.2020 and on 23.09.2020 under Section 13(2) of the SARFAESI act calling upon the first defendant to pay the outstanding dues of a sum of Rs.25,37,818.48p as 31.07.2020, it evoked no response. Subsequently the applicant bank had issued possession notice under Section 13(4) of the SARFAESI Act in respect of the schedule mentioned property by adopting due process of law contemplated under the SARFAESI Act, 2002. Inspite the said notice the first defendant had

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failed to come forwarded for repayment or settlement. Further the applicant bank has given 15 days notice on 03.02.2021 to the first defendant for sale of immovable secured assets and also requested to ensure participation by the parties in buying the secured assets viz. schedule mentioned property. Despite repeated reminders, defendants did not come forward to repay the dues. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served in respect of D-1 and D-2. When OA was taken up on 22.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 22.06.2022.

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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, Sh. Rakesh Ranjan 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-28.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-28 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms

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of averments made in Original Application as well as Proof Affidavit filed by applicant bank establishing its claim. Applicant bank filed Statement of Accounts duly certified under Bankers’ Book Evidence Act, evidencing the amount claimed against defendants.

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The defendants were set ex-parte on 22.06.2022, but till this day they did not take any action to set aside the ex-parte order and did not choose to contest the claim. Further, a careful scrutiny of records makes it clear that present application is filed well within limitation and this Tribunal possesses necessary and proper jurisdiction to entertain and adjudicate the claim. No oral or documentary evidence on the side of defendants are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against defendants.

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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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17. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, for recovery of a total sum of Rs.33,12,868.96p (Rupees Thirty Three Lakhs Twelve Thousand Eight Hundred and Sixty Eight and Ninety Six Paise only) due in respect of Corp Mortgage Loan under CC (CMTCC)

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(A/c No.560331000001213) repayable together with further interest @12.90% 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 Defendants 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 immovable property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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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 Defendants 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 Defendants 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

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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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 23^rd day of June, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Rakesh Ranjan Kumar, Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	-	Application of first defendant to applicant bank	A-1
2.	28.03.2009	Credit sanction intimation-applicant bank to first defendant for Rs.25,00,000/-	A-2
3.	31.03.2009	Demand promissory note- first defendant to applicant bank Rs.2500000/-	A-3
4.	31.03.2009	Take delivery letter to D.P.N first defendant to applicant bank Rs.2500000/-	A-4
5.	31.03.2009	Letter of request-first defendant to applicant bank Rs.2500000/-	A-5
6.	31.03.2009	Letter to CIBIL-First defendant to applicant bank	A-6
7.	31.03.2009	Undertaking letter first defendant to	A-7

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		applicant bank
8.	31.03.2009	Letter of depositing of title deeds- first defendant to applicant bank	A-8
9.	15.04.2009 16.04.2009	Memorandum of deposit of title deeds registered as Doc. No. 1126/2009-SRO- Manavalanagar- first defendant to applicant bank	A-9
10.	18.03.2010	Renewal letter	A-10
11.	15.03.2012	Acknowledgement of debt/liability- Rs.2477690/-- first defendant to applicant bank	A-11
12.	28.10.2013	Application by the first defendant to applicant bank for enhancement of loan Rs.37500000/-	A-12
13.	05.01.2015	Acknowledgement of debt/liability- Rs.2533411- first defendant to applicant bank	A-13
14.	-	Renewal letter for the period from 01.04.2013 to 17.06.2015	A-14
15.	23.05.2016	Application of the defendants to applicant bank for enhancement of loan Rs.5000000	A-15
16.	-	Renewal letter for the period from 01.04.2015 to 26.07.2016	A-16
17.	-	Renewal letter for the period from 01.04.2015 to 26.07.2016	A-17
18.	12.07.2017	Acknowledgement of debt/liability Rs.2510702-first defendant to applicant bank	A-18
19.	10.11.2017	Acknowledgement of debt/liability Rs.2529185-first defendant to applicant bank	A-19
20	03.09.2020	Notice under section 13(2) of SARFAESI Act to the first defendant with Ack card	A-20
21.	23.09.2020	Notice under section 13(2) of SARFAESI Act to the first defendant with Ack card	A-21
22.	03.02.2021	Possession notice under section 13(4) rule 8 of the SARFAESI Act to the defendants	A-22
23.	07.02.2021	Intimating to the public with regard to possession in English daily news papers.	A-23
24.	07.02.2021	Intimating to the public with regard to possession in English daily news papers.	A-24
25.	04.03.2020	Gazette notification	A-25
26.	05.09.2007	Sale deed between Smt. R. Varalakshmi and two others and R. Chandrasekaram document No.8148/2007 SRO-	A-26

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		Manavalanagar
27.	18.08.2022	Authorisation letter		A-27
28.	01.03.2022	Statement of	accounts	A-28
		560331000001213 previous no.090002	account

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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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All that piece and parcel of land and building situated at Plot No.128, Door No.111, Ondikuppam, Poonamallee High Road, Manavalan nagar, Vengathur Village, Tiruvallur Taluk and District, land measuring about 2400sq.ft comprised in S.No.323/1 as per patta new S.No.323/1A 2 wit building and electricity connection and the land being

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Bounded on the

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North by: Plot No.127,

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South by: Poonamale Tiruvallur Road admeasuring 40 feet

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East by: Plot no.129

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West by: 20.0 ft Bhagirathi Road admeasuring 60 feet

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and situated within the Registration District of Tiruvallur and SubRegistration District of Manavala Nagar.

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

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Union Bank of India (Corporation Bank) v. Chandirasekaran

Case brief

What is this about?

What did the court decide?

Union Bank of India (Corporation Bank) v. Chandirasekaran

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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