Allowed

State Bank of India v. Abdul Basith

DRT23 Jul 2026OA/180/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by State Bank of India against a borrower for the recovery of ₹63,79,000/-. The court confirmed the bank's proof of dues via affidavit and documents, noted the defendant's absence, and ordered repayment with interest and authority to auction assets.

What did the court decide?

Recovery of total sum of ₹63,79,000/- along with interest and costs; liberty to recover amount by sale of schedule property and personal assets.

State Bank of India versus Abdul Basith — Contract and Commercial Disputes | DRT (2026)

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O.A. No.180 of 2024

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23.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 23^rd day of July, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.180 of 2024

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State Bank of India, SARB-II branch, First Floor, 44 Eldams Road, Teynampet, Chennai- 600 018 Represented by its City Case Officer ….Applicant

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-Vs-

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Mr. S. Abdul Basith, S/o Mr. Shahul Hameed, No.54, Vasantha garden, 2^nd Main Road, Ayanavaram, Chennai- 600 023

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Also at:

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Mr. S. Abdul Basith, S/o Mr. Shahul Hameed, Arshiya Impex, No.16/14, 2^nd floor, Muttukara Veerabathran street, Chennai - 600 003

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Also at:

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Mr. S. Abdul Basith, S/o Mr. Shahul Hameed, Flat No.S-3, 2^nd floor, PA Builders, Sree Rajarajeswari Nagar, Perungaluthur, Chennai- 600 063 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant: M/s. Ambalvannan

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Defendant was set ex-parte on 12.08.2024

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O.A. No.180 of 2024

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23.07.2026

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: - FINAL ORDER- :

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This Original Application is filed on 07.11.2023 by the applicant bank under Section 19(1) 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 Rs.63,79,000/- (Rupees Sixty Three Lakhs Seventy Nine Thousand only) as follows:

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(a) A sum of Rs.60,17,833/- due in respect of Home Loan (A/c No.40375125436) repayable together with further interest @9.8% p.a. with monthly rests from the date of Application till the date of realization in full;

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(b) A sum of Rs.3,61,867/- due in respect of Sureksha Loan (A/c No.40376584319) repayable together with further interest @9.15% p.a. with monthly rests from the date of Application till the date of realization in full;

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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 the defendant had

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O.A. No.180 of 2024

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23.07.2026

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approached the applicant bank and submitted written application form to the applicant bank requesting financial assistance for home loan on the strength of the property mentioned in the schedule of property. Upon scrutiny of the documents, the applicant bank had in terms of the arrangement letter on 17.08.2021 sanctioned a sum of Rs. 57,25,000/towards principal amount vide A/c No. 40375125436. The defendant also availed Sureksha Loan for a sum of Rs.3,49,281/- for insurance vide account bearing A/c No. 40376584319.

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It is submitted that the Memorandum of Loan Agreement for Home Loan dated 17.08.2021 has been entered between the applicant bank and the defendant. As per the terms of the agreement, the defendant had agreed to repay the said loan together with interest @7.30% p.a. by EMI of Rs.41,565/-. Further in terms of said agreement, in the event of default committed by the defendant, he had agreed and undertaken to pay a penal/additional interest on the balance amount that is due and payable by the defendant. It is submitted that presently the rate of interest is @9.8% p.a. for the home loan account and 9.15%p.a. for Sureksha loan.

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The applicant bank submits that to secure the loan availed, the defendant had created equitable mortgage dated 19.08.2021 in favour of the applicant bank mortgaging the land and residential building mentioned in the schedule of the property. It is further submitted that the defendant has deposited the original Construction Agreement and Sale Deed both dated 19.08.2021 registered as Doc. No. 5678 of 2021 and 56769 of 2021

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respectively on the file of Sub Registrar Office of Padappai with the

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O.A. No.180 of 2024

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applicant bank. Further the defendant had executed an EM confirmation letter dated 02.09.2021 thereby confirmed creation of equitable mortgage and the deposit of original documents relating to the schedule of property with the applicant bank.

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It is submitted that subsequent to availing of loan, the Defendant in contradiction to the undertaking to abide by the terms of the agreement and duly repay the principal with interest, committed default and was irregular in repayment. Hence the applicant has classified the loan account as Non Performing Asset (NPA) on 17.07.2023. Even after giving sufficient time and repeated request made by the applicant bank to defendant, he did not come forward to regularize the loan account. Hence the applicant bank has issued Demand Notice under Section 13(2) of SARFSESI Act dated 18.07.2023 to the defendant calling upon him to pay a sum of Rs.58,52,828/- for Home loan and RS.3,52,592/- for Sureksha loan. The notice sent to the defendant have been delivered; however the defendant intentionally evaded the payment of lawful dues to the applicant. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which was returned unserved with postal endorsement as ‘Left’ in respect of 1^st and 2^nd addresses, while summons to the 3^rd address returned as ‘Unclaimed’, which is deemed service. When OA was taken up on 12.08.2024 even after giving sufficient time, there was no appearance or representation

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O.A. No.180 of 2024

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from the defendant. Hence, Defendant was placed ex-parte on 12.08.2024.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Mr. K. Ranjeeth Kumar, City Case Officer, SARB-II, Chennai of the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW1 and list of documents came to be marked as Ex A-1 to A-9.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-9 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms 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 Defendant.

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The Defendant was set ex-parte on 12.08.2024, 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 Defendant are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim against Defendant.

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O.A. No.180 of 2024

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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, for a recovery of a total sum of Rs.63,79,000/- (Rupees Sixty

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Three Lakhs Seventy Nine Thousand only) as follows:

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(i) A sum of Rs.60,17,833/- due in respect of Home Loan (A/c No.40375125436) repayable together with further interest @9.8% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.3,61,867/- due in respect of Sureksha Loan (A/c No.40376584319) repayable together with further interest @9.15% p.a. with monthly rests from the date of Application till the date of realization in full; along with costs of this OA.

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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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O.A. No.180 of 2024

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(d) If the sale proceeds of the mortgaged property is not sufficient 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 receipt 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 23^rd day of July, 2026)

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O.A. No.180 of 2024

23.07.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. K. Ranjeethkumar, City Case Officer, SARB-II 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 form for Housing loan	A-1
2.	17.08.2021	Arrangement letter	A-2
3.	17.08.2021	Loan agreement	A-3
4.	19.08.2021	Construction agreement	A-4
5.	19.08.2021	Sale deed	A-5
6.	19.08.2021	Memorandum relating to deposit of title deeds	A-6
7.	19.08.2021	EM confirmation letter	A-7
8.	18.07.2023	13(2) notice issued by the applicant bank with acknowledgement card	A-8
9	30.10.2023	Statement of accounts	A-9

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Witness Examined for the Defendant: -Nil-

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List of Documents Exhibited for the Defendant: -Nil –

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SCHEDULE OF PROPERTY

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SCHEDULE-A

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All that piece and parcel of Residential land with building property bearing Plot no.6 measuring an extent of 2948sq.ft comprised in Old survey No.41, Old Patta No.3114 as per patta in Survey No.41/4, New Patta No.9702 as per Patta in Survey No.41/4 of layout Approval No.C.M.D.A/A.P.P.D/L.O No. 133/92, “Sree Rajarajeswari Nagar” No.28, Perungalathur village, lying within the registration district of Chennai South and sub registration district of Padappai and bounded on the North by: 30 feet road

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O.A. No.180 of 2024

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South by: Plot No.7

East by: Mr. L.C. Joseph Property

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West by: 16 feet road Measuring:

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East to West on the Northern side: 56 feet

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East to West on the Southern side: 56.6 feet

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North to South on the Eastern side: 36+20 feet

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North to South on the Western side: 67 feet

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In all measuring 2948sq.ft and lying within the registration district of

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Chennai south and Sub registration district of Padappai.

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SCHEDULE - B

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An extent of 400sq.ft of undivided share of land out of 2948 sq.ft in Plot No.6 together with RCC Roofed Flat bearing Flat No.S-3 measuring 1150 sq.ft in second floor of the premises and covered car parking including common amenities and common area.

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

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Uploaded on 23.07.2026 at 13:30 hours

State Bank of India v. Abdul Basith

Case brief

What is this about?

What did the court decide?

State Bank of India v. Abdul Basith

Case brief

What is this about?

What did the court decide?

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