Allowed

State Bank of India v. Srinivasan

DRT18 Jun 2026OA/227/2022

Case brief

AI extract

What is this about?

The DRT-III allowed the Applicant Bank's Original Application for recovery of dues aggregating Rs. 30 lakhs from three loans (Crop, Milch Animals, Pipeline). Being ex-parte, the Defendant failed to contest. The Tribunal approved recovery of principal, interest, and costs, with liberty to sell specified immovable and personal assets.

What did the court decide?

Recovery of Rs. 30,09,464.35 plus interest and costs; liberty to sell scheduled immovable property and Defendant's other assets for balance due.

State Bank of India versus Srinivasan — Banking and Recovery | DRT (2026)

¶1

O.A. No.227 of 2022

¶2

18.06.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 18^th day of June, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No.227 of 2022

¶8

State Bank of India, Tiruvallur ADB branch, Rep by its Branch Manager, Tiruvallur ….Applicant -Vs-

¶9

C. Srinivasan, S/o Chithambaram, Melandai Street, Thomur Village, Ramanjeri Post, 631 204 Tiruvallur Taluk and District …..Defendant

¶10

Counsels on record / appeared:

¶11

Counsel for Applicant: M/s. D. Mukundan

¶12

Defendant was set ex-parte on 13.10.2022

¶13

: - FINAL ORDER- :

¶14

This Original Application is filed on 23.06.2022 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 defendant for recovery of a total sum of Rs.30,09,464.35p (Rupees Thirty Lakhs Nine Thousand Four Hundred and Sixty Four and Thirty Five Paise only) as follows:

¶15

(i) A sum of Rs.1,42,074.03p due in respect of Crop Loan (A/c

¶16

No.35697033895) repayable together with further interest @7% p.a. with half yearly rests from the date of Application till the date of realization in full;

¶17

Uploaded on 18.06.2026 at 16:25 hours

¶18

O.A. No.227 of 2022

¶19

¶20

18.06.2026

¶21

(ii) A sum of Rs.7,88,555.46p due in respect of Milch Animals

¶22

& Diary Loan Account (A/c No.36542794919) repayable together with further interest @10.60% p.a. with half yearly rests from the date of Application till the date of realization in full;

¶23

(iii) A sum of Rs.20,78,834.86p due in respect of Pipeline Loan (A/c.No.37470239629) repayable together with further interest @10.60% with half yearly rests from the date of Application till the date of realization in full;

¶24

for sale of schedule mentioned immovable property and for costs of this OA.

¶25

Brief Facts of the case:

¶26

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.

¶27

It is the case of the applicant bank that the defendant approached the applicant and submitted a proposal dated 25.01.2017 seeking an advance of Rs.9,12,000/- for the purchase of Milch animals and setting up dairy.

¶28

It is submitted that considering the said request, the applicant bank sanctioned the advance vide letter dated 30.01.2017. The loan is repayable in 60 monthly instalments together with interest at 12% p.a. subject to variation from time to time as per RBI guidelines with half

¶29

Uploaded on 18.06.2026 at 16:25 hours

¶30

O.A. No.227 of 2022

¶31

¶32

18.06.2026

¶33

yearly rests. The defendant availed the advance under Hypothecation Agreement dated 30.01.2017.

¶34

The applicant submits that a year later the defendant negotiated with the branch for an advance of Rs.8,92,000/- for digging up borewell and laying pipelines. Considering the said request dated 11.01.2018, the applicant bank had sanctioned the loan on 12.01.2018. The said loan is repayable in half yearly instalments together with interest at 10.45% p.a. subject to variation from time to time as per RBI guidelines. The defendant supported the application with quotation from the supplier. The defendant availed the advance under Hypothecation Agreement on the same day on 12.01.2018.

¶35

It is submitted by the applicant bank that as a security for the advances, the defendant deposited title deeds of the immovable property belonging to him with an intent to create mortgage over the land morefully described in the schedule to the application in favour of the applicant bank.

¶36

The applicant released advances after the execution of loan and security documents and registration of security under MODs by the defendant. Subsequent to availing of loan, the defendant remitted some amount on 27.10.2016 and 24.04.2018 in the Crop Loan. In loan for the purchase of Milch animals, the defendants repaid some amounts from 22.05.2017 to 29.11.2018. In pipeline loan, the defendant repaid on various dates from 01.10.2019 to 03.02.2020. Thereafter, no further payments were made by the defendants. The repayments did not cover

¶37

Uploaded on 18.06.2026 at 16:25 hours

¶38

O.A. No.227 of 2022

¶39

18.06.2026

¶40

¶41

the interest portion of the loan amount. The account became NonPerforming Asset. After exhausting all efforts for recovery, the applicant bank issued Legal Notice dated 05.06.2022 to the defendants for which there was no response. 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 Sole Defendant through Registered Post with Acknowledgment Due, which was returned with postal endorsement ‘Left without instructions’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 13.10.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant were placed ex-parte on 13.10.2022.

¶43

Heard the submissions of Applicant Bank and perused the records.

¶44

To prove the case of the Applicant Bank, Sh. C. Stalin, Branch Manager, Tiruvallur ADB Branch 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-19.

¶45

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-19 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

¶46

Uploaded on 18.06.2026 at 16:25 hours

¶47

O.A. No.227 of 2022

¶48

18.06.2026

¶49

¶50

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.

¶51

The defendant was set ex-parte on 13.10.2022, 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 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.

¶52

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:

¶53

: O R D E R :

¶54

The OA is allowed with costs,

¶55

(a) The applicant bank is allowed to recover from the Defendant, a total sum of Rs.30,09,464.35p (Rupees Thirty Lakhs Nine Thousand Four Hundred and Sixty Four and Thirty Five Paise only) as follows:

¶56

(i) A sum of Rs.1,42,074.03p due in respect of Crop Loan (A/c No.35697033895) repayable together with further interest @7% p.a. with half yearly rests from the date

¶57

Uploaded on 18.06.2026 at 16:25 hours

¶58

O.A. No.227 of 2022

¶59

18.06.2026

¶60

¶61

of Application till the date of realization in full;

¶62

(ii) A sum of Rs.7,88,555.46p due in respect of Milch Animals & Diary Loan Account (A/c No.36542794919) repayable together with further interest @10.60% p.a. with half yearly rests from the date of Application till the date of realization in full;

¶63

¶64

(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 properties morefully detailed in the OA schedule.

¶65

¶66

(d) If the sale proceeds of the immovable property are 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.

¶67

(e) The applicant bank shall file the latest memo of calculation of

¶68

Uploaded on 18.06.2026 at 16:25 hours

¶69

O.A. No.227 of 2022

¶70

18.06.2026

¶71

¶72

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.

¶73

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

¶74

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

¶75

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

¶76

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

¶77

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 18^th day of June, 2026)

¶78

ANNEXURES

¶79

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶80

AW-1: Sh. C. Stalin, Branch Manager, Tiruvallur ADB Branch of the Applicant Bank

¶81

Exhibits on the part of the Applicant:

¶82

Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	04.04.2016	Loan application with residence proof for Rs.100000/-	A-1

¶83

Uploaded on 18.06.2026 at 16:25 hours

¶84

O.A. No.227 of 2022

¶85

¶86

18.06.2026

¶87

2.	04.04.2016	Letter of Arrangement	A-2
3.	04.04.2016	Hypothecation Agreement	A-3
4.	25.01.2017	Loan Application for Rs.9,12,000/-	A-4
5.	30.01.2017	Letter of Arrangement	A-5
6.	30.01.2017	Hypothecation Agreement	A-6
7.	11.01.2018	Loan Application for Rs.14,88,000/-	A-7
8.	12.01.2018	Letter of Arrangement	A-8
9	12.01.2018	Hypothecation Agreement	A-9
10	12.01.2018	Pronote and delivery letter	A-10
11.	23.01.2006	Registered Sale Deed no.79/2006 SRO, Thiruvelangadu	A-11
12.	30.01.2017	MOD.No.74/2017, SRO, Thiruvelangadu	A-12
13.	30.01.2017	Letter confirming deposit of title deeds	A-13
14.	18.02.1990	Registered sale deed 158/1990 SRO, Thiruvelangadu	A-14
15.	17.10.2003	Registered Will no.141/03 SRO, Thiruvelangadu	A-15
16.	12.01.2018	Registered MOD No.60/2018, SRO, Thiruvelangadu	A-16
17.	14.01.2018	Letter confirming deposit of title deeds	A-17
18.	05.06.2022	Legal Notice with returned cover	A-18
19.		Statement of Accounts	A-19

¶88

Witness Examined for the Defendants: -Nil-

¶89

List of Documents Exhibited for the Defendants: -Nil –

¶90

SCHEDULE OF PROPERTY

¶91

All Part and parcel of agricultural lands measuring 55 cents comprised in Sy.No.138/5 in Thomur village, Tiruvallur taluk and district coming within the Sub registration district of Thiruvalangadu and registration district of Kancheepuram.

¶92

All part and parcel of land 1520.75 sq.ft comprised in new Sy.No.270/11 and Old Sy.No.182/2 as per patta No.358 with building thereon situate in Thomur Village, Tiruvallur Taluk and District bounded North by: Bajanai Koil Street South by: Plot of Beeman East by: Property of Somasundaram

¶93

Uploaded on 18.06.2026 at 16:25 hours

¶94

O.A. No.227 of 2022

¶95

¶96

18.06.2026

¶97

West by: Plot of Kanniyammal

¶98

Within Sub Registration District of Thiruvalangadu and Registration District of Thiruvallur

¶99

East to west on the northern side: 16 ½ feet

¶100

East to west on the Southern side: 23 feet

¶101

North to south on the eastern side: 77 feet

¶102

North to south on the western side: 77 feet

¶103

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

¶104

Uploaded on 18.06.2026 at 16:25 hours

State Bank of India v. Srinivasan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Srinivasan

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

State Bank of India versus Muthuselvan

Lilly Leathers Represented by Its Proprietor Sir James Thananayagam and James Thananayagam and Hilda James versus Canara Bank

Corporation Bank versus Lookman Dresses

Union Bank of India versus Mp Paper Traders

M/s. Industrial Connections Rep. by its Proprietor S. Elamathy versus Encore Assets Reconstruction Company Private Limited

Indian Bank versus Mechniks Engineering Ability India