Allowed

Bank of Maharashtra v. Iyappan

DRT6 Jul 2026OA/262/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal considered an application filed by Bank of Maharashtra for recovery of dues amounting to approximately Rs. 33.33 lakhs along with interest from two borrowers who defaulted on a housing loan. The defendants were set ex-parte as they failed to appear despite notice. The Tribunal allowed the application to recover the claim through the sale of mortgaged properties and pers

What did the court decide?

The applicant bank is allowed to recover Rs. 33,33,752 plus 12.30% interest from defendants jointly and severally, with liberty to recover via sale of mortgaged property and personal assets.

Bank of Maharashtra versus Iyappan — Contract and Commercial Disputes | DRT (2026)

¶1

O.A. No. 262 of 2024

¶2

06.07.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 06^th day of July, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No.262 of 2024

¶8

Bank of Maharashtra, Asset Recovery Branch, No.4, Sivagnanam Road, T. Nagar, Chennai- 600 017 Represented by its Chief Manager ….Applicant

¶9

-Vs-

¶10

Mr. S. Iyappan,

¶11

S/o M. Subramania Pillai, No.3E, Toovipuram 1^st Street, Tuticorin, 628 003

¶12

Mr. I. Subramanian,

¶13

S/o S. Iyappan,

¶14

No.3E, Toovipuram 1^st Street, Tuticorin, 628 003 …..Defendants

¶15

Counsels on record / appeared:

¶16

Counsel for Applicant: M/s. Radhakrishnamurthy

¶17

Defendants 1 and 2 were set ex-parte on 11.11.2024

¶18

: - FINAL ORDER- :

¶19

This Original Application is filed on 20.12.2023 by the applicant bank

¶20

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 a total sum of Rs.33,33,752/- (Rupees Thirty Three Lakhs Thirty Three Thousand Seven Hundred and Fifty Two only) due in respect

¶21

of Housing Loan (A/c No.60386974839) repayable together with

¶22

Uploaded on 06.07.2026 at 17:00 hours

¶23

O.A. No. 262 of 2024

¶24

¶25

06.07.2026

¶26

further interest @12.30% 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.

¶27

Brief Facts of the case:

¶28

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.

¶29

It is the case of the applicant bank that at the request of the defendants vide Housing Loan application dated 22.06.2021, the applicant bank had sanctioned Housing Loan of Rs.30,00,000/- on 22.06.2024 to the defendants under MAHA SUPER HOUSING LOAN scheme for purchase of a house.

¶30

It is submitted that the defendants have jointly availed the Housing Loan under housing scheme on 22.06.2021 in a sum of Rs.30,00,000/-, for which the defendants have jointly executed the following documents on 22.06.2021:

¶31

a) Application/ request letter for making credit facility available.

¶32

b) Demand Promissory Note dated 22.06.2021 for Rs.30 lakhs promising to repay the amount together with interest thereon at 1% per annum above RLLR (Currently 7.9%p.a.) with monthly rests from the date hereof, till the date of realisation or at such other rates as may be revised by the bank from time to time

¶33

Uploaded on 06.07.2026 at 17:00 hours

¶34

O.A. No. 262 of 2024

¶35

¶36

06.07.2026

¶37

compounded monthly for the value received.

¶38

c) Housing Loan Agreement

¶39

d) Receipt for amount of loan.

¶40

It is submitted by the applicant bank that the defendant have agreed to the terms and conditions of sanction of Housing Loan, wherein they have agreed to repay the loan with interest in 300 Equated Monthly Instalments of Rs.22,956/- per month commencing from 21.07.2021 and thereafter the subsequent installment on or before the same day of each month till the closure of loan and promising to repay the said sum on demand together with interest at RLLR 7.09% per annum compounded at monthly rests as such rates or other rates as may be revised by RBI bank from time to time.

¶41

The applicant submits that as security for the advances made to the defendants, the 1^st defendant on 14.07.2021, deposited with the applicant’s branch at Tuticorin and confirmed the said deposit of title deeds on 14.07.2021. The title deeds relating to his property morefully described in schedule to the OA hereunder with intent to create an equitable mortgage as security for the advances made to the defendants.

¶42

The above mortgage property had also been registered before the Sub Registrar, Tuticorin on 12.08.2021 vide registered Doc.No.3209 of 2021 by way of Memorandum of Deposit of Title Deeds executed by the 1^st defendant.

¶43

The applicant submits that subsequent to availing of the loan, the

¶44

Uploaded on 06.07.2026 at 17:00 hours

¶45

O.A. No. 262 of 2024

¶46

06.07.2026

¶47

¶48

repayment of the instalments towards the loan by the defendants was very irregular and inspite of several requests the defendants have not regularized the account. Till date defendants have not cleared the outstanding. The applicant also sent Demand Notice dated 11.07.2022 under Section 13(2) of SARFAESI Act to the defendants but there was no response. As on 27.11.2023 the balance outstanding in respect of the above loan is Rs.33,53,752/-.

¶49

The applicant submits that as per the documents executed, the defendants are jointly and severally liable to pay the claim in this application. As per the directions of the Bank/Reserve bank of India, the present rate of interest on the outstanding is 12.30% per annum with monthly rests (including 2% penal interest) towards housing loan account.

¶50

The applicant further submits that compound rate of interest has been charged at such rates and capitalized at such periodical rests as are permitted by and do not run counter to the directives of the Reserve Bank of India as laid down by the Supreme court in AIR 2001 SC 3095 at 3119.

¶51

In view of the default in the payment of the dues by the defendants as agreed upon in terms of the secured facilities aforesaid, the applicant is entitled to demand repayment from the defendants the amount due as aforesaid and enforce the rights against the mortgage property described in schedule hereunder. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶52

Uploaded on 06.07.2026 at 17:00 hours

¶53

O.A. No. 262 of 2024

¶54

06.07.2026

¶55

¶56

After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with remarks “Addressee left without instruction” in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 11.11.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 11.11.2024.

¶57

Heard the submissions of Applicant Bank and perused the

¶58

records.

¶59

To prove the case of the Applicant Bank, Mr. Tulsiram Sahoo, Chief 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-8.

¶60

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-8 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 defendants.

¶61

The defendants were set ex-parte on 11.11.2024 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

¶62

Uploaded on 06.07.2026 at 17:00 hours

¶63

O.A. No. 262 of 2024

¶64

06.07.2026

¶65

¶66

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.

¶67

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:

¶68

: O R D E R :

¶69

The OA is allowed with costs,

¶70

(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.33,33,752/- (Rupees Thirty Three Lakhs Thirty Three Thousand Seven Hundred and Fifty Two only) due in respect of Housing Loan (A/c No.60386974839) repayable together with further interest @12.30% p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this application.

¶71

(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.

¶72

Uploaded on 06.07.2026 at 17:00 hours

¶73

O.A. No. 262 of 2024

06.07.2026

(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 1 and 2 (both movable and immovable) to recover the balance dues as required under law for which the Defendants 1 and 2 to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

¶78

(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.

¶79

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

¶80

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

¶81

Uploaded on 06.07.2026 at 17:00 hours

¶82

O.A. No. 262 of 2024

¶83

¶84

06.07.2026

¶85

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

¶86

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

¶87

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 06^th day of July, 2026)

¶88

ANNEXURES

¶89

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶90

AW-1: Mr. Tulsiram Sahoo, Chief Manager of the Applicant Bank

¶91

Exhibits on the part of the Applicant:

¶92

Sl. No.	Date	Description of Documents	Exhibit No.
1.	22.06.2021	Sanction letter issued by applicant bank for Rs.30.00lakhs	A-1
2.	22.06.2021	Application/ request letter	A-2
3.	22.06.2021	Demand promissory note	A-3
4.	22.06.2021	Housing loan agreement	A-4
5.	22.06.2021	Receipt for amount of loan by debts	A-5
6.	12.08.2021	MOD by 1^stdefendant	A-6
7.	11.07.2022	13(2) SARFAESI notice	A-7
8.		Certified statement of accounts	A-8
9.	07.07.2021	Registered sale deed executed in favour of S.Iyappan vides Reg Doc.No. 2514/2021	A-9

¶93

Witness Examined for the Defendants: -Nil-

¶94

List of Documents Exhibited for the Defendants: -Nil –

¶95

SCHEDULE OF PROPERTY

¶96

(As per Document No.2514/2021)

¶97

Tuticorin Registration district, Tuticorin Melur Sub registry office, Jurisdiction, Tuticorin taluk, Meelavittan part-I village, Survey No.249/3

¶98

Uploaded on 06.07.2026 at 17:00 hours

¶99

O.A. No. 262 of 2024

¶100

¶101

06.07.2026

¶102

area 5 acres 80 cents in southern end eastern side, area 1 acre of land divided into residential plots in it Plot No.64 eastern side situate plot boundaries are

¶103

North of: Muthulakshmi owned S.No.248/1C place

¶104

South of: 20feet broad east west road

¶105

East of: The above Plot No.64 in its western C. Vijayalakshmi owned plot West of: Plot No.65

¶106

Within these four boundaries

¶107

East west (North and south): 20 feet North south (West): 63 ¼ feet

¶108

North south (East): 64 ¼ feet

¶109

Area 1275 sq.ft equal to 118.450sq.meter equal to 2.926 cents of vacant plot and in it presently brick built R.C.C. roofed house bearing corporation door no. 2H/1226/11 along with electric connection, flush out latrine inclusive.

¶110

The above property was in survey no.249/3A and then on Survey No.249/3A1 part and presently as per computer patta no.3227 in sub division S.No.249/3A1 now as per sub division Survey no.249/3A1A1A in it situate.

¶111

The above property was formerly within Meelavittan village panchayat and presently within Tuticorin corporation limits.

¶112

Sd/-

¶113

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

¶114

Uploaded on 06.07.2026 at 17:00 hours

Bank of Maharashtra v. Iyappan

Case brief

What is this about?

What did the court decide?

Bank of Maharashtra v. Iyappan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Gulab

Bank of Baroda versus Akshaya Foods

Shri Bharath Vasan versus State Bank of India

Bank of Baroda versus Koilraj

Canara Bank versus Red Sun International

Punjab National Bank versus Raju