Allowed

Central Bank of India v. Sasi

DRT9 Jun 2026OA/277/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Central Bank of India for recovery of dues of Rs. 36.47 lakhs as a housing loan defendant failed to regularize the account. The Tribunal confirmed the bank's claim, allowed recovery of principal, interest, and costs, and authorized the sale of the mortgaged property to satisfy the dues.

What did the court decide?

Recovery of Rs.36,47,903.58 plus interest at 9.60% p.a. and penal interest; liberty to sell mortgaged property and personal assets for balance dues.

Central Bank of India versus Sasi — Banking and Recovery | DRT (2026)

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O.A. No.277 of 2024

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09.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.277 of 2024

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Central Bank of India, Selaiyur Branch, No.254, Velachery Main Road, Sembakkam, Chennai-600 073 Represented by its Senior Branch Manager ….Applicant

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-Vs-

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Mrs.B. Sasi, W/o Mr. P. Babu,

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No.4, Ramasami Padayachi Street, Selaiyur, Chennai- 600 073

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Mr. P. Babu, S/o Mr.Perumal,

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No.4, Ramasami Padayachi Street, Selaiyur, Chennai- 600 073 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant: M/s W.S. Jayaprakash

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Defendants 1 and 2 were set ex-parte on 19.11.2024

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: - FINAL ORDER- :

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This Original Application is filed on 08.12.2023 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, for recovery of a total sum of Rs.36,47,903.58p (Rupees Thirty Six Lakhs Forty Seven Thousand

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Nine Hundred and Three and Fifty Eight Paisa only) due in respect of Housing Loan (A/c No. 4045683756) repayable together with further

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O.A. No.277 of 2024

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interest @ 9.60% p.a. with monthly rests with simple penal interest of 2% p.a. 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 the 1^st defendant herein, a self employed person who was running wholesale business of groceries under name and style of M/s Rainbow Traders, along with her husband, the 2^nd defendant, applied to the applicant bank on 03.09.2019 for a Housing Loan for purchase of a residential flat.

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It is submitted that after examining their application, the applicant bank sanctioned Housing Loan limit Rs.31,20,000/- on 20.09.2019, which is repayable in 180 months at an EMI of Rs.30,450/- together with interest at 8.35% (floating rate of interest) with monthly rests against security of equitable mortgage of immovable property being 423 sq.ft undivided share of land out of total extent of 2800sq.ft comprised in survey Nos.213/2A and 213/3 as per patta sub-division survey No.213/20 together with 1099 sq.ft R.C.C. Terraced building in first floor with all amenities, Flat no.F-1, Plot no. 82. “Maple”, “Vijay Nagar”, Varadharajapuram, Chennai morefully described in Schedule-B to the OA.

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O.A. No.277 of 2024

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09.06.2026

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The defendants agreed to the terms and conditions of the sanction and signified their acceptance by signing the sanction letter dated 20.09.2019 and availed the Housing Loan limit of Rs.31,20,000/- vide account bearing No.4045683756 by executing the documents mentioned hereunder:

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a) Loan Agreement dated 30.09.2019 executed by the 1^st defendant and 2^nd defendant for a loan of Rs.31,20,000/-

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b) Letter dated 30.09.2019 agreeing to pay interest rates as notified by the applicant executed by the 1^st and 2^nd defendants.

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It is submitted by the applicant bank that the 1^st defendant availed the Housing Loan facility and created mortgage by deposit of tile deeds with bank on 01.10.2019 and executed Memorandum of deposit of title deeds dated 01.10.2019 duly registered as Document No.7304 of 2019 in sub registrar office, Padappai.

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The 1^st defendant deposited the following document to title along with other documents:

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a) Sale Deed dated 01.10.2019 in favour of the 1^st defendant (Doc.No.7303/2019)

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b) Agreement for Construction dated 01.10.2019 between best value homes and the 1^st defendant (Doc.No.7302/2019)

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The applicant bank submits that subsequent to availing of loan, the defendants failed to operate the Home Loan limit satisfactorily, resulting in the account becoming sticky and Non Performing and consequently was

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O.A. No.277 of 2024

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classified as Non-Performing Asset (NPA) on 30.01.2022. Inspite of various demands/reminders to regularize the liability account, the defendant failed to regularize the loan account. As there was no positive response to demands of the applicant, SARFAESI action was initiated and Demand Notice dated 07.07.2022 was issued to the borrower and as there were no payments forthcoming, followed by the Possession Notice dated 06.01.2023. Inspite of the same, there was no positive response to make payments.

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In view of the commercial nature of the transaction the interest is levied as per bank’s extant guidelines under Sec 21 a of the Banking Regulation Act and the defendants are liable to pay contractual rate of interest as provided under Sec 34 of C.P.C. As per the directives of the Reserve Bank of India, interest should not be applied to the accounts once the account is classified as NPA. Even though interest has accrued in the liability account from 31.01.2022 the same was not applied to the account. However the same will not relieve the defendants in respect of unapplied interest on the overdraft till date and the defendants are jointly and severally liable to pay further interest along with overdue interest for the period from date of filing O.A. onwards till date of realization. Despite repeated requests and demands, as defendants did not come forward to repay the dues, 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 were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was

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returned with remarks ‘No such Person’ 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 19.11.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 19.11.2024.

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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. Nimbay Marandi, Chief Manager of the Applicant Bank, Tambaram Branch 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-10 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-10 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.

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The defendants were set ex-parte on 19.11.2024, 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 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

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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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The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and 2, a total sum of Rs.36,47,903.58p (Rupees Thirty Six Lakhs Forty Seven Thousand Nine Hundred and Three and Fifty Eight Paisa only) due in respect of Housing Loan (A/c No. 4045683756) repayable together with further interest @ 9.60% p.a. with monthly rests with simple penal interest of 2% p.a. 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 immovable property morefully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable property is not sufficient

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to satisfy the dues as ordered above, the applicant bank is at liberty

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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 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 09^th day of June, 2026)

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O.A. No.277 of 2024

09.06.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Nimbay Marandi, Chief Manager of the Applicant Bank, Tambaram Branch

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	03.09.2019	Loan application dated 03.09.2019 for home loan signed by the 1^stdefendant and 2^nddefendant	A-1
2.	20.09.2019	Sanction letter dated 20.09.2019 for housing loan facility of Rs.31,20,000/- duly acknowledged agreeing to terms and conditions by the defendant	A-2
3.	30.09.2019	Loan agreement executed by the defendants.	A-3
4.	30.09.2019	Letter agreeing to higher interest as and when notified signed by the defendants	A-4
5.	01.10.2019	Memorandum of deposit of title deed dated 01.10.2019 executed by the 1^st defendant registered Document No. 7304/2019, SRO Padappai	A-5
6.	01.10.2019	Sale deed executed by M/s Best value homes represented by its partner Mr.R.Balu in favour of the 1^stdefendant registered as Document No.7303/2019, SRO Padappai	A-6
7.	01.10.2019	Agreement for construction between M/s Best value homes represented by its partner Mr.R.Balu in favour of the 1^st defendant registered as Document No.7302/2019, SRO Padappai	A-7
8.	07.07.2022	Demand notice13(2) of SARFAESI Act issued to defendants	A-8
9.	06.01.2023 & 11.01.2013	Possession notice u/s 13(4) of SARFAESI Act & Returned postal cover sent to 1^st defendant	A-9
10.		Statement of account of loan A/c No. 4045683756 for the period from 30.09.2019 to 31.07.2023 duly certified under Bankers book evidence act, affidavit for non-capitalisation of penal interest.	A-10

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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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SCHEDULE-A

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All that piece and parcel of vacant house site bearing plot no.82 measuring an extent of 2800sq.ft comprised in survey Nos.213/2A and 213/3, Old patta No.8940, New Patta No.11789 as per patta sub-division Survey No.213/20 in the layout named “Vijay Nagar”, approved by D.D.T.P.L.A. No. 250/1973 situated in No.111, Varadharajapuram village, Sriperumbudur takuk, Kancheepuram district, planning permit No.911/2013, D.Dis.3063/2013/A3 dated 26.08.2013 Commissioner, Kundrathur Panchayat union @ Padappai given by member secretary CMDA, Chennai 600008 and No. Mu.Mu.143/2013-2014 dated 21.10.2013, Executive officer, Commissioner, Varadharajapuram, first grade panchayat, Kundrathur panchayat union

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Bounded on the North by: 30 feet road

South by: Plot no.89

East by: Plot no.83

West by: Plot no.81

SCHEDULE-B

423sq.ft undivided share of land out of 2800sq.ft morefully described in schedule-A property together with built up area of 1099sq.ft R.C.C. terraced building in first floor with all its amenities, Flat no.F-1, Plot no. 82. “Maple”, Vijay nagar, Varadharajapuram, Chennai.

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

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Uploaded on 09.06.2026 at 16:00 hours

Central Bank of India v. Sasi

Case brief

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What did the court decide?

Central Bank of India v. Sasi

Case brief

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