Allowed

State Bank of India v. Ramanathan

DRT6 Jan 2026OA/305/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of dues totaling Rs. 70,31,407/- from the defendant. The court ruled that due to the defendant's default and failure to appear (ex-parte), the bank was entitled to recover the principal, interest, and costs, allowing for the sale of mortgaged immovable property if necessary.

What did the court decide?

Recovery of Rs. 70,31,407/- including interest and costs; liberty to sell mortgaged property upon default.

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

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O.A. No. 305 of 2024

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06.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 305 of 2024

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State Bank of India, SARB-II, Represented by its Deputy Manager, Having its Office at No. 44, I Floor, Eldams Road, Teynampet, Chennai – 600 018. ….Applicant -Vs-

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Mr. J. Ramanathan, S/o. Jeyaraman, Old No. 15 & 16, New No. 10, Kannika Colony, II Street, Nanganallur, Chennai – 600 061. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. N. Kishore Kumar Defendant was set ex-parte on 09.01.2025

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: - FINAL ORDER - :

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This Original Application is filed on 25.01.2024 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. 70,31,407/- (Rupees Seventy Lakhs Thirty One Thousand Four Hundred and Seven only) as follows:

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(i) A sum of Rs.65,06,484/- due in respect of Home Loan (Account No.40327985024) repayable together with further interest @ 9.55% p.a. the date of Application till the date of

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realization in full;

(ii) A sum of Rs.5,24,923/- due in respect of Suraksha and Insurance Loan (Account No.40335067671) repayable together with further interest @ 9.55% p.a. the date of Application till the date of realization in full;

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

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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 approached the applicant bank seeking financial assistance for purchase of OA schedule mentioned property and submitted Loan Application dated 18.06.2021 seeking for a Home Loan of Rs.60,00,000/- (Rupees Sixty Lakhs Only).

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It is submitted that the Applicant Bank had positively considered the Loan Application and had sanctioned a sum of Rs. Rs.58,43,000/- (Rupees Fifty Eight Lakhs Forty Three Thousand Only) to the defendant vide Sanction Letter dated 31.07.2021. The Applicant Bank had issued Letter of Arrangement dated 31.07.2021 and duly acknowledged by the

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Defendant. The Defendant had entered into a Memorandum of Loan Agreement dated 31.07-2021 with the Applicant Bank. The Defendant is therefore liable to repay the loan.

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The Applicant submits that the Defendant had also applied for a loan for payment of Life Insurance premium of Rs.4,79,046/- (Rupees Four Lakh Seventy-Nine Thousand and Forty-six Only) and submitted Application for Insurance Loan dated 31.07.2021. The Defendant had also executed an Additional Loan Agreement dated 31.07.2021.

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It is submitted by the applicant bank that the Defendant had entered into an Agreement to Mortgage and deposited the Title Deeds of the property being a Flat No. 52, with built up area of 890 sq. ft, (including common area, one covered car park) Second Floor, in Block168, along with 302 sq., ft., undivided share land out of a total extent t of of 3898 3898 sq. ft., of land, in the layout named as "GANAPATHY NAGAR”, situated at Kattupakkam Village, Poonamallee Revenue Taluk, Thiruvallur District more fully described in the Schedule hereunder. The Defendant had executed Registered Memorandum Relating to Deposit of Title Deeds dated 03-08-2021, with respect to Schedule Mentioned Property in favour of the Applicant Bank. The same was Registered as Document No. 13491 of 2021, in the office of the Sub Registrar Kunrathur.

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It is submitted that the Defendant had also deposited the following

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Title Deed of the property being,

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(i) Construction Agreement dated 03-08-2021, between Tamil Homes Represents by Muthamil Selvam and the Defendant, Registered as Document No. 13489 of 2021, in the office of the Sub Registrar at Kundrathur.

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(ii) Sale Deed dated 03-08-2021, executed by K.Thangavel in favour of Defendant Registered as Document No. 13490 of 2021, at the Sub Registrar Office at Kundrathur.

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The Applicant further submits that the Defendant had executed a Confirmation Letter for creation Equitable Mortgage by Deposit of Title Deeds dated 07.08.2021 with the Applicant Bank with respect to Home Loan

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The Applicant submits that subsequent to availing of loan, the Defendant as a borrower and as Mortgagor did not repay the loan in terms of agreement and thus committed repeated default. The Applicant, in accordance with the directives of the RBI by way of Asset classification and Income Recognition Norms had classified the accounts of the defendant as Non-Performing Asset (NPA) on 14.12.2022.

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The Applicant Bank submits that in spite of repeated requests and demands made by the Applicant Bank to repay the loan the Defendant has not repaid the loan amount. The Applicant Bank, through its Authorised Officer had also initiated action under SARFESI Act. The Applicant Bank submits that they have no other option but also to initiate

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action for recovery of the outstanding amount since the Defendant has become evasive and un-co-operative. 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 returned unserved with postal endorsement as ‘Left’ in respect of the defendant. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 09.01.2025 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 09.01.2025.

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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. Surendar S, Manager, SARB-II 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-12 . As the Defendant remained exparte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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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

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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

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for recovery of a total sum of Rs. 70,31,407/- (Rupees Seventy

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Lakhs Thirty One Thousand Four Hundred and Seven only) as follows:

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(i) A sum of Rs.65,06,484/- due in respect of Home Loan (Account No.40327985024) repayable together with further interest @ 9.55% p.a. the date of Application till the date of realization in full;

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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 B mentioned immovable property more-fully detailed in the OA schedule.

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

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OA amount together with interest, costs etc., to be paid by the

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

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(f) 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 PS, transcribed by her, corrected, signed and pronounced by me on this the 06^th day of January, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Sh. Surendar S, Manager, SARB-II representing 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.	18.06.2021	^Loan Application submitted by the defendant to the applicant bank	A-1
2.	31.07.2021	Sanction Letter issued by the Applicant	A-2

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		bank to the defendant
3.	31.07.2021	^Letter of Arrangement given by applicant bank to the defendant	A-3
4.	31.07.2021	Memorandum of Loan Agreement for Home Loan between the applicant bank and defenant	A-4
5.	31.07.2021	The request Letter for Insurance Loan submitted by the defendant to the applicant bank	A-5
6.	31.07.2021	Application for Insurance Loan submitted by the defendant to the applicant bank	A-6
		Additional Loan Agreement for Life
7.	31.07.2021	Insurance Loan between the applicant bank and defendant	A-7
8.	03.08.2021	Memorandum relating to Deposit of Title Deeds executed by defendant in favour of applicant bank, registered as Doc. No. 13491 of 2021 in the office of the Sub-Registrar, Kunrathur	A-8
9.	03.08.2021	Construction Agreement between Tamil Homes represents by Muthamil Selvam and the defendant, registered as Doc. No. 13489 of 2021 in the office of the Sub Registrar at Kundrathur	A-9
10.	03.08.2021	Sale Deed executed by K. Thangavel in favour of defendant registered as Doc. No. 13490/2021 at the Sub-Registrar Office at Kundrathur	A-10
11.	07.08.2021	Confirmation Letter for creation equitable mortgage by deposit of title deeds had also issued by defendant to the applicant bank with respect home loan	A-11
12.	--	Statement of Accounts	A-12

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Witness Examined for the Defendant

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: -Nil-

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List of Documents Exhibited for the Defendant : -Nil –

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SCHEDULE - A

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All that piece and parcel of House site bearing Plot No. 16, measuring an extent of 3898 Sq.ft. of land, Sub Divided into Plot No. 16A, measuring 1900 Sq.ft. and Plot No. 16B measuring 1998 Sq.ft., Land

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comprised in survey No. 211, bearing Patta No. 1526 as per Patta New Survey No. 211/9, the layout named as “Ganapathy Nagar” situated at Kattupakkam Village, Poonamallee Revenue Taluk, Thiruvallur District and being bounded on the

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North by : Plot belonged to Mr. Vimalanathan South by : Plot belonged to Mrs. Jayalakshmi East by : Plot No. 17 West by : 24 Feet Road

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Measuring:

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East to West on the Northern side : 58 Feet 75 Inches East to West on the Southern side : 60 Feet 05 Inches North to South on the Eastern side : 70 Feet 25 Inches North to South on the Western side : 60 Feet 05 Inches

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In all measuring an extent of 3898 Sq.ft. of land and situated within the Sub-Registration District of Kundrathur and Registration District of Chennai South. This property is within the limits of Poonamallee Panchayat Union.

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SCHEDULE-B

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An undivided share of vacant land of 302 Sq.ft. from and out of the total extent of 3898 Sq.ft. more-fully described in Schedule-“A” here above, along with Flat No. S-2, with built up area of 890 Sq.ft. (including common area, one covered car park) Second Floor, in Block-16B.

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Sd/-

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

State Bank of India v. Ramanathan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ramanathan

Case brief

What is this about?

What did the court decide?

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