Allowed

Union Bank of India v. Bilaverndiran

DRT10 Apr 2026OA/317/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's Original Application for recovery of dues. The Tribunal found the claim proven after default in loan repayments, absent of any evidence from the defendants.

What did the court decide?

Recovery of Rs. 34,13,100/- with interest at 9.65% p.a., costs, and liberty to recover by sale of immovable property.

Union Bank of India versus Bilaverndiran — Banking and Recovery | DRT (2026)

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O.A. No.317 of 2022

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10.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 10^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 317 of 2022

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Union Bank of India, Karaikal branch Represented by its Senior Manager No.44, Mama Thambi Maraicar Street Karaikkal-609 602 ….Applicant

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-Vs-

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Mr. S. Bilavendiran S/o P. Santhiyagu No.6, North Street, Thakkalur Thirunallur Road

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Karaikkal

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Mrs.B.Arokia Jothy W/o Mr.S.Bilavendiran S/o P.Santhiyagu No.6, North Street, Thakkalur Thirunallur Road

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Karaikkal ...Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s K.S.Sundar

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Defendants 1 and 2 were set ex-parte on 27.12.2022

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: - FINAL ORDER- :

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This Original Application is filed on 25.05.2022 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 defendants 1 and 2, jointly and severally for recovery

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of a total sum of Rs.34,13,100/- (Rupees Thirty Four Lakhs Thirteen

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O.A. No.317 of 2022

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10.04.2026

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Thousand and One Hundred only) due in respect of Housing Loan (A/c No. CHOME/560631001749219) repayable together with further interest @ 9.65% 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.

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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 defendants requested for the grant of CHOME loan (Housing) for the construction of house in the schedule property owned by the 1^st defendant. The 1^st defendant along with the 2^nd defendant requested for the loan and offered schedule property situated in Karaikkal village, described in the schedule as security along with the house to be constructed. The defendants applied for the loan by their application dated 29.09.2015 requesting for the grant Rs.30 lakhs for the construction of house in the schedule property.

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It is submitted that the applicant bank considered the loan proposal and sanctioned RS.30,00,000/- by its Sanction Letter dated 16.10.2015 for the construction of the house.

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The applicant bank submits that in order to secure the loan, the 1^st and 2^nd defendants executed Agreement for Term Loan dated 20.10.2015

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O.A. No.317 of 2022

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10.04.2026

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agreeing to repay the Housing Loan of Rs.30 lakhs in 276 equated monthly instalments of Rs.27,261/- each and agreeing to pay interest at 9.65% pa. The 2^nd defendant as joint borrower agreed to repay the loan and executed the letter of undertaking dated 20.10.2015 agreeing for the terms and conditions of the loan.

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The applicant bank submits that the 1^st defendant obtained title clearance opinion dated 07.08.2015 and visited the applicant bank on 20.10.2015 and deposited the original title deeds relating to the immovable property described in the schedule to the OA with an intention to create equitable mortgage by deposit of title deeds and declared that the mortgaged security along with super structure to be constructed will remain available for the aforesaid housing term loan of RS.30,00,000/granted by the applicant bank together with interest and other charges.

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It is further submitted that after making the deposit of title deeds, the 1^st defendant executed the Memorandum of Deposit of Title Deeds on 20.10.2015 in favour of the applicant bank and registered the said document as Document No.21582 of 2015 in the office of the SubRegistrar, Thirunallar and thereby confirmed and assured the mortgage security in favour of the applicant bank and hence the loan of applicant bank is secured by the mortgage of the Schedule immovable property and the house construction thereon.

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The applicant submits that the first defendant availed the loan by operating the Term Loan account No CHOME/560631001749219 and constructed house in the schedule property but defaulted to repay the

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O.A. No.317 of 2022

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10.04.2026

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monthly instalments loan as agreed upon. The loan was availed by operating the aforesaid account and the same is evidenced by the certified ledger extract of the loan account certified under Banker’s Book Evidence Act. Inspite of repeated demands and inspection the 1^st defendant failed and neglected to repay the instalments as agreed upon and hence the entire loan was recalled. As per RBI guidelines as to the income recognition and prudential accounting norms, the account was classified as Non-Performing Asset (NPA) as on 18.10.2018 as the loan was irregular and the instalments were defaulted.

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The applicant further submits that the defendants agreed to repay the loan with interest at 9.65% with monthly rests as per the Term Loan Agreement and the effective rate is 9.65% with monthly rests. The interest will be charged on daily balances and such interest added to the outstanding interest becomes on the last working day of the calendar month and the outstanding interest becomes part of the amalgam. The defendants agreed to pay all the expenses, charges, service charges and godown inspection charges to the applicant bank. The applicant bank had made calculation as to the interest from the date of NPA to till date. The interest rates are subject to enhancement from time to time as may be decided by the applicant bank in conformity with stipulations of Banks advance rates. The defendants are not entitled for any reliefs under any of the Debts Relief Act. The loan transactions are commercial in nature and hence interest is charged as per RBI guidelines under Section 21 of the Banking regulation Act 1949.

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O.A. No.317 of 2022

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10.04.2026

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It is submitted by the applicant bank that the 1^st defendant failed and neglected to repay the loan amount, inspite of loan account being classified as NPA, the conduct of the loan account was irregular and consequently there was default in repayment of instalments. The applicant issued notice dated 25.03.2019 calling upon both the defendants to repay the aforesaid loan debts. The defendants received notice personally however the repayments were defaulted and account was not operated properly. Hence, 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 duly served in respect of D-1 and D-2. When OA was taken up on 27.12.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 27.12.2022

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Mr. A. Venkadasubramaniam, Deputy Branch Head 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

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A-14 .

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O.A. No.317 of 2022

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10.04.2026

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 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 27.12.2022, 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 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

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jointly and severally, a total sum of Rs.34,13,100/- (Rupees

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O.A. No.317 of 2022

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Thirty Four Lakhs Thirteen Thousand and One Hundred only)

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due in respect of Housing Loan (A/c No.

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CHOME/560631001749219) repayable together with further interest @ 9.65% p.a. with monthly rests from the date of Application till the date of realization in full and for 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 mentioned immovable property morefully detailed in the OA schedule.

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(d) 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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(e) The applicant bank shall file memo of costs within ten days from the date of receipt 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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O.A. No.317 of 2022

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10.04.2026

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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 10^th day of April, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. A. Venkadasubramaniam, Deputy Branch Head 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.	27.09.2015	Application for loan	A-1
2.	16.10.2015	Sanction intimation letter	A-2
3.	20.10.2015	Agreement for T. Loan (EMI)270 months	A-3
4.	20.10.2015	Letter of undertaking	A-4
5.	07.08.2015	Title opinion	A-5
6.	22.03.2012	Sale deed No.627/12 SRO Thirunallar.	A-6
7.	20.10.2015	MOD 21582/15 SRO Thirunallar	A-7
8.	11.09.2018	Acknowledgment of debt	A-8
9	11.09.2018	Acknowledgment of debt	A-9
10	14.10.2019	Credit voucher	A-10
11.	12.12.2019	Acknowledgment of debt	A-11
12.	25.03.2019	Sec.13(2) Notice	A-12
13.	15.12.2020	Sec.13(4) Notice	A-13
14.	24.05.2022	Statement of accounts	A-14

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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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O.A. No.317 of 2022

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:- SCHEDULE OF PROPERTY -:

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Pondicherry Registration district, Thirunallar, Sub district, Thirunallar Commune, No.26/ Keezhavur village. Plot Sl.no.1 to the extent of 02.Ar 04 Ca or 15 Kuzhies 16/64 or 2014 Sq meter or 2196 sq feet comprised in Ward J block 3,T.S.No.115/1, R S.No.79/4 pt, O S No.51 patta No.150. It is bounded to the west of common path way, South of RS No.79/3 Nanja, east of Juli Nanja, North of Rajagopal Vagayara Nanja together with the constructed house with ground, first floors thereon.

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

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Uploaded on 10.04.2026 at 12:45 hours

Union Bank of India v. Bilaverndiran

Case brief

What is this about?

What did the court decide?

Union Bank of India v. Bilaverndiran

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

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