Allowed

State Bank of India v. Dhatchanamoorthy

DRT6 May 2026OA/354/2022

Case brief

AI extract

What is this about?

In an Original Application under Section 19 of the RDB Act, the State Bank of India sought recovery of a home loan due from the defendant. The Tribunal allowed the application, directing the recovery of the principal amount along with interest and permitting the sale of the defendant's immovable property for satisfaction of dues.

What did the court decide?

Recovery of Rs.34,93,777/- along with interest permitted. Liberty to sell schedule immovable property and other assets granted upon failure to pay.

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

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O.A. No. 354 of 2022

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06.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No.354 of 2022

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State Bank of India, R.A.C.P.C, Tambaram Branch, Represented by its Chief Manager Satheesh paradise, First floor, No.388, Velachery Main Road, Selaiyur, Chennai-600 073 ….Applicant

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-Vs-

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Mr. K. Dhatchanamoorthy, S/o. Mr. Kannan No.364/2, Bajanai Kovil street, Veppampattu, Thiruninravur, Thiruvallur-602 024 …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s N.S.Revathi

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Defendant was set ex-parte on 21.02.2023

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: - FINAL ORDER- :

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This Original Application is filed on 01.10.2022 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.34,93,777/- (Rupees Thirty Four Lakhs Ninety Three Thousand Seven Hundred and Seventy Seven only) due in respect of Home Loan (A/c No.37323938470) repayable together with further interest @10.35% p.a. with monthly rests from the date of Application till the date

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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 defendant herein had approached the applicant bank for sanction of ‘Home loan’ on 16.11.2017.

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The applicant submits that the pursuant to the request of the defendant to sanction the ‘Home loan’ facility to the tune of Rs.29,00,000/-, the applicant bank had sanctioned the said credit facility on 27.11.2017 subject to the terms and conditions as envisaged under the “Arrangement letter and Memorandum of loan agreement for home loan” dated 27.11.2017 executed by the defendant herein. The loan is to

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be repaid in equated monthly installment of Rs.23,689/- each. The defendant herein had executed all the documents on 27.11.2017 in favour of the applicant bank. The defendant had further guaranteed for the due repayment of the aforesaid loan amount availed by the defendant by executing the necessary security documents.

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It is submitted by the applicant bank that the defendant herein has executed the following loan documents thereby not only acknowledging the said loan amount availed from the applicant bank but also had

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undertaken to repay the loan amount on time without committing any default:

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‘Arrangement letter’ executed on 27.11.2017.

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‘Agreement to mortgage’ executed on 27.11.2017.

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‘Memorandum of loan agreement for home loan’ for home loan granted to public dated 27.11.2017 with terms and conditions duly accepted by the defendants herein.

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‘Affidavit’ executed on 27.11.2017.

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‘Deed of undertaking’ executed on 27.11.2017.

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‘Memorandum to deposit of title deeds’ executed on 16.10.2018 registered as Document No.5956 of 2018 on the file of SRO Padappai.

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The applicant bank submits that the defendant had undertaken to repay the loan amount together with the interest as per the terms and conditions of the ‘Arrangement letter’ dated 27.11.2017.

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The applicant bank further submits that however subsequent to availing of loan, the defendant was not regular in repayment, except for few installments. The applicant bank had been repeatedly making representations to the defendant to regularize the loan amount but the defendant did not take any concrete steps to regularize the loan account or to repay the loan amount.

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The defendant had availed the facility in the year 2017 onwards and the defendant never shown any improvement to the utmost satisfaction of the applicant bank which is in utter contravention of the projections given

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at the time of availing of the loan. The applicant bank further submits that since the defendant have failed to service the interest and principal due under the loan account, consequently it has become Non-Performing Asset (NPA) on 27.10.2020 in the books of the applicant bank in terms of internal policy of the bank and as per the guidelines of the Reserve Bank of India including matters connected with institution and conduct of legal proceedings for the said purpose. 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 sole Defendant through Registered Post with Acknowledgment Due, which returned with remark “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 21.02.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, sole Defendant was placed ex-parte on 21.02.2023.

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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, Sh. P.M. Ravichandran, 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-10 .

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A careful examination of the pleadings in the Proof Affidavit and

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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 defendant was set ex-parte on 21.02.2023, 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.

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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 Defendant, Rs.34,93,777/- (Rupees Thirty Four Lakhs Ninety Three Thousand Seven Hundred and Seventy Seven only) due in

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respect of Home Loan (A/c No.37323938470) repayable together with further interest @10.35% p.a. with monthly rests from the date of Application till the date of realization in full, along with costs of this application. All pending IAs, if any are closed.

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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 schedule mentioned immovable property morefully detailed in the OA schedule.

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(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 Defendant (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 Defendant.

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(e) 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 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

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from the date of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the

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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 06^th day of May, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P.M. Ravichandran, Chief Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	16.11.2017	Loan application	A-1
2.	27.11.2017	Arrangement letter	A-2
3.	27.11.2017	Agreement to mortgage	A-3
4.	27.11.2017	Memorandum of loan agreement for home loan granted to public executed by the defendant	A-4
5.	27.11.2017	Affidavit	A-5
6.	27.11.2017	Deed of undertaking	A-6
7.	16.10.2018	Memorandum relating to deposit of title deeds executed by defendant registered as document no.5956 of 2018	A-7
8.	15.11.2017	Agreement of project promotion and construction registered as document no.6259 of 2017	A-8
9	24.11.2017	Sale deed registered as document no.6260 of 2017	A-9
10	24.09.2022	Statement of accounts for A/c No.	A-10

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37323938470 & Memorandum of calculation of interest

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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 land comprised in survey numbers with an extent (which is more particularly described below) is situated no.92, Thirumudivakkam village, Thirumudivakkam Panchayat, Sriperumbudur taluk and Kancheepuram district.

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Item No.	Survey No	Extent in cents		Bounda	ries
			North by Survey Nos	South by Survey Nos	East by Survey Nos	West by Survey Nos
1	258/2 part	117	258/2part	509/1, 508, 259/1 and 259/2	258/2pt and 259/2pt	258/1
2	511/2A2	2.77	511/2B2	12 meter wide public road	512/2 PT	511/2A1 part
3	512/2pt	55.84	512/1	12 meter wide public road	506 part	511/2A2 PT 511/2B2 &511/3B
4	506 part	170.49	507&508	502,503,5 05&12 meter wide public road	502,503,5 05& 507	512/3,51 2/1&512 /2part
5	512/1	77	512/3	512/2part	506part	511/3B
6	511/2B2	3	511/3B	511/2A2 PT & 511/2A1 part	512/2part	511/2B1

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7	511/3B	15	510	511/2B2	512/1 &512/2 part	511/3A
8	511/1par t	29.31	510	12 meter wide public road	511/2B1 pt,511/3A& 510	222B
9	511/2B1	5	511/3A	511/2A1 part	511/2B2	511/1par t
10	511/3A	36	510	511/2B1	511/3B	511/1 part
11	511/2A1 part	7.64	511/2B1&51 1/2B2	12 meter wide public road	511/2A2 Part	511/2A1 part
12	258/2par t	9	255/1A1	262/2b2 part & 259/2part	262/1A1A1 & 262/2B2 Part	258/2par t
13	2623/2B 2 part	11	262/1A1A1 & 258/2 Part	259/2 part	262/2B2 part	258/2par t
14	510	92	509/2	511/1 part & 511/3A 511/3B & 512/3	512/3 & 509/2	222B & 511/1 part
15	512/3	73	508 & 509/2	512/1	506part	510
16	258/2 part	100	256 & 257	258/2 part	258/2part	258/1
17	507 part	140.9	259/2 part	506 part & 502	18 meter wide public road	506 & 508

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SCHEDULE-B

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209 Sq.ft of undivided share measuring of land right title and interest in the Schedule-A.

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SCHEDULE-C

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Apartment No.P606 in the Sixth Floor, Block No.P. Phase No.1 of the residential project “ROYAL CASTLE” with super built up area 621sq.ft (including proportionate undivided share in the common constructed area) lying within the Registration District of Chennai South and in the SubRegistration District of Padappai.

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

State Bank of India v. Dhatchanamoorthy

Case brief

What is this about?

What did the court decide?

State Bank of India v. Dhatchanamoorthy

Case brief

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