Allowed

State Bank of India v. Jagenathan

DRT8 Jun 2026OA/355/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by State Bank of India for recovery of dues. The defendants were absent, and the bank proved its claim through affidavits and documented evidence of loan agreements and default.

What did the court decide?

The applicants bank is allowed to recover a total sum of Rs.3,06,04,361/- plus interest and costs jointly and severally from the defendants, or by sale of the schedule properties.

State Bank of India versus Jagenathan — Contract and Commercial Disputes | DRT (2026)

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O.A. No. 355 of 2022

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08.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 355 of 2022

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

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-Vs-

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Mr. S. Jaganathan,

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S/o. Mr. Srinivasan,

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No.42, 6 Avenue, RWD Palm (Ground Floor) 3^rd Main Road, Babu Nagar,

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Medavakkam, Chennai - 600 100

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Mrs. J. Muthu Lakshmi,

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W/o. Mr. S. Jaganathan, No.42, 6 Avenue, RWD Palm (Ground Floor) 3^rd Main Road, Babu Nagar, Medavakkam, Chennai 600 100 …..Defendants

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Counsels on record / appeared:

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

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Defendants 1 and 2 were set ex-parte on 28.02.2023

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: - FINAL ORDER- :

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This Original Application is filed on 18.08.2022 by the applicant

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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.3,06,04,361/- (Rupees Three Crores Three

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O.A. No. 355 of 2022

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Lakhs Four Thousand Three Hundred and Sixty One only) due in respect of Home Loan (A/c No.37446501597 (Flat No.1), A/c No.37446490584 (Flat No.F-3), A/c No.37446502477 (Flat No.S-

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2), A/c No.37445438080 (Flat No.S-3)) repayable together with further interest @ 8.35% 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 herein had approached the applicant bank for a “Housing loan”. Pursuant to the request of the defendants to sanction the 'Home Loan' facility, the applicant bank had sanctioned the following credit facilities subject to the terms and conditions as envisaged under the Arrangement Letter and Memorandum of Loan Agreement For Home Loan dated 30.12.2017, executed by the defendants herein:

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(i) Rs.59,00,000/- for Home Loan (Flat No.F1) on 30.12.2017,

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(ii) Rs.58,30,000/- for Home Loan (Flat No.F3) on 30.12.2017,

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(iii) Rs.59,60,000/- for Home Loan (Flat No.S2) on 30.12.2017,and

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(iv) Rs.59,60,000/- for Home Loan (Flat No.S3) on 30.12.2017.

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O.A. No. 355 of 2022

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It is submitted by the applicant bank that the loan is to be repaid in Equated Monthly Installment of Rs.47,502/- for Flat Fl, Rs.46,939/- for Flat F3, Rs.47,985/- for Flat S2, and Rs.47,985/- for Flat S3. The Defendants herein has executed all the Documents dated 30.12.2017 in favour of applicant bank. The defendants have guaranteed for the due repayment of the aforesaid loan amount availed by the defendants by executing the necessary security documents.

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The applicant bank submits that the defendants have executed the following loan documents thereby not only acknowledging the said loan amount availed from the applicant bank but also undertaken to repay the loan amount in time without committing any default:

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A. Documents executed for Flat-F1:

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Sanction Letter executed on 30.12.2017 by the defendants.

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Arrangement Letter executed on 30.12.2017 by the defendants.

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Memorandum of Loan Agreement for Home Loan for Home Loan

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granted to public dated 30.12.2017, with terms and conditions duly accepted by the defendants.

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Agreement of Mortgage executed on 30.12.2017 by the defendants.

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EM Confirmation Letter executed on 30.12.2017 by the defendants.

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Affidavit executed on 30.12.2017 by the defendants.

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Deed of Undertaking executed on 30.12.2017 by the defendants

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herein.

8.'Memorandum of Deposit (Borrower's property at RACPC/RCPC/ RASMECCC/Home Branch) executed on 30.12.2017 by the defendants herein.

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Operations Letter' executed on 30.12.2017 by the defendant herein.

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Memorandum to Deposit of Title deeds has been executed on 09.02.2018 registered as Document No.754/2018, on the file of SRO Padappai.

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B. Documents executed for Flat-F3;

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Sanction Letter executed on 30.12.2017 by the defendants.

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Arrangement Letter executed on 30.12.2017 by the defendants.

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Memorandum of Loan Agreement for Home Loan' for Home Loan granted to public dated 30.12.2017, with terms and conditions duly accepted by the defendants.

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Agreement of Mortgage executed on 30.12.2017 by the defendants.

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EM Confirmation Letter executed on 30.12.2017 by the defendants.

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Affidavit executed on 30.12.2017 by the defendants.

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Deed of Undertaking executed on 30.12.2017 by the defendants.

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Memorandum of Deposit (Borrower's property at

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RACPC/RCPC/RASMECCC/Home Branch) executed on 30.12.2017 by the defendants.

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Operations Letter executed on 30.12.2017 by the defendant herein.

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Memorandum of Deposit of Title deeds has been executed on 09.02.2018 registered as Document No.753/2018, on the file of SRO Padappai by the defendants herein.

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C. Documents executed for Flat- S2:

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Sanction Letter executed on 30.12.2017 by the defendants.

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Arrangement Letter executed on 30.12.2017 by the defendants.

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Memorandum of Loan Agreement for Home Loan for Home Loan granted to public dated 30.12.2017, with terms and conditions duly accepted by the defendants.

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Agreement of Mortgage executed on 30.12.2017 by the defendants.

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EM Confirmation Letter executed on 30.12.2017 by the defendants.

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Affidavit executed on 30.12.2017 by the defendant.

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Deed of Undertaking executed on 30.12.2017 by the defendants.

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Memorandum of Deposit (Borrower's property at RACPC/RCPC/ RASMECCC/Home Branch) executed on 30.12.2017 by the defendants.

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Operations Letter executed on 30.12.2017 by the defendants.

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Memorandum of Deposit of Title deeds has been executed on 09.02.2018, registered as Document No.756/2018 on the file of SRO padappai by the defendants.

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D. Documents executed for Flat-S3;

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Sanction Letter executed on 30.12.2017 by the defendants.

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Arrangement Letter executed on 30.12.2017 by the defendants.

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Memorandum of Loan Agreement for Home Loan for Home Loan granted to public dated 30.12.2017, with terms and conditions duly accepted by the defendants.

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Agreement of Mortgage executed on 30.12.2017 by the defendants.

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EM Confirmation Letter' executed on 30.12.2017 by the defendants.

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Affidavit executed on 30.12.2017 by the defendants.

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Deed of Undertaking executed on 30.12.2017 by the defendants.

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Memorandum of Deposit (Borrower's property at RACPC/RCPCI RASMECCC/Home Branch) executed on 30.12.2017 by the defendants.

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Operations Letter executed on 30.12.2017 by the defendants.

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Memorandum of Deposit of Title deeds has been executed on

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09.02.2018, registered as Document No.755/2018 on the file of

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SRO, Padappai by the defendants.

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The applicant bank submits that the defendants have undertaken to repay the loan amount together with interest as per the terms and conditions of the ‘Arrangement letter’ dated 30.12.2017

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It is submitted by the applicant bank that the defendants have availed the facility in the year 2017 onwards and the defendants never shown any improvement to the utmost satisfaction of the applicant bank which is in utter contravention of the projections given at the time of availing of the loan. The applicant bank had been repeatedly making representations to the defendants to regularize the loan account but the defendants did not take any concrete steps to regularize the loan account or to repay the loan amount.

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The applicant bank further submits that since the defendants have failed to service the interest and principal due under the loan account, the loan account was classified as Non-Performing Asset (NPA) on 15.10.2019 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. 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

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and 2 through Registered Post with Acknowledgment Due, which were returned unserved as ‘left’ 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 28.02.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 28.02.2023.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Mr. 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-56 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-56 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 28.02.2023, 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

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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 1 and 2 jointly and severally, for recovery of a total sum of Rs.3,06,04,361/- (Rupees Three Crores Three Lakhs Four Thousand Three Hundred and Sixty One only) due in respect of Home Loan (A/c No.37446501597 (Flat No.1), A/c No.37446490584 (Flat No.F-3), A/c No.37446502477 (Flat No.S-2), A/c No.37445438080 (Flat No.S-3)) repayable together with further interest @ 8.35% p.a. with monthly rests 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 schedule mentioned immovable properties morefully

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detailed in the OA schedule.

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(d) If the sale proceeds of the immovable properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty 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 08^th day of June, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. 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. No.	Date	Description of Documents	Exhibit No.
		For Flat No.F1
1.	26.12.2017	Loan Application	A-1
2.	30.12.2017	Sanction Letter	A-2
3.	30.12.2017	Arrangement Letter	A-3
4.	30.12.2017	Memorandum of Loan Agreement for Home Loan granted to public executed by the defendant	A-4
5.	30.12.2017	Agreement To Mortgage	A-5
6.	30.12.2017	EM Confirmation Letter	A-6
7.	30.12.2017	Affidavit	A-7
8.	30.12.2017	Deed of Under Taking	A-8
9	30.12.2017	Memorandum of Deposit (Borrower's RACPC/RCPC/ Operations letter of property RASMECCC/Home Branch)	A-9
10	30.12.2017	Operations letter	A-10
11.	09.02.2018	Memorandum Relating to Deposit of Title Deeds, Registered as Doc.No.754/2018	A-11
12.	25.12.2017	Construction Agreement (21/2018)	A-12
13.	03.01.2018	Sale Deed (22/2018)	A-13
		For Flat No.F3
14.	26.12.2017	Loan Application	A-14
15.	30.12.2017	Sanction Letter	A-15
16.	30.12.2017	Arrangement Letter	A-16

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17.	30.12.2017	Memorandum of Loan Agreement for Home Loan granted to public executed by the defendant	A-17
18.	30.12.2017	Agreement To Mortgage	A-18
19.	30.12.2017	EM Confirmation Letter	A-19
20	30.12.2017	Affidavit	A-20
21.	30.12.2017	Deed of Under Taking	A-21
22.	30.12.2017	Memorandum of Deposit (Borrower's property at RACPC/RCPC/ of RASMECCC/Home Branch)	A-22
23.	30.12.2017	Operations letter	A-23
24.	09.02.2018	Memorandum Relating to Deposit of Title Deeds, Registered as Doc.No.753/2018	A-24
25.	25.12.2017	Construction Agreement (19/2018)	A-25
26.	03.01.2018	Sale Deed (20/2018)	A-26
		For Flat no.S2
27.	26.12.2017	Loan Application	A-27
28.	30.12.2017	Sanction Letter	A-28
29.	30.12.2017	Arrangement Letter	A-29
30.	30.12.2017	Memorandum of Loan Agreement for Home Loan granted to public executed by the defendant	A-30
31.	30.12.2017	Agreement To Mortgage	A-31
32.	30.12.2017	EM Confirmation Letter	A-32
33.	30.12.2017	Affidavit	A-33
34.	30.12.2017	Deed of Under Taking	A-34
35.	30.12.2017	Memorandum of Deposit (Borrower's propertyat RACPC/RCPC/RASMECCC/Home Branch)	A-35
36.	30.12.2017	Operations letter	A-36
37.	09.02.2018	Memorandum Relating to Deposit of Title Deeds, Registered as Doc.No.756/2018	A-37
38.	25.12.2017	Construction Agreement (30/2018)	A-38
39.	03.01.2018	Sale Deed (31/2018)	A-39
		For Flat no.S3
40.	26.12.2017	Loan Application	A-40
41.	30.12.2017	Sanction Letter	A-41
42.	30.12.2017	Arrangement Letter	A-42
43.	30.12.2017	Memorandum of Loan Agreement for Home Loan granted to public executed by the defendant	A-43
44.	30.12.2017	Agreement To Mortgage	A-44
45.	30.12.2017	EM Confirmation Letter	A-45
46.	30.12.2017	Affidavit	A-46
47.	30.12.2017	Deed of Under Taking	A-47
48.	30.12.2017	Memorandum of Deposit (Borrower's	A-48

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		property at RAC RASMECCC/Home Branch	PC/RCPC/ )	of
49.	30.12.2017	Operations letter			A-49
50.	09.02.2018	Memorandum Relating t Deeds, Registered as Doc	o Deposit of T .No.755/2018	itle	A-50
51.	25.12.2017	Construction Agreement	(28/2018)		A-51
52.	03.01.2018	Sale Deed (29/2018)			A-52
53.	06.08.2022	Statement of accounts loan A/c No.375446501 from 15.10.2019 to Memorandum of calculati	for the hous 597 (Flat no. 06.08.2022 on of interest	ing F1) &	A-53
54.	06.08.2022	Statement of accounts loan A/c No. 375446490 from 15.10.2019 to Memorandum of calculati	for the hous 584 (Flat no. 06.08.2022 on of interest	ing F3) &	A-54
55.	06.08.2022	Statement of accounts loan A/c No.375446502	for the hous 477 (Flat no.	ing S2)	A-55
		from 15.10.2019 to Memorandum of calculati	06.08.2022 on of interest	&
56.	06.08.2022	Statement of accounts loan A/c No.375445438 from 15.10.2019 to Memorandum of calculati	for the hous 080 (Flat no. 06.08.2022 on of interest	ing S3) &	A-56

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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 PROPERTIES

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SCHEDULE-A

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All that piece and parcel of house site bearing Plot no.4 measuring an extent of 3620 sq.ft (2795sq.ft + 825sq.ft) comprised in S.No.25/1A, patta No.8325 as per patta sub division S.No.25/1A2 in the layout named ‘Sri Meenakshi nagar’ layout approved by CMDA approved P.P.D/L.O.No.98/2006 dated 25.09.2006 vide letter No.L1/18380/2006 dated 25.09.2006 for member secretary, Chennai- 600 008, planning permit No.2319/2006 and vide E.O. Perungalathur town panchayat, Chennai- 600 063 letter No. 802/2005 dated 03.11.2006 situated in Old

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No.167, New No.28, Perungalathur village, Tambaram taluk, Kancheepuram district.

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The building planning permit P.P.A.No.293/2013 dated 06.06.2013 commissioner, Perungalathur town panchayat, Chennai- 600 063, Member secretary, CMDA, Chennai- 600008

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Boundaries and measurement for 2795sq.ft

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North by: vacant land in S.No.250

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South by: Plot No.9 & 10

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East by: Vacant land

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West by: Plot nos.5 & 6 and pathway

Measuring on the

North by: 61 feet

South by: 60 feet

East by: 17feet 6 inch

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West by: 10 feet

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SCHEDULE-B

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2852sq.ft undivided share of land (out of schedule-A mentioned property)

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SCHEDULE-C

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For Flat –F1

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452sq.ft UDS out of 2852sq.ft together with a flat bearing No.F-1 in first floor and measuring 1220sq.ft (inclusive of common area) including all its amenities at Flat No.F-1 in Plot No.4, Sri Meenakshi nagar, Perungalathur Village, Tambaram taluk, Kancheepuram district.

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For Flat F-3

452sq.ft UDS out of 2852sq.ft together with a flat bearing No.F-3 in first floor and measuring 1200sq.ft (inclusive of common area) including all its amenities at Flat No.F-3 in Plot No.4, Sri Meenakshi nagar, Perungalathur Village, Tambaram taluk, Kancheepuram district.

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For Flat S-2

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452sq.ft UDS out of 2852.ft together with a flat bearing No.S-2 in first floor and measuring 1230sq.ft (inclusive of common area) including all its amenities at Flat No.S-2 in Plot No.4, Sri Meenakshi nagar, Perungalathur Village, Tambaram taluk, Kancheepuram district.

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For Flat S-3

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452sq.ft UDS out of 2852.ft together with a flat bearing No.F-3 in first floor and measuring 1230sq.ft (inclusive of common area) including all its amenities at Flat No.S-3 in Plot No.4, Sri Meenakshi nagar, Perungalathur Village, Tambaram taluk, Kancheepuram district.

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The above properties are situated within the Perungalathur town panchayat limits and within the SRO Padappai and Registration District of Chennai South.

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

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State Bank of India v. Jagenathan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Jagenathan

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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