Allowed

Central Bank of India v. v Velu

DRT28 Apr 2026OA/36/2023

Case brief

AI extract

What is this about?

On the ex-parte application by a bank for recovery of home loan dues of over Rs. 56 lakhs along with interest and penal interest, the Tribunal found the plea of limitation inapplicable and allowed the application, directing recovery from the mortgagor and guarantor. The order also directed sale of mortgaged property and issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.56,83,356/- plus future interest and penal interest; liberty to sell mortgaged property for recovery; issuance of Recovery Certificate.

Central Bank of India versus v Velu — Contract and Commercial Disputes | DRT (2026)

¶1

O.A. No. 36 of 2023

¶2

28.04.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 28^th day of April, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No. 36 of 2023

¶8

Central Bank of India, Kodambakkam Branch, No.337, Arcot Road, Kodambakkam, Chennai-600024

¶9

Rep. by its Branch Manager ….Applicant

¶10

-Vs-

¶11

Mr.V.Velu, S/o. Vedagiri, No.2/3, Karuna Nidhi Street, Annai Anjugam Nagar, GKM Colony, Chennai – 600 082

¶12

Mr. T.P.Vinoth Kumar, S/o. Mr. T.Padmanabhan, No.68/133, Kalavai Street,

¶13

Chintadripet, Chennai – 600 002 …..Defendants

¶14

Counsels on record / appeared:

¶15

Counsel for Applicant: M/s.Hemalatha Suresh

¶16

Defendants 1 and 2 were set ex-parte on 22.09.2023

¶17

: - FINAL ORDER- :

¶18

This Original Application is filed on 26.10.2022 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 defendants 1 and 2, jointly and severally for recovery

¶19

of a total sum of Rs.56,83,356/- (Rupees Fifty Six Lakhs Eighty

¶20

O.A. No. 36 of 2023

¶21

¶22

28.04.2026

¶23

Three Thousand Three Hundred and Fifty Six only) due in respect of Home Loan (A/c No.4013548294) repayable together with further interest @ 7.25% p.a. with monthly rests plus penal interest from the date of Application till the date of realization in full, for sale of immovable property morefully detailed in the OA and for costs of this OA.

¶24

Brief Facts of the case:

¶25

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.

¶26

It is the case of the applicant bank that the first Defendant had approached the Applicant for grant of Housing Loan by submitting Loan Application dated 17.02.2018. The Second Defendant had executed Guarantor’s Consent Letter dated 16.04.2018. considering the said request, the Applicant had sanctioned the Housing Loan vide Sanction letter dated 04.05.2018. The Defendants had availed Housing loan of Rs. 44,00,000 /- on 11.05.2018.

¶27

It is submitted by the applicant bank that the first Defendant executed the Loan Agreement for Rs.44,00,000/- on 11.05.2018 agreeing to repay the said amount together with interest.

¶28

The applicant submits that the Second Defendant executed the Form of Guarantee for Advances & Credits for Rs.44,00,000/- on 11.05.2018 agreeing to repay the said amount together with interest.

¶29

O.A. No. 36 of 2023

¶30

¶31

28.04.2026

¶32

The applicant further submits that as collateral security, the First Defendant had mortgaged his property owned by him and described in Schedule to the above O.A by Deposit of Title Deeds with the Applicant on 26.06.2018 by executing the Memorandum of Deposit of Title Deeds on 02.07.2018 and registered as Doc No.4690/2018. The defendants had deposited the following title deeds and other documents with the applicant bank:

¶33

a) Construction Agreement dated 17.05.2018 (Doc. No: 2865/2018) in the name of Mr.V.Velu, the 1^st defendant.

¶34

b) Sale Deed dated 17.05.2018 in the name of Mr.V.Velu (Document No: 2866/2018) the 1^st defendant

¶35

c) Encumbrance certificate.

¶36

It is submitted that subsequent to the disbursement of above said loan facility, the defendants were not operating the loan account as per the terms and conditions and the defendant had not properly paid the amount due under the loan facility. Further, the repeated demands and persistent follow up made by the applicant bank towards the defendants to repay the outstanding dues of its loan account was of no avail and the defendants continued with its default indefinitely. Consequently, the applicant declared the above account as Non Performing Asset (NPA) on 29.11.2019. It is on account of the delay/default committed by the defendants in repayment of both the principal and interest the defendants had become due and liable to pay penal interest calculated at the rate of

¶37

O.A. No. 36 of 2023

¶38

28.04.2026

¶39

¶40

2% per month with monthly rests to the applicant herein and the said penal interest has not been capitalized as per RBI guidelines.

¶41

The applicant further submits that however the defendants had made a last payment of Rs.31971/- on 29.10.2019. After this the defendants had not cared to make any payment. It is on account of the delay/default committed by the defendants in repayment the applicant bank was constrained to declare the defendants loan account as Nonperforming assets on 29.11.2019 in accordance with the guidelines of the bank and the directions issued by the Reserve Bank of India in this regard.

¶42

The applicant submits that despite repeated reminders and requests, the defendants failed to repay the outstanding loan amount which constrained the applicant bank to issue Legal Notice dated 18.10.2022. The said notice was received/ returned by the defendants on 20.10.2022 and even after the said notice the defendants have failed to liquidate the amount due to the applicant. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶43

After the filing of the OA, summons was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was served in respect of D-1, while summons to D-2 returned with remarks as “left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 22.09.2023 even after giving

¶44

O.A. No. 36 of 2023

¶45

28.04.2026

¶46

¶47

sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 22.09.2023.

¶48

Heard the submissions of Applicant Bank and perused the record s.

¶49

To prove the case of the Applicant Bank, Mr. Nimbay Marandi, 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-12 .

¶50

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-12 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.

¶51

The defendants were set ex-parte on 22.09.2023, 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 defendants are produced or filed to dispute the claim of applicant bank.

¶52

O.A. No. 36 of 2023

¶53

28.04.2026

¶54

¶55

Hence, it can be concluded that applicant bank has proved its claim against defendants.

¶56

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:

¶57

: O R D E R :

¶58

The OA is allowed with costs,

¶59

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.56,83,356/- (Rupees Fifty Six Lakhs Eighty Three Thousand Three Hundred and Fifty Six only) due in respect of Home Loan (A/c No.4013548294) repayable together with further interest @ 7.25% p.a. with monthly rests plus penal interest from the date of Application till the date of realization in full along with costs of this application.

¶60

(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.

¶61

¶62

(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 Defendants (both

¶63

O.A. No. 36 of 2023

¶64

28.04.2026

¶65

¶66

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.

¶67

(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.

¶68

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

¶69

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶70

A copy of this order be communicated to the parties concerned.

¶71

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

¶72

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 28^th day of April, 2026)

¶73

O.A. No. 36 of 2023

28.04.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶78

AW-1: Mr. Nimbay Marandi, Chief Manager of the Applicant Bank

¶79

Exhibits on the part of the Applicant:

¶80

Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	17.02.2018	Loan Application	A-1
2.	16.04.2018	Guarantor’s Consent Letter	A-2
3.	04.05.2018	Sanction Letter	A-3
4.	11.05.2018	Loan Agreement	A-4
5.	11.05.2018	Guarantor’s Form for Advances and Credits	A-5
6.	17.05.2018	Construction Agreement	A-6
7.	17.05.2018	Sale Deed	A-7
8.		Encumbrance Certificate	A-8
9.	02.07.2018	Memorandum of Deposit of Title Deeds	A-9
10.	18.10.2022	Legal Notice	A-10
11.	20.10.2022/ 21.10.2022	Acknowledgement Card /Returned Covers	A-11
12.	25.10.2022	Certified Statement of Account	A-12

¶81

Witness Examined for the Defendants: -Nil-

¶82

List of Documents Exhibited for the Defendants: -Nil –

¶83

SCHEDULE OF PROPERTY

¶84

All that piece and parcel of Vacant house site bearing Plot nos.12,13,14,15 & 16 ,measuring a total extent of 10,161sq.ft (944.33 square meter) (i.e. Plot no.12, measuring an extent of 2610sq.ft, plot no.13 measuring an extent of 2634sq.ft, plot no.14 measuring an extent of 1500sq.ft, plot no.16 measuring an extent of 1917sq.ft) comprised of Survey no.252, as per Tambaram town survey field register copy old survey no.252/1,2,3 and 252/part, survey filed No.2/8, ward No. D, Block

¶85

O.A. No. 36 of 2023

¶86

¶87

28.04.2026

¶88

No.18 in the layout named “SAKTHI NAGAR” situated in No.27, Tambaram Village, Tambaram Taluk, Kancheepuram district.

¶89

BOUNDARIES FOR PLOT NO.12, EXTENT OF 2610SQ.FT BOUNDED ON THE

¶90

North by: Vacant land

¶91

South by: 24 feet road

¶92

East by: Plot no.13

¶93

West by: Plot nos. 9, 10 and 11

¶94

MEASURING ON THE

¶95

North by: 30feet

¶96

South by: 30feet East by: 86’.6’’

¶97

West by: 87’.6’’

¶98

BOUNDARIS FOR PLOT NO.13, EXTENT OF 2634SQ.FT

¶99

North by: Vacant land

¶100

South by: 24 feet road

¶101

East by: Plot nos.16, 15& 14

¶102

West by: Plot no.12

¶103

MEASURING ON THE

¶104

North by: 26’.6’’ +3’.6’’

South by: 30feet

East by: 89’.6’’

West by: 86’.6’’

BOUNDARIES FOR PLOT NO.14, EXTENT OF 1500SQ.FT BOUNDED ON THE

¶109

North by: Plot no.15

¶110

South by: 24 feet road

¶111

O.A. No. 36 of 2023

¶112

¶113

28.04.2026

¶114

East by: 16 feet road

West by: Plot no.13

MEASURING ON THE

North by: 50feet

South by: 50feet

East by: 30feet

West by: 30feet

BOUNDARIES FOR PLOT NO.15, EXTENT OF 1500SQ.FT BOUNDED ON THE

¶122

North by: Plot no.16

¶123

South by: Plot no.14

¶124

East by: 16 feet road

West by: Plot no.13

MEASURING ON THE

North by: 50feet

South by: 50feet

East by: 30feet

West by: 30feet

BOUNDARIES FOR PLOT NO.16, EXTENT OF 1917SQ.FT BOUNDED ON THE

¶132

North by: Vacant land

¶133

South by: Plot no.15

¶134

East by: Plot nos.17& 16

West by: Plot no.13

MEASURING ON THE

North by: 59 feet

South by: 50feet

East by: 28feet +13 feet

¶140

O.A. No. 36 of 2023

28.04.2026

West by: 29’.6’’

The above property is situated within the Tambaram municipality limits and within the registration district of Chennai South and Sub-registration district of Tambaram.

¶145

SCHEDULE-B

¶146

(PROPERTY SUBJECT TO MORTGAGE EXECUTED BY Mr.V.Velu)

¶147

384.5sq.ft undivided share of land out of Schedule” A” mentioned property, together with Flat No.BF-1, first floor, Super built-up area measuring 786sq.ft (including common area) in the building known as “HILLS APARTMENT” to be constructed in Schedule “A” property.

¶148

(Building approval issued by commissioner, Tambaram municipality, Vide Ka.Pa.no. 207/15, Ka.Aa No.229/15 dated 29.05.2015 and for member secretary CMDA, Chennai-600 008 vide P.P.A.No.207/15, P.P.L,No.229/15, dated 29.05.2015)

¶149

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

Central Bank of India v. v Velu

Case brief

What is this about?

What did the court decide?

Central Bank of India v. v Velu

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

Coram

Case details

Similar cases

Rbl Bank Limited versus Ram Charan Company Private Limited

Vanasundari Ramiah versus Assets Care

Bank of Baroda versus Raj

Central Bank of India versus Jebasingh Reagan

R Narayanan versus Union Bank of India

J J Diamonds Represented by Its Partner Ms Shrenik Chand Nahar versus Bank of Maharashtra