The Tribunal allowed an Original Application by State Bank of India to recover Rs.41,87,922 plus interest and costs from borrowers for a defaulted home loan, directing recovery from mortgaged properties. No respondents appeared.
Direct respondents to pay Rs.41,87,922 plus 9% p.a. interest; authorize sale of mortgaged properties for recovery.
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OA No. 407/2024
Fair Order
IN THE DEBTS RECOVERY TRIBUNAL AT MADURAI DATED THIS 29TH DAY OF MAY, 2026 PRESENT: SEEMA SINHA,
[PR. DISTRICT & SESSIONS JUDGE – Retd] PRESIDING OFFICER
OA No.407/2024
Between
State Bank of India, S.A.R.B Madurai, No.8, Dr. Ambedkar Road, 1st Floor, Vinayaganagar Branch, Madurai – 625 002. Rep. By its Branch Manager. ---Applicant Bank
And
Triuchirapalli - 620026. ---Defendants
Counsel for the Applicant Bank : M/s M. Manoharan
This Original Application was heard and fixed for passing final order before me in the presence of the above said Advocate for Applicant Bank and the Defendants having been set ex-parte and upon hearing the arguments of Counsel for Applicant Bank and upon perusing the material available on the records and having stood over for consideration till this day, this Tribunal delivered the following:
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OA No. 407/2024
JUDGEMENT
1 . This Application has been filed under Sec.19 (1) of the "The Recovery of Debts due to Banks and Financial Institutions Act, 1993" now amended as The Recovery of Debts and Bankruptcy Act, 1993 by the Applicant Bank on 22.08.2024 to recover from the Defendants a sum of Rs.41,87,922/together with interest at the rate of 9% p.a. with monthly rests in respect of Home Loan from the date of filing of Application till the date of realization with cost and by sale of mortgaged/hypothecated properties, more fully described in Schedules of the application.
2 . The brief averments of the application filed by the Applicant Bank are as follows:-
The defendants had approached the bank for Home Loan. The Applicant Bank had sanctioned Home Loan of Rs.31,15,500/- on 07.12.2018. The defendant no.1 and 2 had executed Arrangement Letter on 07.12.2018, for Rs. 31,15,500/-. Further, The defendant no.1 and 2 had executed Memorandum of Loan Agreement for Home Loan and executed Regd. Memorandum relating to Deposit of Title Deeds on 10.12.2018 for Rs.31,15,500/- (Doc no.6878/2018). The defendant no.1 and 2 had executed Arrangement Letter on 29.06.2021 for Restructuring of Home Loan. After availing the loan, defendants were not regular in the matter of repayment. The defendants made several promises, but they failed to keep up their promises. Hence, the loan account was classified as NPA on 02.12.2023, by the applicant bank as per the prudential norms of the Reserve Bank of India. It was also informed to the defendants.
Despite repeated demands and reminders, made by the Applicant Bank, the Defendants have failed and neglected to repay and adjust their liability. Hence, the Applicant Bank has filed the OA for recovery of a sum of Rs.41,87,922/- together with interest at the rate of 9% p.a. with monthly rests in respect of Home Loan from the date of filing of Application till the date of realization with cost.
The Applicant Bank has submitted the following documents in support its claim in the OA, which are as follows:
| Sl. No. |
Date | Description | Exhibit No. |
|---|---|---|---|
| 1 | 07.12.2018 | Arrangement Letter | Ex.No.A-01 |
| 2 | 07.12.2018 | Memorandum of Loan Agreement for Home | Ex.No.A-02 |
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OA No. 407/2024
| Loan granted to Public | |||
|---|---|---|---|
| 3 | 10.12.2018 | Registered Memorandum Relating to Deposit of Title Deeds (Doc. No. 6878/2018) |
Ex.No.A-03 |
| 4 | 29.06.2021 | Arrangement Letter | Ex.No.A-04 |
| 5 | 13.06.2024 | Statement of Account | Ex.No.A-05 |
SCHEDULE
DESCRIPTION OF THE MORTGAGED PROPERTIES
Property belongs to Mrs.Nishar Begam :-
SCHEDULE-A
All that pieces and parcels of lands with compound walls on all four sides comprised in the village of Edamalaipatti Pudur, Piratiyur Majira-East, Manikandam Firka, Thruchirapalli Taluk, in the Sub Registration District of Joint I & II Thiruchirapalli in the Registration District of Thiruchirapalli bearing the following Survey numbers and of the extents set out below :-
Totally an extent of Acre 5.91 cents of land bounded on the
North by : Survey Nos.71 part, 71/10A&10 B Eastby : Survey Nos.71/7A, 7F, 10A, 94/2, 94/3, 94/4,94/6 South by : Survey Nos.96, 95/8, 94/6, 94/7A, 94/8A, West by : Trichy -Madurai Highway NH 45B ( S.No.97) Survey No.96, Survey No.62 and situated as OSR in S.No.95/1 Part
The total extent of Acre 5.91 cents is now presently bearing T.S.No.19 in Block No.2 Ward No.AJ, Thruchirapalli Town in the Residential Project S.I.S.Acropole
SCHEDULE-B
318 Sq.ft equivalent to 29.54 Sq.mtr of undivided share in lands described in Schedule —A above (excluding the OSR Lands) is here conveyed. The Schedule mentioned Property is situated in Trichy-Madurai Main Road.
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OA No. 407/2024
SCHEDULE-C
An apartment of an area of 1037 Sq.ft. (inclusive of share in common areas) bearing Apartment No.B-317 on the 3rd Floor in Block ‘B’ together with car parking space in the open reserved/ covered area of the multi storied building complex known as “S.I.S.Acropole” to be raised on the land described in Schedule’A” above.
3 . On the other hand, Notices were issued to Defendants and since from the beginning of the case, there was no representation on behalf of the Defendants. Hence, Defendants were set ex-parte.
4. Now the main point for consideration before me is as to whether the Applicant has been able to prove his case on his own leg?
He has stated in his affidavit that the defendants has availed Home Loan from the Applicant Bank, but they failed to pay the outstanding loan amount, hence he has filed the case. The applicant bank has also filed the documents signed by the defendants at the time of sanctioning the loan amount, which have been marked as exhibits No.A-01 to A-05 in support of its claim in the OA.
The Arrangement Letter has been marked as Ex.No.A-01, Memorandum of Loan Agreement for Home Loan granted to Public has been marked as Ex.No.A-02, Registered Memorandum Relating to Deposit of Title Deeds (Doc. No. 6878/2018) has been marked as Ex.No.A-03, Arrangement Letter has been marked as Ex.No.A-04, and Statement of Account has been marked as Ex.No.A-05. So the averments of the applicant as well as the statement of the pleading have been corroborated by the above mentioned documents.
As the Defendants remained ex-parte, the claim of the Applicant Bank is neither disproved nor dislodged and goes on record as proved. Accordingly a cumulative analysis of both the Proof Affidavit and documents marked by the Applicant Bank would prove the claim of the Applicant Bank in the OA.
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OA No. 407/2024
So far the claim of interest is concerned, it is a well settled Law that the Tribunal has got powers to award pendente lite interest in view of the Judgment of the Hon’ble Supreme Court in N.M. Veerapa Vs Canara Bank (reported in AIR 98(1), 1101 & in Central bank of India Vs Ravindra and OS (AIR, 2001(1), 3095).
Therefore, this Original Application is allowed . The Applicant Bank is entitled for a final order on the following lines:-
The Applicant Bank is entitled to recover from the Defendants, a sum of Rs.41,87,922/- together with interest at the rate of 9% p.a. with half yearly rests in respect of Home Loan from the date of filing of Application till the date of realization with cost. Accordingly, it is hereby
ORDERED
(a) That the Defendants are directed to pay jointly/severally a sum of Rs.41,87,922/- together with interest at the rate of 9% p.a. with half yearly rests in respect of Home Loan from the date of filing of Application till the date of realization with cost within one month from the date of receipt of this order.
(b) In case of default of payment by the above mentioned Defendants, the Applicant Bank is at liberty to sell the movable / immovable properties more fully described in Schedule of the original application for appropriation of sale proceeds towards the satisfaction of amount due to the Applicant Bank.
(c) If the sale proceeds are not sufficient, after defraying the expenses of such sale, for the payment of all such amounts, the defendants are jointly/severally liable to pay the amount of such deficiency with interest mentioned above until realization.
(d) Any amount remitted during the course of this proceedings shall be given due credit, to the loan account of the defendants.
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OA No. 407/2024
(e) Recovery Certificate be prepared, as per the directions given above, and issue accordingly. A copy of the order is to be communicated to the parties concerned, immediately.
(f) It is further ordered that the Applicant Bank shall file cost memo within a period of one month from the date of receipt of this order, so as to prepare the recovery certificate with cost for the Home loan and the Recovery Officer is also directed to proceed with the matter in accordance with law. In case, cost memo is not filed before said period of one month, Recovery Certificate will be prepared with available records.
Dictated to T.P, taken down, transcribed, typed by her, corrected and pronounced by me in the Open Court in this the 29th May, 2026.
Sd/- (SEEMA SINHA)
PRESIDING OFFICER
Uploaded on 06.06.26
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1 issue framed by the court
Whether the Applicant Bank has proved its case on its own leg regarding the outstanding home loan amount.
Colour shows how this judgement treated each authority
N.M. Veerapa Vs Canara BankRelied on¶56
AIR 98(1), 1101
Central bank of India Vs Ravindra and OSRelied on¶56
AIR, 2001(1), 3095 · Who else cites this
2 provisions across 2 enactments
State Bank of India, S.A.R.B Madurai
Mrs. A. Nishar Begum
L. Shawnawaz Khan
SEEMA SINHA
As recorded by the court registry
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