Allowed

State Bank of India v. Haribaskar

DRT25 Mar 2026OA/53/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for joint and several recovery of dues arising from two loan accounts after the defendants failed to appear, confirming the amount and permitting sale of mortgaged property upon default.

What did the court decide?

Allowed the application; directed recovery of Rs. 37,72,131/- plus future interest and costs; authorized sale of mortgaged property if unpaid.

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

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O.A. No. 53 of 2024

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25.03.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of March, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 53 of 2024

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State Bank of India

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Retail Assets Central Processing Centre MRC Nagar, 82, High gates, Level-2, Sathome High Road, MRC Nagar, Chennai – 600 028 Represented by its Chief Manager ….Applicant

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-Vs-

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Mr.B.Haribaskar, S/o V.K.Bhathrajalam No.27, KC Tulasi flats, Bharathidasan 1^st Cross Street, Thirumullaivoyal, Chennai-600 062

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Mrs.H.Saranya, W/O B. Haribaskar No.27, KC Tulasi flats, Bharathidasan 1^st Cross Street, Thirumullaivoyal, Chennai-600 062 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. B.Siva Kollapan

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Defendants were set ex-parte on 04.06.2024

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: - FINAL ORDER - :

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This Original Application is filed on 03.07.2023 by the Applicant Bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants jointly and severally for recovery of a total

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sum of Rs.37,72,131/- (Rupees Thirty Seven Lakhs Seventy Two

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25.03.2026

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Thousand One Hundred and Thirty One only) as follows:

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(i) A sum of Rs.30,09,751/- due in respect of Home Loan (Account No.37590660505) repayable together with subsequent interest at the rate of 8.95% per annum with monthly rests from the date of filing the OA, till date of realization in full;

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(ii) A sum of Rs.7,62,380/- due in respect of Top Up Loan (Account No.37590650687) repayable together with subsequent interest at the rate of 9% per annum with monthly rests from the date of filing the OA, till date of realization in full;

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for sale of immovable property more fully detailed in Schedule to the OA and for costs of this application.

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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 19 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 states that pursuant to the request of the Defendants, “Home loan” facility vide Loan A/c No. 37590660505 to the tune of Rs. 23,50,000/- was sanctioned to the Defendants and an additional facility by way of Home TOPUP loan vide Loan A/c No. 37590650687, to the tune of Rs.6,50,000/- was also sanctioned to the Defendants, vide sanction letter 11.03.2018 and Arrangement Letter dated 11.03.2018, subject to the terms and

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conditions as envisaged under the Memorandum of Loan Agreement for Home Loan dated 13.03.2018 executed by the Defendants.

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In order to secure the loan, the Defendants have executed Deed of Undertaking and Agreement to Mortgage in favor of the applicant bank at the time of sanction upon a promise to create the equitable mortgage and Memorandum of deposit of title deed.

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The applicant bank submits that the Home Loan is repayable in Equated Monthly Installments of Rs.18,923/- each with floating rate of interest at the rate of 0.35% above 1 year marginal cost of funds based on lending rate (MCLR) which was 8.5% at the time of sanctioning. The Home Top Up loan was repayable in Equated Monthly Installments of Rs.6,497/- each with floating rate of interest of 0.6% above 1 year Marginal Cost Of Funds Based On Lending Rate (MCLR) which was 8.75% at the time of sanctioning.

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It is further submitted that the loans were sanctioned towards the balance transfer of existing loan from Vijaya bank towards the purchase of property being dwelling unit in a residential apartment bearing No. F-2 having plinth area of 804 Sq.ft including the common area and another extended area of 418 Sq.ft as undivided share of land out of total extend of land measuring 2640 Sq.ft. The property comprised in survey No.544, as per patta No.12, the new survey No. survey No. 544/1A16, 1A17, 1A1A & 1A2, T.S.No.39/2, Ward No. D, Block No. 108 situated in Plot No.27, Bharathidasan 1^st cross street, Senthil nagar, Thirumullaivoyal village, Ambattur Taluk, Thiruvallur District, more fully described in the

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OA schedule.

The applicant bank submits that the Defendants herein have executed many loan documents thereby the defendants acknowledged the said loan documents thereby Defendants acknowledged the said loan amounts availed from the applicant bank. The Defendants undertook to repay loan amounts in time without committing any default. The Defendant has assured for then repayment of the due to the afore said loan amount.

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In evidence of availing the credits facilities and as security thereof, the Defendants have executed and handed over the following documents pertaining to the Loan:

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a: Loan application for Home loan dated 14.02.2018

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b: Sanction letter for Home loan dated 11.03.2018

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c:Arrangement letter for Home loan dated 11.03.2018

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d:Memorandum of Loan agreement for Home Loan dated 13.03.2018

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e: Affidavit for Home loan dated 13.03.2018

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f: Deed of undertaking for Home loan dated 13.03.2018

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g: Agreement to mortgage for home loan dated 13.03.2018

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h: Memorandum of Deposit executed dated 21.03.2018

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i:Confirmation letter for home loan dated 13.03.2018

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j: Loan application for Home Top up loan dated 14.02.2018

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k: Sanction letter for Home Top up loan dated 11.03.2018

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l: Arrangement letter for Home Top up loan dated 11.03.2018

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m: Loan agreement for Home Top up loan dated 13.03.2018

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n: Sale deed dated 19.05.2016 in favor of the 1^st Defendant

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o: Memorandum of Deposit of title deeds dated 23.03.2018 executed by the 1^st Defendant in favor of the applicant bank.

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The applicant bank submits that the Defendants executed Memorandum of Deposit of title deeds dated 23.03.2018, registered as Document No. 3733 of 2018 at SRO, Ambattur in favor of the applicant bank securing the Home loan and Top Up Loan facilities availed by the Defendants for the purchase of the property described in the schedule to the OA.

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It is further submitted by the applicant bank that after availing the aforesaid loan facility, the Defendants were irregular in repayment of installments and servicing the monthly interest from the date of sanction towards the loan accounts of the Defendant. The applicant further submits that it could not succeed in its efforts in recovering dues from the Defendant even after making a demand through various letters advising and cautioning the Defendants to regularize the loan account by repaying the entire loan dues through the aforesaid notice from the Defendants. In fact, the Defendants had remained with callous and supine attitudes without taking any serious steps to settle the loan dues to the applicant bank.

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The applicant bank submitted that in spite of repeated demands and several reminders made, the Defendants failed to repay the balance of the liability owed by them to the applicant bank under the aforesaid credit facility. Consequently, the loan accounts of the Defendants have been classified as Non –performing Assets (NPA) on 13.10.2022 in terms of the directives of Reserve Bank of India. All the efforts taken by the applicant bank to recover the loan dues to the applicant bank from the aforesaid Defendants did not yield any desired results. 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, summons to Defendants 1 and 2 are duly served. When OA was taken up on 04.06.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 04.06.2024.

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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, Sh. S. Surender, Deputy 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-17 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A17 evidence that the borrowal of credit

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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 04.06.2024, 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 jointly and severally, a total sum of Rs.37,72,131/- (Rupees

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Thirty Seven Lakhs Seventy Two Thousand One Hundred and

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Thirty One only) as follows:

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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.

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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

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from the date of receipt of this final order.

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(f) 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 Steno, transcribed by her, corrected, signed and pronounced by me on this the 25^th day of March, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. S. Surender, Deputy Manager representing 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	14.02.2018	Loan application for Home loan submitted by the Defendants	A-1
2.	11.03.2018	Sanction letter for availing Home loan issued by the applicant bank acknowledged by the Defendants	A-2
3.		Arrangement letter for Home loan executed by the defendants	A-3
4.	11.03.2018	Memorandum of loan agreement for Home loan executed by the Defendants	A-4
5.	13.03.2018	Affidavit for availing Home loan executed by the Defendants	A-5
6.	13.03.2018	Deed of undertaking for availing Home	A-6

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		loan executed by the Defendants
7.	13.03.2018	Agreement to Mortgage for availing Home loan executed by the defendants	A-7
8.	13.03.2018	Memorandum of Deposit for home loan executed by the defendants	A-8
9.	22.03.2018	Confirmation letter from Home loan executed by the defendants	A-9
10.	14.02.2018	Loan application for availing Home Top Up Term Loan submitted by the defendants	A-10
11.	11.03.2018	Sanction letter for availing Home Top Up Term Loan issued by the applicant Bank acknowledged by the defendants	A-11
12.	11.03.2018	Arrangement letter for availing Home Top Up Term Loan executed by the defendants	A-12
13.	13.03.2018	Loan agreement for availing Home Top Up Term Loan executed by the defendants	A-13
14.	19.05.2018	Sale deed executed in favour of the 1^st Defendant	A-14
15.	23.03.2018	Memorandum of title deeds executed by the 1^stDefendant in favour of the applicant bank	A-15
16.	14.03.2018 to 02.06.2023	Statement of accounts for Home Loan A/c No. 37590660505	A-16
17.	23.03.2018 to 02.06.2023	Statements of accouts for the Home Top-Up Term Loan A/c No. 37590650687	A-17

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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 A -:

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All that piece and parcel of Land bearing Plot No. 27,measuring an extent of 2640 Sq.ft comprised in Old survey Ni.544, patta No.12, as per patta the new S.No.544/1A16,1A17, 1A1A & 1A2, T.S.No.39/2, at village No. 16 Cross street, Senthil nagar, Ambattur Taluk, thiruvallur district, with the limited of Avadi municipality is bounded on follows:-

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BOUNDARIES:-

North by: Plot No 28

South By: land in S.No.543

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East by: Plot No.26,

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West by: 24 Feet wide road

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Measuring on the:-

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East to west on the Northern side: 60 feet, East to west on the southern side: 60 feet, North to South on the Eastern side: 42 feet, North to South on the western side: 46 feet, In all admeasuring an extent of 2640 Sq ft.

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SCHEDULE “B”

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(Property hereby Conveyed)

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All that piece and parcel of RESIDENTIAL FLAT with all rights & privileges appertaining there to bearing Flat No. F-2, measuring an extend of 418Sq ft., UNDIVIDED SHARE OF LAND out of 2640 Sq.ft., in Schedule “A” mentioned property with 804 Sq.ft., Superstructure in the FIRST FLOOR, together with one car parking comprised in Old survey No.544, Patta No.12, as per Patta the New S.No.544/1A16,1A17, 1A1A & 1A2, T.S.No.39/2 Ward No. D, Block No. 108 situated in Plot No.27, Bharathidasan 1^st cross street, Senthil Nagar, Thirumullaivoyal village, Ambattur Taluk, Thiruvallur District, with the limited of Avadi municipality, is situated within the Registration District of North- Chennai and SubRegistration District of Ambattur.

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

State Bank of India v. Haribaskar

Case brief

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State Bank of India v. Haribaskar

Case brief

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