Allowed

Indian Overseas Bank v. Srinivasan

DRT6 Feb 2026TA/1092/2023

Case brief

AI extract

What is this about?

DRT allowed the bank's recovery application against a non-appearing defendant for a housing loan default of over 52 lakhs, directed sale of mortgaged property as security, and ordered issuance of a recovery certificate.

What did the court decide?

Recover the sum of Rs.52,80,036.98 with interest and costs; liberty to recover by sale of schedule property; issue recovery certificate.

Indian Overseas Bank versus Srinivasan — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 1092 of 2023

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06.02.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of February, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1092 of 2023

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(Originally filed before DRT- II, Chennai as OA 13/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1092 of 2023)

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Indian Overseas Bank, Teynampet Branch, DMS Campus, Anna Salai, Teynampet, Chennai – 600 006.

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…Applicant

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-Vs-

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Mr. S. Srinivasan S/o. Sreedharan, Flat S-2, 2^nd Floor, Symphony apartments, No.34A, New Door No.44, Kamaraj Street Opp. To Kendriya Vidyalaya, Bakthavatchalam Nagar, Nanganallur, Chennai – 600 114.

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Also at Mr. S. Srinivasan No.6, Kannika Colony, Lakshmi Nagar 1^st Cross Street, Nanganallur, Chennai – 600 061. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mrs. Sheela Venkatesh

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Defendant was set ex-parte on 27.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 19.11.2020 by the applicant bank

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under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly

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T.A. No. 1092 of 2023

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06.02.2026

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Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 to 3, jointly and severally for recovery of a total sum of Rs.52,80,036.98p (Rupees Fifty Two Lakhs Eighty Thousand and Thirty Six and Ninety Eight Paisa only) due in respect of Housing Loan (Account No.069803351400002) repayable together with further interest @ 9.35% p.a., with monthly rests along with 2% overdue interest 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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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.13 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.13 of 2021 stood transferred to this Tribunal and renumbered as TA No.1092 of 2023.

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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 had approached the applicant bank for sanction of Housing Loan under Subha Gruha Housing Scheme for purchase of Flat No.S2, 2^nd floor, in Nanganallur which was considered by applicant bank and granted Home Loan under Subha Gruha Housing Scheme for Rs.32,00,000/- to purchase flat.

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It is submitted that in order to secure the loan, the defendant had

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T.A. No. 1092 of 2023

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06.02.2026

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executed the following documents on 24.01.2014 in favour of applicant bank:

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i. Demand Promissory note dated 24.01.2014 for a sum of Rs.32,00,000/- with interest at the rate of 10.25% p.a., compounded monthly rests.

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ii. Letter seeking permission to pay EMI for a sum of Rs.28,830/- in 348 EMI from 31.01.2015.

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iii. Housing loan agreement for a sum of Rs.32,00,000/-

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iv. Equitable Mortgage followed by registered Memorandum of Deposit of Title Deeds dated 18.02.2014 and registered as Doc.No.652 of 2014 on the file of SRO, Alandur and mortgaged the registered sale deed dated 23.01.2014 executed by SVM shelters private limited represented by director Mr. G. Manishankar to and in favour of defendant, Doc.No.227 of 2014 in SRO, Alandur is mortgaged by the defendant

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v. On 01.11.2016 the defendant executed a Revival letter acknowledging the debts for the purpose of limitation, the validity of the documents executed for the housing loan

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vi. On 13.08.2019, the defendant executed a revival letter acknowledging the debts for the purpose of limitation, the validity of the documents executed for the Housing Loan.

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The applicant further submits that after availing the above facility, defendant did not repay the amounts to the applicant in spite of repeated

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T.A. No. 1092 of 2023

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06.02.2026

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demands and incessant requests, the defendant did not keep up his commitment as per schedule. The operation of the loan accounts by defendant was far from satisfactory and the account was classified as NonPerforming Asset (NPA) on 30.06.2016.

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It is submitted that the applicant had issued Demand Notice dated 25.07.2016 calling upon the defendant to regularize and clear the loan account, but in spite of the same the defendant did not make any attempt to discharge the loan as assured. 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 was sent to the sole Defendant through Registered Post with Acknowledgment Due, which was returned unserved with an endorsement as “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 27.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 27.05.2022.

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

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To prove the case of the Applicant Bank, Sh. RM Arunachalam, Assistant General 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 .

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T.A. No. 1092 of 2023

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06.02.2026

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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 defendant.

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The defendant was set ex-parte on 27.05.2022, but till this day the defendant 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 of

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a total sum of Rs.52,80,036.98p (Rupees Fifty Two Lakhs Eighty

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T.A. No. 1092 of 2023

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06.02.2026

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Thousand and Thirty Six and Ninety Eight Paisa only) due in respect of Housing Loan (Account No.069803351400002) repayable together with further interest @ 9.35% p.a. with monthly rests along with 2% overdue interest from the date of Application till the date of realization in full and for 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 property more fully detailed in the OA schedule.

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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 from the date of receipt of this final order.

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

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T.A. No. 1092 of 2023

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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 (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 06^th day of February, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. RM Arunachalam, Assistant General Manager of the Applicant

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Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Loan Application dated 10.01.2014	A-1
2.	Sanction Letter dated 23.01.2014	A-2
3.	Credit Sanction advice dated 23.01.2014	A-3
4.	Demand Promissory note for Rs.32.00 lakhs dated 24.01.2014	A-4
5.	Letter seeking permission to pay EMI dated 24.01.2014	A-5
6.	Housing loan agreement dated 24.01.2014	A-6
7.	Memorandum of Deposit of Title Deeds Doc.No.652/2014 dated 18.02.2014	A-7
8.	Sale deed Doc.No.227/2014 dated 23.01.2014	A-8
9.	Revival letter dated 01.11.2016	A-9
10.	Revival letter dated 13.08.2019	A-10
11.	Demand notice under SARFAESI Act 2002 dated 25.07.2016	A-11
12.	Statement of accounts and BBE certificates	A-12

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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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T.A. No. 1092 of 2023

06.02.2026

:- SCHEDULE A -:

All that piece and parcel of Old Door No.34A, New No.44 totally measuring 1950 sq.ft., at Kamarajar Street, Bakthavachalam Nagar comprised under S.No.124, Thalakancheri Village, Tambaram, Kancheepuram District, Chennai – 600 114 within the registration of South Chennai and Sub-Registration District Alandur and

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Bounded on:

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North by: Mr. Mani Chettiyar House

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South by: Mr. Anbu Naicker land & building

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East by: Mr. Rajavenu Nayakar land & building

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West by: Meharunnisa Begam Bldg & Kamarajar Street

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Measuring on:

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East West facing

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North side: 41 – ½ + 15 feet,

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South side: 67 – ½, ft

North South facing

East: 61 – ½ ft,

West: 67 – ½ ft

:- SCHEDULE B -:

All that piece and parcel of Old No.34A, New No.44 totally measuring 375 sq.ft land at Kamarajar Street, Bakthavachalam Nagar comprised under S.No.124, Thalakancheri Village, Tambaram, Kancheepuram District, Chennai – 600 114 within the registration of South Chennai and Sub – Registration District Alandur and

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Bounded on

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T.A. No. 1092 of 2023

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06.02.2026

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North by: Mr. Mani Chettiyar House

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South by: Mr. Anbu Naicker land & building

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East by: Mr. Rajavenu Nayakar land & building

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West by: Meharunnisa Begam Bldg & Kamarajar Street

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Measuring on:

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East to West: 25 feet,

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North to South: 15 feet,

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And lies within the registration district of South Chennai and the SubRegistration District, Alandur.

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:- SCHEDULE C -:

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283 sq.ft. of undivided share in land out of Schedule “A” and “B” mentioned land, along with all its easement rights.

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:- SCHEDULE D -:

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Flat No.S-2, in the second floor, having plinth area 610 (including the common area, one covered car parking, in the building name “SVM PEONY”)

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

Indian Overseas Bank v. Srinivasan

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Srinivasan

Case brief

What is this about?

What did the court decide?

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