Allowed

Bank of Baroda v. Kirubanandan

DRT12 Jan 2026TA/1124/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application filed under the Recovery of Debts and Bankruptcy Act for recovery of Rs.42,81,277 along with interest as a housing loan became non-performing and defendants remained in default.

What did the court decide?

Recovery of Rs.42,81,277 with interest and costs; liberty to sell mortgaged property on default.

Bank of Baroda versus Kirubanandan — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 1124 of 2023

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12.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 12^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1124 of 2023

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(Originally filed before DRT- II, Chennai as OA 489/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1124 of 2023)

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***** Bank of Baroda (Erstwhile Dena Bank) Rep by Authorised Officer/ Chief Manager No.83, T.T.K.Road,

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Alwarpet, Chennai-600 018 ….Applicant

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***** (Amended vide order in memo dated 11.10.2019 in view of merger)

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-Vs-

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Mr. A. Kirubanandan, S/o Mr. A. Appadurai, Chandra Flats, No.F-5, First Floor, Block No.C, Plot Nos.4,5,6 & 6A, Raghavendra Nagar, Korattur, Chennai-600 076

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And also at:Mr. A. Kirubanandan 92/78, Vanniar Otrawadai Street, Kodambakkam, Chennai-600 024

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Mr. J. Vijaykumar, No.39/25, Muthaiya Murhali 2^nd Street, Roaypettah, Chennai-600 014

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Mr. N. Periyaswamy, S/o Mr. Natarajan, No.14, Pillaiyar Koil Street, Sivananda Nagar, Ambattur, Chennai-600 053 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. G. R. Lakshmanan Defendants 1 to 3 were set ex-parte on 25.11.2021

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T.A. No. 1124 of 2023

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12.01.2026

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: - FINAL ORDER - :

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This Original Application is filed on 05.09.2018 by Erstwhile Dena Bank (since merged with Bank of Baroda) 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 to 3, jointly and severally for recovery of a total sum of Rs.42,81,277/-

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(Rupees Forty Two Lakhs Eighty One Thousand Two Hundred

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Seventy Seven only) due in respect of Housing Loan(Account No.086351000105) repayable together with further interest @ 11% 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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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.489 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.489 of 2019 stood transferred to this Tribunal and renumbered as TA No.1124 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 defendants had

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T.A. No. 1124 of 2023

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12.01.2026

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approached the applicant bank seeking for a Housing Loan of a sum of Rs.9,97,000/- (Rupees Nine Lakh Ninety Seven Thousand Only) for the purchase of a 432 sq. ft., undivided share of land from and out of the land bearing Plot No.4,5,6 and 6A, in the layout known as “Raghavendra Nagar Extension” comprised in Survey No.379 and 383, Patta No.6076, as per Patta S.No.378/7, of Koratur Village, Ambatur Taluk, Thiruvellore District Measuring to an extent of 6,907 sq.ft., or No. C, “Chandra Flats” measuring an extent of 838 sq. ft., of Plinth Area in the said schedule mentioned property.

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The Applicant submits that the first defendant purchased the property and submitted the necessary documents and based on his representations and also his eligibility for taking a housing loan the applicant bank at the rate of 11% per annum with monthly rests. The loan amount is liable to be repaid on equated monthly instalment of Rs.8,400/- each for a period of 240 months commencing from 01.10.2005. The applicant bank submits that the defendants have accepted the terms and conditions of sanction of housing loan and agreed to abide by the same.

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It is submitted by the applicant bank that the 1^st defendant requested for the Housing Loan limit and the 2^nd defendant stood as Guarantor for the sanctioned housing loan, by way of a collateral security created in favour of the applicant bank. The defendants in proof of the sanctioning of the limit had executed Term Loan Agreement for Housing Loan individual borrower Agreement on 27.08.2005 and executed the

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T.A. No. 1124 of 2023

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12.01.2026

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following documents in favour of the applicant bank namely,

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(i) Demand Promissory Note,

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(ii) Letter of General Lien and set-off for borrowing

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arrangements from the borrowers,

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(iii) Letter of General Lien and set-off for borrowing arrangements from the guarantor,

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(iv) Letter of Guarantee,

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(v) Letter of acknowledgement by borrower acknowledging amounts payable are secured by hypothecation/pledge/mortgage of movable/ immovable property, declaration from the borrowers and guarantors.

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It is submitted that the defendants called on the Branch office of the applicant bank and executed the Housing Loan Agreement limit over the immovable property, described in the schedule to the OA, and availed the facilities loan. The defendants have availed the said Housing Loan facility by accepting to the terms and conditions of the applicant bank and the defendants have executed the necessary documents and created equitable mortgage in favour of the applicant bank. As per the terms and conditions, the amounts were disbursed to the defendant and the sanctioned limit of Rs.9,97,000/- (Rupees Nine Lakh Ninety Seven Thousand only).

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The applicant submits that the first defendant has entered into an Agreement of Sale on 10.08.2005, with one Mr. M. Palani, who is the

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12.01.2026

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Proprietor of M/s. Chandra Flat Promoters, who is the Power of Attorney of Mrs. Rani Andrews Jacob, Mrs. Rosamma for the purchase of 432 sq. ft., undivided share of land from and out of the land bearing Plot No. 4,5,6 and 6A, in the layout known as “Raghavendra Nagar Extension” comprised in Survey No.379 and 383, Patta No.6076, as per Patta S.No.379/7, of Koratur Village, Ambatur Taluk, Thiruvellore District Measuring to an extent of 6,907 sq.ft., or thereabouts and further the above said the First Defendant herein has entered into Construction Agreement dated 10.08.2005 with M/s. Chandra Flat Promoters for the construction of Flat bearing No. F-5, First Floor, in Block No. C, “Chandra Flats”, measuring an extent of 838 sq.ft., of Plinth Area in the said schedule mentioned property.

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It is further submitted that the first defendant had purchased 432 sq. ft., undivided share of land from and out of the land bearing Plot No. 4,5,6 and 6A, in the layout known as “Raghavendra Nagar Extension” comprised in Survey No.379 and 383, Patta No.6076, as per Patta S.No.379/7, of Koratur Village, Ambatur Taluk, Thiruvellore District Measuring to an extent of 6,907 sq.ft., or thereabouts from Mr. M. Palani who is the Power of Attorney of Mrs. Rani Andrews Jacob, Mrs. Rosamma under the sale Deed dated 29.08.2005, registered as Document No. 3071 of 2005, on the file of Sub Registrar Office at Villivakkam.

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The Applicant further submits the defendants had utilised the facility immediately but have failed and neglected to pay the interest and outstanding dues on its respective due dates, beginning from 2006. The

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applicant bank repeatedly sent reminders requests and demand and provided several opportunities to the defendant for the regularisation of their account by making payments of the due amount as per the loan agreement. After several written reminders for repayment of dues and continuous default by the defendants, the bank had classified the account as Non-performing asset (NPA) on 30.09.2006. The applicant bank had sent several reminders to the defendant and issued a letter dated 18.05.2007 for taking possession of the said mortgaged property on 21.05.2007. The defendants had sought for time and through their letter dated 30.06.2008, had requested the applicant bank to grant 15 days more time for repayment of loan amount. But even after these false claims by the defendants, the defendants did not repay the loan amounts to the applicant bank.

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The applicant further submits that in the interim, the first defendant has executed a Power of Attorney (POA) with one Mr. N. Periyaswamy, the third defendant herein, registered as document number 1181 of 2010 before the Sub-Registrar, Villivakkam, to maintain/sell the mortgaged property as required. The POA holder has also requested for a final settlement for discharge of loan with the applicant bank, amounting for Rs.13,00,000/- and take possession of the schedule mentioned property. But the loan discharge has to be by the defendant who has mortgaged the schedule mentioned property in favour of the bank.

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It is submitted by the Applicant Bank that as stated supra the Borrower 1^st defendant has given a Power of Attorney to one Mr. N.

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Periyaswamy. The said Power Agent has approached the bank by his letter dated 03.03.2015 who met the Bank Officials along with the letter only in the month of November 2016 stating that he had dispatched the letter in the month of 2015. In the said letter he has stated that he is ready to settle the matter for Rs.13,00,000/- and requested the bank to take possession and hand over the said secured asset to him. He had further stated that he has given amounts to the first defendant and his amounts are also blocked and he is being put into financial strain. The averments will clearly go to show that the said Power of Attorney of the third defendant herein and the 1^st defendant are seeking to play a fraud on the bank and cheated the bank of its entitlement. The said third defendant’s Power of Attorney Holders is therefore prohibited in dealing with the secured asset and an interim to that effect is being made for an injunction restraining the Power of Attorney Holder from in any manner dealing with the Schedule Mentioned Property which is the secured asset in the hands of the Applicant Bank and the whole of the amounts are to be recovered from the secured asset.

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It is submitted that the from letter the applicant bank on 18.05.2007 stated that the applicant bank had initiated proceedings under Section 13(2) of the SARFAESI Act and had issued a Letter bearing No. CRO:RML: 806:2006 dated 16.10.2006 calling upon the defendants to pay a sum of Rs.10,35,427/- within 60 days along with interest and the defendants have not acted upon the said letter dated 16.10.2006. The applicant bank is also taking out a mortgage decree restraining the defendants from in any

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manner deal with the mortgaged property, without discharging the liability of the applicant bank. 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 to 3 through Registered Post with Acknowledgment Due, which was returned with the endorsement “door locked” in respect of D1 and D3, while summons to D2 was duly served. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 25.11.2021 even after giving sufficient time, there was no appearance

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or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 25.11.2021.

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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, Smt. Ramya Kamalakannan, Senior Manager of the Applicant Bank, has filed her 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-15 . As the Defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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With regard to the amount advanced, the interest applied, the

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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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17. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, for recovery of a total sum of Rs.42,81,277/-(Rupees Forty Two Lakhs Eighty One Thousand Two Hundred Seventy Seven only) due in respect of Housing Loan(Account No.086351000105) repayable together with further interest @ 11% 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 property morefully 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

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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 (Arti), transcribed by her, corrected, signed and pronounced by me on this the 12^th day of January, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. Ramya Kamalakannan, Senior Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Original Sanction Terms and Condition of the Applicant dated 27.08.2005	A-1
2.	Original Demand Promissory Note for Rs.9,97,000/- executed by the defendants dated 27.08.2005	A-2
3.	Original Term Loan (Land and Building) Agreement Housing Loan Individual Borrower Executed by the Defendants dated 27.08.2005	A-3

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4.	Original Letter of Guarantee Executed by the Defendants dated 27.08.2005	A-4
5.	Original Letter of General Lien and set off for Borrowers dated 27.08.2005	A-5
6.	Original Consent Clause from borrower dated 27.08.2005	A-6
7.	Original Letter of General Lien and set off from Guarantors dated 27.08.2005	A-7
8.	Original Consent Clause from Guarantor dated 27.08.2005	A-8
9.	Original Declaration from the Borrowers dated 27.08.2005	A-9
10.	Original Letter from the first Defendant to the Applicant Bank dated 18.09.2006	A-10
11.	Copy of the Letter from 1^stDefendants to Applicant Bank dated 30.06.2008	A-11
12.	Copy of Power of Attorney executed by the 1^st Defendant in favour of the 3^rddefendant, Registered as document No.1181 of 2010, SRO, Villivakkam dated 24.09.2010	A-12
13.	Original of the Letter from 3^rdDefendant to Applicant Bank dated 03.03.2015	A-13
14.	Copy of the Sale Notice issued by the Applicant Bank dated 18.07.2016	A-14
15	Statement of Account filed by the Applicant Bank	A-15

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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-:

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Schedule of Property

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All that piece and parcel of residential property, bearing Flat No. F- 5, 1^st Floor, measuring an extent of 838 sq.ft., of plinth area together with 432 sq.ft. of undivided share of common land of 6907 sq.ft., Block C, Chandra Flats, Plot No. 4,5,6 and 6A, Raghavendra Nagar Extension, Korattur Village, Ambattur Taluk, Thiruvallur District, Chennai-76, in S.No. 379 and 383, Patta No. 6076 as per patta S.No.379/7 and bounded on the

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North by 20 feet road and plot no.3,

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South by existing shops cum houses,

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East by Kaviya Nagar and

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West by Plot Nos.7,8 and 20 feet road in the name of 1^st Defendant.

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

Bank of Baroda v. Kirubanandan

Case brief

What is this about?

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Bank of Baroda v. Kirubanandan

Case brief

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