Allowed

State Bank of India v. Gulab

DRT3 Jul 2026TA/1302/2023

Case brief

AI extract

What is this about?

This tribunal allowed an original application filed by a bank for recovery of home loan dues against a defaulting borrower. The appellant proved its claim through affidavit and documents as the respondent appeared ex-parte, resulting in an order for repayment of principal, interest, and sale of mortgaged property. Dismissed other procedural arguments regarding the formation of the new DRT.

What did the court decide?

The applicant bank allowed to recover Rs.20,99,161/- plus interest; liberty to sell mortgaged property and defendant's other assets on default.

State Bank of India versus Gulab — Banking and Recovery | DRT (2026)

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T.A. No. 1302 of 2023

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03.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 03^rd day of July, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1302 of 2023

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(Originally filed before DRT- II, Chennai as OA 392/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1302 of 2023)

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State Bank of India, Retail Assets Central Processing Centre, MRC Nagar, No.4, Santhome High Road, Mylapore, Chennai 600 004. Represented by its Chief Manager. ….Applicant

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-Vs-

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Mr. Y. Gulab, S/o. Mohamed Yusuf, Residing at, No.9/55, Janakiraman 3^rd Street, Sembiam, Perambur, Chennai 600 011.

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…..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Suresh

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Defendant was set ex-parte on 19.07.2022

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: - FINAL ORDER - :

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This Original Application was filed on 11.09.2020 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 defendant, for recovery of a total sum of Rs.20,99,161/- (Rupees Twenty Lakhs Ninety Nine Thousand One

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Hundred and Sixty One Only) due in respect of Home Loan (A/c No.37457727556), repayable together with further interest @ 8.75%

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T.A. No. 1302 of 2023

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p.a. with monthly rests from the date of filing the OA till date of realization in full, for sale of schedule mentioned immovable property more fully detailed in Schedule to the OA and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.392 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.392 of 2020 stood transferred to this Tribunal and renumbered as TA No.1302 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, approached applicant bank seeking financial assistance for purchase of house. Pursuant to the request of the defendant, the applicant bank had sanctioned Housing Loan facility to the tune of Rs.20,16,000/- to the defendant vide Sanction Letter dated 04.01.2018.

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It is submitted by the applicant bank that loan is repayable in Equated Monthly Installemnts of Rs.25,429/- each together with interest at the rate of 8.9% p.a. with monthly rests, subject to the terms and conditions as envisaged under the Arrangement Letter and Memorandum of Loan Agreement for Home Loan granted to public herein and Agreement

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to Mortgage, all dated 06.01.2018 respectively. The defendant has

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T.A. No. 1302 of 2023

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executed a confirmation letter dated 10.10.2019.

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The applicant bank submits that the defendant herein has executed the following loan documents thereby acknowledging the said loan amount availed from the applicant bank.

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a) Sanction Letter dated 04.01.2018

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b) Arrangement Letter dated 6.1.2018

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c) Memorandum of Loan Agreement for Home Loan granted to Public dated 6.1.2018

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d) Agreement to Mortgage dated 6.1.2018

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e) Confirmation Letter dated 10.10.2019

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The applicant bank submits that the defendant had undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 6.1.2018. However, subsequent to the disbursement of the aforesaid Housing Loan the defendant was not operating the account as per the terms and conditions.

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It is submitted by the applicant bank that the defendant had been enjoying the “Housing Loan” facility ever since 2018, but had not shown significant transaction to the utmost satisfaction of the applicant bank. Since the defendant has filed to service the interest and principal due under the “Housing Loan” account, consequently it has become Non-Performing Asset (NPA) in the books of the applicant bank w.e.f 04.10.2019. The applicant bank through its Authorised Officer issued Demand Notice under Section 13(2) of the SARFAESI Act dated 05.10.201, thereby calling upon

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T.A. No. 1302 of 2023

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the defendant to repay the “Housing Loan” loan amount together with accumulated interest but evoked no response from defendant. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, which was returned unserved with postal endorsement as ‘No such person’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 19.07.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-parte on 19.07.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Mr. Saket Kumar, 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-8 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-8 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

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T.A. No. 1302 of 2023

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amount claimed against defendant.

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The defendant was set ex-parte on 19.07.2022, 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 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 a total sum of Rs.20,99,161/- (Rupees Twenty Lakhs Ninety Nine Thousand One Hundred and Sixty One Only) due in respect of Home Loan (A/c No.37457727556), repayable together with further interest @ 8.75% p.a. with monthly rests from the date of filing the OA till date of realization in full, along with costs.

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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

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schedule mentioned immovable property more fully detailed in the OA.

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(d) If the sale proceeds of the immovable property is not sufficient

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to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

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(e) The applicant bank shall file the latest memo of calculation of

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OA amount together with interest, costs etc., to be paid by the defendants duly considering the amounts, if any, paid by the defendants 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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(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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(g) 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. 1302 of 2023

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

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Sd/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 03^rd day of July, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Saket Kumar, 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.	Sanction Letter dated 04.01.2018.	A-1
2.	Arrangement Letter dated 06.01.2018.	A-2
3.	Memorandum of Loan Agreement for Home Loan granted to public dated 06.01.2018	A-3
4.	Agreement to Mortgage dated 06.01.2018.	A-4
5.	Confirmation Letter dated 10.10.2019.	A-5
6.	Sale Deed executed by Mr. B. Viswanath Power Agent Mr. Asokan Ragu in favour of Mr. Y. Gulab (Doc.No.358/2018) dated 10.01.2018.	A-6
7.	13(2) Notice and Returned Cover dated 05.10.2019.	A-7
8.	Statement of Account and Certificate Under Banker’s Book Evidence Act, 1891 dated 06.01.2018 to 13.08.2020.	A-8
9.	Authorization Circular.	A-9

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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. 1302 of 2023

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SCHEDULE OF PROPERTY

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All that piece and parcel of vacant house site property bearing Plot No.1049, measuring an extent of 2400 Square feet in VGP SRI CHAKRA TOWN PART II Approval No.C.S.R./T&C.P./M/86-214 L.P. No.175-A, comprised in Survey Nos.103/6&103/25, (As per Patta No.6229 in New Subdivision Survey Nos.103/6A1B, 103/8A1B), situated at No.103, Nemili Village, Sriperumbudur Taluk, Kancheepuram District, within the subRegistration District of Sriperumbudur and Registration district of Chengalpet.

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North by : Plot Nos.1048 & 24 feet Road, South by : Plot Nos. 1057 & 1058 East by : Plot Nos.1050 & 24 feet Road, West by : Plot Nos. 1056 & 1057. Admeasuring

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Northern side: 40 feet, Southern side: 40 feet, Eastern side: 60 feet, Western side: 60 feet.

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In all admeasuring 2400 square feet or thereabouts.

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This property lies within the limits of Nemili Village Panchayat and Sriperumbudur, Chennai 602 105.

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

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State Bank of India v. Gulab

Case brief

What is this about?

What did the court decide?

State Bank of India v. Gulab

Case brief

What is this about?

What did the court decide?

What the court decided

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