Allowed

Central Bank of India v. Jebasingh Reagan

DRT28 Apr 2026TA/1336/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a housing loan of approximately Rs. 27.46 lakhs. The defendant failed to appear, and the Tribunal confirmed the bank's claim based on the filed affidavit and documents, ordering repayment of the dues with interest.

What did the court decide?

Recovery of Rs. 27,46,963/- along with future interest and penal interest; liberty to sell mortgaged property; issuance of Recovery Certificate.

Central Bank of India versus Jebasingh Reagan — Contract and Commercial Disputes | DRT (2026)

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T.A. No. 1336 of 2023

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28.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 28^th day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.1336 of 2023

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(Originally filed before DRT- II, Chennai as OA 166/2022 and thereafter transferred to this Tribunal and renumbered as TA No 1336 of 2023)

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Central Bank of India, Kodambakkam Branch, No.337, Arcot Road, Kodambakkam, Chennai-600024, Rep. by its Chief Manager ... Applicant

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-Vs-

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Mr. Jeba Singh Reagon, S/o. Asuvathy Jebaraj, No.432/54, Manju Apartments, Flat No: E, Erikarai Street, Nesapakkam,Chennai-600078 ...Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Hemalatha Suresh

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Defendant was set ex-parte on 12.09.2023

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: - FINAL ORDER- :

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This Original Application is filed on 24.03.2022 by the applicant bank 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 defendant, for recovery of a total sum of Rs.27,46,963/- (Rupees Twenty Seven Lakhs Forty Six Thousand

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Nine Hundred and Sixty Three only) due in respect of Housing Loan (A/c No.3937697584) repayable together with further interest @ 8.70% p.a. + Penal interest, with monthly rests from the date of

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T.A. No. 1336 of 2023

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28.04.2026

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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.166 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.166 of 2022 stood transferred to this Tribunal and renumbered as TA No.1336 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 for grant of Housing Loan by submitting Loan Application dated 12.06.2015. Considering the said request, the Applicant had sanctioned the Housing Loan vide Sanction Letter dated 19.06.2015. The Defendant had availed Housing loan of Rs.14,60,000/on 22.06.2015.

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It is submitted by the applicant bank that the Defendant had executed the Loan Agreement for Rs.14,60 000/- on 22.06.2015 agreeing to repay the said sum together with interest, Supplementary Agreement for Rs.14,60,000/-on 22.06.2015 agreeing to repay the said sum amount together with interest, Interest Variation Letter on 22.06.2015 agreeing to repay the said sum together with interest, respectively in favour of

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28.04.2026

applicant bank.

The applicant further submits that as collateral security the Defendant had mortgaged the property owned by her and described in Schedule to the OA by Deposit of Title Deeds with the Applicant on 22.06.2015. The defendant had executed Memorandum of Deposit of Title Deeds on 22.06.2015 registered as Doc No.5855/2015 in favour of applicant bank.

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The applicant submits that the defendants deposited the Title deeds along with other documents with the applicant bank as under:

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a) Construction Agreement dated 22.06.2015 (Doc.No.5850/2015) in the name of Mr. Jeba Singh Reagon, defendant.

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b) Sale Deed in the name of Mr. Jeba Singh Reagon dated 22.06.2015 (Doc. No. 5851 /2016)

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c) Encumbrance certificate

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It is submitted by the applicant bank that subsequent to the disbursement of above said loan facility, the defendant was not operating the loan account as per the terms and conditions and the defendant never had any intention to repay the availed loan facility. Further the repeated demands and persistent follow up made by the applicant bank towards the defendant to repay the outstanding dues of its loan account was of no avail and the defendant continued with its default indefinitely. It is on account of the delay/ default committed by the defendant in repayment of both the principal and interest the defendant had become due and liable to pay penal interest calculated at the rate of 2% per month with monthly

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rests to the applicant herein and the said penal interest has not been capitalized as per RBI guidelines.

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The applicant submits that the Defendant had made a last payment of Rs. 500/- on 17.03.2021. After this the Defendants had not cared to make any payment. It is on account of the delay/default committed by the Defendants in repayment, the Applicant bank was constrained to declare the Defendants loan account as Non-Performing Asset (NPA) on 29.12.2019 in accordance with the guidelines of the bank and the directions issued by Reserve Bank of India in this regard.

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It is submitted that the Applicant issued notice under S.13(2) of the SARFEASI Act on 02.01.2020. Even after the receipt of the said notice the Defendant did not make any payment. Hence the Applicant issued Possession notice Dated 13.07.2020 and had taken Symbolic Possession of the secured assets in accordance with the provisions of the Act.

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The applicant submit that despite repeated reminders and requests to the Defendant, the Defendant failed to repay the outstanding loan amount. The applicant bank issued Legal Notice dated 27.07.2021, which was received by the Defendant on 29.07.2021 and even after the said notice the Defendant had failed to liquidate the amount due to the applicant. 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 Sole Defendant through Registered Post with Acknowledgment Due, which was duly

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served. When OA was taken up on 12.09.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, the Defendant were placed ex-parte on 12.09.2023

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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, Mr. Nimbay Marandi, Chief 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-14 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-14 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 defendants.

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The defendants were set ex-parte on 12.09.2023, 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

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against defendant.

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 sum of Rs.27,46,963/- (Rupees Twenty Seven Lakhs Forty Six Thousand Nine Hundred and Sixty Three only) due in respect of Housing Loan (A/c No.3937697584) repayable together with further interest @ 8.70% p.a., with monthly rests plus penal interest from the date of Application till the date of realization in full along with costs of this application. All pending IAs, if any also stands closed.

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(b) In the event of failure of the Defendant 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) 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

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T.A. No. 1336 of 2023

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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 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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(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

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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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 28^th day of April, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Nimbay Marandi, Chief Manager of 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.	12.06.2015	Loan Application	A-1
2.	19.06.2015	Sanction Letter	A-2
3.	22.06.2015	Loan Agreement	A-3
4.	22.06.2015	SupplementaryAgreement	A-4
5.	22.06.2015	Interest Variation Letter	A-5
6.	22.06.2015	Memorandum of Deposit of Title Deeds	A-6
7.	22.06.2015	Construction Agreement	A-7
8.	22.06.2015	Sale Deed	A-8
9.	22.03.2022	Encumbrance Certificate from 01.01.2015 to 22.03.2022	A-9
10.	02.01.2020	Demand Notice under S. 13(2)	A-10
11.	13 .07.2020	Possession Notice under S.13(4)	A-11
12.	27.07.2021	Legal Notice	A-12
13.	29.07.2021	Acknowledgement Card	A-13
14.	22.03.2022	Certified Statement of Account	A-14

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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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(PROPERTY MORTGAGED BY JEBASINGH REAGEN- DEFENDANT)

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All that piece and parcel of 272 Sq.ft of undivided share of land out of sub divided vacant house site bearing Plot No.1A of total extent of 1468 sq.ft (136.38mts) in the sub divided larger extent of Shop Plot No.1 comprised in Sy.No.89, Sirunium Village, Ponnari Taluk, Thiruvallur district measuring an extent of 3693sq.ft in the approved layout called Parthasararthy Nagar bearing CMDA approval No.56/2001 dated 20.03.2021 in Cholavaram Panchayat Union as per Sub division planning permit bearing No.D21295/2014-15 from the Commissioner Panchayat Union Cholavaram together with flat to be constructed in the first floor front in Sai Mahasakthi Apartment part-A bearing Flat No.F1 with Plinth area of 543sq.ft inclusive of common areas the larger extent of Plot No.1A.

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Bounded on the

North by: Plot no.2

South by: 40feet wide Kothandapani Pradhana Salai.

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East by: Plot No.1B and

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West by: Road

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Within the Sub-Registration District of Redhills and Registration district of Chennai North.

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

Central Bank of India v. Jebasingh Reagan

Case brief

What is this about?

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Central Bank of India v. Jebasingh Reagan

Case brief

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What did the court decide?

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