Allowed

Union Bank of India v. Mrs R Gayathri and another

DRT8 Jun 2026TA/1472/2023

Case brief

AI extract

What is this about?

This court disposed of an original application filed by Union Bank of India for recovery of a housing loan. The respondents, set ex-parte, failed to contest the claim. The tribunal allowed the application, permitting recovery of the outstanding sum after crediting proceeds from a prior property sale, and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of total sum of Rs.72,88,738/- with interest and costs; credit of Rs. 66,00,000/- realized via SARFAESI sale; liberty to sell personal assets for balance dues; issuance of Recovery Certificat

Union Bank of India versus Mrs R Gayathri and another — Execution and Attachment | DRT (2026)

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T.A. No. 1472 of 2023

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08.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. of 1472 of 2023

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(Originally filed before DRT- II, Chennai as OA No.481 of 2018 and thereafter transferred to this Tribunal and renumbered as TA No.1472 of 2023)

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***** Union Bank of India, (Erstwhile M/s Corporation bank) Represented by its branch manager, “Midland insurance building” first floor, No.556, Anna salai, Teynampet, Chennai- 600 018

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…Applicant

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***** (Amended vide order in memo dated 08.03.2022 in view of merger)

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-Vs-

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Mrs. R.Gayathri, W/o Mr. S.Anand, No.1, Perumal Koil Street, 154, Ayimichery Village, Kancheepuram Taluk & District, Tamilnadu 631 601

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Mr. S.Anand, S/o Mr.Surendra Babu, No.1, Perumal Koil Street, 154, Ayimichery Village, Kancheepuram Taluk & District, Tamilnadu 631 601 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s K. Sarath Babu

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Defendants 1 and 2 were set ex-parte on 22.07.2021

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T.A. No. 1472 of 2023

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08.06.2026

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: - FINAL ORDER- :

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This Original Application is filed on 31.03.2018 by Erstwhile Corporation Bank (since merged with Union Bank of India) 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 and 2, jointly and severally for recovery of a total sum of Rs.72,88,738/(Rupees Seventy Two Lakhs Eighty Eight Thousand Seven Hundred and Thirty Eight only) due in respect of Housing Loan (A/c No. CHOME/01/120001) repayable together with further interest @12%p.a. with monthly rests from the date of Application till the date of realization in full, for sale of immovable property morefully detailed in the schedule to the OA and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.481 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.481 of 2021 stood transferred to this Tribunal and renumbered as TA No.1472 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 1 & 2 had

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T.A. No. 1472 of 2023

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approached the applicant bank for construction of their house and the applicant bank had sanctioned the Home Loan for Rs.50,00,000/- on 23.01.2012 vide loan account no. CHOME/01/120001 and an additional Home Loan named “Graha Shobha” amounting to Rs.7,87,000/- availed by the first and second defendants.

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It is submitted that the defendants had availed a sum of Rs.57,87,000/- from the applicant bank and had executed all the necessary documents. The defendants accepted to the various terms and conditions envisaged in the sanction letter dated 23.01.2012 for a sum of Rs.50,00,000/-. The loan is repayable in 300 Equated Monthly Instalments of Rs.51,744/- together with interest at 11.65% p.a. (Floating) (interest rate charged is on floating rate basis linked to the base rate and subject to revision from time to time) based on the revision in the base rate and additional loan sum of Rs.7,87,000/- which was sanctioned on 26.08.2013 was to be repaid in 120 Equated Monthly Instalments of Rs.11,228/- at 11.75% p.a. Floating (interest rate charged is on a floating rate basis linked to the base rate and subject to revision from time to time based on the revision in the base rate. Interest is calculated on the daily reducing balance on monthly rest and debited to the account on every month) and acknowledged by the defendants. The applicant bank submits that the defendants agreed to repay the housing loan and additional housing loan of Rs.57,87,000/-.

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It is submitted that the first defendant had mortgaged immovable property by way of deposit of title deeds owned by her with the applicant

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T.A. No. 1472 of 2023

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to secure the housing loan availed by them from the applicant for the purpose of construction of dwelling house morefully described in the schedule to the OA and subsequently on availing the additional housing loan the additional mortgage was created in the existing deposit of title deeds as a continuing security.

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In the terms of the sanction and in consideration of the applicant granting the aforesaid housing loan facility to the first and second defendant and to secure the same the defendant had executed the under mentioned documents along with original title documents in the favour of the applicant bank:

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i. Agreement for Term Loans (Housing) dated 07.01.2012 executed for Rs.50,00,000/- and additional housing loan facilities term loan agreement dated 30.08.2013 for a sum of Rs.7,87,000/duly executed by the first and second defendants for the said housing loan facilities availed by the first and second defendant.

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ii. Registered Memorandum of Deposit of Title Deeds dated 30.01.2012 and its Rectification Deed dated 22.07.2013, the letter of undertaking/declaration from the borrower(s) duly signed by the first & second defendant.

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iii. Undertaking letter obtained from the borrower along with the affidavit-cum undertaking letter duly executed by the defendants indemnifying from any loss or damage that may suffer or incurred by the applicant on account of any defect in the title of the said property mortgaged default in repayment of the housing

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T.A. No. 1472 of 2023

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loan availed on account of non performance or non observance of breach of any terms, clause, condition or covenant of the said loan agreement or any other document or any claim demand or risk however arising to the applicant bank with reference to the said scheduled property by the first and second defendants assurances, transfer to any person or persons by way of public auction to represent before any judicial, quasi- judicial authorities etc till the entire principal amount with the interest is duly repaid to the applicant bank.

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iv. Letter of undertaking/ declaration from the borrower dated 03.02.2012 and 30.08.2013 duly executed by the first and second defendant stating that the they shall not let out, transfer or assign the said flat to any person or persons for their use occupations, enjoyment or otherwise, howsoever part with the possessions of the said flat or any part thereof. It is always intended that during the period of the loan agreement.

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The first and second defendants had made a request for release of Housing Loan was duly executed by the first and second defendants for the sum of Rs.50,00,000.00p and additional Housing Loan of Rs.7,87,000.00p and duly acknowledged by the first and second defendants.

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The applicant submits that the borrower has been making the payment of installments at irregular intervals and the last installments was received by the applicant bank on 06.02.2016 and thereafter the first

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and second respondent had stopped making payments. Consequently, the loan account of the defendants was classified as Non-Performing Asset (NPA) on 04.04.2016 as per the directives of the Reserve Bank of India. However, the defendants had executed Acknowledgement of debts on 0.12.2014 and on 16.11.2017 respectively.

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It is submitted by the applicant bank that they had sent many reminders to the defendants to make the payments and visited many occasions personally for the recovery and all the efforts went in vein. Further to that, the applicant bank had informed about the change in the revision of the interest rate from time to time in accordance to the directions of the Reserve Bank of India as the loan availed by the defendants were of the floating rate of interest. All efforts for the recovery process had gone in vain but still there was no response from the defendants. 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, which was duly served in respect of D-1 and D-2. Although defendants entered appearance through their counsel and filed vakalat on 13.12.2019, despite availing substantial adjournments, did not choose to file written statement. When OA was taken up on 22.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 22.07.2021.

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T.A. No. 1472 of 2023

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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. Antesh Sinha, Branch 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-28.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-28 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 22.07.2021 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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During the pendency of OA, Applicant Bank had reported part

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satisfaction of OA claim in a sum of Rs.66,00,000/- by way of sale of Schedule immovable property under SARFAESI Act on 28.01.2026. Accordingly, part satisfaction of sum of Rs. 66,00,000/- was duly recorded vide proceedings dated 30.03.2026 and documents marked as Ex A-4, A- 5, A-13 and A-21 were returned to applicant bank under proper acknowledgment on 19.05.2026.

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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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17. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and jointly and severally, a total sum of Rs.72,88,738/(Rupees Seventy Two Lakhs Eighty Eight Thousand Seven Hundred and Thirty Eight only) due in respect of Housing Loan (A/c No. CHOME/01/120001) repayable together with further interest @12%p.a. with monthly rests from the date of Application till the date of realization in full along with costs of this OA.

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(b) A sum of Rs. 66,00,000/- realised by way of sale under SARFAESI Act on 28.01.2026 is directed to be given credit to the borrower’s loan account as on the date of realisation.

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(c) If the sale proceeds of the mortgaged property is not sufficient to satisfy the dues as ordered above, the applicant bank is

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at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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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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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 08^th day of June, 2026)

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T.A. No. 1472 of 2023

08.06.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Antesh Sinha, Branch 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.	07.01.2012	Housing loan application form (CHOME/01/2001)	A-1
2.	23.01.2012	Credit sanction limitation	A-2
3.	28.01.2012	General power of attorney	A-3
4.	30.01.2012	Registered Memorandum of deposit of title deed	A-4
5.	01.07.2011	Registered settlement deed in favour of the first defendant	A-5
6.	03.02.2012	Agreement for term loans (housing)	A-6
7.	03.02.2012	Letter of undertaking/ declaration from the borrower	A-7
8.	03.02.2012	Undertaking letters obtained from the borrower	A-8
9.	03.02.2012	Irrevocable general power of attorney	A-9
10.	03.02.2012	Request for disbursement of loan for a sum of Rs.20,00,000/-	A-10
11.	27.03.2012	Request for disbursement of loan for a sum of Rs.15,00,000/-	A-11
12.	10.06.2013	Housing loan application (CGSHB/01/130001)	A-12
13.	22.07.2013	Registered rectification deed	A-13
14.	30.08.2013	Credit sanction intimation	A-14
15.	30.08.2013	Term loan application (CGSHB/01/130001)	A-15
16.	30.08.2013	Letter of continuity	A-16
17.	30.08.2013	Letter of undertaking/declaration from the borrower(s)	A-17
18.	30.08.2013	Encumbrance free declaration from the borrower	A-18
19.	30.08.2013	Request for disbursement of loan	A-19
20	24.09.2013	Affidavit-cum-undertaking letter	A-20
21.	24.09.2013	Agreement relating to deposit of title deeds	A-21
22.	20.12.2014	Acknowledgement of debts/liability by the borrower	A-22
23.	19.05.2016	Overdue notices for NPA accounts (CGSHB/01/120001)	A-23

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24.	19.05.2016	Overdue notices (CGSHB/01/13000	for NPA accounts 1)	A-24
25.	03.08.2016	Acknowledgement the borrower	of debts/liability by	A-25
26.	16.11.2017	Acknowledgement the borrower duly second defendant	of debts/liability by signed by the first and	A-26
27.	16.11.2017	Acknowledgement the borrower duly second defendant	of debts/liability by signed by the first and	A-27
28.		Statement of certificates	accounts with BBE	A-28

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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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The mortgaged property has been sold under SARFAESI Act.

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

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Union Bank of India v. Mrs R Gayathri and another

Case brief

What is this about?

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Union Bank of India v. Mrs R Gayathri and another

Case brief

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