Allowed

State Bank of India v. Sivaraj

DRT13 Jan 2026TA/149/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank's application under Section 19 RDB Act. Directing recovery of the loan amount plus interest, it held the bank entitled to sell the defendant's personal assets to recover the balance dues after crediting the partial realization from the SARFAESI sale.

What did the court decide?

Order allowed recovery of Rs. 47,83,019.68 plus interest at 9.10% p.a. Credit given for Rs. 26,25,000 realized via SARFAESI. Liberty granted to sell defendant's personal assets for balance dues.

State Bank of India versus Sivaraj — Execution and Attachment | DRT (2026)

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T.A. No. 149 of 2023

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13.01.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 13^th day of January, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 149 of 2023

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(Originally filed before DRT- II, Chennai as OA 77/2020 and thereafter transferred to this Tribunal and renumbered as TA No 149 of 2023)

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State Bank of India, Asset Recovery Management, No.44, Eldams Road, 1^st Floor, Teynampet, Chennai 600 018 Rep by its Deputy Manager ….Applicant

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-Vs-

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Mr. T.Sivaraj, S/O Mr. Thiyagarajan, F2 S.G. Homes Rajesh Nagar, 4^th Cross Street, Pallikaranai, Chennai 600 100 ….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 03.03.2022

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: - FINAL ORDER - :

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This Original Application is filed on 30.12.2019 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.47,83,019.68p

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(Rupees Forty Seven Lakhs Eighty Three Thousand and Nineteen

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and Sixty Eight Paisa only) due in respect of Home Loan(Account No.37613652391) reapable together with further interest @ 9.10% p.a.,

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with monthly rests from the date of Application till the date of realization in

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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.77 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.77 of 2020 stood transferred to this Tribunal and renumbered as TA No.149 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 Hon’ble Tribunal.

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It is the case of the Applicant Bank that the defendant had approached the applicant bank seeking financial assistance in the form of Housing Loan for purchase of schedule mentioned property and submitted Loan Application dated 02.03.2018. Considering the said request, the Applicant Bank had sanctioned a sum Rs.49,50,000/- towards Housing Loan vide Sanction Letter dated 26.03.2018. The loan is repayable in Equated Monthly Instalments of Rs.43,792/- each until the entire loan with interest is fully repaid, together with interest thereon at the rate of 8.7% p.a. with monthly rests.

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It is submitted by the Applicant Bank that the having availed the loan, the Defendant herein had executed the following loan documents thereby acknowledging the said loan amount availed from the Applicant bank. The

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T.A. No. 149 of 2023

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13.01.2026

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Defendant had undertaken to repay the loan amount in time without committing any default:

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i. Sanction Letter dated 26.03.2018

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ii. Arrangement Letter dated 26.03.2018

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iii. Memorandum of Loan Agreement for Home Loan dated 26.03.2018

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iv. Agreement to Mortgage dated 26.03.2018

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v. Confirmation Letter dated 01.09.2018

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The Applicant Bank further submits that the Defendant had undertake to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 23.02.2018. However, subsequent to the disbursement of the aforesaid “Housing Loan”, the defendant has not been operating the account as per the terms and conditions. They have been repeatedly making representations to the defendant to regularize the “Housing Loan” account or to repay the loan amounts

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It is submitted by the applicant bank that the defendant had been enjoying the “Housing Loan” facility ever since from the year of 2018 onwards. The defendant has not shown significant transactions to the utmost satisfaction of the applicant bank. The defendant has failed 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 on 23.05.2019 in accordance with RBI guidelines.

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13.01.2026

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After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due, which was served to the sole defendant returned with the remark “Left”, No representation for sole Defendant. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 18.12.2025even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 18.12.2025.

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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. Jitin Anto, Deputy 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-11 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.26,25,000/- by way of sale of Schedule immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.26,25,000/- was duly recorded vide proceedings dated 18.11.2025 and documents marked as Ex A-6 to A-9 were returned to applicant bank on 25.11.2025 under proper acknowledgement

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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

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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.47,83,019.68p (Rupees Forty Seven Lakhs Eighty Three Thousand and Nineteen and Sixty Eight Paisa only) due in respect of Home Loan(Account No.37613652391) reapable together with further interest @ 9.10% 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) The sum of Rs.26,25,000/- realised by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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

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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

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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 13^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: Sh. Jitin Anto, Deputy Manager representing the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl.	Description of Documents	Exhibit
No.		No.
1.	Loan Application dated 02.03.2018	A-1
2.	Sanction Letter dated 26.03.2018	A-2
3.	Arrangement Letter dated 26.03.2018	A-3
4.	Memorandum of Loan Agreement for Home Loan Granted to Public dated 26.03.2018	A-4
5.	Agreement to Mortgage dated 26.03.2018	A-5
6.	Confirmation Letter dated 01.09.2018	A-6
7.	Builders Agreement dated 22.03.2018	A-7
8.	Agreement for sale dated 20.11.2017	A-8

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9.	Sale Deed executed by (Madras) Pvt. Ltd in favou 928/2018)	M/s Engineers Estates r of T.Sivaraj (Doc. No.	A-9
10.	13(2) Demand Notice with	Ack. dated 22.07.2019	A-10
11.	Statement of Account 13.12.2019	dated 26.03.2018 to	A-11

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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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OA schedule property has been sold under SARFAESI Act.

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

State Bank of India v. Sivaraj

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sivaraj

Case brief

What is this about?

What did the court decide?

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