Allowed

State Bank of India v. Sangaranarayanan P

DRT14 May 2026TA/1491/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by State Bank of India for recovery of housing loan dues. The court confirmed the validity of the loan documents, the default, and the lack of defense from the respondent. It ordered recovery of the principal, interest, and costs, with liberty to sell secured immovable property.

What did the court decide?

Recovery of total sum of Rs.40,91,062.77 with further interest at 8.65% p.a., costs, and liberty to sell secured immovable property.

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

¶1

T.A. No. 1491 of 2023

¶2

14.05.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 14^th day of May, 2026

¶6

Present: SMT. S.V. GOWRAMMA

¶7

Presiding Officer

¶8

TRANSFERRED APPLICATION No.1491 of 2023

¶9

(Originally filed before DRT- II, Chennai as OA 403/2019 and thereafter transferred to this Tribunal and renumbered as TA No.1491 of 2023)

¶10

State Bank of India, Assets Recovery Management branch, Eldams Road, Teynampet, Chennai 600 018 Represented by its Chief Manager …Applicant

¶11

-Vs-

¶12

Mr. P. Sangaranarayanan, S/o Mr. Perumal, No.1/10, 2^nd Main road, Nethaji Colony, Velachery, Near Speed print press, Chennai- 600 042 ….Defendant

¶13

Counsels on record / appeared:

¶14

Counsel for Applicant: M/s. N. Kishore Kumar

¶15

Defendant was set ex-parte on 30.08.2019

¶16

: - FINAL ORDER- :

¶17

This Original Application is filed on 15.03.2019 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

¶18

Rs.40,91,062.77p (Rupees Forty Lakhs Ninety One Thousand Sixty

¶19

Two and Seventy Seven Paise only) due in respect of Housing Term Loan (A/c No.36577372125) together with further interest @ 8.65%

¶20

T.A. No. 1491 of 2023

¶21

¶22

14.05.2026

¶23

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.

¶24

Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 403 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.403 of 2019 stood transferred to this Tribunal and renumbered as TA No. 1491 of 2023.

¶25

Brief Facts of the case:

¶26

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.

¶27

It is the case of the applicant bank that the defendant availed the Housing Term Loan from the applicant bank for the purchase of the schedule house property. The OA property was developed and built by M/s Sonex Builders, Rep. by its Partner Mr. G. Ther Vijayan, No.G2, 5/187, 5^th Main Road, Otteri extension, Vandalur, Chennai- 600 004.

¶28

The applicant submits that the defendant having personally identified and satisfied with the specifications of the schedule flat promoted by the M/s Sonex Builders approached the applicant bank after entering into a sale agreement and construction agreement both dated 30.11.2016 with the M/s Sonex Builders through an application dated

¶29

T.A. No. 1491 of 2023

¶30

¶31

14.05.2026

¶32

24.01.2017. The applicant bank drawn an appraisal cum control report dated 27.01.2017 on the loan of the defendant showing the terms of the loan. The applicant bank thereafter sanctioned a Housing term loan by granting ten months moratorium period and issued an arrangement letter dated 01.03.2017 for the sum of Rs.36,74,000/-in Housing loan account No. 36577372125 for the purchase of the residential flat situated in the schedule hereunder promoted and developed by the M/s. Sonex Builders. The said loan amount is repayable in 300 equated monthly instalments of Rs.30,252/- each. At that time of sanctioning the housing loan the superstructure was not completed.

¶33

It is submitted by the applicant bank that the defendant in agreement to the terms and conditions of the applicant bank for the sanction / disbursement of the Housing Loan has executed loan and other documents on 01.03.2017 in favour of applicant bank:

¶34

Memorandum of Term Loan Agreement for Home Loan granted to public;

¶35

Deed of undertaking;

¶36

Agreement to mortgage;

¶37

Affidavit in Annexure A & B

¶38

Operations Letter

¶39

Annexure-I

¶40

It is the further submitted by the applicant bank that, the defendant, after the sanction of the said Housing Loan has obtained the Sale Deed form the owner for the schedule flat vide Doc.No.1998 of 2017

¶41

T.A. No. 1491 of 2023

¶42

14.05.2026

¶43

¶44

dated 06.03.20117. The defendant deposited the original title deeds pertaining to the schedule mentioned property with applicant bank and executed Memorandum of Deposit of Title Deeds dated 31.05.2017 registered vide Doc.No.4778 of 2017 in respect of the property morefully detailed in schedule to the OA, and thus confirmed the deposit of title deeds with the applicant bank by a letter dated 01.06.2017 which security is to cover the entire borrowings of the defendant with the applicant bank in the above mentioned account and thereby securing the housing term loan availed by them.

¶45

The applicant submits that subsequent to availing of loan, despite repeated demands made by the applicant bank, the defendant failed to comply with the demands and kept the amounts as outstanding till date. The applicant issued several letters to the defendant demanding the outstanding amounts but it yielded no response. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

¶46

After the filing of the OA, summons was sent to the Sole Defendant through Registered Post with Acknowledgment Due, which returned with remarks “Left”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 30.08.2019 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 30.08.2019

¶47

Heard the submissions of Applicant Bank and perused the

¶48

records.

¶49

T.A. No. 1491 of 2023

¶50

14.05.2026

¶51

¶52

To prove the case of the Applicant Bank, Mr. C. Arun Prasath, Deputy Manager and Authorised Officer, ARMB 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

¶53

A-15 .

¶54

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-15 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.

¶55

The defendants were set ex-parte on 30.08.2019, 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.

¶56

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

¶57

T.A. No. 1491 of 2023

¶58

14.05.2026

¶59

¶60

final order on the following terms:

¶61

: O R D E R :

¶62

The OA is allowed with costs,

¶63

(a) The applicant bank is allowed to recover from the Defendant, a total sum of Rs.40,91,062.77p (Rupees Forty Lakhs Ninety One Thousand Sixty Two and Seventy Seven Paise only) due in respect of Housing Term Loan (A/c No.36577372125) repayable together with further interest @ 8.65% p.a., with monthly rests from the date of Application till the date of realization in full, from the date of Application till the date of realization in full along with costs of this application.

¶64

(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.

¶65

¶66

(d) 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.

¶67

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

¶68

T.A. No. 1491 of 2023

¶69

14.05.2026

¶70

¶71

OA amount together with interest, costs etc., to be paid by the Defendant 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 Defendant to the applicant bank.

¶72

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

¶73

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶74

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

¶75

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

¶76

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 14^th day of May, 2026)

¶77

ANNEXURES

¶78

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶79

AW-1: Mr. C. Arun Prasath, Deputy Manager and Authorised Officer, ARMB of the Applicant Bank

¶80

Exhibits on the part of the Applicant:

¶81

Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	30.11.2016	Sale agreement	A-1
2.	30.11.2016	Construction agreement vide	A-2

¶82

T.A. No. 1491 of 2023

¶83

¶84

14.05.2026

¶85

		Doc.No.1997/2017
3.	24.01.2017	Application by the defendant to the applicant bank for housing loan	A-3
4.	27.02.2017	Appraisal cum control report	A-4
5.	01.03.2017	Memorandum of term loan agreement for home loan granted to public	A-5
6.	01.03.2017	Deed of undertaking	A-6
7.	01.03.2017	Annexure-I	A-7
8.	01.03.2017	Affidavit in annexure – A&B	A-8
9.	01.03.2017	Agreement to mortgage	A-9
10.	01.03.2017	Operation letter	A-10
11.	-	Sale deed vide Doc No.1998 of 2017	A-11
12.	31.05.2017	Memorandum of deposit of title deeds	A-12
13.	31.05.2017	Memorandum of deposit of title deeds vide Doc No.4778/2017 executed by defendant in favour of applicant bank	A-13
14.	01.03.2017	Confirmation letter	A-14
15.	28.02.2019	Statement of account of the account no. 36577372125	A-15

¶86

Witness Examined for the Defendants: -Nil-

¶87

List of Documents Exhibited for the Defendants: -Nil –

¶88

:-SCHEDULE OF PROPERTY-:

¶89

SCHEDULE-A

¶90

All that piece and parcel of plot measuring an extent of 11 ¼ cents or 4914 sq.ft (DTCP Approval No.53/2016, Maraimalai Nagar Municipality Na.Ka.No. 1995/2016 comprised in Old No S. No. 261/1 as per patta No.2152, New S.No.261/1B4, Situated at No.64, Chelliamman Koil street, No.56, kattankolathur Village, Chengalpattu taluk, Kancheepuram district and bounded on the

¶91

North by: Krishnamoorthy land

¶92

South by: Bhagavan sign plot

¶93

East by: Krishnamoorthy land

¶94

T.A. No. 1491 of 2023

¶95

¶96

14.05.2026

¶97

West by: Chelliamman Koil Street (Kavanur road)

¶98

Admeasuring

¶99

East to west on the northern side: 91 feet

¶100

East to west on the southern side: 91 feet

¶101

North to south on the eastern side: 54 feet

¶102

North to south on the western side: 54 feet

¶103

Side: 54 feet-Total extent: 11 ¼ or 4914 sq.ft

¶104

SCHEDULE-B

¶105

420sq.ft undivided share of land out of 4914sq.ft more particularly described in the schedule “A” above mentioned property.

¶106

SCHEDULE-C

¶107

A Two bedroom flat bearing No.4-A having super built up area of 1085 sq.ft (including common area) situated in the fourth floor of the building constructed in Schedule “A” land as per the approved plan and specification.

¶108

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

State Bank of India v. Sangaranarayanan P

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sangaranarayanan P

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus Laya Engineerings

Indian Bank versus Modern Ultra Solar Energy Ltd.

Ms Health Mushrooms versus Bank of Baroda

Rajalakshmi versus Bank of India

Dena Bank versus M/s Vinayaga Enterprises

M Praveen Kumar versus City Union Bank Limited