Allowed

State Bank of India v. Rajeshwari

DRT20 Jul 2026TA/1603/2023

Case brief

AI extract

What is this about?

This application under Section 19 of the RDB Act sought recovery of dues for a home loan and insurance loan. The defendants were absent, leading to an ex-parte order. The Tribunal found the bank's claim established, accounting for partial recovery via property sale, and restored the final claim.

What did the court decide?

Recovery of Rs. 25,62,942/- comprising home loan and insurance loan dues with interest and costs from respondents personally and by sale of their assets.

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

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T.A. No.1603 of 2023

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20.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 20^th day of July, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No.1603 of 2023

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(Originally filed before DRT- II, Chennai as OA No.656 of 2019 and thereafter transferred to this Tribunal and renumbered as TA No.1603 of 2023)

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State Bank of India, Assets Recovery Management branch, No.44, Eldams road, 1^st floor, Teynampet, Chennai- 600 018 …Applicant

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-Vs-

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Ms. Rajeshwari, D/o Sampath, No.B3, Metrological Quarters, 50, College Road, Nungambakkam, Chennai- 600 006

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Mr.S. Ramakrishnan, S/o Sampath, No.B3, Metrological Quarters, 50, College Road, Nungambakkam, Chennai- 600 006 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S.Prasadh

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Defendants 1 and 2 were set ex-parte on 12.07.2021

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: - FINAL ORDER- :

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This Original Application is filed on 03.06.2019 by the applicant bank

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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

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T.A. No.1603 of 2023

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20.07.2026

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a total sum of Rs.25,62,942/- (Rupees Twenty five lakhs sixty two thousand nine hundred and forty two only) as follows:

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(a) A sum of Rs.25,04,595/- due in respect of Home Loan Credit (A/c No.36181568048) repayable together with further interest @ 12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full and for costs of this OA.

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(b) A sum of Rs.58,347/- due in respect of Insurance loan

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(A/c No. 3618788626) repayable together with further interest @12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full;

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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.656 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 656 of 2019 stood transferred to this Tribunal and renumbered as TA No. 1603 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

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T.A. No.1603 of 2023

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jurisdiction of this Tribunal.

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It is the case of applicant bank that the defendants have approached the applicant bank seeking financial assistance for purchase of house. Considering the said request, the applicant bank sanctioned Home Loan to the tune of Rs.30,00,000/- on 14.10.2016 and Insurance Loan of Rs.85,715/- on 20.10.2016.

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It is submitted by the applicant bank that the defendants availed the Home Loan and Insurance Loan from the applicant bank and executed the following loan and security documents in favour of applicant bank:

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(i) Home loan agreement dated 09.09.2016

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(ii) Sanction letter dated 14.10.2016

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(iii) Memorandum of loan agreement for home loan granted to public dated 17.10.2016

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(iv) Arrangement letter dated 17.10.2016

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(v) Deed of undertaking dated 17.10.2016

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(vi) Agreement to mortgage dated 17.10.2016

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(vii) Specimen of agreement for additional loan granted to existing home loan borrowers for insurance premium account

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(viii) Confirmation letter (EM of borrowers property at home branch/RACPC)

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(ix) Memorandum of deposit (Borrower’s property at RACPC/RCPC/RASMECCC/Home branch)

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The applicant bank submits that as security towards the aforesaid

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loans, the defendants deposited original title deeds with the applicant bank namely,

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i. Sale deed dated 19.10.2016, Doc No. 13872/2016

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ii. Sale deed dated 07.03.2016, Doc No. 3011/2016

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iii. Construction agreement dated 07.03.2016, Doc No. 3010/2016

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iv. Rectification deed dated 26.09.2016, Doc No. 13136/2016

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and created EM for the loan availed by them from the applicant bank.

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It is submitted by the applicant bank that the defendants agreed that the loan amount shall be repaid with interest of 12.15% towards Home Loan credit. The schedule property described in the OA was already mortgaged with bank by the defendants for the Home Loan credit facility availed by them. For the subject Home Loan credit facility availed by the defendants, mortgage over the said property was also created by defendants vide Registered Memorandum of Deposit of Title Deeds dated 03.11.2016.

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The applicant bank further submits that subsequent to availing of loan, the defendants were not regular in repayment, except few instalment. The applicant bank had been repeatedly requesting the defendants to settle the dues. The applicant bank had several rounds of discussions with the defendants about the regularization of the loan accounts but of no avail. However, the defendants did not come forward to discharge the liability or take any steps to settle the dues.

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Since the operation of the account was not satisfactory, the loan became classified as Non-Performing Asset (NPA) vide Home Loan Credit

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T.A. No.1603 of 2023

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Account no. 36181568048 on 29.03.2018 and Insurance Loan A/c No.36187588626was classified as NPA as on 10.08.2018, as per the guidelines of Reserve bank of India. The defendants failed to discharge the liability. In view of the aforesaid financial irregularities, there is a remote chance of the defendants turning around and repaying the dues of the applicant bank. 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 returned with remarks “Left” in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 12.07.2021, even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 12.07.2021.

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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. S.K. Subhash, 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-19 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-19 evidence that the borrowal of credit facilities and execution of loan and security documents are true, in terms

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T.A. No.1603 of 2023

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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 12.07.2021, 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 satisfaction of OA claim in a sum of Rs.20,25,000/- by way of sale of Schedule mentioned immovable property under SARFAESI Act on 26.04.2021. Accordingly, part satisfaction of sum of Rs.20,25,000/- was duly recorded vide proceedings dated 14.03.2022.

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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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T.A. No.1603 of 2023

20.07.2026

: O R D E R :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 and 2 jointly and severally, a total sum of Rs.25,62,942/(Rupees Twenty Five Lakhs Sixty Two Thousand Nine Hundred and Forty Two only) as follows:

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(i) A sum of Rs.25,04,595/- due in respect of Home Loan Credit (A/c No.36181568048) repayable together with further interest @ 12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full;

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(ii) A sum of Rs.58,347/- due in respect of Insurance loan (A/c No. 3618788626) repayable together with further interest @12.15% p.a. with monthly rests along with 2% penal interest from the date of Application till the date of realization in full along with costs of this OA.

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(b) The sum of Rs.20,25,000/- realized by way of sale of schedule mentioned immovable property is directed to be given credit to the borrower’s loan account as on date of realization.

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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 at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for

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T.A. No.1603 of 2023

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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

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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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(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 20^th 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. S.K. Subhash, Chief Manager of the Applicant Bank

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T.A. No.1603 of 2023

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Exhibits on the part of the Applicant:

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Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	09.09.2016	Home loan agreement	A-1
2.	14.10.2016	Sanction letter	A-2
3.	17.10.2016	Memorandum of loan agreement for home loangranted topublic	A-3
4.	17.10.2016	Arrangement letter	A-4
5.	17.10.2016	Deed of undertaking	A-5
6.	17.10.2016	Agreement to mortgage	A-6
7.	17.10.2016	Specimen of agreement for additional loan granted to existing home loan borrowers for insurancepremium account	A-7
8.	03.11.2016	Confirmation letter (EM of borrowers propertyat home branch/RACPC)	A-8
9.	03.11.2016	Memorandum of deposit (Borrower’s property at RACPC/RCPC/RASMECCC/Home branch)	A-9
10.	02.03.2021	Valuation Report	A-10
11.	28.09.2016	Sale Agreement	A-11
12.	19.10.2016	Sale Deed	A-12
13.	07.03.2016	Agreement Of Construction	A-13
14.	07.03.2016	Sale Deed	A-14
15.	26.09.2016	Deed of Rectification	A-15
16.	-	Statement of account for home loan account no.	A-16
17.	-	Statement of account for home loan account no.	A-17
18.	28.09.2016	Tripartite Agreement	A-18
19.	03.11.2016	Memorandum relating to deposit of title deeds	A-19

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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.1603 of 2023

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:-SCHEDULE-:

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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Uploaded on 20.07.2026 at 16:30 hours

State Bank of India v. Rajeshwari

Case brief

What is this about?

What did the court decide?

State Bank of India v. Rajeshwari

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

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