Allowed

Indian Bank v. Abdul Khader Hassene

DRT14 Jul 2026TA/1607/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues from a borrower and guarantor. The court found the bank's claim established due to ex-parte proceedings and admitted evidence, ordering recovery of the outstanding principal and interest after crediting property sale proceeds.

What did the court decide?

Recovery of Rs.45,82,807.78 plus further interest at 9.15% p.a. with monthly rests from the date of application, after crediting Rs.26,24,000 realized from property sale.

Indian Bank versus Abdul Khader Hassene — Banking and Recovery | DRT (2026)

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T.A. No.1607 of 2023

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14.07.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 14^th day of July, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.1607 of 2023

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(Originally filed before DRT- II, Chennai as OA No.567 of 2019 and thereafter transferred to this Tribunal and renumbered as TA No.1607 of 2023)

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Indian Bank, (Erstwhile Allahabad Bank) Rep by its Assistant General Manager, No.53, Ethiraj Salai, II floor, Wellington Estate, Egmore, Chennai- 600 008 …Applicant

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-Vs-

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Mr. Abdul Khader Hassene, S/o D. Mohamed Hassene, No.27-F1, Manikavasakar street, Ramakrishnaraju Nagar, Puzhudivakkam,

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Chennai- 600091

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Mrs. Nazia Abdul Khader, Mr. D. Mohamed Hassene No.27-F1, Manikavasakar street, Ramakrishnaraju Nagar, Puzhudivakkam, Chennai- 600091 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s C. Ramaiah

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Defendants 1 and 2 were set ex-parte on 27.10.2021

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: - FINAL ORDER- :

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This Original Application is filed on 20.05.2019 by the applicant

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bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act,

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T.A. No.1607 of 2023

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14.07.2026

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against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.45,82,807.78p (Rupees Forty Five Lakhs Eighty

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Two Thousand Eight Hundred and Seven and Seventy Eight Paise only) due in respect of Housing Loan (A/c No.50268929069) together with further interest @9.15% 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.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.567 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.567 of 2019 stood transferred to this Tribunal and renumbered as TA No.1607 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 1^st defendant is the borrower for Housing Loan and the 2^nd defendant is the Guarantor for the said loan. The 1^st and 2^nd defendants approached the applicant bank with an intention to avail Home Loan for the purpose of purchasing/ construction of house in the land morefully described in the schedule to the OA and accordingly submitted an application dated 05.01.2015

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T.A. No.1607 of 2023

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14.07.2026

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seeking Home Loan of Rs.32 lakhs.

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It is submitted by the applicant bank that processing the loan application of the defendants sanctioned Housing Loan of Rs.32 lakhs on 26.02.2015 and the defendants have accepted the terms and conditions of the loan sanctioned by signing in the office copy of the said letter. The sanction letter of Housing Loan describes the details of rate of interest payable and the terms conditions and other covenants to be adhered and to comply with by the defendants. It is also stipulated that the Term Loan should be repaid in 120 equated monthly instalments of Rs.44,000/- with moratorium period of three months. The interest rate for the loan is fixed at the rate of applicant bank base rate floating which was 10.25% p.a. at the time of sanction with compounding monthly rests and additional interest rate of 2% will be applied in case terms and conditions of sanction are not complied with and the repayment commencing from 26.06.2016. However, the defendants agreed to pay interest at such higher rate as may be notified by the bank from time to time according to Bank’s usual practice. The defendants have accepted terms and conditions of the sanction and duly signed in the office copy for having accepted the same and 2^nd defendant guarantors for the housing loan availed by the 1^st defendant and executed the form of guarantee in favour of the applicant.

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The applicant bank submits that the defendants have executed the following documents in favour of the applicant bank after accepting the terms and conditions of the sanction:

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T.A. No.1607 of 2023

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14.07.2026

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i) Acknowledgement of sanction letter dated 26.02.2015

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ii) Demand promissory note for Rs.32 lakhs dated 04.03.2015 iii) Form of guarantee executed by Defendant 2

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iv) Letter of mortgagor confirming deposit of title deeds for borrower dated 04.03.2015

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v) Recital applicable in case of individual dated 04.03.2015 vi) Affidavit regarding Mohammedan owned property.

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The details of the mortgage property is morefully described in the schedule of property. The applicant has not debited interest from 29.07.2017 in view of the directives of the Reserve Bank of India regarding Income Recognition and asset classification of the loan accounts according to which if default is committed in the payment of installment in respect of term loans non servicing of interest etc the account was classified as Non Performing Asset (NPA) on 29.07.2017. However, this does not relieve the defendants from their liability to pay interest accordingly, the applicant has also produced a detailed statement showing separate calculation of unapplied but accrued interest in respect of loan account from 29.07.2017 till date. The applicant further declares that compound interest has been charged at such rate and capitalized at such periodical rests as are permitted by and do not run counter to the directives of the Reserve Bank of India. The defendants are also liable to pay further interest at the contractual bank rate i.e. presently at 9.15% with monthly rests in respect of the aforesaid term loan from the date of this application till realization in full and costs of this application.

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T.A. No.1607 of 2023

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14.07.2026

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The defendant agreed that the applicant bank is entitled to charge a higher rate of interest than the rate stated above as per Bank rules in case of any default/irregularity in the accounts and agreed to pay interest at such enhanced rates of interest. The defendants further agreed to pay all expenses and charges such as service charge, incidental charge, typing and postage expenses, legal notice expenses that the applicant bank may incur. The defendants are liable to pay enhanced rate of interest and penal interest for the excess over due in the account and also for the period of default in respect of housing loan facility. It is also submitted that penal interest is not compounded or capitalized and do not run contrary to the guidelines issued by Reserve Bank of India.

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The agreement/documents executed by the defendants authorize the bank to charge at its own discretion enhanced rate of interest for any irregularity or breach of the terms or any change in the credit rating. The defendants have agreed to pay such enhanced rate of interest without any demur. The details of the rate of interest charged to the loan account are mentioned in the statement of account. The applicant submits that the defendants are not entitled for any relied under Debts Relief Act.

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The applicant submits that the defendants made deposit of Rs.51,000/- into the account on 30.12.2016 and that the documents of security and equitable mortgage stand extended and shall remain in force and effect.

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Inspite of repeated demand and several reminders made by the applicant the defendants have failed and neglected to repay the liability

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T.A. No.1607 of 2023

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14.07.2026

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owned by them to the applicant under the aforesaid housing loan and the account became irregular and classified as Non Performing assets (NPA) on 29.07.2017 as per the directives of Reserve Bank of India. Though several opportunities have been provided to the defendants to regularize the loan accounts they have failed and neglected to do so.

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The applicant invoked the SARFAESI Act and appointed the authorized officer to initiate measures/actions under the said act. Accordingly the authorized officer issued demand notices dated 14.08.2018 under Section 13(2) of the SARFAESI Act to the defendants demanding the repayment of the amount within 60 days from the date of the notice. Thus the defendants have failed to send any representations or reply or raised any objections to the demand notice. The defendants have failed and neglected to repay the dues. 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 postal endorsement as ‘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 27.10.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 27.10.2021.

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Heard the submissions of Applicant Bank and perused the

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records.

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T.A. No.1607 of 2023

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14.07.2026

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To prove the case of the Applicant Bank, Mrs. A. Krishnaveni, 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-12.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-12 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 27.10.2021, 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.26,24,000/- by way of sale of Schedule immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs. 26,24,000/- was duly recorded vide proceedings

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T.A. No.1607 of 2023

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14.07.2026

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dated 22.06.2026 and documents marked as Ex A-8 to A-10 were ordered to be returned to applicant bank under proper acknowledgment.

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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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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, recovery of a total sum of Rs.45,82,807.78p (Rupees Forty Five Lakhs Eighty Two Thousand Eight Hundred and Seven and Seventy Eight Paise only) due in respect of Housing Loan (A/c No.50268929069) together with further interest @9.15% 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. 26,24,000/- realized by way of sale of schedule 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 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 Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal

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T.A. No.1607 of 2023

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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 14^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: Mrs. A. Krishnaveni, Branch Manager of the Applicant Bank

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T.A. No.1607 of 2023

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14.07.2026

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Exhibits on the part of the Applicant:

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Sl.	Date	Description of Documents	Exhibit
No.			No.
1.	05.01.2015	Loan application	A-1
2.	26.02.2015	Sanction letter	A-2
3.	26.02.2015	Acknowledgement of debt admitting receipt of the sanction letter	A-3
4.	04.03.2015	Demand promissory note for Rs.32 lakhs	A-4
5.	04.03.2015	Form of guarantee executed by Defendant 2	A-5
6.	04.03.2015	Letter of mortgagor confirming deposit of title deeds for borrowers	A-6
7.	04.03.2015	Recital application in the case individuals	A-7
8.	04.03.2018	Affidavit regarding Mohammedan ownedproperty	A-8
9.	04.03.2013	Memorandum of deposit of title deeds(RegNo.3053/2015)	A-9
10.	04.03.2013	Sale deed(RegDoc No. 3052/2015)	A-10
11.	14.08.2018	Demand notice under section 13(2) of SARFAESI Act.	A-11
12.		Statement of accounts	A-12

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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

Indian Bank v. Abdul Khader Hassene

Case brief

What is this about?

What did the court decide?

Indian Bank v. Abdul Khader Hassene

Case brief

What is this about?

What did the court decide?

What the court decided

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