Allowed

State Bank of India v. Venkatesh

DRT27 Jan 2026TA/1709/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Applicant Bank’s Original Application for recovery of dues. Being a case ex-parte, the Tribunal upheld the claim of Rs.20,38,023/- for home and additional loans. The Tribunal directed the bank to adjust SARFAESI sale proceeds, file a cost memo, and issue a recovery certificate.

What did the court decide?

Recover Rs.20,38,023/- with interest and costs; credit SARFAESI sale proceeds; file cost memo; issue recovery certificate.

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

¶1

T.A. No.1709 of 2023

¶2

27.01.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 27^th day of January, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 1709 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 102/2020 and thereafter transferred to this Tribunal and renumbered as TA No.1709 of 2023)

¶9

State Bank of India ARM Branch Represented by its Chief Manager Having its Office at No.44, I Floor Eldams Road Teynampet, Chennai – 600 018 ….Applicant

¶10

-Vs-

¶11

Mr. B. Venkatesh

¶12

S/o Bakthavachalam No.50, Periya Obulapuram Village Gummidipundi Taluk

¶13

Thiruvallur District – 601 201

¶14

Mr. M. Raja S/o Madurai Bajanai Koil Periya Obulapuram Village Gummidipundi Taluk

¶15

Thiruvallur District – 601 201 ….Defendants

¶16

Counsels on record / appeared:

¶17

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

¶18

Defendants 1 and 2 were set ex-parte on 05.04.2022

¶19

: - FINAL ORDER - :

¶20

This Original Application is filed on 18.12.2019 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 defendants 1 and 2, jointly and severally for recovery of a total

¶21

T.A. No.1709 of 2023

¶22

¶23

27.01.2026

¶24

sum of Rs.20,38,023/- (Rupees Twenty Lakhs Thirty Eight Thousand and Twenty Three only) due in respect of Home Loan (Account No.65259183473) & Additional loan (Account No.65259184750) repayable together with further interest @8.65% p.a. with monthly rests from the date of application till the date of realisation in full, for sale of schedule mentioned immovable property and for costs of this OA.

¶25

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.280 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.102 of 2020 stood transferred to this Tribunal and renumbered as TA No.1709 of 2023.

¶26

Brief Facts of the case:

¶27

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.

¶28

It is the case of the Applicant Bank that the first defendant is the borrower who had approached the State Bank of Patiala, Gummidipoondi Branch and submitted an online Loan Application dated 21.06.2016. Pursuant to Gazette Notification No.159E dated 22.02.2017 of the Government of India, State Bank of Patiala has been acquired by the State Bank of India under Section 35 of the State Bank of India Act, 1935 w.e.f. 01.04.2017 and hence the said State Bank of Patiala, Gummidipoondi Branch has merged with State Bank of India.

¶29

T.A. No.1709 of 2023

¶30

¶31

27.01.2026

¶32

It is submitted by the applicant bank that considering the request of the 1^st defendant, applicant bank had sanctioned a sum of Rs.14,80,000/and Additional Loan of Rs.25,880/- to the defendants vide Arrangement Letter dated 21.06.2016, which was duly acknowledged by the defendants. Second defendant stood as guarantor for the aforesaid loan availed by the 1^st defendant.

¶33

In order to secure the loan, the defendants had executed the following loan and security documents in favour of applicant bank:

¶34

(i) Home Loan Agreement dated 21.06.2016

¶35

(ii) Additional Loan Agreement dated 21.06.2016 (iii) Deed of Guarantee dated 21.06.2016.

¶36

The applicant bank submits that in order to secure the loan, the defendant had deposited the Title Deeds of the property being land measuring 880 Sq. ft., and 700 Sq. at Thurapallam Village, Gummidipoondi Taluk, Thiruvallur District, comprised in Survey No.41/1C1 and having a total of 1580 Sq. ft. situated within the Registration District of North Chennai and Registration Sub-District of Gummidipoondi, morefully detailed in the schedule to the OA. The defendant had deposited the title deeds of the schedule mentioned property by way of Equitable Mortgage. The 1^st Defendant had also executed Memorandum of Deposit of Title Deed dated 21.06.2016, registered as Document No.2359 of 2016 before Sub-Registrar Office at Gummidipoondi in favour of the applicant bank.

¶37

It is submitted by the applicant bank that the defendant had deposited

¶38

T.A. No.1709 of 2023

¶39

27.01.2026

¶40

¶41

Sale Deed dated 21.06.2016 executed by M.G. Mari, M.G. Ravi and M.R. Velu in favour of the 1^st defendant, registered as Document No.2357 of 2016 before Sub Registrar, Gummidipoondi.

¶42

The applicant bank submits that the defendant did not put up any construction as agreed within the stipulated period of time. The applicant bank had therefore converted the Housing Loan to Mortgage Loan as prescribed under statute and norms.

¶43

It is submitted by the applicant bank that subsequent to availing of the aforesaid loans, the defendants were not regular in repayment of dues, despite repeated requests and demands from applicant bank. Consequently, the loan account of the first defendant turned into NonPerforming Asset (NPA) in accordance with RBI guidelines. Since the account turned NPA, the applicant bank through its Authorised Officer initiated SARFAESI proceedings by issuing statutory notices to the defendants. In spite of the notices the defendants did not come forward to settle the issues but had started to indulge in making frivolous and vexatious oral allegations and letters disputing the loan and mortgage of the property. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶44

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 to both the defendants. When OA was taken up on 05.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on

¶45

T.A. No.1709 of 2023

27.01.2026

05.04.2022.

Heard the submissions of Applicant Bank and perused the

¶50

record s.

¶51

To prove the case of the Applicant Bank, Sh. Govind L Ballal, 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-7 . 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.

¶52

During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.7,60,000/- by way of sale of Schedule immovable property under SARFAESI Act and sale certificate was issued to the auction purchaser on 07.08.2020.

¶53

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:

¶54

: O R D E R :

¶55

The OA is allowed with costs,

¶56

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, for recovery of a total sum of Rs.20,38,023/(Rupees Twenty Lakhs Thirty Eight Thousand and Twenty Three only) due in respect of Home Loan (Account

¶57

T.A. No.1709 of 2023

¶58

27.01.2026

¶59

¶60

No.65259183473) & Additional loan (Account

¶61

No.65259184750) repayable together with further interest @8.65% p.a. with monthly rests from the date of application till the date of realisation in full along with costs of this application.

¶62

(b) The sum of Rs.7,50,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization

¶63

(c) 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.

¶64

(e) The applicant bank shall file memo of costs within ten days from

¶65

the date of receipt of this final order.

¶66

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

¶67

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

¶68

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

¶69

(Dictated to PS, transcribed by her, corrected, signed and pronounced by me on this the 27^th day of January, 2026)

¶70

T.A. No.1709 of 2023

27.01.2026

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶75

AW-1: Sh. Govind L Ballal, Chief Manager of the Applicant Bank

¶76

Exhibits on the part of the Applicant:

¶77

Sl. No.	Description of Documents	Exhibit No.
1.	Loan Application dated 21.06.2016	A-1
2.	Letter of Arrangement dated 21.06.2016	A-2
3.	Memorandum of Loan Agreement for Home Loan dated 21.06.2016	A-3
4.	Additional Loan Agreement dated 21.06.2016	A-4
5.	Deed of Guarantee by 2^nddefendant dated 21.06.2016	A-5
6.	Sale Certificate dated 07.08.2020	A-6
7.	Statement of Accounts	A-7

¶78

Witness Examined for the Defendants: -Nil-

¶79

List of Documents Exhibited for the Defendants: -Nil –

¶80

:-SCHEDULE-:

¶81

Mortgaged property has been sold under SARFAESI Act.

¶82

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

State Bank of India v. Venkatesh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Venkatesh

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

Bank of Baroda versus Kandhan

Shri K Senapathy versus Punjab National Bank

Canara Bank versus Suresh Kumar

Ravina Healthcare P Ltd. versus Union Bank of India

Indian Overseas Bank versus M/S Raaman Builders Rep by Its Prop C v Ramasamy

R Parthiban versus Idbi Bank