Allowed

State Bank of India v. Ms Sri Krishna Function Hall

DRT25 Jun 2026TA/1943/2023

Case brief

AI extract

What is this about?

DRT allowed an Original Application filed by State Bank of India for recovery of dues from defendants who defaulted on an Asset Backed Loan and failed to appear in court. The court ordered joint and several recovery of the principal amount with future interest and directed the sale of secured and personal assets.

What did the court decide?

Recovery of Rs. 68,00,679/- plus future interest at 10.35% p.a. with monthly rests, along with costs; liberty to auction hypothecated assets and personal property of the second defendant.

State Bank of India versus Ms Sri Krishna Function Hall — Banking and Recovery | DRT (2026)

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T.A. No.1943 of 2023

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25.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.1943 of 2023

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(Originally filed before DRT- II, Chennai as OA Dy No.1627 of 2022 and thereafter filed before this Tribunal and numbered as TA No.1943 of 2023)

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State Bank of India, Asset Recovery Management, No.44, Eldams road, Teynampet, Chennai- 600 018 Represented by its Chief Manager

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…Applicant

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-Vs-

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M/s Sri Krishna Function Hall,

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Rep by its Prop S. Parandhamiah Nagichetty,

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Regd Office at No.279, Surutupali, Nagalapuram,

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Chittor District- 517 588,

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Andhra Pradesh

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Mr. N. Parandamiah Nagichetty,

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S/o N. Seshiah,

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No.4-19, Hanumanthapuram village, Pichattur Mandal. Chittor district, Andhra Pradesh ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Suresh Law Associates

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Defendants 1 and 2 were set ex-parte on 05.03.2024

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: - FINAL ORDER- :

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This Original Application is filed on 04.11.2022 by the applicant

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bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act,

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against the defendants 1 and 2, jointly and severally for recovery

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T.A. No.1943 of 2023

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of a total sum of Rs.68,00,679/- (Rupees Sixty Eight Lakhs Six Hundred and Seventy Nine only) due in respect of Asset Backed loan O.D (A/c No.400061988008) repayable together with further interest @10.35% 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 hypothecated assets and for costs of this OA.

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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, who is engaged in the business, approached the applicant and submitted a proposal seeking for credit facility. At the request of the 1^st defendant, the applicant bank has sanctioned Asset Backed Loan O.D., which was availed by the 1^st defendant. The 2^nd defendant is proprietor of 1^st defendant.

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It is submitted by the applicant bank that the 1^st defendant executed Letter of Arrangement and Agreement of Loan cum Hypothecation dated 10.02.2021 in favour of applicant bank. The 2^nd offered his immovable property as security for the loan and executed Memorandum relating to deposit of title deeds dated 22.02.2021 vide document No.229/2021, Joint SRO, Pichatur.

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The applicant bank submits that as per Letter of Arrangement dated

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T.A. No.1943 of 2023

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25.06.2026

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10.02.2021(i.e.) repayment starts from April 2021 to March 2023 (with Moratorium of one month i.e., March, 2021) and payable in 120 monthly instalments.

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In evidence of the availing and as security the defendants executed the following documents

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(i) Letter of arrangement dated 10.02.2021 executed by the 1^st defendant

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(ii) Agreement of loan cum hypothecation dated 10.02.2021 executed by the 1^st defendant.

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(iii) Memorandum relating to deposit of title deeds dated

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22.02.2021 executed by the 2^nd defendant

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The applicant submits that after availing the aforesaid credit facility the defendants were irregular in repayment of installments and servicing the payments from the date of sanction towards the loan account of defendants. Despite repeated request and demands as the defendants failed to repay the loan dues, the applicant bank had no option other than to initiate legal action against the defendants. In view of continuous default, the applicant bank had classified the loan account as NonPerforming Asset (NPA) on 02.12.2021. The applicant bank has issued 13(2) demand notice dated 04.12.2021 to the defendants.

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The applicant further submits that it could not succeed in its efforts in recovering dues from the defendants even after making demands through various letters advising and cautioning the defendants to

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T.A. No.1943 of 2023

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regularize the loan accounts of defendants by repaying the entire loan dues through the aforesaid notice from the defendants. In fact the defendants remained with callous and supine attitudes without taking any serious steps to settle the loan dues to the applicant bank. All the efforts taken by the applicant bank to recover the loan dues to the applicant bank from the aforesaid defendants did not yield the desired results. 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 duly served in respect of D-1. Although Summons to D-2 was awaited, Advocate filed Vakalath for D-1 & D-2. However, despite availing substantial adjournments, defendants did not choose to file written statement. When OA was taken up on 05.03.2024 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 05.03.2024.

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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, Shri. Mathiyazhagan, City Case Officer 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-6.

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T.A. No.1943 of 2023

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-6 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 05.03.2024, 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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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, for recovery of a total sum of

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T.A. No.1943 of 2023

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Rs.68,00,679/- (Rupees Sixty Eight Lakhs Six Hundred and

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Seventy Nine only) due in respect of Asset Backed loan O.D (A/c No.400061988008) repayable together with further interest @10.35% 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) 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 A mentioned hypothecated assets and schedule B mentioned immovable property morefully detailed in the OA schedule.

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(d) If the sale proceeds of the hypothecated assets and immovable property are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2^nd Defendant (both movable and immovable) to recover the balance dues as required under law for which the 2^nd Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd Defendant.

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(e) 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

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T.A. No.1943 of 2023

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Defendants to the applicant bank.

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

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(g) 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 25^th day of June, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. Mathiyazhagan, City case officer of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	10.02.2021	Letter of Arrangement	A-1
2.	10.02.2021	Agreement of loan cum hypothecation	A-2
3.	22.02.2021	Memoradum relating to deposit of title deeds(Doc.No.229/2021)	A-3
4.	13.03.2014	Sale deed executed by I.A.Kesavan in favour of N.Parandamaiah (Doc.No.127/2024)	A-4
5.	04.12.2021	13(2)Notice	A-5
6.	12.02.2021 to 30.08.2022	Statement of account	A-6

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T.A. No.1943 of 2023

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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 OF PROPERTIES-:

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SCHEDULE-A

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Hypothecation of stocks and receivables situated at No.279, Surutupali, Nagalapuram, Chittoor district.

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SCHEDULE-B

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ITEM NO.1

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Chittoor district, Tirupathi Sri Balaji Registration district, Pichatur Sub district Nagalapuram Mandal. In No.279, Surutupalli village, Revenue accounts in Dry S.No.15-16 in the past but now dry survey no. 15-16 A/6 as per present revenue sub-division an extent of Ac.0.13 cents vacant

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house site.

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Bounded on the

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North by: Lands of A.V.M. Balaji reddy

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South by: Road

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East by: Land of A.V.M. Balaji reddy and vacant site

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West by: Lands of “B” Subbamma and B. Thulasirami reddy

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Measuring:

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East to west: 17 feet or 5.168 meters, North to south: 126 feet or 38.304

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mtrs on the eastern side and north to south 124 feet= 37.696 meters on

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the western side, measuring an area of 237 sq. yards= 198.162 sq.

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meters of vacant house site.

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T.A. No.1943 of 2023

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ITEM NO.2

BOUNDED BY:

North by: Lands of A.V.M Balaji Reddy well,

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South by: Road,

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East by: Site retained by the vendor to an extent of Ac.0.05 cents,

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West by: 1^st item Vacant site of the applicant

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MEASURING:

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East to west 13 feet or 53.952 meters

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North to south on the eastern side: 101 feet or 30.704 meters

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North to south on the western: 103 feet or 31.312 meters

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Equivalent to 148 Sq. yards or 123.747sq.meters of vacant house site

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

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Uploaded on 25.06.2026 at 15:00 hours

State Bank of India v. Ms Sri Krishna Function Hall

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ms Sri Krishna Function Hall

Case brief

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What did the court decide?

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