Allowed

State Bank of India v. Sheeba Esther

DRT11 May 2026TA/352/2023

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal, Chennai, allowed an original application filed by State Bank of India for recovery of dues amounting to Rs. 55,75,914/- from borrowers under Housing and Education loans. The debt was declared due after default, and the claim was successfully proven in the absence of the respondents.

What did the court decide?

Recovery of Rs. 10,85,200/- for Housing Loan and Rs. 44,90,714/- for Education Loan with specified interest rates, plus costs of the application.

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

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T.A. No. 352 of 2023

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11.05.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 11^th day of May, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No.352 of 20 23

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(Originally filed before DRT- II, Chennai as OA No.234/2020 and thereafter transferred to this Tribunal and renumbered as TA No.352 of 2023)

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

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-Vs-

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Mrs.Sheeba Esther,

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W/o S.K.Charan,

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No.6/6, 92, HIG flats,

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Nolambur,

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Chennai 600 037

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Mr.S.K.Charan,

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S/o Mr.Saminath,

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No.6/6, 92, HIG flats, Nolambur, Chennai 600 037 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. M. Suresh

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Defendants 1 and 2 were set ex-parte on 26.05.2022

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: - FINAL ORDER- :

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This Original Application is filed on 08.05.2020 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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a total sum of Rs.55,75,914/- (Rupees Fifty Five Lakhs Seventy Five

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T.A. No. 352 of 2023

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Thousand Nine Hundred and Fourteen only) as follows:

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(i) A sum of Rs.10,85,200/- due in respect of Housing Loan (A/c No.10403030239) repayable together with further interest @ 10.90% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.44,90,714/- due in respect of Education Loan (A/c No.313034263642) repayable together with further interest @ 12.40% p.a. with monthly rests from the date of Application till the date of realization in full;

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for sale of scheduled 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.234/2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.234 of 2020 stood transferred to this Tribunal and renumbered as TA No.352 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 defendants are borrowers, who had approached the applicant bank seeking Housing Loan for purchase of house. The defendants have executed an arrangement

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T.A. No. 352 of 2023

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11.05.2026

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letter dated 09.09.2004 & 23.01.2010 in favour of applicant bank.

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It is submitted that considering the said request, the applicant bank had sanctioned by the Housing Loan amount of Rs.5,53,000/- on 09.09.2004. The defendants have executed an Arrangement Letter and Memorandum of Loan Agreement for Home Loan granted to public and Agreement to Mortgage dated 09.09.2004 and Confirmation Letter dated 04.11.2004 executed by the defendant in favour of the applicant bank, the amount due in the above said loan together with interest thereon at 8% per annum for “Housing loan”.

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The applicant bank submits that subsequently at the request of the defendants, the applicant bank had sanctioned Education Loan amount of Rs.12,63,000/- on 23.01.2010. The defendants have executed an Arrangement Letter and Agreement for Term Loan for SBI Education loan scheme and Memorandum relating to deposit of title deeds for Housing Loan amount of Rs.5.53 lakhs and Education Term Loan amount of Rs.12.63 Lakhs, thus totalling to Rs.18,16,000/and Letter of Confirmation dated 27.01.2010 executed by the defendants in favour of the applicant bank. Loan is repayable together with interest thereon at 11.25% per annum for Education loan.

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The applicant bank submits that the defendants herein have executed the following loan documents thereby the defendants acknowledging the said loan amounts availed from the applicant bank. The defendants had undertaken to repay the loan amounts in time without committing any default:

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(i) Loan Application dated 26.08.2004

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(ii) Arrangement letter dated 09.09.2004

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(iii) Memorandum of term loan agreement for Housing Loan

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granted to public dated 09.09.2004

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(iv) Agreement to mortgage dated 09.09.2004

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(v) Letter of confirmation dated 04.11.2004

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(vi) Loan application dated 09.12.2009

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(vii) Sanction Letter dated 25.01.2010

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(viii) Agreement for term loan for SBI education loan scheme

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dated 25.01.2010

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(ix) Memorandum relating to deposit of title deeds dated 27.01.2010

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(x) Letter of Confirmation dated 27.01.2010

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It is submitted that subsequent to availing of loan, the defendants failed to service the interest and principal due under the above said loan accounts. Consequently, the loan account has become Non-Performing Asset (NPA) on 25.05.2016 in the books of the applicant bank.

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The applicant bank submits that the defendants have undertaken to repay the loan amount together with interest as per the terms and conditions of the Arrangement Letter dated 09.09.2004 and 23.01.2010.

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The applicant bank further submits that subsequent to the disbursement of the aforesaid Housing Loan and Education Loan the defendants have not operating the accounts as per the terms and conditions. The defendants have been enjoying the Housing Loan and

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Education Loan facilities ever since from the year of 2004 and 2010 respectively. The defendants have not shown significant transactions to the utmost satisfaction of the applicant bank. The applicant bank had sent Section 13(2) notice dated 07.06.2016 to the defendants to repay the “Housing loan & education loan” amounts together with accumulated interest but evoked no response from the defendants. 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 was sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was returned with the 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 26.05.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 26.05.2022

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Mr. B. Selvamurugesh, Assistant 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-16.

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-16 evidence that the borrowal of credit

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T.A. No. 352 of 2023

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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 26.05.2022, 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. 32,90,000/- by way of sale of Schedule immovable property under SARFAESI Act. Accordingly, part satisfaction of sum of Rs.32,90,000/- was duly recorded vide proceedings dated 31.08.2023 and documents marked as Ex A-10 to A-13 were returned to applicant bank on 04.10.2023 under proper acknowledgement

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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 :

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants 1 to 2 jointly and severally, a total sum of Rs.55,75,914/(Rupees Fifty Five Lakhs Seventy Five Thousand Nine Hundred and Fourteen only) as follows:

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(i) A sum of Rs.10,85,200/- due in respect of Housing Loan (A/c No.10403030239) repayable together with further interest @ 10.90% p.a. with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.44,90,714/- due in respect of Education Loan (A/c No.313034263642) repayable together with further interest @ 12.40% p.a. with monthly rests 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.32,90,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(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

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T.A. No. 352 of 2023

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

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(e) 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 11^th day of May, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. B. Selvamurugesh, Assistant Manager 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.	26.08.2004	Loan application	A-1
2.	09.09.2004	Arrangement letter	A-2
3.	09.09.2004	Memorandum of loan agreement for home loan granted to public	A-3
4.	09.09.2004	Agreement to mortgage	A-4
5.	04.11.2004	Confirmation letter	A-5
6.	09.09.2004 to 04.05.2020	Statement of accounts and Certificate under Banker’s Book evidence Act, 1891	A-6
7.	09.12.2009	Loan application	A-7

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8.	25.01.2010	Arrangement letter	A-8
9.	25.01.2010	Agreement for term loan for SBI education loan scheme	A-9
10.	27.01.2020	Memorandum relating to deposit of title deeds ( Doc No.357/2020)	A-10
11.	27.01.2020	Letter for confirmation	A-11
12.	24.08.2004	Sale agreement	A-12
13.	30.03.2005	Sale deed executed by Tamilnadu housing board in favour of S.K.Charan and Smt. Sheeba Esther (Doc.No,1706/2005)	A-13
14.	25.01.2010	Statement of accounts and Certificate under Banker’s Book evidence Act, 1891	A-14
15.	07.06.2016	13(2) Notice	A-15
16.		Authorization circular	A-16

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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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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 11.05.2026 at 17:05 hours

State Bank of India v. Sheeba Esther

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sheeba Esther

Case brief

What is this about?

What did the court decide?

What the court decided

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