Allowed

Bank of Baroda v. Wilson Sargunaraj

DRT9 Feb 2026TA/39/2023

Case brief

AI extract

What is this about?

The DT allowed the bank's application for recovery of outstanding dues from borrowers and guarantor. The court found the bank proved its claim via affidavit and documents despite defendants appearing ex-parte. It directed recovery of Rs. 29,06,954/-.

What did the court decide?

Recovery of Rs. 29,06,954/- with interest at 11% p.a. and costs from the defendants jointly and severally.

Bank of Baroda versus Wilson Sargunaraj — Banking and Recovery | DRT (2026)

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T.A. No. 39 of 2023

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09.02.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of February, 2026

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No. 39 of 2023

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(Originally filed before DRT- II, Chennai as OA 490/2019 and thereafter transferred to this Tribunal and renumbered as TA No 39 of 2023)

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*M/s. Bank of Baroda (Erstwhile Dena Bank) Rep. by Authorized Officer /Chief Manager No.83, T.T.K. Road, Alwarpet, Chennai – 600 018.

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…Applicant

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(Amended as per order dated 11.10.2019 in view of merger)

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-Vs-

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Mr. Wilson Sargunaraj, S/o Mr. D. Sundaraj, Chandra Flats, G-8, Ground Floor, Block No.D, Plot No.4,5,6 & 6A, Raghavendra Nagar, Korattur, Chennai – 600 076.

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Mr. Wilson Sargunaraj also at: No.60, Kishore Flat, Ambedhar Salai, Periyar Nagar Residence Extension, Madipakkam, Chennai – 600 091.

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Mrs. Felecia Wilson, W/o Mr. Wilson Sargunaraj, Chandra Flats, G8, Ground Floor, Block No.D, Plot No.4,5,6 & 6A, Raghavendra Nagar, Korattur, Chennai – 600 076.

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Mr. A. Murugesan, No.5, Nagalakshmi Salai, Thiruchandur Nagar, Old Pallavaram, Chennai – 600 117.

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…Defendants

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T.A. No. 39 of 2023

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09.02.2026

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Counsels on record / appeared:

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Counsel for Applicant : M/s. G. R. Lakshmanan

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Defendants 1 to 3 were set ex-parte on 25.11.2021

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: - FINAL ORDER - :

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This Original Application is filed on 05.09.2018 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 to 3, jointly and severally for recovery of a total sum of Rs.29,06,954/- (Rupees Twenty Nine Lakhs Six Thousand Nine Hundred and Fifty Four only) due in respect of Housing Loan (Account No.086351000122) repayable together with further interest @ 11% 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.490 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.490 of 2019 stood transferred to this Tribunal and renumbered as TA No.39 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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T.A. No. 39 of 2023

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09.02.2026

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The applicant submits that the defendants 1 and 2 and have approached the Applicant Bank for a Housing Loan of a sum of Rs.7,19,000/- for the purchase of a 306 Sq. Ft., undivided share of land from and out of the land bearing Plot No. 4,5,6 and 6A, in the layout known as "Raghavendra Nagar Extension" Comprised in Survey No, 379 and 383, Patta No. 6076, as per Patta S. No. 379/7, of Koratur Village. Ambattur Taluk, Thiruvallur District measuring to an extent of (1580+ 1550+2457+1320) = 6,907 Sq.ft., or thereabouts and for the construction of Flat bearing No. G-8, Ground Floor, in Block No. D, "Chandra Flats", measuring an extent of 642 Sq. Ft., of Plinth Area in the said property.

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The applicant further submits that first defendant purchased the property and submitted necessary documents and based on his representations and also his eligibility for taking Housing Loan, the applicant bank on 05.10.2005 sanctioned a Housing Loan of a sum of Rs.7,19,000/-, which is repayable with interest at the rate of 11% per annum with monthly rests and loan amount is liable to be repaid in Equated Monthly Installment of Rs. 6,900/- each for a period of 240 months commencing from 01.11.2005. The applicant bank submits that the Defendants accepted the terms and conditions of sanction dated 01.10.2005 for Housing Loan and agreed to abide by the same.

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It is submitted by the applicant bank that the 1^st and the 2^nd defendants requested for the Housing Loan limit and the 3^rd defendant stood as Guarantor for the sanctioned loan, by way of a collateral security created in the name of the applicant bank. The defendants in proof of the

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sanctioning of the limit has executed Term loan (l&b) Agreement for Housing Loan on 01.10.2005 and executed the following documents in favour of the bank namely:

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(i) Demand promissory note,

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(ii) Letter of General Lien and Set-off for borrowing arrangements from the borrowers,

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(iii) Consent Clause for Borrower,

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(iv) Letter of General Lien and Set-off for borrowing arrangements from the guarantor,

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(v) Letter of Guarantee,

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(vi) Consent Clause for Guarantor,

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(vii) Declaration from the borrowers and guarantors,

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(viii) Sale deed,

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(ix) Memorandum of Deposit of title deeds.

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It is submitted that the defendants called on the Branch Office of the Applicant Bank and executed the Housing Loan Agreement limit over the immovable property, described in the schedule to the OA and availed the loan facility. As per the terms and conditions, the amounts were disbursed to the defendant and the sanctioned limit was Rs. 7,19,000/-.

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The applicant submits that the First Defendant had purchased 306 Sq. Ft., undivided share of land from and out of the land bearing Plot No.

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4,5,6 and 6A, in the layout known as "Raghavendra Nagar Extension"

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comprised in Survey No. 379 and 383, Patta No. 6076, as per Patta S. No. 379/7, of Koratur Village, Ambatur Taluk, Thiruvallur District measuring to an extent of (1580+ 1550+2457+1320) = 6,907 Sq. Ft., or thereabouts from Mr. M. Palani who is the Power of Attorney of Mrs. Rani Andrews Jacob, Mrs. Rosamma under the Sale Deed Dated 10.10.2005, registered as Document No. 3742 of 2005, on the file of Sub Registrar Office at Villivakkam.

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The applicant further submits that the first Defendant had executed Memorandum of Deposit of Title Deeds in favour of the Applicant Bank, under the Memorandum of Deposit of Title Deed dated 14.10.2005, registered as Document No. 3774 of 2005, on the file of Sub Registrar Office at Villivakkam. The title deeds and other documents in respect of schedule mentioned properties have been deposited with the applicant bank with an intention to create an equitable mortgage towards the discharge of the liabilities.

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It is submitted by the applicant bank that the defendants had utilized the facility immediately but have failed and neglected to pay the interest and outstanding dues on its respective due dates, beginning from 03-Feb 2006. Since the 1st defendant had failed to pay the EMI, the applicant bank had encashed the cheques submitted by the defendants on 03.02.2006 but the cheques got bounces due to insufficient funds in 1st defendant’s account. The same situation prevailed for the next 3 months too i.e. 15.03.2006, 15.04.2006 and 15.05.2006 and all cheques presented to M/s. ICICI Bank for recovery of amounts by applicant bank were returned due

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to insufficient funds. The Applicant bank, since then has sent several reminder letters to the 1st defendant dated 8.06.2006, 14.06.2006 and on 25.07.2006. The applicant bank through its Authorised Officer had issued Demand Notice under Section 13(2) of SARFAESI Act, demanding regularization of loan account amounting of Rs.7,47, 385/- within 60 days of the notice, or face appropriate legal action and take possession of mortgaged property.

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Since it is submitted that after several written reminders for repayment of dues and continuous default by the defendants, the bank classified the account as Non-performing Asset (NPA), dated 30.05.2007 and the applicant bank has initiated proceedings under the SARFAESI Act under Section 13(2) and has issued statutory notice to the defendants on 25.07.2006 calling upon the defendants to pay the total sum of balance outstanding of Rs.7,47,385/- plus interest and sent notice to defendants through Registered Post with acknowledgement to the above said addresses of the defendants, which have been duly served on them.

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The applicant further submits that the 1st defendant has filed an S.A. No. 338 of 2007 before DRT-I against the applicant bank stating that they have illegally taken possession of the said property and issued sale notices without providing any intimation to the 1st defendant. This SA was dismissed by DRT-I vide order dated 25.09.2008 on the grounds that the 1^st defendant did not prove his stand and the bank had produced sufficient evidence on proper disclosures being made for taking possession of the mortgaged property and issue sale notice due to non-repayment of loan

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amount by the 1^st defendant.

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The applicant submits that bank had continuously followed up with the 1^st defendant for repayment of loan amounts and issued NPA recovery correspondence to the 1^st defendant to pay a sum of Rs. 5,00,000/- by 0403-2009 and Rs. 4,10,000/- by 15-03-2009. The 1^st defendant through its reply letter to the applicant bank dated 04.03.2009 agreed to pay the sum of Rs.2,50,000/- by 04.03-.009 and pay the remaining dues by 15.03.2009 which was also a false promise made by the 1^st defendant to repay the loan and bank proceeds with the recovery proceedings by sale of mortgaged property.

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The applicant further submits that a settlement was arrived between the parties in Lok Adalat vide order dated 08.08.2015, wherein the 1^st defendant had agreed to pay Rs. 9,00,000 towards settlement of the Housing Loan taken from applicant bank by defendant on or before 31.12.2015. But this settlement order was also not complied by the 1^st defendant and the applicant bank did not receive any recoveries for the Housing Loan default by the 1^st defendant. The applicant has issued a sale notice on 18.07.2016 through E-auction, which was successful and the auction purchaser had remitted a sum of Rs.15,36,000/- and necessary sale certificate has also been issued in favour of the auction purchaser. After duly crediting the sale proceeds to the borrower’s loan account, the defendants are liable for the balance amount with interest. 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 to 3 through Registered Post with Acknowledgment Due, which was returned unserved with an endorsement as “door locked” in respect of D-1 and D-3, Summons to D2 returned unserved as “unclaimed”. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 25.11.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 25.11.2021.

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Heard the submissions of Applicant Bank and perused the record s.

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To prove the case of the Applicant Bank, Smt. Ramya Kamalakannan, Senior 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-21 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-21 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 25.11.2021, 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

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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 jointly and severally, for recovery of a total sum of Rs.29,06,954/-

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(Rupees Twenty Nine Lakhs Six Thousand Nine Hundred and

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Fifty Four only) due in respect of Housing Loan (Account No.086351000122) repayable together with further interest @ 11% p.a., with monthly rests from the date of Application till the date of realization in full and for costs of this application.

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(b) The sum of Rs.15,36,000/- realized by way of sale of mortgaged property under SARFAESI Act is directed to be given credit to the borrower’s loan account as on the date of realization.

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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

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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 Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 09^th day of February, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. Ramya Kamalakannan, Senior Manager of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Terms and Condition of the Applicant dated 01.10.2005	A-1
2.	Demand Promissory Note for Rs. 7,19,000/- Executed by the defendants dated 01.10.2005	A-2
3.	Term Loan (Land and Building) Agreement Housing Loan Individual Borrower Executed by the defendants dated 01.10.2005	A-3

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4.	Letter of Guarantee Executed by the defendants dated 01.10.2005	A-4
5.	Letter of General Lien and set off for Borrowers dated 01.10.2005	A-5
6.	Consent Clause from borrower dated 01.10.2005	A-6
7.	Letter of General Lien and Set off from Guarantors dated 01.10.2005	A-7
8.	Letter of General Lien and Set off from Guarantors dated 01.10.2005	A-8
9.	Declaration from the Borrowers dated 01.10.2005	A-9
10.	Cheque issued by the First Defendant to the Applicant Bank dated 15.03.2006	A-10
11.	Cheque issued by the First Defendant to the Applicant Bank dated 15.04.2006	A-11
12.	Cheque issued by the First Defendant to the Applicant Bank dated 15.06.2006	A-12
13.	Three Cheque return Memos dated 12.09.2006	A-13
14.	Letter from the bank to the 1s and 2nd Defendant dated 08.06.2006	A-14
15.	Letter from the Applicant to the 1st Defendant dated 14.06.2006	A-15
16.	Notice issued under SARFAESI Act 13(2) to the Defendants dated 26.07.2006	A-16
17.	Letter from the Applicant Bank to the defendants dated 13.09.2006	A-17
18.	Order copy in S.A. No. 338 of 2007 before DRT I dated 25.09.2008	A-18
19.	Letter from the 1st Defendant to the Applicant Bank dated 04.03.2009	A-19
20.	Settlement term by Lok Adalat dated 08.08.2015	A-20
21.	Statement of Account filed by the Applicant bank	A-21

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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

Bank of Baroda v. Wilson Sargunaraj

Case brief

What is this about?

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Bank of Baroda v. Wilson Sargunaraj

Case brief

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