Allowed

State Bank of India v. Pratheep

DRT2 Jun 2026TA/484/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDB Act for recovery of Home Loan and Life Insurance dues. The defendant was set ex-parte. Part satisfaction via SARFAESI sale was noted. A final order directed recovery of the balance amount with interest.

What did the court decide?

Recovered total sum of Rs.43,34,252.70 (Home Loan and Life Insurance) with interest, costs, and direction to issue Recovery Certificate for the balance dues after crediting SARFAESI proceeds.

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

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T.A. No.484 of 2023

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02.06.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 02^nd day of June, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.484 of 2023

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(Originally filed before DRT- II, Chennai as OA No.89 of 2020 and thereafter transferred to this Tribunal and renumbered as TA No.484 of 2023)

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State Bank of India, Assets Recovery Management Branch, No.44, Eldams road, 1^st floor, Teynampet, Chennai- 600 018

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…Applicant

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-Vs-

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Mr. K. Pradeep S/o Kutty Krishnan, No.2, Jayagaran Nagar, Srinivasa Nagar, Podanur, Coimbatore- 641 023

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Also at Mr. K. Pradeep S/o Kutty Krishnan, Plot No. B, Flat No.S2 B-Block, 2^nd floor, Senthamil Nagar, Kattankolathur village, Chengalpet taluk, Kancheepuram District- 603 203

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Also at Mr. K. Pradeep S/o Kutty Krishnan, Pearson India Education services Pvt. Ltd, Module G4, Ground floor, Elnet software city TS 140, Block 289, OMR, Taramani, Chennai- 600 113 ….Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. Prasadh Defendant was set ex-parte on 08.12.2021

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T.A. No.484 of 2023

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02.06.2026

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: - FINAL ORDER- :

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This Original Application is filed on 31.12.2019 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 defendant, for recovery of a total sum of Rs.43,34,252.70p (Rupees Forty Three Lakhs Thirty Four Thousand Two Hundred Fifty Two and Seventy Paise only) as follows:

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(i) A sum of Rs.41,89,111.02p due in respect of Home Loan

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(A/c No.38026856993) repayable together with further interest @ 8.45% p.a. with monthly rests plus penal interest at the rate of 2% p.a., from the date of Application till the date of realization in full;

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(ii) A sum of Rs.1,45,141.68p due in respect of SBI Suraksha

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Life insurance (A/c No.38061370082) repayable together with further interest @ 8.55% p.a. with monthly rests plus penal interest at the rate of 2% p.a., from the date of Application till the date of realization in full and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.89 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.89 of 2020 stood transferred to this Tribunal and renumbered as TA No. 484 of 2023.

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T.A. No.484 of 2023

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02.06.2026

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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 approached the applicant bank and requested for Housing Loan for purchase of schedule mentioned property. Considering the said request, the applicant bank had sanctioned Home Loan to the tune of Rs.40 lakhs vide loan account No.38026856993 on 23.10.2018 and SBI Suraksha Life Insurance to the tune of Rs.1,39,806/- vide loan account No.38061370082 on 09.11.2018.

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It is submitted by the applicant bank that the defendant availed the Home Loan and SBI Suraksha Life Insurance from the applicant bank and deposited original title deeds namely

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(i) Sale agreement dated 04.10.2018

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(ii) Agreement for construction dated 24.10.201 Doc.No.11205/2018, SRO of Joint-II Chengalpet.

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(iii) Sale deed dt 24.10.2018, Doc.No.11206/2018 SRO, Joint II Chengalpet.

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(iv) Memorandum relating to deposit of title deeds Dt.22.11.2018, Doc.No.12200/2018, SRO of Joint II Chengalpet.

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The applicant bank submits that the defendant availed the above Home Loan and SBI Suraksha Life Insurance and executed the following

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T.A. No.484 of 2023

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02.06.2026

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documents in favour of the applicant bank:

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(i) Application for Home Loan dated 04.10.2018

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(ii) Sanction Letter dated 23.10.2018

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(iii) Arrangement Letter dated 23.10.2018

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(iv) Memorandum of Loan Agreement for Home Loan granted to public dated 23.10.2018

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(v) Agreement to Mortgage dated 23.10.2018

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(vi) General Insurance debit confirmation letter dated

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23.10.2018

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(vii) Certificate of Insurance dated 20.11.2018

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(viii) Sale Agreement dated 04.10.2018

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(ix) Agreement for Construction dated 24.10.2018

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(x) Sale deed dated 24.10.2018 Doc.No.11206/2018

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(xi) Memorandum relating of deposit of title deeds dt 22.11.2018 Doc. No. 12200/2018

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The defendants agreed that the loan amount shall be repaid with interest of 8.45% towards Home Loan and 8.85% towards SBI Suraksha Life Insurance.

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The applicant bank submits that the schedule property morefully described in the OA was mortgaged with bank by the defendants for the home loan and SBI Suraksha life insurance facility availed by them.

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It is submitted by the applicant bank that subsequent to availing of

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T.A. No.484 of 2023

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02.06.2026

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loan, the defendant committed default in repayment, except for payment few installments. The applicant bank had several rounds of discussions with the defendant about the regularization of the loan accounts but of no avail. Thus the defendant did not come forward to discharge the liability or take any steps to settle the dues. Since the operation of the account was not satisfactory, the loan account was classified as Non-Performing Asset (NPA) vide Home loan account No.38026856993 and SBI suraksha life insurance account No.38061370082 on 25.05.2019 as per the guidelines of Reserve Bank of India.

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The applicant bank submits that the defendant has accepted the terms and conditions of the said facilities and executed the loan documents. The defendant also agreed to pay interest @8.45% for home loan and 8.85% for SBI Suraksha life insurance from this date to the date of payment in full with monthly rests and rests as may be revised by the bank from time to time. The defendant also agreed to pay interest as per RBI guidelines. The defendant failed to discharge the liability in view of the aforesaid financial irregularities there is a remote chance of the defendant turning around and repaying the huge dues of the applicant bank. 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 Defendant through Registered Post with Acknowledgment Due to defendant’s three addresses, which was returned with remarks “Refused”, which is deemed

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T.A. No.484 of 2023

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02.06.2026

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service. When OA was taken up on 08.12.2021 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 08.12.2021

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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, Sh. Govind L Ballal, Chief Manager, ARMB, Chennai 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-17 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-17 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 defendant.

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The defendant was set ex-parte on 08.12.2021, but till this day the defendant 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 defendant are produced or filed to dispute the claim of applicant bank. Hence, it can be concluded that applicant bank has proved its claim

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T.A. No.484 of 2023

02.06.2026

against defendant.

During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.25,25,000/- by way of sale of Schedule immovable property under SARFAESI Act on 14.09.2021 and the sale proceeds were credited to the borrower’s loan account on 03.12.2021. Accordingly, part satisfaction of sum of Rs.25,25,000/- was duly recorded vide proceedings dated 25.05.2022.

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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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17. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendant, for recovery of a total sum of Rs.43,34,252.70p (Rupees Forty Three Lakhs Thirty Four Thousand Two Hundred Fifty Two

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and Seventy Paise only) as follows:

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(i) A sum of Rs.41,89,111.02p due in respect of Home Loan (A/c No.38026856993) repayable together with further interest @ 8.45% p.a. with monthly rests plus penal interest at the rate of 2% p.a., from the date of Application till the date of realization in full;

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(ii) A sum of Rs.1,45,141.68p due in respect of SBI

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T.A. No.484 of 2023

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Suraksha Life insurance (A/c No.38061370082)

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repayable together with further interest @ 8.55% p.a. with monthly rests plus penal interest at the rate of 2% p.a., 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.25,25,000/- is directed to be given credit to the borrower’s loan account as on the date of realization.

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

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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

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T.A. No.484 of 2023

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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 02^nd 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: Sh. Govind L Ballal, Chief Manager, ARMB, Chennai 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.	04.10.2018	Home loan application	A-1
2.	23.10.2018	Sanction letter	A-2
3.	23.10.2018	Arrangement letter	A-3
4.	23.10.2018	Agreement to mortgage	A-4
5.	22.11.2018	Memorandum of deposit	A-5
6.	22.11.2018	Confirmation letter	A-6
7.	23.10.2018	Memorandum of loan agreement for home loangranted topublic.	A-7
8.	23.10.2018	Affidavit	A-8
9.	23.10.2018	Verification	A-9
10.	23.10.2018	Deed of undertaking	A-10
11.	04.10.2018	Sale agreement	A-11
12.	24.10.2018	Agreement for construction	A-12
13.	24.10.2018	Sale deed	A-13
14.	22.11.2018	Memorandum relating of deposit for title deeds	A-14
15.	14.08.2020	Valuation report	A-15
16.		Statement of account No.38026856993	A-16

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T.A. No.484 of 2023

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Statement of account No.38061370082

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A-17

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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

State Bank of India v. Pratheep

Case brief

What is this about?

What did the court decide?

State Bank of India v. Pratheep

Case brief

What is this about?

What did the court decide?

What the court decided

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