Allowed

State Bank of India v. Ajula Krishnan

DRT5 Jun 2026TA/613/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chennai allowed an application filed by State Bank of India to recover a defaulted housing loan of approximately Rs. 33.00 lakhs. The Tribunal found the bank’s evidence conclusive as the defendant was set ex-parte. The order directed recovery of the principal, compound interest at 8.80%, penal interest, and costs.

What did the court decide?

Recovery of total sum of Rs. 33,00,791.93 comprising principal, compound interest at 8.80%, penal interest, and costs of the application.

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

¶1

T.A. No.613 of 2023

¶2

05.06.2026

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 05^th day of June, 2026

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No.613 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA No.13/2020 and thereafter transferred to this Tribunal and renumbered as TA No.613/2023)

¶9

State Bank of India, ARM Branch Chennai, No.44, 1^st floor, Eldams Road, Teynampet, Chennai-600 018 Rep by its Chief Manager

¶10

…Applicant

¶11

-Vs-

¶12

Mrs. Ajula Krishnan SR D/o Mr. Ramakrishna Pillai, Ushus, D-21, Judge Road, Karamana (PO), Trivandrum-695 002

¶13

Also at: Mrs. Ajula Krishnan SR Flat No. 204, II floor, “Fern hill” Babu nagar III main road (Near BS Matriculation school) Medavakkam, Chennai- 601 302

¶14

Also at:

¶15

Mrs. Ajula Krishnan SR PB No.2923, Emirates NBD, Dubai, UAE

¶16

….Defendant

¶17

Counsels on record / appeared:

¶18

Counsel for Applicant : M/s. KNC & KCYR Associates

¶19

Defendant was set ex-parte on 24.11.2021

¶20

: - FINAL ORDER- :

¶21

This Original Application is filed on 04.12.2019 by the applicant bank

¶22

under Section 19 of Recovery of Debts and Bankruptcy Act, 1993

¶23

Uploaded on 05.06.2026 at 15:00 hours

¶24

T.A. No.613 of 2023

¶25

¶26

05.06.2026

¶27

(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant, for recovery of a total sum of Rs.33,00,791.93p (Rupees Thirty Three Lakhs Seven Hundred and Ninety One and Ninety Three Paise only) due in respect of Housing Loan (A/c No.67111626424) repayable together with further interest @ 8.80% p.a. with compounded with monthly rests along with penal interest @ 2% p.a. 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.

¶28

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.13 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.13 of 2020 stood transferred to this Tribunal and renumbered as TA No.613 of 2023.

¶29

Brief Facts of the case:

¶30

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.

¶31

It is the case of the applicant bank that the defendant had approached the applicant bank Anna Nagar West Branch, seeking financial assistance in the form of Housing Loan facility for purchase of residential property and submitted loan application on 20.05.2010. The defendant was also willing to execute necessary loan documents and offered the

¶32

Uploaded on 05.06.2026 at 15:00 hours

¶33

T.A. No.613 of 2023

¶34

¶35

05.06.2026

¶36

immovable property as security for the loan.

¶37

It is submitted by the applicant bank that the applicant bank after applying their mind and analyzing various aspects as per the banking norms and upon getting clearance on the title of the properties to be mortgaged in the form of legal opinion had decided to sanction the loan to the defendant.

¶38

The applicant submits that at the request of the defendant, applicant bank had sanctioned SBT Aiswarya Home Loan scheme of Rs.25,00,000/- (Rupees Twenty Five Lakhs only) and funding of Home Loan insurance cover of Rs.59,000/- (Rupees Fifty Nine Thousand only) vide Sanction Letter dated 26.05.2010 for the residential property in morefully detailed in the OA schedule.

¶39

The applicant submits that the said Housing Loan of Rs.22,59,000/is repayable in 180 instalments by Equated Monthly Instalments. In order to secure the loan, the defendant executed the following documents on 26.05.2010 in favour of the applicant bank:

¶40

a) Agreement for Term Loan

¶41

b) Agreement of Mortgage

¶42

c) Declaration cum Affidavit

¶43

It is submitted by the applicant bank that in order to secure the loan, the defendant deposited the title documents on 26.05.2010 related to the mortgaged property as below with the bank:

¶44

a) Construction Agreement dated 17.05.2010 between M/s Ramky

¶45

Uploaded on 05.06.2026 at 15:00 hours

¶46

T.A. No.613 of 2023

¶47

05.06.2026

¶48

¶49

Wavoo developers Pvt Ltd, and Ms. Ajula Krishnan Sailaja Kumaru Ramakrishna Pillai.

¶50

b) Sale Deed dated 26.05.2010 registered as Doc. No. 3647/2010 with SRO madras south, executed by M/s Ramky Estates and Farms Pvt. Ltd and another, both rep by their power agent M/s Ramky Wavoo developers Pvt Ltd, in favour of Ms. Ajula Krishnan Sailaja Kumaru Ramakrishna Pillai.

¶51

The applicant submits that the defendant executed Memorandum of deposit of title deeds dated 26.05.2010 in favour of the applicant bank with an intention to create security interest under section 58(f) of T.P. Act in favour of the applicant bank.

¶52

It is submitted by the applicant bank that subsequent to availing of loan, the defendant had not kept up her promise regarding repayment of loan and had not properly maintained the loan account. Since the defendant failed and neglected to repay the dues, the loan account was classified as Non Performing Asset (NPA) on 01.09.2017. Thereafter, the account was transferred to the ARM branch and the legal proceedings were initiated thereon.

¶53

The applicant bank submits that as the loan account became sticky, the applicant bank recalled the entire loan amount by issuance of Demand Notice on 07.09.2017 and the liability as on 06.09.2017 was Rs.25,64,842/-. Despite repeated requests and demands, the defendant have not paid the amount due to the bank. Hence, the present Original

¶54

Uploaded on 05.06.2026 at 15:00 hours

¶55

T.A. No.613 of 2023

¶56

05.06.2026

¶57

¶58

Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

¶59

After the filing of the OA, summons were sent to the sole Defendant through Registered Post with Acknowledgment Due, which was returned with remarks “Unclaimed” in respect of first address, Summons to second address returned with remarks “No such person” and summons to the third address of the defendant was duly served. When OA was taken up on 24.11.2021 even after giving sufficient time, there was no appearance

¶60

or representation from the defendant. Hence, the Defendant was placed ex-parte on 24.11.2021.

¶61

Heard the submissions of Applicant Bank and perused the records.

¶62

To prove the case of the Applicant Bank, Shri. D. Parthasarathy, 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 .

¶63

A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-7 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.

¶64

Uploaded on 05.06.2026 at 15:00 hours

¶65

T.A. No.613 of 2023

¶66

05.06.2026

¶67

¶68

The defendant was set ex-parte on 24.11.2021, 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 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 against defendant.

¶69

During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.33,00,000/- by way of sale of Schedule mentioned property under SARFAESI Act on 04.08.2021, which was duly credited to the borrower’s loan account. Accordingly, part satisfaction of sum of Rs.33,00,000/- was duly recorded vide proceedings dated 06.07.2022.

¶70

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:

¶71

: O R D E R :

¶72

18. The OA is allowed with costs,

¶73

(a) The applicant bank is allowed to recover from the Defendant, a total sum of Rs.33,00,791.93p (Rupees Thirty Three Lakhs

¶74

Seven Hundred and Ninety One and Ninety Three Paise only) due in respect of Housing Loan (A/c No.67111626424)

¶75

Uploaded on 05.06.2026 at 15:00 hours

¶76

T.A. No.613 of 2023

¶77

05.06.2026

¶78

¶79

repayable together with further interest @ 8.80% p.a. with compounded with monthly rests along with penal interest @ 2% p.a. from the date of Application till the date of realization in full, along with costs of this application.

¶80

(b) The sum of Rs.33 lakhs 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.

¶81

(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 Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendant.

¶82

(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.

¶83

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

¶84

(f) Recovery Certificate shall be drawn up and issued to the

¶85

Uploaded on 05.06.2026 at 15:00 hours

¶86

T.A. No.613 of 2023

¶87

¶88

05.06.2026

¶89

Recovery Officer in terms of the final order.

¶90

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

¶91

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

¶92

(Dictated to Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 05^th day of June, 2026)

¶93

ANNEXURES

¶94

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶95

AW-1: Shri. D. Parthasarathy, Chief Manager of the Applicant Bank

¶96

Exhibits on the part of the Applicant:

¶97

Sl. No.	Date	Description of Documents	Exhibit No.
1.	21.03.2010	Application form for housing loan finance duly signed by the defendant	A-1
2.	26.05.2010	Sanction letter for home loan cum insurance duly signed by the defendant	A-2
3.	26.05.2010	Agreement for term loan executed by the defendant	A-3
4.	26.05.2010	Agreement for term loan executed by the defendant	A-4
5.	26.05.2010	Declaration cum affidavit executed by the defendant	A-5
6.	26.05.2010	Memorandum of deposit executed by the defendant	A-6
7.		Statement of accounts for A/c No.67111626424	A-7

¶98

Witness Examined for the Defendants: -Nil-

¶99

List of Documents Exhibited for the Defendants: -Nil –

¶100

Uploaded on 05.06.2026 at 15:00 hours

¶101

T.A. No.613 of 2023

05.06.2026

:-SCHEDULE-:

Mortgaged property has been sold under SARFAESI Act

¶106

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

¶107

Uploaded on 05.06.2026 at 15:00 hours

State Bank of India v. Ajula Krishnan

Case brief

What is this about?

What did the court decide?

State Bank of India v. Ajula Krishnan

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

Indian Overseas Bank versus M/S Deepa Colour Lab

M s Sri Sri Venkateshwar Educational Trust versus Reliance Commercial Finance Limited

Bank of Baroda versus Koilraj

State Bank of India versus Vivek

State Bank of India versus Padma Prasad

Union Bank of India versus Mrs R Gayathri and another