Allowed

State Bank of India v. Kannivel

DRT5 Feb 2026TA/65/2023

Case brief

AI extract

What is this about?

The Tribunal-III, Chennai allowed the Original Application filed by State Bank of India under RDB Act 1993. The court proceeded ex-parte, found the loan advanced and subsequent default established, and directed recovery of dues with interest, permitting sale of mortgaged property.

What did the court decide?

Recovery of Rs.46,99,775/- with interest and costs; liberty to sell mortgaged property or personal assets.

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

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T.A. No. 65 of 2023

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05.02.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of February, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 65 of 2023

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(Originally filed before DRT- II, Chennai as OA 202/2020 and thereafter transferred to this Tribunal and renumbered as TA No 65 of 2023)

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STATE BANK OF INDIA, Retail Assets Central Processing Centre, MRC Nagar, No.4, Santhome High Road, Mylapore, Chennai -600 004 Represented by its Chief Manager ….Applicant

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-Vs-

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Mr. Kannivel R, S/o.Rajavel, No.2/3, 1 Floor, Jayalakshmi Street, Ratha Nagar Main Road, Nearby Police Booth, Chrompet, Kancheepuram District - 600 044.

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Also at. Mr. Kannivel R. S/o.Rajavel, No.8, Jeeva Nagar, Desumugi Pettai, Thirukazhukundram, Kancheepuram -603 109.

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Also at. Mr. Kannivel R. S/o.Rajavel, Shoppinggaine. No.2/3, 1 Floor, Jayalakshmi Street, Ratha Nagar Main Road, Nearby Whole Sale Super Market Police Booth, Chrompet, Kancheepuram District - 600 044.

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T.A. No. 65 of 2023

05.02.2026

Also at.

Mr. Kannivel R, S/o.Rajavel. Flat No.FF2, 1" Floor. Plot No.C, Block - C, ARK Vigneswara Nagar, Madavilagam Village, Poonamallee Taluk, Thiruvallur District-600 056. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Mr. S. Ambalvannan Defendant was set ex-parte on 05.05.2022

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: - FINAL ORDER - :

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This Original Application is filed on 22.01.2020 by the applicant bank under Section 19 (1) 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.46,99,775/(Rupees Forty Six Lakhs Ninety Nine Thousand Seven Hundred and Seventy Five Only) due in respect of Term Loan (A/c No.38157009322), together with further interest @ 8.45%, p.a., with monthly rests from the date of filing the OA, till date of realization in full for sale of immovable property more fully detailed in Schedule to the OA, and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.202 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.202 of 2020 stood transferred to this Tribunal and renumbered as TA No.65 of 2023.

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T.A. No. 65 of 2023

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05.02.2026

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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 on 04.12.2018, the Defendant has approached and submitted application form to the Applicant Bank requesting for Housing loan for purchase of a flat and land mentioned in the schedule of property. Upon scrutiny of the documents, the Applicant, in terms of the Agreement dated 31.12.2018, had sanctioned a sum of Rs.44,08,000/- (Rupees Forty Four Lakhs and Eight Thousand only) towards principal amount vide Account No.38157009322 to the Defendant.

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It is submitted that the agreement for loan dated 31.12.2018 has been entered between the applicant bank and the defendant, as per the terms of the Agreement, the Defendant had agreed to repay the Said Loan together with interest @ 9.1% p.a., Further in terms of the Said Agreement, in the event of default committed by the defendant, he has agreed to pay а penal/additional interest on the balance amount that is due and payable by them. It is submitted that presently the rate of interest is @ 8.45% p.a.

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The applicant bank submits that in order to secure the loan availed, the defendant had created Equitable Mortgage dated 03.01.2019 in favour of the applicant bank mortgaging the Flat No.FF-2, measuring 1100 Sq.ft., in First Floor, Block - C, together with 555 Sq.ft., of Undivided Share of land

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T.A. No. 65 of 2023

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05.02.2026

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in Plot - A, Plot -B and Plot -C, Comprised in S.No.31/2, Present Survey No.31/2A of Madavilagam Village, (Sub Division Approval No.149/2012, dated 29.01.2013), and Planning Permit No.42500, File No.A1/149/201213 and Building Approval No.24/2012-13 dated 20.03.2013 for Plot C, located at ARK Vigneswara Nagar, Lying within the Registration District of South Chennai, and Registration Sub District of Poonamallee under a Registered Memorandum Relating to Deposit of Title Deeds, registered as Document No.18/2019, on the file of Sub Registrar office of Poonamallee. It is further submitted that the defendants has deposited the following original documents with the applicant bank:

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a) Construction Agreement dated 03.01.2019, registered as Document No.16 of 2019, on the file of Sub Registrar Office of Poonamallee.

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b) Sale Deed dated 03.01.2019, registered as Document No.17 of 2019, on the file of Sub Registrar Office of Poonamallee.

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It is submitted that subsequent to availing of loan, the Defendant had become irregular in repaying the Loan amount together with interest to the Applicant. In fact, the Defendant had committed default in repayment of the aforesaid Loan amount together with interest to the Applicant. Hence, the applicant had classified the account as Non Performing Asset (NPA) on 01.07.2019. Even after repeated request made by the applicant bank, the defendant had not come forward to regularize the loan account. Hence, the applicant bank had issued Demand Notice under Section 13(2) of SARFAESI

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T.A. No. 65 of 2023

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05.02.2026

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Act dated 04.07.2019 to the defendant calling upon him to pay a Housing Loan bearing Account No.38157009322 for a sum of Rs.44,25,383/-. The defendant has received notice sent to his permanent address and he has evaded notice sent to other addresses. It is pertinent to state that even after receiving notice he has not come forward to settle the outstanding amount.

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Subsequently the applicant bank has taken symbolic possession of the schedule mentioned property under S.13 (4) of SARFAESI Act on 15.10.2019. Even thereafter, the defendant has come forward to neither regularize the loan account nor settle the entire dues to the applicant bank. It is submitted that the defendant is intentionally evading payment of lawful dues to the applicant. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants. It is submitted that upon adjusting the amount paid by the Defendant, as on 10.01.2020, Rs.46,99,775/- (Rupees Forty Six Lakhs Ninety Nine Thousand Seven Hundred and Seventy Five Only) is due and payable by the defendant.

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After the filing of the OA, summons was sent to the Defendant through Registered Post with Acknowledgment Due, summons to the sole defendant was duly served. When OA was taken up on 05.05.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant were placed ex-parte on 05.05.2022.

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T.A. No. 65 of 2023

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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, Sh. Subash S.K, 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-11 .

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A careful examination of the pleadings in the Proof Affidavit and documents Exhibits A-1 to A-11 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 05.05.2022, 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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To prove the case of the Applicant Bank, Mrs. Subash S.K, Chief Manager representing the Applicant Bank, has filed her Affidavit by way of evidence and same was considered as evidence of AW-1 and list of

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T.A. No. 65 of 2023

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documents came to be marked as Ex A-1 to A-11 . As the defendants remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank. 15. 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 Defendant a total sum of Rs.46,99,775/- (Rupees Forty Six Lakh Ninety Nine Thousand Seven Hundred and Seventy Five Only) due in respect of Term Loan (A/c No.38157009322), repayable together with further interest @ 8.45% p.a. with monthly rests from the date of filing the OA till date of realization in full along with costs.

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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 mentioned immovable property morefully detailed in the OA.

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(d) 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

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T.A. No. 65 of 2023

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which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 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 defendants 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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(f) The applicant bank shall file memo of costs within ten days from

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the date of receipt of this final order.

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

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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 Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 05^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: Sh. Subash S.K, Chief Manager representing the Applicant Bank.

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T.A. No. 65 of 2023

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Application form for Housing Loan dated 24.12.2018.	A-1
2.	Sanction Letter dated 31.12.2018.	A-2
3.	Loan Agreement dated 31.12.2018.	A-3
4.	Arrangement Letter dated 31.12.2018.	A-4
5.	Memorandum Relating to Deposit of Title Deeds dated 03.01.2019.	A-5
6.	Equitable Mortgage Confirmation Letter dated 08.01.2019.	A-6
7.	Construction Agreement dated 03.01.2019.	A-7
8.	Sale Deed dated 03.01.2019.	A-8
9.	13(2) Notice issued by the applicant bank dated 04.07.2019.	A-9
10.	13(4) notice issued by the applicant bank dated 15.10.2019.	A-10
11.	Statement of Accounts dated 18.07.2022.	A-11
12.	Certificate under Banker’s Books Evidence Act 1891 dated 18.07.2022.	A-12

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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 PROPERTY:-

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SCHEDULE ‘A’

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All that piece and parcel of the land and building measuring 5897 sq.ft., comprised in part of survey No.31/2, present survey No.31/2A, of Madavilagam Village, Poonamalle Taluk, Thiruvallur District, Plot –A, Plot – B and Plot –C in Sub Division Approval No.149/2012, dated 29.01.2013, Planning Permit No.42500, File No.A1/149/2012-13, and Building Approval No.24/2012-13, dated 20.03.2013 for Plot –C, location at ARK Vigneswara Nagar, bounded on the.

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North by : ARK Vigneshwara Nagar, South by : Survey No.31/3B East by : Plot No.17,

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West by : Remaining land in Survey No.31/2

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Lying within the Registration District of Chennai South and Sub Registration District of Poonamallee.

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SCHEDULE ‘B’

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555 Sq.ft., Undivided Share of out of Schedule-A land 5897 Sq.ft.,

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SCHEDULE ‘C’

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Flat No.FF2, in First Floor in Block C, measuring 1100 Sq.ft., super plinth area (inclusive of common areas and common shares)

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Property Address : Flat No.FF2, 1^st Floor, Plot No.C, Block C, ARK Vigneshwara Nagar, Madavilagam Village, Poonamallee Taluk Thiruvallur District, Chennai -600 056.

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

State Bank of India v. Kannivel

Case brief

What is this about?

What did the court decide?

State Bank of India v. Kannivel

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

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Case details

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