Allowed

Indian Bank v. Mr D Kalaiselvam And Other

DRT22 Apr 2026TA/868/2023

Case brief

AI extract

What is this about?

The Tribunal allowed a transferred application filed by Indian Bank (erstwhile Allahabad Bank) against two defendants for recovery of outstanding dues on a housing loan. The court held that the bank proved its claim through documents and the defendants' failure to contest, ordering recovery of the principal sum, interest, and costs.

What did the court decide?

The applicant bank is allowed to recover Rs. 23,67,898.52 along with further interest, costs, and the sale of the mortgaged schedule properties.

Indian Bank versus Mr D Kalaiselvam And Other — Company and Corporate | DRT (2026)

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T.A. No. 868 of 2023

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22.04.2026

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 22^nd day of April, 2026

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No.868 of 2023

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(Originally filed before DRT- II, Chennai as OA 342/2018 and thereafter transferred to this Tribunal and renumbered as TA No.868 of 2023)

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* Indian bank

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(Erstwhile Allahabad Bank) Represented by its Chief Manager Asset Recovery Management Branch, Apex Chamber, No.2, Sir Theagaraya road, T.Nagar,

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Chennai-600 017 …Applicant

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* (Amended vide order in memo dated 16.12.2021 in view of merger)

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-Vs-

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Mr. D. Kalaiselvan,

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S/o. Mr. N. Devaraj

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No.43, Village Street,

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Thiruvotriyur, Chennai 600 019

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Mr. N. Devaraj

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No.43, Village Street,

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Thiruvotriyur, Chennai 600 019 ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. RRK Associates

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Defendants 1 and 2 were set ex-parte on 30.10.2018

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: - FINAL ORDER- :

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This Original Application is filed on 28.03.2018 by Erstwhile Allahabad Bank (since merged with Indian Bank) under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts

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T.A. No. 868 of 2023

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22.04.2026

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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.23,67,898.52p (Rupees Twenty Three Lakhs Sixty Seven Thousand Eight Hundred and Ninety Eight and Fifty Two Paise only) due in respect of Housing Loan (A/c No.20033338725) repayable together with further interest @ 7.75% p.a., with monthly rests from the date of Application till the date of realization in full, 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.342 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 342 of 2018 stood transferred to this Tribunal and renumbered as TA No.868 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 1^st defendant is an individual, who had approached the T.Nagar Branch of applicant bank to avail a credit facility under the head “Allahabad Housing Finance scheme” to the tune of Rs.15,00,000/- (Rupees Fifteen Lakhs only) and had submitted an application for the same on 22.09.2004 to purchase property

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T.A. No. 868 of 2023

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being the land measuring 2547sq.ft bearing Plot no 2 comprised in survey no.126/7, New survey No.126/7A together with the building thereon situated at Kolathur Village, Purasawakkam Taluk, Chennai District bearing Plot No.2, 2^nd street, Nermai Nagar, Kolathur, Chennai 600 092 morefully described in the schedule to the OA.

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The applicant submits that after scrutinizing the application submitted by the defendants, the above said branch of applicant bank had sanctioned the credit facility of Rs.15,00,000/- through a Sanction Letter dated 04.10.2004, subject to the conditions stipulated therein. The first defendant had acknowledged the receipt of sanction letter, accepted the terms and conditions and accordingly submitted letter dated 04.10.2004.

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It is submitted by the applicant bank that in order to secure the above loan, the 1^st defendant had executed the following documents on 08.10.2004 in favour of the applicant bank:

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(i) 4 (Four) Demand promissory notes (D-1) each for the sum of Rs.3,75,000/executed on 08.10.2004, 17.12.2004, 25.01.2005 & 29.7.2005 totalling to Rs.15,00,000/- together with interest @ 7.75% per annum with monthly rests or at such rates and rests as may be revised by the bank from time to time.

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(ii) Recital applicable in the case of proprietorship firm/ individual.

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The applicant bank submits that the 1^st defendant had offered his immovable property viz., Plot no.2,II street, Nermai nagar, Kolathur more

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particularly described in the schedule to the OA as security for the loan availed for purchasing the said property and had executed the following documents in favour of the applicant bank:

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(i) Declaration by the borrower-mortgagor on affidavit dated 08.10.2004

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(ii) Letter of mortgagor confirming deposit of title deeds dated 08.10.2004

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It is further submitted by the applicant bank that in consideration of the applicant bank granting the Housing Loan, the 2^nd defendant had executed Personal Guarantee Agreement dated 08.10.2004 in favour of the applicant bank, personally guaranteeing the amounts due and payable sanctioned in the name of the 1^st defendant to the applicant bank in respect of the Housing loan for Rs.15 lakhs together with future interest, costs, incidental charges etc., and agreed interalia that the guarantee will not be revoked without Bank’s written consent and their successors representatives and assigns will be bound by the terms and conditions of the Guarantee, it is submitted that the guarantee is still in force and has not been revoked.

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The applicant bank further submits that the 1^st defendant had deposited the title deeds relating to the schedule mentioned property with the applicant bank. In consideration of the credit facility granted to him for a sum of Rs.15,00,000/- as security for the repayment of the credit facility together with interest, costs expenses etc. thereon. The property

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mortgaged to the bank is land measuring 2847sq.ft bearing plot no.2 comprised in Survey No.126/7, New survey No.126/7A together with the building thereon, situated at Kolathur Village, Purasawakkam Taluk, Chennai District bearing Plot no.2, 2^nd street, Nermai Nagar, Kolathur, Chennai 600 092 morefully described in the schedule to the OA.

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It is further submitted that the applicant submits that after availing the loan the 1^st defendant had committed default in repaying the monthly equated monthly installments. The repeated requests and reminders made by the applicant bank to the defendants to clear the outstanding balance in the said loan account did not evoke any response from them. Since the defendants had failed to repay the loan amount for 3 consecutive months, the applicant bank was constrained to classify the loan account of the defendants as Non-Performing Asset (NPA) on 31.03.2011.

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The applicant bank submits that pursuant to the account classified as ‘NPA’ they invoked the provisions of the SARFAESI Act and had initiated proceedings under SARFAESI act and had issued demand notice under Sec.13(2) of the Act to the defendants on 28.05.2011 demanding the repayment of Rs.16,56,350/- being the outstanding amount with update date interest as on 28.05.2011 together with future interest accrued thereon and costs within 60 days from the date of notice. Though the said Demand notice had not chosen to reply to the notice nor repaid the outstanding due. After waiting for the statutory period of 90 days the applicant bank had sent the Possession Notice to the defendant on 11.08.2011 and took symbolic possession on the same day. Even the

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possession notice did not evoke any response from the 1^st defendant after complying with the necessary formalities the applicant bank had taken further steps to bring the mortgaged asset for the sale and the same is pending.

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The applicant submits that the defendant’s loan account was transferred to Asset Recovery Management branch of the applicant bank for administrative purpose on 18.03.2014 and thereafter the said branch was dealing the account. The 1^st defendant, on 20.12.2014, had acknowledged his debt to the tune of RS.22,65,325/- as on 15.12.2014 repayable by him to the bank and further offered to pay a sum of Rs.13,25,000/-(Rupees Thirteen lakhs twenty five thousand only) as against the amount due of Rs.22,65,325/- towards one time settlement and on the same day paid a sum of Rs.1,00,000/- by cheque bearing No.444374 dated 20.12.2014 towards the discharging the part of the liability. The said letter was forwarded to the Zonal Office of the applicant bank for approval and the same was sanctioned by the Zonal Office of the applicant bank on 14.03.2015, subject to terms and conditions agreed between the parties.

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The applicant bank submits that by letter dated 30.06.2015, the 1^st defendant had expressed his inability to mobilize funds and had sought for further extension of time to comply with the One Time Settlement proposal by the end of March, 2016. The defendant had also paid a sum of Rs.50,000/- by cheque drawn on Axis bank bearing No.55226 dated 10.07.2015 towards discharge of one of the liability relating to the one

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time settlement. The said letter was forwarded by the applicant bank to the Zonal Office for approval.

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The applicant bank further submits that the Zonal Office of the applicant bank had declined to grant extension of time till March, 2016 as sought for by the 1^st defendant in his proposal dated 30.06.2015 however on humanitarian grounds the Zonal Office had agreed to grant time till 30.09.2015 without any further extension of time. The information was also communicated to the 1^st defendant vide letter dated 10.07.2015.

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The applicant bank submits that since the defendant had failed to honor his commitment in repaying the amount offered in the onetime settlement proposal within the time frame fixed by the bank, the applicant bank had issued a Recall Notice dated 01.02.2018 to the defendants 1 & 2 calling upon them to repay the outstanding sum of Rs.23,70,000/- due as on 31.12.2017 along with interest and costs etc., thereon within 7days from the date of receipt of the said notice. The said notice did not evoke any response from the defendant. 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 retuned “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 30.10.2018 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were

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T.A. No. 868 of 2023

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placed ex-parte on 30.10.2018

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Sh. Venkatasubramaniam, Assistant General 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 30.10.2018, 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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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 1 and 2 jointly and severally, sum of Rs.23,67,898.52/- (Rupees Twenty three lakhs Sixty seven thousand Eight hundred and ninety eight and Fifty two paise only) due in respect of Housing Loan (A/c No.20033338725) together with further interest @ 7.75% p.a. with monthly rests from the date of Application till the date of realization in full and for costs of this application. All pending IAs, if any also stands closed.

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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 properties morefully detailed in the OA schedule.

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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

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T.A. No. 868 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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(e) The applicant bank shall file memo of costs within ten days from the date 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 Roshnee, transcribed by her, corrected, signed and pronounced by me on this the 22^nd day of April, 2026)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Venkatasubramaniam, Assistant General 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 Docu	ments	Exhibit No.
1.	22.09.2004	Application for Housing “Allahabad Housing finance s	loan under cheme”	A-1
2.	04.10.2004	Sanction ticket for Housing “Allahabad Housing finance Rs.15,00,000/-	Loan under scheme” for	A-2
3.	08.10.2004	Demand promissory note Rs.3,75,000/-	(D1) for	A-3
4.	17.12.2004	Demand promissory note	(D1) for	A-4

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		Rs.3,75,000/-
5.	25.01.2005	Demand promissory note (D1) for Rs.3,75,000/-	A-5
6.	29.07.2005	Demand promissory note (D1) for Rs.3,75,000/-	A-6
7.	05.10.2004	Recital applicable in the case of proprietorship firm/individual	A-7
8.	05.10.2004	Declaration by the borrower mortgagor on affidavit	A-8
9.	08.10.2004	Letter of mortgagor confirming deposit of title deeds dated 08.10.2004	A-9
10.	08.10.2004	ADV-42 Letter of Guarantee	A-10
11.	28.05.2011	Notice under sec 13(2) with Acknowledgement from the buyer	A-11
12		Notice under Sec 13(2) with acknowledgement from the buyer	A-12
13.	11.08.2011	Possession notice under sec 13(2) of the SARFAESI act	A-13
14.	20.12.2014	Acknowledgement of debt by the 1^st defendant along with a part payment of Rs.1,00,000/- by cheque bearing No.444374 dt 20.12.2014	A-14
15.	14.03.2015	Acceptance of OTS proposal of the zonal office of the applicant bank	A-15
16.	30.06.2015	Letter from 1^stdefendant to the applicant bank seeking extension of time till march 2016 to comply with the OTS proposal. Along with the cheque for Rs.50,000/- on Axis bank No.55226 dt.10.07.2015	A-16
17.	10.07.2015	Letter to the applicant bank to 1^st defendant	A-17
18.	01.02.2018	Recall notice sent by the applicant bank to the defendant	A-18
19.		Statement of A/c	A-19
20.	23.06.2004	Sale deed dated 23.06.2004 Doc.No.5084 of 2004 SRO- Sembium executed by Mrs.Lakshmi &others (Rep by P.A.Mrs.Shanthi Ravishankar) favour of Mr.D.Kalaiselvam.	A-20
21.		Encumbrance certificate	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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T.A. No. 868 of 2023

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:-SCHEDULE OF PROPERTY-:

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ITEM NO.I

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All that piece and parcel of Plot No.2 and house building thereon 2^nd street Nermai Nagar, Kolathur village, corporation of Chennai, Purasawakkam Taluk, Chennai comprised in Survey No.126/7 subdivision No.126/7A to the extent of 2432sq.ft of land and house building thereon situated at Registration Sub District of Sembium and Registration District of Chennai North bounded on the

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North by: Plot No.1

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South by: Item No. II and remaining portion of (Plot –A)

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East by: Property bearing Door No.1/2A and

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West by: Property bearing Door No.10/1

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Item No.II

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All that piece and parcel of Plot no,2, 2^nd street, Nermai nagar, Kolathur village, corporation of Chennai, Purasawakkam Taluk, Chennai comprised in Survey No.126/7 subdivision No.126/7A to an extent of 415sq.ft of land passage situated at Registration Sub district of Sembium and Registration District of Chennai North bounded on the

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North by: Item No.1

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South by: Nermai nagar II Street

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East by: Remaining portion of Plot No.A and

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West by: Property bearing Door No.10/1

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

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Indian Bank v. Mr D Kalaiselvam And Other

Case brief

What is this about?

What did the court decide?

Indian Bank v. Mr D Kalaiselvam And Other

Case brief

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