IN THE DEBT RECOVERY APPELLATE TRIBUNAL AT CHENNAI Dated the 08^th day of April, 2025 PRESENT: HON’BLE MR. JUSTICE G. CHANDRASEKHARAN CHAIRPERSON RA 14/2021 (arising out of OA 59/2009 on the file of DRT - III, Chennai)

Between

1. R.Vijayabhaskar, S/o.K.Ramamorthy

2. Mrs. Ammulu, W/o.R.Vijayabhaskar, Both are residing at:

No.57, Rangasayee Street, Perambur, Chennai - 600 011. ...Appellants And State Bank of India, Anna Nagar West Extension Branch W/7, North Main Road, Chennai - 600 101 Rep. by its Chief Manager, Mr. Suresh M.Nair. …..Respondent Counsel for Appellant : Mr. G.Jeremiah Counsel for respondent : Mr. O.Padmaprakash

ORDER

1. This appeal is filed under Section 20 of RDDB & FI Act challenging the final order passed by the Ld. Presiding Officer, DRT - III, Chennai in OA 59/2009 dated

30.09.2019.

2. The respondent bank filed the aforesaid OA for recovering a sum of Rs.11,03,325/-

together with interest at the rate of 9.75% per annum with monthly rests from the date of application till the date of realization with costs of the application and for sale of property mentioned in the Schedule to the OA. The case of the respondent is that appellants approached the bank during the year 2005 for grant of housing loan for the purchase of property described in the Schedule. 1^st appellant entered into an agreement for sale dated 06.11.2005 and construction agreement on the same date in respect of the property. Respondent bank sanctioned housing loan of Rs.7,50,000/- to the appellants on 07.02.2005. Appellants executed Memorandum of Term Loan agreement dated 07.12.2005 for Rs.7,50,000/-, undertaking to repay the amount in 240 equated monthly instalments at Rs.6,509/- per month. 1^st appellant executed an agreement of mortgage dated 07.12.2005 and agreed to mortgage the schedule mentioned property in favour of the respondent bank. After availing the loan, appellants failed to deposit the sale deed in favour of the respondent bank and they also failed to repay the loan amount. In the said circumstances, the said OA was filed.

3. The case of the appellants was that they were approached by one Mr.B.Subramanyam, Proprietor of M/s. R.S. Constructions. He told them that he is a builder of repute and he formulated a scheme to put up a residential flats in Rangasayee Street, Perambur. He represented to the appellants that he would arrange for Home loan with the respondent. He obtained certain documents from the appellants for availing loan facilities. Appellants never stepped into the premises of the respondent bank. Later, on verification, the appellants found that the said Mr.B.Subramanyam, already sold the property described in the schedule to one Mr.Manoj Mathew and Mrs. Nisha Mathew. When enquired about this, Mr.B.Subramanyam confessed to the sale. Mr.Manoj Mathew and Mrs. Nisha Mathew availed housing loan from IDBI bank, Greams Roads, Chennai, for purchase of property. Appellants settled the loan availed by them and then Sale Deed was executed in favour of the appellants on 14.07.2006 by Mr.Manoj Mathew and Mrs.

Nisha Mathew. It is the case of appellants that on the date on which the respondent bank claims to have disbursed the loan to the said Mr.B.Subramanyam, he had no saleable interest. The sum of Rs.7,50,000/- was transferred to the Account No.57001984. So pleading, the appellants prayed for dismissal of the OA.

4. On consideration of the documentary evidence produced in the form of Exhibits A1 to A6 and the proof affidavits filed, the Ld. Presiding Officer, DRT, found in favour of the claim made by the respondent bank and allowed the OA. Therefore, this appeal is filed.

5. Ld. counsel for the appellants submitted that at the instance of Mr.B.Subramanyam alone, believing his representation, that he is a builder of repute, appellants entered into a sale agreement and construction agreement with him. He alone had taken the 1^st appellant to the bank for submission of loan application. The officials of the respondent bank obtained signatures of app