In a bankruptcy proceedings case, the Debt Recovery Tribunal allowed the application filed by Indian Bank for the recovery of dues through Medium Term Loan and OCC Loan accounts against M/s. SS Paper Crafts, constituting Rs. 38,72,437 along with interest.
Allowed recovery of Rs. 38,72,437 with interest and permit sale of hypothecated assets if payment fails.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
OA. No. 105 of 2022
22.04.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 22nd day of April, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
ORIGINAL APPLICATION No. 105 of 2022
Indian Bank Porur Branch, No.225, Trunk Road, Porur, Chennai – 600 116 Rep. by its Branch Manager
….Applicant
-Vs-
M/s. SS Paper Crafts, Represented by its Proprietor Mr. S. Somasundaram, No.15, Krishna Industrial Estate, Mettukuppam Main Road, Vanagaram, Chennai – 600 116
Also at No.2, Raja Rajan Nagar, Mettukuppam, Vanagaram, Chennai – 600 095
Also at No.2/137, Varasakthi Vinayagar Street, OdamaNagar, Vanagaram, Chennai – 600 095
….Defendant
Counsels on record / appeared:
Counsel for Applicant : M/s. Saravana Prakash S Defendant set ex-parte on 11.07.2022
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: - FINAL ORDER - :
(Rupees Thirty Eight Lakhs Seventy Two Thousand Four Hundred & Thirty Seven Only) as follows:
(i) A sum of Rs.20,32,027/- due in respect of Medium Term Loan (MTL) (A/c No.6192873573) together with further interest thereon @ 15.45% p.a., with monthly rests plus penal interest @ 2% from the date of application till the date of realization in full;
(ii) A sum of Rs.18,40,410/- due in respect of OCC Loan (A/c No.6186200141) together with further interest thereon @ 15.45% p.a., with monthly rests plus penal interest @ 2% from the date of application till the date of realization in full;
for sale of Schedule mentioned Hypothecated Assets morefully detailed in Schedule to OA and for costs of this application.
Brief Facts of the case:
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jurisdiction of this Hon’ble Tribunal.
iii. Agreement for Hypothecation of Movable
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properties.
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Heard the submissions of Applicant Bank and perused the records.
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:
: O R D E R :
of Rs.38,72,437/- (Rupees Thirty Eight Lakhs Seventy Two Thousand Four Hundred & Thirty Seven Only) as follows:
Loan (MTL) (A/c No.6192873573) together with further interest thereon @ 15.45% p.a., with monthly rests plus penal interest @ 2% from the date of application till the date of realization in full.
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Recovery Officer in terms of the final order.
11. A copy of this order be communicated to the party concerned.
Sd/-
(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 22nd day of April, 2025)
ANNEXURE
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1 : Mrs. R. Shanthi, Branch Manager/Chief Manager of the Applicant
Bank
Exhibits on the part of the Applicant:
LIST OF DOCUMENTS FILED BY THE APPLICANT BANK
| Sl. No. |
Description of Documents | Exhibit No. |
|---|---|---|
| 1. | Loan Application dated 21.12.2013 | A-1 |
| 2. | Sanction Ticket dated 21.01.2014 | A-2 |
| 3. | DPN for Rs.22,00,000/- towards Medium Term Loan dated 21.01.2014 |
A-3 |
| 4. | Medium Term Loan Agreement for Rs.22,00,000/- dated 21.01.2014 |
A-4 |
| 5. | Agreement of Hypothecation of Movables for Rs.22,00,000/-dated 21.01.2014 |
A-5 |
| 6. | Consent letter from the borrower for disclosure of information dated 21.01.2014 |
A-6 |
| 7. | DPN for Rs.7,50,000/- towards OCC Loan facility dated 21.01.2014 |
A-7 |
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| 8. | Agreement of Hypothecation of Movables for Rs.7,50,000/-dated 21.01.2014 |
A-8 |
|---|---|---|
| 9. | Right to Access to Godowns – Authorization from Borrower dated 21.01.2014 |
A-9 |
| 10. | Letter from Borrower regarding intimation of disposal of properties dated 23.01.2014 |
A-10 |
| 11. | Acknowledgement of Debt cum security dated 19.12.2016 |
A-11 |
| 12. | Acknowledgement of Debt cum security dated 11.12.2018 |
A-12 |
| 13. | Certified Extract of Statement of Accounts of MTL | A-13 |
| 14. | Certified Extract of Statement of Accounts of OCC | A-14 |
Witness Examined for the Defendant: -Nil-
List of Documents Exhibited for the Defendant: -Nil -
SCHEDULE
Schedule of Hypothecation
The hypothecated stocks, viz., Goods, Produce, Merchandise, Stocks, all tangible movable properties and other products stored which now or hereafter from time to time during the currency of the loans shall belong to the Defendant and are stored in or about the premises or anywhere-else or godowns of the Borrower in the premise at M/s. SS Paper Crafts, No.15, Krishna Industries, Mettukuppam road, Vanagaram, Chennai – 600 116 vide Agreement of Hypothecation of Movables dated 21.01.2014 with the Applicant.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the debt recovery claim against the defendant is successful and liable for recovery.
1 provisions across 1 enactments
Indian Bank Porur Branch Rep. by its Branch Manager
M/s. SS Paper Crafts Rep. by its Proprietor Mr. S. Somasundaram
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
