Allowed

Indian Bank v. Grill Hut

DRT5 Aug 2025OA/137/2022

Case brief

AI extract

What is this about?

Allowed the Original Application filed by Indian Bank for recovery of dues from M/s. Grill Hut and proprietor Mrs. K. Deepika. Ordered payment of principal amount plus accrued interest and penalties, with liberty to attach hypothecated and personal assets if dues remain unpaid.

What did the court decide?

Recovery of Rs. 35,29,279/- with interest and penalties; liberty to sell hypothecated and personal assets to recover dues; issuance of Recovery Certificate.

Indian Bank versus Grill Hut — Contract and Commercial Disputes | DRT (2025)

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O.A. No. 137 of 2022

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05.08. 2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 137 of 2022

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Indian Bank, Tiruninravur Branch Represented by its Branch Manager, No. 525, MTH Road, Tiruninravur – 602 024. ….Applicant

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-Vs-

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M/s. Grill Hut, Rep by its Proprietor, Mrs. K. Deepika, No. 38/3, Balaji Nagar, Bus Stop, Veppampattu – 602 024.

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Also at

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Mrs. K.Deepika, W/o.Mr. Praveen Kumar, No. 2,8^th Cross Street, Lakshmipuram, Tiruninravur – 602 024. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Saravana Prakash S

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Defendants were set ex-parte on 27.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 07.07.2021 by the Applicant

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Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act,

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O.A. No. 137 of 2022

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05.08. 2025

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against the Defendants jointly and severally for recovery of a total sum of Rs.35,29,279/- (Rupees Thirty Five Lakhs Twenty Nine Thousand Two Hundred Seventy Nine Only) due in respect of Open Cash Credit (Account No.6569289207) repayable together with further interest @ 13.05% p.a. with monthly rests and penal interest @ 2% from the date of filing the OA, till date of realization in full and for sale of Schedule mentioned hypothecated property morefully detailed in Schedule to the OA, and for costs of this application.

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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 defendant is a proprietary concern in the name and style M/s. Grill Hut represented by its Proprietrix Mrs. K. Deepika. The defendant represented by its Proprietrix approached the Applicant Bank seeking to grant Loan facility in the form of Open Cash Credit facility for the purpose of running an eatery/hotel business and submitted loan application on 25.09.2017.

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It is submitted that considering the said request, the Applicant Bank had sanctioned Open Cash Credit facility to the tune of Rs. 20,00,000/(Rupees Twenty lakhs Only) vide Loan Account No.6569289207 on

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O.A. No. 137 of 2022

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05.08. 2025

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03.10.2017 and the defendant had provided a statement of Assets and Liabilities dated 03.10.2017.

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It is submitted by the applicant bank that the Defendant agreed for all the terms and conditions of the Loan facility. The Defendant executed the necessary loan documents towards availing the Loan facility and executed the Term Loan agreement and agreement for Hypothecation of movables dated 04.10.2017. The Defendant agreed to pay interest towards the Loan facility @ 9.95% P.A and at BRR prevailing from time to time.

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In order to secure the loan, the Defendant had executed the following Loan Documents in favour of applicant bank:

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a) The Demand Promissory Note Jointly and severally dated

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04.10.2017 of Rs.20,00,000/- (Rupees Twenty Lakhs Only).

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b) The Letter of Continuity dated 04.10.2017

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c) Hypothecation of movables dated 04.10.2017

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d) Agreement for Open cash credit dated 04.10.2017

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e) Declaration by Sole Proprietor dated 04.10.2017

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The applicant submits that the Defendant had floated a proprietary concern (eatery/hotel) with the loan amount availed from the applicant by hypothecating the stocks viz., Goods, Produce, Merchandise, Stocks stored in the premise at No. 2, 8^th Cross Street, Lakshmipuram, Tiruninravur – 602 024 and at No. 38/3, Balaji Nagar Bus Stop,

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O.A. No. 137 of 2022

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Veppampattu – 602 024 vide Agreement of Hypothecation of movables dated 04.10.2017 with the Applicant.

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The applicant further submits that upon execution of all the above necessary documents, the Loan amount was duly disbursed to the Defendant by the Applicant. The credit facilities availed by the defendant was to be repaid as per the terms agreed.

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It is submitted by the applicant bank that after availing the credit facilities, the defendant was irregular in repayment and servicing the Loan extended by the applicant bank and had paid lastly on 31.07.2018. In spite of repeated reminders and the communication from the bank, the Defendant failed and neglected to regularize the same. In view of the default, the loan account was classified as Non-Performing Asset (NPA) w.e.f. 29.10.2018 in accordance with RBI guidelines.

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The Applicant submits that Defendant had moved the Hon'ble Principal District Court, Tiruvallur for declaring her as insolvent and arrayed this applicant as first defendant in the said suit numbered as IP No. 4 of 2018 as per the notice received from the Court dated 29.10.2018, where the case have no progress as on date and no Court of law had declared the defendant as Insolvent till date.

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The Applicant submits that the defendant did not come forward to settle the dues even after the letter from the bank calling to regularize the

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O.A. No. 137 of 2022

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05.08. 2025

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loan account dated 27.10.2020. 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 were sent to the defendant through Registered Post with Acknowledgment Due, which was duly served in one address and summons to second address returned as ‘Insufficient address’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 27.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant was placed exparte on 27.06.2022.

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Heard the submissions of Applicant Bank and perused the records.

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To prove the case of the Applicant Bank, Ms. Vini Narayanan Kutty, Branch 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 documents came to be marked as Ex A-1 to A-13. As the Defendant remained ex-parte, the OA claim remains unchallenged. There is no contra evidence available on record to repudiate the claim of the Applicant Bank.

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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

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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 jointly and severally, a sum of Rs.35,29,279/- (Rupees Thirty Five Lakh Twenty Nine Thousand Two Hundred Seventy Nine Only) due in respect of Open Cash Credit facility (Account No.6569289207) repayable together with further interest @ 13.05% p.a. with monthly rests and penal interest @ 2% 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 Defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated assets.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the Proprietrix of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Proprietrix of the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Proprietrix of 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 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 Defendant to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days

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from 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 (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 05^th day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Ms. Vini Narayanan Kutty, Branch Manager representing the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	OCC Loan Application dated 25.09.2017.	A-1
2.	Sanction Letter dated 03.10.2017.	A-2
3.	Assets and Liabilities Statement by Defendant dated 03.10.2017.	A-3
4.	DPN for Rs. 20,00,000/-dated 04.10.2017.	A-4
5.	Letter of continuity dated 04.10.2017.	A-5
6.	Agreement of Hypothecation of moveable dated 04.10.2017.	A-6
7.	Agreement for Open Cash Credit dated 04.10.2017.	A-7
8.	Declaration by Sole Proprietor dated 04.10.2017.	A-8
9.	Last remittance by the defendant of Rs. 5,17,000/-dated 31.07.2018.	A-9
10.	Letter from bank to the defendant a/w Acknowledgement dated 18.09.2018.	A-10
11.	Insolvency Petition No. 4 of 2018 filed by defendant Hon'ble Principal District Judge, Tiruvallur against the Applicant and other Banks dated 29.10.2018.	A-11
12.	Letter from bank to defendant to regularize the loan with Acknowledgment dated 27.10.2020.	A-12
13.	Certified Extract of Statement of Accounts dated 01.07.2021.	A-13

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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 -:

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All 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 No. 2, 8^th

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Cross Street, Lakshmipuram, Tiruninravur - 602 024 and at No. 38/3, Balaji Nagar Bus Stop, Veppampattu – 602 024 vide Agreement of Hypothecation of movables dated 04.10.2017 with the Applicant.

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

Indian Bank v. Grill Hut

Case brief

What is this about?

What did the court decide?

Indian Bank v. Grill Hut

Case brief

What is this about?

What did the court decide?

What the court decided

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