Allowed

Indian Bank v. Bamboo Restaurant

DRT5 Aug 2025OA/143/2022

Case brief

AI extract

What is this about?

The DRT-III, Chennai allowed an ex-parte original application filed by Indian Bank under the RDB Act 1993 against M/s. Bamboo Restaurant and its proprietor for recovery of Rs. 40,27,071/- along with interest and costs. The tribunal directed recovery via hypothecated assets and personal assets of the proprietor upon default.

What did the court decide?

Recovered sum of Rs.40,27,071/- with interest @12.95% and penal interest @2%; liberty to sell hypothecated assets and personal assets of respondent.

Indian Bank versus Bamboo Restaurant — Banking and Recovery | DRT (2025)

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O.A. No. 143 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. 143 of 2022

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Indian Bank, Tiruninravur Branch Rep. by its Branch Manager, No.525, CTH Road, Tiruninravur – 602 024. ….Applicant -Vs-

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M/s. Bamboo Restaurant Rep by its Proprietor, Mr. D. Praveen Kumar, No. 442, CTH Road, Tiruninravoor – 602 024.

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Also at

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Mr. D. Praveen Kumar, No. 2, 8^th Cross Street, Lakshmipuram, Thiruninravur – 602 024. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Saravana Prakash S

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Defendant were set ex-parte on 13.07.2022

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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. 143 of 2022

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05.08.2025

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against the Defendant for recovery of a total sum of Rs.40,27,071/- (Rupees Forty Lakhs Twenty Seven Thousand and Seventy One Only) due in respect of Open Cash Credit facility (Account No.6529328109) repayable together with further interest @ 12.95% p.a., with monthly rests plus penal interest @2% from the date of filing the OA, till date of realization in full and for sale of Schedule mentioned hypotheca 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 represented by its Proprietor 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 15.02.2018 along with the Statements of Assets and Liabilities dated 15.02.2018.

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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.6529328109 on 26.02.2018.

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O.A. No. 143 of 2022

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05.08.2025

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The Applicant submits 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 Demand Promissory Note, Agreement for Hypothecation of movables and Agreement for Open Cash Credit dated 26.10.2018. The Defendant agreed to pay interest towards the Loan facility 10.35% P.A and at BRR prevailing from time to time.

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In order to secure the loan, the Defendants have executed the following loan documents in favour of applicant bank:

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a) The Demand Promissory Note Jointly and severally dated 26.02.2018 for Rs.20,00,000/- (Rupees Twenty Lakhs Only)

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b) Hypothecation of movables dated 26.02.2018

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c) Agreement for Open Cash Credit dated 26.02.2018

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d) Declaration by Sole Proprietor dated 26.02.2018

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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. 442, CTH Road, Tiruninravoor – 602 024 vide Agreement of Hypothecation of movables dated 26.02.2018 with the Applicant.

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The applicant further submits that upon execution of all the above

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O.A. No. 143 of 2022

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05.08.2025

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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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The Applicant further submits 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 latest communication from the bank being 18.09.2018, the Defendant failed and neglected to regularize the same. In view of the default, the loan accounts were classified as Non-Performing Asset (NPA) on 06.10.2018 in accordance to RBI guidelines.

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The Applicant submits that Defendant had moved the Hon’ble Principal District Court, Tiruvallur for declaring him as insolvent and arrayed this applicant as first defendant in the said suit numbered as IP No.3 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 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 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 was sent to defendant through

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O.A. No. 143 of 2022

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05.08.2025

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Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 13.07.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendant were placed ex-parte on 13.07.2022.

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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, 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-11 . 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 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 sum of Rs.40,27,071/- (Rupees Forty Lakhs Twenty Seven

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Thousand and Seventy One Only) due in respect of Open Cash

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O.A. No. 143 of 2022

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05.08.2025

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Credit facility (Account No.6529328109) repayable together with further interest @ 12.95% p.a., with monthly rests plus 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 Proprietor of the Defendant (both movable and immovable) to recover the balance dues as required under law for which the Proprietor of the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Proprietor 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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O.A. No. 143 of 2022

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05.08.2025

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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 is to be communicated to the parties concerned.

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Sd/PRESIDING OFFICER, DRT-III, CHENNAI

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(S.V. GOWRAMMA)

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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 15.02.2018.	A-1
2.	Assets and Liabilities Statement by Defendant dated 15.02.2018.	A-2
3.	Sanction Ticket dated 26.02.2018.	A-3
4.	DPN for Rs. 20,00,000/-dated 26.02.2018.	A-4
5.	Agreement of Hypothecation of moveable dated 26.02.2018.	A-5
6.	Agreement for Open Cash Credit dated 26.02.2018.	A-6
7.	Declaration by Sole Proprietor dated 26.02.2018.	A-7
8.	Letter from bank to the defendant a/w	A-8

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O.A. No. 143 of 2022

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	Acknowledgement da	ted 18.09.2018.
9.	Insolvency Petition defendant Hon’ble Tiruvallur against th dated 29.10.2018.	No. 3 of 2018 filed by Principal District Judge, e Applicant and other banks	A-9
10.	Letter from bank to loan dated 27.10.202	defendant to regularize the 0.	A-10
11.	Certified Extract of Loan	Statement of Accounts of	A-11

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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 Cross Street, Lakshmipuram, Tiruninravur – 602 024 and at No.442, CTH Road, Tiruninravoor – 602 024 vide Agreement of Hypothecation of movables dated 26.02.2018 with the Applicant.

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

Indian Bank v. Bamboo Restaurant

Case brief

What is this about?

What did the court decide?

Indian Bank v. Bamboo Restaurant

Case brief

What is this about?

What did the court decide?

What the court decided

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