The DRT allowed the bank's application for recovery of Rs. 20.39 lakhs representing cash credit and term loan dues from a defaulted retail shop, following an ex-parte hearing due to non-appearance by respondents.
Directed respondents to jointly and severally pay Rs. 20,39,319 with interest and costs; Recovery Certificate to be issued.
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.
O.A. No. 150 of 2022
26.11.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 26th day of November, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
ORIGINAL APPLICATION No. 150 of 2022
Union Bank of India, Rep. by its Authorized Signatory, Thiruvallur Branch, Plot No.3573, Thiruvallur Kakkalur Bye Pass Road, Thiruvallur 602 001.
…Applicant
-Vs-
Rep. by its Proprietor, Mr. M. Vinodh Kumar No.157/8C, Gandhipuram J.N. Road, Thiruvallur – 632 201.
S/o Muthulingam No.157/8C, Gandhipuram J.N. Road, Thiruvallur – 632 201. …Defendants
Counsels on record / appeared:
Counsel for Applicant : M/s. S. Parthasarathy
Defendants 1 and 2 were set ex-parte on 26.07.2022
: - FINAL ORDER - :
under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of
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a total sum of Rs.20,39,319/- (Rupees Twenty Lakhs Thirty Nine Thousand Three Hundred and Nineteen only) as follows:
i. A sum of Rs.17,26,267/- due in respect of Cash Credit Facility (Account No.635406170000129) repayable together with further interest @ 9.65% p.a., with monthly rests from the date of Application till the date of realization in full;
ii. A sum of Rs.3,13,052/- due in respect of Working Capital Term Loan (Account No.635406990000088) repayable together with further interest @ 7.50% p.a. with monthly rests from the date of Application till the date of realization in full; and for costs of this OA.
Brief Facts of the case:
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Union Progress on 28.10.2019 for Rs.15.00 lakhs in Loan Account No.635406170000129 with repayment terms at the rate of interest at 9.65% p.a.
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and no collateral security was obtained from the defendants, since the sanction was made under CGTNMSE Scheme.
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to meet the liquidity crunch and cash flow mismatch on account of outbreak of Covid-19. Considering the said request, the applicant has sanctioned a sum of Rs.2.90 lakhs to the defendants vide Sanction Letter dated 06.06.2020 with repayment terms of 48 monthly instalments with moratorium period of 12 months and the defendants executed the following documents:
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06.06.2020 addressed to the applicant.
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dues from the defendants.
Heard the submissions of Applicant Bank and perused the records.
: O R D E R :
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jointly and severally, a total sum of Rs.20,39,319/- (Rupees
Twenty Lakhs Thirty Nine Thousand Three Hundred and
Nineteen only) as follows:
repayable together with further interest @ 9.65% p.a., with monthly rests from the date of Application till the date of realization in full;
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 Defendants to the applicant bank.
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from the date of receipt of this final order.
Recovery Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 26th day of November, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Sh. K. Venkata Rathinam, Authorized Officer of the Applicant Bank
Exhibits on the part of the Applicant:
| Sl. No. |
Description of Documents | Exhibit No. |
|---|---|---|
| 1. | Application form dated 30.10.2019 | A-1 |
| 2. | Letter of Sanction for Rs.15.00 lakhs dated 30.10.2019 |
A-2 |
| 3. | Demand Promissory Note for Rs.15.00 lakhs dated 30.10.2019 |
A-3 |
| 4. | Letter of continuity addressed to applicant for Rs.15.00 lakhs |
A-4 |
| 5. | Composite Hypothecation Deed dated 30.10.2019 | A-5 |
| 6. | Simple interest Agreement dated 30.10.2019 | A-6 |
| 7. | Interest Agreement dated 30.10.2019 | A-7 |
| 8. | Renewal of Credit limit dated 11.02.2020 | A-8 |
| 9. | Letter of Sanction for Rs.2.90 lakhs dated 06.06.2020 |
A-9 |
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| 10. | Demand Promissory Note for Rs.2.90 lakhs dated 06.06.2020 |
A-10 |
|---|---|---|
| 11. | Letter of continuity addressed to applicant for Rs.2.90 lakhs |
A-11 |
| 12. | General Term Loan Agreement dated 06.06.2020 | A-12 |
| 13. | Interest Agreement dated 06.06.2020 | A-13 |
| 14. | Undertaking from the Borrower dated 20.07.2020 | A-14 |
| 15. | Statement of Accounts for Loan A/c No.635406170000129 along with Certificate under Bankers Book Evidence Act. |
A-15 |
| 16. | Statement of Accounts for Loan A/c No.635406990000088 along with Certificate under Bankers Book Evidence Act. |
A-16 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
:-SCHEDULE-:
-Nil-
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the Original Application under Section 19 of the RDB Act is maintainable for recovery of dues.
1 provisions across 1 enactments
Union Bank of India
M/s. VS Enterprises
Mr. M. Vinodh Kumar
S.V. GOWRAMMA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
