Allowed

Canara Bank v. Cahandraprabha

DRT17 Jun 2025OA/172/2022

Case brief

AI extract

What is this about?

DRT allowed the bank's original application undisputedly due to the respondents' ex-parte absence. The court directed recovery of Rs.34.49 lakh principal with interest and penal charges from the joint account holders, granting the bank the right to sell the hypothecated truck and other assets to satisfy the dues.

What did the court decide?

The applicant is allowed to recover Rs.34,49,866.36 with interest at 10.30% and penal interest at 2% p.a. from the date of application till realization by sale of schedule mentioned hypotheca or perso

Canara Bank versus Cahandraprabha — Company and Corporate | DRT (2025)

OA No.172/2022

17.06.2025

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 17^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 172 of 2022

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Canara Bank 541/108, Hospital Road, Ethraj Nagar Ariyalur, Tamil Nadu - 621 704

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...Applicant

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-Vs-

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S. Chandiraprabha W/o Sekar, 3/184, Vetti theru Kallathur-PO Udayarpalayam Taluk Tamil Nadu PIN-621 803

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P.Sekar

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S/o Periasamy 3/184, Vetti theru Kallathur-PO Udayarpalayam Taluk Tamil Nadu PIN-621 803

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….Defendants

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Counsels on record / appeared:

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Counsel for Applicant Bank : Ms. P. Chitra Devi

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Defendants 1 and 2 were set ex-parte on 04.08.2022

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: - FINAL ORDER - :

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This original application is filed on 15.12.2021 by the applicant bank

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under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993

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17.06.2025

(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendants for recovery of a total sum of Rs.34,49,866.36p (Rupees Thirty Four Lakhs Forty Nine Thousand

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Eight Hundred Sixty Six and Paise Thirty Six only) due in respect of Vehilce Loan (A/c No.2627740020522) together with further interest @10.30% per annum together with penal interest @ 2% per annum from the date of application till the date of realization in full, for sale of schedule mentioned hypotheca 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 during February 2015, the 1^st defendant approached the applicant bank seeking financial assistance to augment her transport business, and requested sanction of a loan amounting to Rs.24,50,000/- for the purchase of an AMW Truck, Model 2518 TP ZF.

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It is submitted that, upon the request of the 1st Defendant, the Applicant Bank sanctioned a Loan to a tune of Rs.29,40,000/- vide sanction letter dated 12.05.2015, under Loan Account No. 2627740020522.

OA No.172/2022

17.06.2025

It is submitted by the applicant bank that the defendants on availing the credit facility, have submitted / executed the following loan documents in favour of applicant bank:

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i) Work order issued favouring the 1^st defendant by VGS Transport, Thiruchirapalli, for the period 2015-2018.

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ii) Proforma invoice dated 14.03.2015 issued favouring the 1^st defendant by Apollo Motors, Virudhachalam for AMW Truck Model 2518 TP ZP.

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iii) Cash receipt dated 05.04.2015, issued by Apollo Motors Puducherry, favouring the 1^st defendant.

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iv) Adhaar card of the 1^st defendant

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v) PAN Card of the 1^st defendant

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vi) Voter identity card of the 1^st defendant

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vii) Adhaar card of the 2^nd defendant

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viii) Voter identity card of the 2^nd defendant

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ix) Family card of the 2^nd defendant issued by civil supplies & consumer protection department.

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x) Pay slip issued by Trichy district co-operative milk producers union Trichy

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xi) Projected balance sheet for the period 2014-2020, as certified by

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her chartered accountant.

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xii) Income tax return for the assessment year 2014-2015 of 1^st

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17.06.2025

defendant

xiii) Income tax memo for the assessment year 2014-2015 of 1^st defendant

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xiv) Income tax return for the assessment year 2014-2015 of 1^st defendant

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xv) Income and Expenditure Account of the 1^st defendant for the year ending March 2014,

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xvi) Balance sheet for the year ending March 2014 period of the 1^st defendant

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xvii) Projected Income & Expenditure for the period ending March 2015 shared by the 1^st defendant

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xviii) Projected balance sheet for the period ending March 2015 shared by the 1^st defendant

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xix) Loan application form (Transport Operators) submitted by the 1^st defendant on 12.05.2015.

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xx) Loan application form (Micro & Small Enterprises) submitted by the 1^st defendant on 12.05.2015

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xxi) Letter of Guarantee dated 12.05.2015 executed by the defendants

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xxii) Letter of hypothecation dated 12.05.2015 executed by the 1^st defendant

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xxiii) Letter of undertaking on 12.05.2015 executed by the 1^st

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17.06.2025

defendant

xxiv) Form 29 of the Motor Vehicles Act executed by the 1^st defendant on 12.05.2015

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xxv) Form 30 of the Motor Vehicles Act executed by the by the 1^st defendant on 12.05.2015

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xxvi) Form 35 of the Motor Vehicles Act executed by the by the 1^st defendant on 12.05.2015

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xxvii) Acknowledgment of the sanction order by the defendant dated 12.05.2015

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xxviii) Registration of the impugned vehicle i.e. subject matter of the application on 19.06.2015, by the RTO Ariyalur,

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xxix) Goods carriage permit issued by the transport department favouring the 1^st defendant dated 2306.2015

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xxx) Acknowledgment of Debt/Security on 08.025.2018 executed by the 1^st defendant

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xxxi) Loan account i.e. subject matter of the application recalled by the 1^st defendant.

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The Applicant Bank submits that the Defendants, utilized the above sanctioned loan amount from time to time, but had committed chronic default. As a result the loan account has become irregular and consequently declared as NPA on 01.04.2019 in terms of RBI guidelines. Subsequent to

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the classification of loan account as NPA, the defendants are liable to pay

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the due amount of Rs. 34,49,866.36/- as on 09.12.2021. Further the defendants had agreed to pay interest at 10.30% per annum as per the loan documents. The applicant bank issued Recall Notice dated 23.01.2018 to the defendants, which was duly served upon them. However, the Defendants did not settle the outstanding dues. Therefore, the Applicant Bank has filed this Original Application (OA) seeking recovery of the outstanding dues from the Defendants.

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After the filing of the OA, summons were sent to the defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 04.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 04.08.2022.

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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, Shri. J. Rajkumar, Chief Manager of the applicant bank, has filed his 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-33 . As the Defendants 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 due to the applicant bank, the interest

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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 Defendants jointly and severally a sum of Rs.34,49,866.36p (Rupees Thirty Four Lakhs Forty Nine Thousand Eight Hundred Sixty Six and Paise Thirty Six only) due in respect of Credit Facility ( Loan Account No. 2627740020522) together with further interest @ 10.30% per annum together with penal interest @ 2% per annum from the date of filing this application till the date of realization along with costs of this application.

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(b) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypotheca.

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(d) If the sale proceeds of the schedule mentioned mortgaged property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants (both movable and immovable) to recover the balance

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dues as required under law, for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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

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the date of receipt of this final order.

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(g) Recovery Certificate shall be drawn up and issued to the 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 Prasobh Sankar, transcribed by him, corrected, signed and pronounced by me on this the 17^th day of June, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sri J Rajkumar, Chief Manager of 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.	Work order issued favouring the 1^stdefendant by VGS Transport, Thiruchirapalli, for the period 2015-2018	A-1
2.	Proforma invoice dated 14.03.2015 issued favouring the 1st defendant by Apollo Motors, Virudhachalam for AMW Truck Model 2518 TP ZP dated 14.03.2015	A-2
3.	Cash receipt dated 05.04.2015, issued by Apollo Motors Puducherry, favouring the 1^st defendant dated 05.04.2015	A-3
4.	Aadhar card of the 1st defendant	A-4
5.	PAN Card of the 1^stdefendant	A-5
6.	Voter identity card of the 1st defendant	A-6
7.	Family card of the 2nd defendant issued by civil supplies & consumer protection department.	A-7
8.	Pay slip issued by Trichy district co-operative milk producers union Ltd Trichy Favouring	A-8
9.	Projected balance sheet submitted by the 1^st defendant for the period 2014-2020	A-9
10	Income tax return submitted by the 1st defendant for the assessment year 2014-2015	A-10
11	Income tax memo for the assessment year 2014-2015 furnished by the 1^stdefendant	A-11
12	Income and Expenditure Account submitted by the 1st defendant for the year ending March 2014,	A-12
13	Balance sheet submitted by the 1st defendant for the year ending March 2014.	A-13
14	Projected Income & Expenditure submitted by the 1st defendant for the period ending March 2015.	A-14
15	Projected balance sheet submitted by the 1st defendant for the period ending March 2015	A-15
16	Loan application form (Transport Operators) submitted by the 1st defendant dated 12.05.2015.	A-16

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	Loan application form (Micro & Small	A-17
17	Enterprises) submitted by the 1st defendant dated 12.05.2015
18	Letter of guarantee deed executed by the 1st and 2nd defendant dated 12.05.2015.	A-18
19	Letter of hypothecation executed by the 1st defendant dated 12.05.2015.	A-19
20	Letter of undertaking executed by the 1st defendant dated 12.05.2015.	A-20
21	Form-29-Motor Vehicles Act executed by the 1st defendant	A-21
22	Form-30-Motor Vehicles Act executed by the 1st defendant	A-22
23	Form-35-Motor Vehicles Act executed by the 1st defendant	A-23
24	Sanction Order dated 12.05.2015.	A-24
25	Registration Certificate of the impugned vehicle dated 19.06.2015.	A-25
26	Goods carriage permit issued by vehicle dated 23.06.2015	A-26
27	Acknowledgment of debt security executed by the 1st defendant	A-27
28	Acknowledgment of debt security executed by the 1st defendant dated 08.01.2018	A-28
29	Acknowledgment of debt security executed by the 1st defendant dated 26.06.2020	A-29
30	Recall Notice issued by the applicant to the 1st defendant dated 23.01.2018	A-30
31	Legal Notice with Acknowledgment dated 20.10.2021	A-31
32	Statement of Account of the defendant’s loan account from 12.05.2015 to 09.12.2021	A-32
33	Memorandum of interest	A33

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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 A-Property

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The Hypothecated stock i.e. AMW Truck Model 2518 TP ZF AMW, bearing Registration No. TN 61 H 7023, Engine Number 51D84220291 & Chassis No. MBYB97700FEA36133, lying at the defendant’s place at Ariyalur, or any other place wherever it may situate belonging to the 1^st defendant.

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

Canara Bank v. Cahandraprabha

Case brief

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Canara Bank v. Cahandraprabha

Case brief

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