Allowed

Indian Overseas Bank v. Om Shri Sidhhi Vinayagar agency

DRT29 Aug 2025OA/211/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Original Application filed by a bank for recovery of Rs.56.80 lakhs due on cash credit and term loans. The court granted relief for sale of schedule property and other assets if repayment fails.

What did the court decide?

Approved recovery of Rs.56,80,577/- with interest; authorized sale of schedule property and personal assets for recovery of dues and costs.

Indian Overseas Bank versus Om Shri Sidhhi… — Contract and Commercial Disputes | DRT (2025)

¶1

O.A. No. 211 of 2022

¶2

29.08.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 29^th day of August, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No. 211 of 2022

¶8

Indian Overseas Bank Chengalpattu Branch No.35, Varadhanar Street Vedachala Nagar Chengalpattu – 603001 Rep. by its Principal Officer/Senior Manager/ Constituted Attorney.

¶9

…Applicant

¶10

-Vs-

¶11

M/s. Om Shri Siddhi Vinayagar Agency Rep. by its Proprietrix Ms. R. Saranya D/o V. Radhakrishnan

¶12

No.457/1B, Kancheepuram Main Road Athur Village, Chengalpattu Taluk Chengalpattu District – 603 101.

¶13

Ms. R. Saranya

¶14

D/o V. Radhakrishnan No.43, Shivan (Krishnan) Street Venkatesaperumal Nagar Valasaravakkam

¶15

Chennai – 600 087.

¶16

V. RadhaKrishnan

¶17

S/o T. Vembuli Naicker Door No.43, Shivan (Krishnan) Street Venkateswaraperumal Nagar Valasaravakkam

¶18

Chennai – 600 087.

¶19

…Defendants

¶20

Counsels on record / appeared:

¶21

Counsel for Applicant : Sh. M. Mani Defendants 1 to 3 were set ex-parte on 13.09.2022

¶22

O.A. No. 211 of 2022

¶23

¶24

29.08.2025

¶25

: - FINAL ORDER - :

¶26

This Original Application is filed on 19.05.2022 by the applicant bank 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 to 3, jointly and severally for recovery of a total sum of Rs.56,80,577/- (Rupees Fifty Six Lakhs Eighty Thousand Five Hundred and Seventy Seven Only) as follows:

¶27

(a) A sum of Rs.40,34,730/- due in respect of Cash Credit Facility (Account No.036202000007299) repayable together with further interest @ 13.10% p.a. with monthly rests (current rate 11.10% + Over Due interest 2%) from the date of Application till the date of realization in full;

¶28

(b) A sum of Rs.16,45,847/- due in respect of Term Loan (Account No.036203261300014) repayable together with further interest @ 12.10% with monthly rests (current rate 10.10% + Over Due interest 2%) from the date of Application till the date of realization in full;

¶29

for sale of scheduled mentioned immovable property and for costs of this OA.

¶30

Brief Facts of the case:

¶31

The Applicant submits that the application is filed within the period

¶32

O.A. No. 211 of 2022

¶33

¶34

29.08.2025

¶35

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.

¶36

It is the case of the Applicant Bank that the 2^nd defendant, who got dealership from Indian Oil Corporation for retail sale of its products approached the Applicant on 20.12.2013 requesting a Term Loan for construction of Petrol Bunk for her business purpose.

¶37

It is submitted that the applicant after considering her request, sanctioned a Term Loan of Rs.20,00,000/-, repayable in 60 EMIs of Rs.44,800/- commencing from the month of June 2014, against the personal guarantee of the 3^rd defendant and collateral security of the schedule property standing in the name of 2^nd defendant.

¶38

The Applicant submits that the Term Loan of Rs.20,00,000/- was availed by the 2^nd defendant, after the 2^nd and 3^rd defendants accepted the terms and conditions and executed the following documents:

¶39

a) Demand Promissory Note for Rs.20,00,000/- executed by 2^nd defendant on 30.12.2013

¶40

b) Letter of repayment undertaking in 60 monthly instalments executed by 2^nd and 3^rd defendants on 30.12.2013

¶41

c) Letter of consent for disclosure of information to CIBIL executed by the 2^nd defendant on 30.12.2013

¶42

O.A. No. 211 of 2022

¶43

29.08.2025

¶44

¶45

d) Term Loan Agreement executed by the 2^nd defendant on 30.12.2013

¶46

e) Letter of Guarantee executed by the 3^rd defendant with consent cum Authorisation Letter CAL – C.

¶47

f) Letter of Confirmation of Deposit of title Deeds relating to Schedule Property executed by the 2^nd defendant on 28.12.2013 confirming the deposit of Title Deeds relating to the schedule property on 27.12.2013

¶48

g) Registered Memorandum of Deposit of Title Deeds executed on 30.12.2013 by the 2^nd defendant confirming the deposit of Title Deeds relating to the schedule property on 27.12.2013 and registered as Doc.No.15659 of 2013 on the file of SRO Joint II Chengalpattu

¶49

The applicant bank submits that 2^nd defendant has admitted the borrowing of Rs.20,00,000/- and agreed to repay the same on demand by the applicant, repayable with interest at rate of 12.25% p.a., from the date with minimum of 12.25% p.a., until payment in full with monthly rests or at such rates and rests as may be revised by the bank from time to time. The present applicable rate of interest is 10.10% p.a., The 2^nd and 3^rd Defendants also agreed to repay the said Term loan amount of Rs.20,00,000/- in 60 EMIs of Rs.44,800/- commencing from the month of June 2014.

¶50

O.A. No. 211 of 2022

¶51

29.08.2025

¶52

¶53

The applicant bank further submits that 3^rd defendant vide Letter of continuing Guarantee executed by him, guaranteed the repayment of the said loan and of all moneys including interest and charges due until repayment in full. The 2^nd defendant is the owner of the schedule property and deposited the Title Deeds and documents relating to the schedule property with the applicant on 27.12.2013 and executed confirmation of letter followed by a Registered Memorandum of Deposit of Title Deeds on 30.12.2013 vide Doc.No.15659 of 2013 on the file of Joint II SRO, Chengalpattu and created equitable mortgage in favour of the applicant over the schedule property for an extent up to Rs.20,00,000/-

¶54

It is submitted that the 1^st defendant represented by the 2^nd defendant, approached the applicant bank on 09.06.2014 seeking Working Capital Loan of Rs.30,00,000/- for its business purpose.

¶55

Applicant bank submits that after considering the said request, the applicant sanctioned a Cash Credit Limit of Rs.30,00,000/- and the same was availed by 1^st defendant represented by the 2^nd defendant on 09.06.2014 after executing and delivering the following documents:

¶56

a) Demand promissory note dated 09.06.2014 for Rs.30,00,000/-

¶57

b) Letter of continuity dated 09.06.2014

¶58

c) Lette of content for disclosure of information to CIBIL dated 09.06.2014

¶59

O.A. No. 211 of 2022

¶60

29.08.2025

¶61

¶62

d) Confirmation of Deposit of Title Deeds executed by the 2^nd defendant for the advances granted to the 1^st defendant

¶63

e) Registered Memorandum of Deposit of Title Deeds relating to the schedule property on 27.12.2013 and registered as Doc.No.6844 of 2014 on the file of Joint 2 SRO, Chengalpattu

¶64

f) Letter of continuing guarantee dated 09.06.2014 executed by the 3^rd defendant

¶65

The applicant submits that 1^st defendant represented by 2^nd defendant admitted the borrowing of Rs.38,00,000/- and agreed to repay the said loan amount on demand with interest at the rate of 13.25% p.a. until payment in full with monthly rests or at such rates and may be revised by the bank from time to time. The current rate of interest is 11.10% p.a. with monthly rests.

¶66

Applicant Bank further submits that as per the documents, 1^st defendant represented by 2^nd defendant, agreed to pay the ultimate balance or sum including interest and expenses remaining un paid on the cash credit account and remain liable on the promissory note notwithstanding the fact that by payment made into the account of cash credit limit from time to time, the same has been reduced or extinguished or even that the balance of the said account be at credit.

¶67

It is submitted that the 1^st defendant represented by 2^nd defendant also authorized the applicant for disclosure the information of the

¶68

O.A. No. 211 of 2022

¶69

29.08.2025

¶70

¶71

defendants to credit information bureau (India) Ltd and any other agency authorized behalf by RBI. The 3^rd defendant vide letter of continuing Guarantee executed by him guaranteed the repayment of the said loan and of all moneys including interest and charges due until repayment in full.

¶72

It is submitted that the 2^nd defendant had deposited title deeds and documents relating to the schedule property with applicant on 27.12.2013 followed by a Registered Memorandum of Deposit of Title Deeds on 10.06.2014 vide Doc.No.6844 of 2014 on the file of Joint II SRO, Chengalpattu and created equitable mortgage in favour of the applicant over the schedule property for the purpose of repayment to an extent of Rs.30,00,000/- together with interest, cost, charges and expenses thereon.

¶73

The applicant further submits that after availing the said cash credit limit loan, the defendants did not operate the Cash Credit limit as per agreed terms and conditions and did not service the interest regularly and the loan account of the defendant became out of order and consequently the applicant classified the loan account as (Non-Performing Asset) NPA on 31.10.2018 in accordance with RBI guidelines. The applicant bank through its Authorised Officer issued Demand Notice dated 03.11.2018 recalling outstanding in the cash credit limit and to comply with the Demand within 60 days of the notice. Despite the receipt of the notice,

¶74

O.A. No. 211 of 2022

¶75

¶76

29.08.2025

¶77

defendants failed to repay the total outstanding. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶78

After the filing of the OA, summons were sent to the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was served in respect of D-1, D-2, and D-3. When OA was taken up on 13.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 13.09.2022.

¶79

Heard the submissions of Applicant Bank and perused the

¶80

record s.

¶81

To prove the case of the Applicant Bank, Sh. G. Shyam Prasad, Senior 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-24 . 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.

¶82

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:

¶83

O.A. No. 211 of 2022

29.08.2025

: O R D E R :

The OA is allowed with costs,

¶88

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a total sum of Rs.56,80,577/- (Rupees Fifty

¶89

Six Lakhs Eighty Thousand Five Hundred and Seventy Seven

¶90

Only) as follows:

¶91

(i) A sum of Rs.40,34,730/- due in respect of Cash Credit Facility (Account No.036202000007299)

¶92

repayable together with further interest @ 13.10% p.a. with monthly rests (current rate 11.10% + Over Due interest 2%) from the date of Application till the date of realization in full;

¶93

(ii) A sum of Rs.16,45,847/- due in respect of Term Loan

¶94

(Account No.036203261300014) repayable together with further interest @ 12.10% with monthly rests (current rate 10.10% + Over Due interest 2%) from the date of Application till the date of realization in full along with costs of this application.

¶95

(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 immovable property more fully detailed in the OA schedule.

¶96

¶97

O.A. No. 211 of 2022

29.08.2025

this final order.

(d) If the sale proceeds of the mortgaged property are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2^nd and 3^rd Defendants (both movable and immovable) to recover the balance dues as required under law for which the 2^nd and 3^rd Defendants to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd and 3^rd Defendants.

¶102

(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 Defendants to the applicant bank.

¶103

(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

¶104

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶105

O.A. No. 211 of 2022

¶106

29.08.2025

¶107

¶108

A copy of this order be communicated to the parties concerned.

¶109

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

¶110

(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 29^th day of August, 2025)

¶111

ANNEXURES

¶112

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶113

AW-1: Sh. G. Shyam Prasad, Senior Manager of the Applicant Bank

¶114

Exhibits on the part of the Applicant:

¶115

Sl. No.	Description of Documents	Exhibit No.
1.	Request letter for availing loan of Rs.20,00,000/- submitted by the 2^nddefendant addressed to the applicant dated 20.12.2013	A-1
2.	Credit sanction advice issued by the applicant to the 2^nddefendant advising sanction of Term Loan of Rs.20,00,000/- acknowledged by the 2^ndand 3^rddefendants dated 30.12.2013	A-2
3.	Demand promissory note for Rs.20,00,000/- executed by the 2^nddefendant dated 30.12.2013	A-3
4.	Letter of repayment undertaking in 60 monthly instalments executed by 2^ndand 3^rddefendants dated 30.12.2013	A-4
5.	Letter of consent for disclosure of information to CIBIL executed by the 2^nddefendant dated 30.12.2013	A-5
6.	Term loan agreement executed by the 2^nd defendant dated 30.12.2013	A-6
7.	Letter of guarantee executed by the 3^rddefendant with consent cum Authorisation letter CAL – C dated 30.12.2013	A-7
8.	Letter of confirmation of Deposit of Title Deeds relating to schedule property executed by the 2^nd	A-8

¶116

O.A. No. 211 of 2022

¶117

¶118

29.08.2025

¶119

9.	defendant dated 28.12.2013 Registered Memorandum of Deposit of Title Deeds executed by the 2^nddefendant confirming the deposit of title deeds relating to the schedule property on 27.12.2013 and registered as Doc.No.15659 of 2013 on the file of SRO Joint II Chengalpattu dated 30.12.2013	A-9
10.	Settlement Deed executed by the 3^rddefendant to and in favour of 2^nddefendant settling the schedule property to and in favour of the 2^nd defendant and registered as Doc.No.5275/2012 on the file of SRO Joint II Chengalpattu along with Translation (in English) memo dated 11.05.2012	A-10
11.	Request Letter for Cash Credit Loan of Rs.30,00,000/- submitted by the 1^stdefendant represented by the 2^nddefendant addressed to the applicant dated 09.06.2014	A-11
12.	Demand promissory note for Rs.30,00,000/- executed by the 1^stdefendant represented by the 2^nddefendant dated 09.06.2014	A-12
13.	Letter of continuity executed by the 1^stdefendant represented by the 2^nd defendant dated 09.06.2014	A-13
14.	Letter of consent for disclosure of information to CIBIL executed by the 1^stdefendant represented by the 2^nddefendant dated 09.06.2014	A-14
15.	Letter of guarantee executed by the 3^rddefendant with consent cum Authorisation letter CAL – C along with Consent cum – authorisation letter (CAL–A) dated 09.06.2014	A-15
16.	Confirmation of Deposit of Title Deeds relating to the schedule property executed by the 2^nd defendant for the advances granted to the 1^st defendant dated 10.06.2014	A-16
17.	Registered Memorandum of Deposit of Title Deeds executed by the 2^nddefendant confirming the deposit of Title deeds relating to the schedule property on 27.12.2013 and registered as Doc.No.6844 of 2014 on the filed of SRO Joint II Chengalpattu dated 10.06.2014	A-17
18.	Confirmation of Balance outstanding in the account of the 1^stdefendant as on 30.09.2015 acknowledged by the 1^stdefendant represented by the 2^nddefendant dated 06.10.2015	A-18

¶120

O.A. No. 211 of 2022

¶121

¶122

29.08.2025

¶123

19.	Revival letter executed by acknowledging the DPN dated 30.1	2^nd defendant 2.2013	A-19
20.	Revival letter executed by the represented by the 2^nd defen defendant acknowledging the 30.12.2013, 09.06.2014 and the dated 21.07.2016	1^stdefendant dant and 2^nd DPN dated Revival letter	A-20
21.	Demand notice u/S 13(2) of SARF by the applicant and addressed to and proof of service to the de 03.11.2018	AESI Act issued the defendants fendants dated	A-21
22.	Valuation report of the schedule pr the Approved valuer Er. B.S. Vija 16.09.2020	operty given by yakumar dated	A-22
23.	Statement of Account for No.036203261300014 for the 30.12.2013 to 30.04.2022	the Account period from	A-23
24.	Statement of Account for No.036202000007299 for the 18.06.2014 to 30.04.2022	the Account period from	A-24

¶124

Witness Examined for the Defendants: -Nil-

¶125

List of Documents Exhibited for the Defendants: -Nil –

¶126

:-SCHEDULE-:

¶127

All that piece and parcel of land measuring 15300 sq.ft., out of 1 Acre 36.5 cents and building constructed thereon, situated and comprised in old Survey No.457 and New Survey No.457/1B (as per Patta No.1690) situated at No.68 Athuri Village, Chengalpattu – Kancheepuram State High way, (Opposite Hotel Saravana Bhavan) Chengalpattu

¶128

Bounded on

¶129

North By: The property of Radhakrishnan

¶130

South By: The property of Radhakrishnan and Government Poramboke East By: The property of Radhakrishnan

¶131

West By: Chengalpattu – Kancheepuram State Highway. Land Measuring

¶132

O.A. No. 211 of 2022

¶133

29.08.2025

¶134

¶135

East to West on the Northern Side: 102 feet East to West on the Southern Side: 102 feet North to South on the Eastern Side: 150 feet North to South on the Western Side: 150 feet

¶136

Situated within the Registration District of Chengalpattu and Sub Registration District of Joint 2, Chengalpattu.

¶137

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

Indian Overseas Bank v. Om Shri Sidhhi Vinayagar agency

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Om Shri Sidhhi Vinayagar agency

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of Baroda versus Samuel Jabakumar

Idbi Bank versus Govindasamy

Canara Bank versus M/S kumaran Oil Mills

Indian Bank versus M s Shree Sai Enterprises

Canara Bank versus Ravi

Hdfc Bank versus M s Crimson Foods