Allowed

Indian Bank v. Zion Shipcare Services Pvt. Ltd.

DRT18 Sept 2025OA/230/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Indian Bank for recovery of outstanding dues of approx Rs. 30.85 lakhs from a corporate debtor and its directors. The claim pertained to working capital, term loan, and FITL loans. Ex-parte defendants failed to contest the claim, and the Tribunal directed recovery via sale of hypothecated and personal assets.

What did the court decide?

Recovery of Rs. 30,85,121.36 plus further interest, with liberty to realize the amount by sale of hypothecated properties and personal assets of the second and third respondents if hypothecated assets

Indian Bank versus Zion Shipcare Services Pvt. Ltd. — Company and Corporate | DRT (2025)

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O.A. No. 230 of 2022

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18.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 18^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 230 of 2022

M/s Indian Bank

Kellys Branch,

No.6, Harleys Road,

Kellys,

Chennai – 600 010,

Rep. by its Chief Manager

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…Applicant

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-Vs-

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M/s Zion Ship Care Services Pvt. Ltd., No.120, Alankar Tower 2^nd floor, GNT Road, Kanackachathiram, Madhavaram,

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Chennai – 600 110, Rep. by its Directors,

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Mr. Akash Edwin Eugine,

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S/o Eugine Fernandez, Director, M/s. Zion Ship Care Services Pvt. Ltd., No.72, 4^th Street, AE Block,

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Anna Nagar,

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Chennai – 600 040.

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Mrs. Mary Josephel,

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W/o Eugine Fernandez,

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Director, M/s. Zion Ship Care Services Pvt. Ltd., No.72, 4^th Street, AE Block,

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Anna Nagar,

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Chennai – 600 040. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. R. Ramakrishnan Defendants 1 to 3 were set ex-parte on 13.10.2022

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O.A. No. 230 of 2022

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18.09.2025

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: - FINAL ORDER - :

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This Original Application is filed on 24.05.2022 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.30,85,121.36p (Rupees Thirty Lakhs Eighty Five Thousand One Hundred and Twenty One and Thirty Six Paisa only) as follows:

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(i) A sum of Rs.27,29,095/- due in respect of Working capital (OD) Facility (Account No.6450708765) repayable together with further interest @ 15.80% p.a., with monthly rests from the date of Application till the date of realization in full;

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(ii) A sum of Rs.2,82,991.36p due in respect of Term Loan (Account No.6467548271) repayable together with further interest @ 9.45% p.a., with monthly rests from the date of Application till the date of realization in full;

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(iii) A sum of Rs.73,035/- due in respect of FITL Loan (Account No.6718915794) repayable together with further interest @ 15.80% p.a., with monthly rests from the date of Application till the date of realization in full;

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for sale of hypothecated property morefully detailed in the schedule

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O.A. No. 230 of 2022

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18.09.2025

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and for costs of this OA.

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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 defendants had approached the bank and availed the Term loan of Rs.3,00,000/- and for the said facility, the 2^nd and 3^rd defendants as Directors of the 1^st defendant had executed Medium Term Agreement dated 14.09.2016, Demand Promissory note dated 14.09.2016, Agreement of Hypothecation of Movables dated 14.09.2016, Disposal of Proceeds letter dated 14.09.2016 and Letter from the borrowers for disclosure of information.

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It is submitted by the applicant bank that the defendants had further availed Working Capital loan of Rs.17,00,000/- and the 2^nd and 3^rd defendants as Directors of the 1^st defendant had executed Agreement for Open Cash Credit (stock/book debts) dated 15.09.2016, Demand Promissory Note dated 15.09.2016, Agreement of Hypothecation of movables dated 15.09.2016 and Disposal of Proceeds Letter dated 15.09.2016. The agreement of Guarantee dated 15.09.2016 is executed by 2^nd and 3^rd defendants.

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It is further submitted that the defendants had availed the FITL

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facility of Rs.55,000/- and 2^nd and 3^rd defendants, as Directors of 1^st defendant had executed Demand Promissory Note dated 29.01.2019 and Consent Letter from the Guarantors dated 29.01.2019 is executed by 2^nd and 3^rd defendants.

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It is submitted that for all the above said three loan facility availed by defendants, that they had executed acknowledgment of Debt cum security (D-11) dated 21.05.2018 and 12.05.2021 respectively in favour of the applicant bank.

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Subsequent to availing of loan, the defendants had failed and continued the default in the payment of three loan accounts and the outstanding dues payable by the defendants is Rs.27,29,095/- as on 16.05.2022 in respect of Working capital loan and Rs.2,82,991.36/- in respect of Term Loan and Rs.73,035/- in respect of FITL. In view of the continued default, the loan accounts were classified as Non-Performing Asset (NPA) on 28.05.2019, 24.06.2019, 31.07.2019 respectively as per the RBI guidelines. The applicant bank states that due to the above said outstanding amount the bank officials has requested the defendants to pay the outstanding amount. However the defendants had failed to repay the dues. 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 Defendants 1 to 3 through Registered Post with Acknowledgment Due, which was returned

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with an endorsement as ‘Left’ in respect of D-2 and D-3, while summons to D-1 returned with an endorsement as ‘No such Person’. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 13.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 13.10.2022.

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Heard the submissions of Applicant Bank and perused the

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record s.

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To prove the case of the Applicant Bank, Sh. A. Kalitheerthan, 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-19 . As the Defendants remained exparte, 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 Defendants jointly and severally, a total sum of Rs.30,85,121.36p

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(Rupees Thirty Lakhs Eighty Five Thousand One Hundred and Twenty One and Thirty Six Paisa only) as follows:

(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 morefully detailed in the OA schedule.

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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 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.

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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 Defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days from the date 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/-

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

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 18^th day of September, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. A. Kalitheerthan, 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.	Medium Term Agreement dated 14.09.2016	A-1
2.	Demand Promissory Note dated 14.09.2016	A-2
3.	Agreement of Hypothecation of movables dated 14.09.2016	A-3
4.	Disposal of proceeds letter dated 14.09.2016	A-4
5.	Agreement for open cash credit (stock/book debts) dated 15.09.2016	A-5
6.	Demand Promissory note dated 15.09.2016	A-6
7.	Agreement of Hypothecation of movables dated 15.09.2016	A-7
8.	Disposal of proceeds letter dated 15.09.2016	A-8
9.	Agreement of guarantee dated 15.09.2016	A-9
10.	Acknowledgement of Debt cum Security (D-11) dated 21.05.2018	A-10
11.	Demand Promissory note dated 29.01.2019	A-11
12.	Medium Term Loan agreement dated 29.01.2019	A-12
13.	Disposal of proceeds letter dated 29.01.2019	A-13
14.	Agreement of Guarantee dated 29.01.2019	A-14
15.	Consent letters from guarantors dated 29.01.2019	A-15

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16.	Acknowledgment of Debt cum security dated 12.05.2021	(D-11)	A-16
17.	Statement of Accounts (Term Loan) 16.05.2	022	A-17
18.	Statement of Accounts (Working capital dated 16.05.2022	(OD))	A-18
19.	Statement of Accounts (FITL Loan) 16.05.2022	dated	A-19

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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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Description of goods, produce, merchandise, stock stored or to be stored from time to time in premises at No.120, Alankar Tower, 2^nd floor, GNT Road, Kanakachathiram, Madhavaram, Chennai 600 110.

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

Indian Bank v. Zion Shipcare Services Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Indian Bank v. Zion Shipcare Services Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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Case details

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