Allowed

Idbi Bank v. Selvaraj

DRT25 Aug 2025OA/248/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by IDBI Bank Limited for recovery of dues from two Defendants. The allowed amount covers Crop Credit, COVID Loan, and Term Facility loans. The order authorized sale of pledged assets and permitted recovery from personal assets if proceeds were insufficient. Defendants were absent.

What did the court decide?

Recovery of Rs. 20,01,164/- with interest from the Defendants jointly and severally; liberty to sell Schedule A and B assets; liberty to sell personal assets upon insufficiency of sale proceeds; issua

Idbi Bank versus Selvaraj — Insolvency and Bankruptcy | DRT (2025)

¶1

O.A. No. 248 of 2022

¶2

25.08.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 25^th day of August, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

ORIGINAL APPLICATION No. 248 of 2022

¶8

IDBI Bank Limited, Tiruvallur Branch, RMJ Plaza, No. 4/120, J N Road, Tiruvallur – 602 001. Rep. by its Letter of Authority Holder/ Assistant General Manager ….Applicant

¶9

-Vs-

¶10

Mr. G. Selvaraj, S/o. Mr. Ganesh Chettiyar, No. 18/26, Agaram Street, Tiruvallur – 602 001.

¶11

Mr. S. Karthick, S/o. Mr. G. Selvaraj, No. 18/26, Agaram Street, Tiruvallur – 602 001. …..Defendants

¶12

Counsels on record / appeared:

¶13

Counsel for Applicant : Mr. E. Vijayaraghavan

¶14

Defendants were set ex-parte on 19.10.2022

¶15

: - FINAL ORDER - :

¶16

1. This Original Application is filed on 27.06.2022 by the applicant bank

¶17

under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act,

¶18

O.A. No. 248 of 2022

¶19

¶20

25.08.2025

¶21

against the defendants jointly and severally for recovery of a total sum of Rs.20,01,164/- (Rupees Twenty Lakh One Thousand One Hundred and Sixty Four Only) as follows:

¶22

(i) A sum of Rs.5,66,078/- due in respect of Crop Credit

¶23

Facility Loan (A/c No.0756651100001281), from the 1^st defendant repayable together with further interest @ 9.60%, p.a., with monthly rests from the date of filing the OA, till date of realization in full;

¶24

(ii) A sum of Rs.47,541/- due in respect of COVID Loan Facility (A/c No.0756672200000417), from the 1^st defendant repayable together with further interest @ 9.60%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

¶25

(iii) A sum of Rs.13,87,545/- due in respect of Term Loan facility (A/c No.0756673100000295), from 1^st and 2^nd defendants repayable together with further interest @ 10.15%, p.a., with monthly rests from the date of filing the OA, till date of realization in full;

¶26

and for sale of Schedule A mentioned hypothecated assets and Schedule B mentioned immovable property more fully detailed in the OA, and for costs of this application.

¶27

O.A. No. 248 of 2022

¶28

¶29

25.08.2025

¶30

Brief Facts of the case:

¶31

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.

¶32

It is the case of the Applicant Bank that the 1^st Defendant herein approached the Applicant Bank and applied for a Loan against Hypothecation of the Agriculture Produce Paddy of Rs.5,00,000/- (Rupees Five Lakh Only) on 25.03.2015.

¶33

It is submitted that Applicant Bank sanctioned the above Crop Credit Facility of Rs. 5,00,000/- on 25.03.2015 and the 1^st Defendant have agreed to the terms and conditions of the Applicant Bank as mentioned in the above Sanction.

¶34

The applicant submits that the 1^st defendant availed the above Crop Credit Facility in the Loan A/c. No. 0756651100001281 as per sanction and executed the relevant loan documents in favor of the Applicant on 28.03.2015, which are as follows:

¶35

(i) Demand Promissory Note for Rs. 5,00,000/- (Rupees Five Lakh Only) dated 28.03.2015

¶36

(ii) Hypothecation Cum Loan Agreement dated 28.03.2015

¶37

It is submitted that the 1^st Defendant has agreed to repay the Crop Credit Facility (Loan Against Hypothecation of the Agriculture Produce of

¶38

O.A. No. 248 of 2022

¶39

25.08.2025

¶40

¶41

paddy) of Rs.5,00,000/- availed by him along with interest at BBR (at present BVP is 10.25% p.a.) to be served on Monthly/quarterly/ half yearly/yearly for valued received.

¶42

It is submitted that the 1^st Defendant, Mr. G. Selvaraj has Hypothecated the Agri produce Paddy, more fully described in the Schedule 'A' of OA favor of the Applicant Bank. Further, the 1^st Defendant had equitably mortgaged the Schedule 'B' mentioned properties with the Applicant Bank by depositing the Original Title Deeds pertaining to the properties with the Applicant Bank as collateral security to the above Credit Facilities availed by the First Defendant. The first Defendant confirmed the above equitable mortgage by executing a Registered Memorandum of Deposit of Title Deeds on 26.03.2015, registered as Doc. No. 3640/2015 by SRO, Tiruvallur.

¶43

It is further submitted that subsequently, 2^nd Defendant had approached the Applicant Bank has applied for a Term Loan of Rs. 10,00,000/- (Rupees Ten Lakh only) for Diary Project on 27.01.2016.

¶44

Considering the said request, Applicant Bank sanctioned the Term Loan of Rs. 10,00,000/- on 27.01.2016, and the Second Defendant has agreed to the terms and conditions of the Applicant Bank as mentioned in the above Sanction.

¶45

Second Defendant availed the above Term Loan Facility in the Loan

¶46

A/c. No. 0756673100000295 as per sanction and executed the relevant

¶47

O.A. No. 248 of 2022

¶48

25.08.2025

¶49

¶50

loan documents in favour of the Applicant on 02.02.2016, which are as follows:

¶51

(i) Demand Promissory Note for Rs. 10,00,000/- (Rupees Ten Lakh Only) dated 02.02.2016.

¶52

(ii) Hypothecation Cum Loan Agreement dated 02.02.2016

¶53

(iii) Take Delivery Letter to DPN dated 02.02.2016

¶54

It is submitted by Applicant Bank that first defendant stood as Guarantor to the above Term Loan facility availed by the Second Defendant and executed a Deed of Guarantee in favour of the Applicant Bank on 02.02.2016.

¶55

Applicant Bank submits that second defendant agreed to repay the Term Loan Facility (Loan Against Hypothecation of the Agriculture Land) Rs. 10,00,000/-availed along with interest at BBR + 0.50% (at present

¶56

BBR being 9.75% p.a.) per annum, compounded monthly in 84 Equated Monthly Instalments of Rs. 17,599/- per month, commencing from 10.06.2013 and payable till 07.02.2023, for value received.

¶57

First Defendant had equitably mortgaged the Schedule 'B' mentioned properties herein, which was already mortgaged with the Applicant Bank, by Constructive Deposit Original Title Deeds pertaining to the properties, which are more fully described in Schedule 'B' to OA as collateral security to the above Crop Credit Facilities availed by the Second

¶58

O.A. No. 248 of 2022

¶59

25.08.2025

¶60

¶61

Defendant. First Defendant confirmed the above additional equitable mortgage by executing a Registered Memorandum of Deposit of Title Deeds on 27.01.2016, registered as Doc. No. 683/2016 by SRO, Tiruvallur.

¶62

It is submitted by the applicant bank that subsequently during Covid-19, for interest towards Kisan Cash Credit Account in A/c. No. 0756651100001281 during Moratorium announced by Reserve Bank of India from March, 2020 to August 2020, First Defendant had availed Funded interest Term Loan of Rs.40,165/in Loan A/c. No. 0756672200000417 as per the Guidelines of Reserve Bank of India.

¶63

It is further submitted that subsequent to availing of loan, as the Defendants did not abide with the Agreement and have defaulted in repayment of their full liabilities with the Applicant Bank and did not repay the above loans availed as agreed by them. Hence, the Loan Accounts of the Defendants became Non-Performing Asset (NPA) on 08.09.2016 and 01.04.2022 respectively in accordance with the directions or guidelines issued by the Reserve Bank of India. Applicant Bank demanded the Defendants to repay the out-standing in the Loan Accounts, but there was no repayment done by Defendants in their Loan Accounts. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

¶64

O.A. No. 248 of 2022

¶65

25.08.2025

¶66

¶67

After the filing of the OA, summons were sent to defendants through Registered Post with Acknowledgment Due, which returned unserved as ‘unclaimed’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 19.10.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 19.10.2022.

¶68

Heard the submissions of Applicant Bank and perused the records.

¶69

To prove the case of the Applicant Bank, Mr. C.M.N. Velalan, Authority Holder/Assistant General Manager representing 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-16 . 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.

¶70

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:

¶71

O.A. No. 248 of 2022

25.08.2025

: O R D E R :

The OA is allowed with costs,

¶76

(a) The applicant bank is allowed to recover from the Defendants jointly and severally, a sum of Rs.20,01,164/- (Rupees Twenty Lakh One Thousand One Hundred and Sixty Four Only) as follows:

¶77

(i) A sum of Rs.5,66,078/- due in respect of Crop Credit Facility Loan (A/c No.0756651100001281), from the 1^st defendant repayable together with further interest @ 9.60%, p.a., with monthly rests from the date of filing the OA, till date of realization in full;

¶78

¶79

¶80

(b) In the event of failure of the Defendants to pay the aforesaid

¶81

O.A. No. 248 of 2022

¶82

¶83

25.08.2025

¶84

amount, the bank is at liberty to recover the amount by sale of the Schedule A mentioned hypothecated assets and Schedule B mentioned immovable property more fully detailed in the OA

¶85

¶86

(d) If the sale proceeds of the hypothecated assets and immovable property are 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 dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

¶87

(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.

¶88

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

¶89

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

¶90

O.A. No. 248 of 2022

¶91

¶92

25.08.2025

¶93

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

¶94

Sd/-

¶95

(S.V. GOWRAMMA)

¶96

PRESIDING OFFICER, DRT-III, CHENNAI

¶97

(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 25^th day of August, 2025)

¶98

ANNEXURES

¶99

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶100

AW-1: Sh. C.M.N. Velalan, Authority Holder/Assistant General Manager representing the Applicant Bank.

¶101

Exhibits on the part of the Applicant:

¶102

Sl. No.	Description of Documents	Exhibit No.
1.	Loan Application of First Defendant Mr. G. Selvaraj dated 25.03.2015.	A-1
2.	Sanction Letter for Rs. 5,00,000/- dated 28.03.2015.	A-2
3.	Demand Promissory Note for Rs.5,00,000/- dated 28.03.2015.	A-3
4.	Hypothecation Cum Loan Agreement dated 28.03.2015.	A-4
5.	Registered Memorandum of Deposit of Title Deeds by Mr. G. Selvaraj, S/o. Mr. Ganesan Chettiyar, in favour of IDBI Bank, registered as Doc. No. 3640/2015 by SRO, Tiruvallur dated 26.03.2015.	A-5
6.	Loan Application by Second Defendant, Mr. S. Karthick dated 27.01.2016.	A-6
7.	Sanction Letter for Rs. 10,00,000/- dated 02.02.2016.	A-7
8.	Demand Promissory Note for Rs. 10,00,000/- dated 02.02.2016.	A-8

¶103

O.A. No. 248 of 2022

¶104

25.08.2025

¶105

¶106

9.	Hypothecation Cum Loan Agreem 02.02.2016.	ent dated	A-9
10.	Take Delivery Letter to DPN dated 02.0	2.2016.	A-10
11.	Common Guarantee Deed by the First Mr. Selvaraj dated 02.02.2016.	Defendant,	A-11
12.	Registered Sale Deed by 1. Mrs. Mar Mr. Kuppusamy and his Minor. represented by his father Mr. Kuppusa	iammal, 2. Elumalai, my, in favor	A-12
	of Mr. Selvaraj, registered as 2284/1980, by SRO, Tiruvallur dated 0	Doc. No. 5.07.1980.
13.	Registered Memorandum of Depos Deeds by Mr. G. Selvaraj, S/o. M Chettiyar, in favour of IDBI Bank, re Doc. No. 683/2016 by SRO, Tiruv 27.01.2016.	it of Title r. Ganesan gistered as allur dated	A-13
14.	Statement of Account in Loan 0756651100001281	A/c. No.	A-14
15.	Statement of Account in Loan 0756673100000295	A/c. No.	A-15
16.	Statement of Account in Loan 0756672200000417	A/c. No.	A-16

¶107

Witness Examined for the Defendants: -Nil-

¶108

List of Documents Exhibited for the Defendants: -Nil –

¶109

:- SCHEDULE OF PROPERTIES -:

¶110

SCHEDULE ‘A’ – HYPOTHECATED ASSETS

¶111

Paddy Crops grown in S. Nos. 12, 13/1A, 13/1B, 13/1C, 13/2, 17/3, 5, 1/5B, 1/5C, 2/2, 4/2A, 4/2B, Vishnuvakkam Village, S. Nos. 85/4A, 85/4B, 85/4C, 85/6A, 85/6B, 92/2, 92/3, 92/4, 92/5A, Monnavedu Village, 185/1B, 185/2, 108, 175/4, 152, 192, 42/6, 42/8, Arumbakkam Village and 74/1A2, 74/1C, 74/2, 74/3, 75, 76/1A, 77/2B2A, 77/4A, 77/4B, 83/1, Thirukananjeri Village.

¶112

SCHEDULE ‘B’ – MORTGAGED ASSETS

¶113

All the piece and parcel of land comprised in Survey No. 85/4 (76 Cents), 85/6 (76 Cents), 92/2 (24 Cents), 92/4 (18 Cents) and 92/5A

¶114

O.A. No. 248 of 2022

¶115

¶116

25.08.2025

¶117

(33 Cents) admeasuring a total extent of Acre 2.27, Monnavadu Village, Thiruvallur Taluk, Tiruvallur District and bounded on within the Sub Register District of Tiruvallur, Registration District of Tiruvallur.

¶118

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

Idbi Bank v. Selvaraj

Case brief

What is this about?

What did the court decide?

Idbi Bank v. Selvaraj

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

Dena Bank versus Babu

Bank of Baroda versus Ramesh Ramaswamy

Icici Bank Limited versus S Sarveswaras

Icici Bank Limited versus Umapathy

Yes Bank versus Indurani

Canara Bank versus M/S kumaran Oil Mills