Allowed

Bank of India v. Gopalakrishnan

DRT10 Mar 2025OA/28/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal dispose of an original application filed by Bank of India Pondicherry Branch to recover dues from a defaulted borrower. The application was heard ex-parte, and the tribunal allowed the claim, directing the recovery of the principal, interest, and sale of hypothecated assets.

What did the court decide?

Allowed recovery of Rs. 34,43,628/- with interest, liberty to sell hypothecated vehicles, and direction to issue Recovery Certificate.

Bank of India versus Gopalakrishnan — Specific Performance | DRT (2025)

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O.A. No. 28 of 2022

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10.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 10^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 28 of 2022

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Bank of India Pondicherry Branch First Floor, No.110, Jawaharlal Nehru Street, Pondicherry – 605 001 Represented by its Constituted Attorney ….Applicant

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-Vs-

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Mr. K. Gopalakrishnan S/o. Mr. Krishnamurthy No.1-B, Magizhai Street, (Near Youth Hostel) Salainagar, Muthialpet Pondicherry – 605 003

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…..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Mr. M. P. Venkateswaran Defendant set ex-parte on 15.03.2022

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: - FINAL ORDER - :

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This original application is filed on 06.12.2021 by the Applicant Bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendant for recovery of a total sum of Rs.34,43,628/- (Rupees Thirty Four Lakhs Forty Three Thousand Six Hundred and Twenty Eight Only) as follows:

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(i) A sum of Rs.9,96,664/- due in respect of Term Loan facility (A/c No.810072310000035), together with further interest @ 11.10%, p.a. compounded monthly rests from the date of filing the OA, till date of realization

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in full from the Defendant;

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(ii) A sum of Rs.5,83,505/- due in respect of Term Loan facility (A/c No.810072310000037), together with further interest @ 8.85%, p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full from the Defendant;

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(iii) A sum of Rs.2,24,777/- due in respect of Term Loan facility (A/c No.810073410000117), together with further interest @ 8.85%, p.a. compounded withmonthly rests from the date of filing the OA, till date of realization in full from the Defendant;

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(iv )A sum of Rs.16,38,682/- due in respect of Term Loan facility (A/c No.810072310000040), together with further interest @ 9.65%, p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full from the Defendant

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and for sale of Hypothecated Vehicles morefully detailed in Schedule to the OA, 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 Hon’ble Tribunal.

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The Applicant submits that the Defendant approached the Applicant Bank during July 2016 and submitted a loan application form dated 02.07.2016 seeking financial assistance for sanction of credit facility for purchase of a passenger motor

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car for his transport business.

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After due consideration of the request of the defendant and the representations made by the defendant, the Applicant sanctioned a term loan limit of Rs.13,00,000/- by their sanction letter dated 11.07.2016. The defendant counter signed the sanction letter agreeing to the terms and conditions of sanction.

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To secure the due repayment of the aforesaid term loan limit of Rs.13,00,000/the defendant executed the following security documents in favour of the Applicant Bank on 11.07.2016.

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a) Demand Promissory dated 11.07.2016 promising to pay to the Applicant the sum of Rs.13,00,000/- together with interest @ 3.50% above one year BOIMCLR plus 0.30% BSS, then 13.20% p.a., compounded with monthly rests for value received.

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b) Bearer letter

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c) Installment letter under taking to repay the loan in 81 installments of Rs.24,330/- per month commencing from October 2016.

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d) Composite loan document

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e) Hypothecation agreement (for all priority sectors advances including vehicles) dated 11.07.2016 hypothecating the vehicle in favour of the Applicant.

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f) The term loan sanctioned to the defendant is secured by the hypothecation of the Force Traveller Minibus bearing Registration No.PY05B5306 purchased out of the term loan sanctioned by the Applicant,

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as evidenced by the hypothecation clause contained in the Registration Certificate of the Vehicle.

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g) In respect of this term loan the defendant executed acknowledgement

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of debt and securities on 11.02.2019.

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The defendant again approached the Applicant in the month of December 2016 and submitted a loan application form for Micro and Small Enterprises dated 27.12.2016 for sanction credit facility to improve his transport business.

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After due consideration of the request of the defendant, the applicant sanctioned another term loan limit of Rs.7,25,000/- by their letter dated 02.01.2017.

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The defendant counter signed the sanction letter agreeing to the terms and conditions of sanction.

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To secure the due repayment of the aforesaid term loan limit of Rs.7,25,000/the defendant executed the following security documents in favour of the Applicant Bank on 02.01.2017:

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a) Demand Promissory dated 02.01.2017 promising to pay to the Applicant the sum of Rs.7,25,000/- together with interest at the rate of one year MCLR 9.25 + 2.50% + 0.30% - 0.50% then 11.55% p.a., compounded with monthly rests for value received.

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b) Bearer letter

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c) Installment letter under taking to repay the loan in 81 installments of Rs.12,930/- per month commencing from April 2017.

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d) Composite loan document

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e) Hypothecation agreement (for all priority sectors advances including

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vehicles) dated 02.01.2017 hypothecating the vehicle in favour of the Applicant.

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f) The term loan sanctioned to the defendant is secured by the hypothecation of the Renault Lodgy RXE 85 PS Motor Car bearing Registration No.PY05B9239 purchased out of the term loan sanctioned by the Applicant, as evidenced by the hypothecation clause contained in the Registration Certificate of the Vehicle.

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g) In respect of this term loan the defendant executed acknowledgement of debt and securities on 20.12.2019.

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The defendant again approached the Applicant in the month of March 2017 and submitted a loan application form for Micro and Small Enterprises sanction credit facility to improve his transport business.

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After due consideration of the request of the defendant, the applicant sanctioned another term loan limit of Rs.5,40,000/- by their letter dated 23.03.2017. The defendant counter signed the sanction letter agreeing to the terms and conditions of sanction.

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To secure the due repayment of the aforesaid term loan limit of Rs.5,40,000/-

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the defendant executed the following security documents in favour of the Applicant Bank on 23.03.2017.

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a) Demand Promissory dated 23.03.2017 promising to pay to the Applicant the sum of Rs.5,40,000/- together with interest at the rate of 2.50% above yearly BOIMCLR then 10.80% p.a., compounded with monthly rests for value received.

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b) Bearer letter

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c) Installment letter under taking to repay the loan in 48 installments of Rs.14,050/- per month commencing from May 2017.

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d) Composite loan document

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e) Hypothecation agreement (for all priority sectors advances excluding vehicles) dated 23.03.2017 hypothecating all tangible and moveable assets in favour of the Applicant.

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f) In respect of this term loan the defendant executed acknowledgement of debt and securities on 17.03.2020.

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The defendant again approached the Applicant in the month of December 2019 for sanction of another term loan for purchase of a Toyota Innova Cysta Motor Car and submitted a loan application form for MSME loan dated 27.12.2019.

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After due consideration of the request of the defendant, the applicant sanctioned another term loan limit of Rs.13,60,000/- by their letter dated 27.12.2019. The defendant counter signed the sanction letter agreeing to the terms and conditions of sanction.

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To secure the due repayment of the aforesaid term loan limit of Rs.13,60,000/the defendant executed the following security documents in favour of the Applicant Bank on 27.12.2019.

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a) Demand Promissory dated 27.12.2019 promising to pay to the Applicant the sum of Rs.13,60,000/- together with interest at the rate of 8.30 + 3.50 – 0.50 net 11.30% p.a., compounded with monthly rests for value received.

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b) Bearer letter

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c) Installment letter under taking to repay the loan in 84 installments of Rs.23,144/- per month commencing from January 2020.

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d) Composite loan document

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e) Hypothecation agreement (for all priority sectors advances including vehicles) dated 27.12.2019 hypothecation of the Toyota Innova Crysta Vehicle and moveable assets in favour of the Applicant.

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f) Repo based lending rate agreement dated 27.12.2019.

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It is submitted by Applicant Bank that after availing the said facility, the Defendant deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As Defendant miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 31.03.2021, as per the guidelines issued by the RBI but they had failed to do so. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summon was sent to the Defendant, which was duly served. When OA was taken up on 15.03.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant were placed ex-parte on 15.03.2022.

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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, Mr. M. Jayaraj, Constituted Attorney 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

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A-1 to A-39 . As the Defendant 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 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 Defendant a a total sum of Rs.34,43,628/- (Rupees Thirty Four Lakhs Forty Three Thousand Six Hundred and Twenty Eight Only) as follows:

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(iii) A sum of Rs.2,24,777/- due in respect of Term Loan facility (A/c

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No.810073410000117), together with further interest @ 8.85%, p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full from the Defendant;

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(iv) A sum of Rs.16,38,682/- due in respect of Term Loan facility (A/c No.810072310000040), together with further interest @ 9.65%, p.a. compounded with monthly rests from the date of filing the OA, till date of realization in full from the Defendant

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(b) In the event of failure of the Defendant to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the hypothecated assets morefully detailed in the OA schedule A, B and C.

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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 Defendant (both movable and immovable) to recover the balance dues as required under law for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the Defendant;

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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 Defendant 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.

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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

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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 Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 10^th day of March, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. M. Jayaraj, Constituted Attorney representing 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.	Loan Application Formdated 02.07.2016	A-1
2.	Sanction letterdated11.07.2016	A-2
3.	DemandPromissoryNote dated11.07.2016	A-3
4.	Bearer Letterdated11.07.2016	A-4
5.	InstalmentLetterdated11.07.2016	A-5
6.	Compositeloandocument dated11.07.2016	A-6
7.	Hypothecationcum loanagreement dated11.07.2016	A-7
8.	Registration Certificate of Vehicle No. PY05B5306 dated 13.10.2016	A-8
9.	Acknowledgment of debt and securities dated 11.02.2019	A-9
10.	Loan Application Formdated27.12.2016	A-10

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11.	Sanction Letterdated 02.01.2017	A-11
12.	DemandPromissoryNote dated 02.01.2017	A-12
13.	Bearer Letterdated 02.01.2017	A-13
14.	InstalmentLetterdated 02.01.2017	A-14
15.	CompositeLoan Document dated 02.01.2017	A-15
16.	Hypothecationcum Loan Agreement dated 02.01.2017	A-16
17.	Registration Certificate of Vehicle No.PY05B9239 dated 30.01.2017	A-17
18.	Acknowledgment of Debt and Securities dated 20.12.2019	A-18
19.	Loan Application Form	A-19
20.	Sanction letterdated23.03.2017	A-20
21.	DemandPromissoryNote dated23.03.2017	A-21
22.	Bearer Letterdated23.03.2017	A-22
23.	Instalmentletterdated23.03.2017	A-23
24.	Compositeloandocument dated23.03.2017	A-24
25.	Hypothecationcum Loan Agreement dated23.03.2017	A-25
26.	Acknowledgement of debt and securities dated 17.03.2020	A-26
27.	Loan Application formdated27.12.2019	A-27
28.	Sanction Letter dated27.12.2019	A-28
29.	DemandPromissoryNote dated27.12.2019	A-29
30.	Bearer Letterdated27.12.2019	A-30
31.	InstalmentLetterdated27.12.2019	A-31
32.	CompositeLoan Document dated27.12.2019	A-32
33.	Hypothecationcum Loan Agreement dated27.12.2019	A-33
34.	Repo based lending rate agreement dated27.12.2019	A-34
35.	Registration Certificate of Vehicle No. PY01CW0369 dated 09.01.2020	A-35
36.	Statement of Account in respect of Term Loan A/c. No. 810072310000035	A-36
37.	Statement of Account in respect of Term Loan A/c. No. 810072310000037	A-37
38.	Statement of Account in respect of Term Loan A/c. No. 810073410000117	A-38
39.	Statement of Account in respect of Term Loan A/c. No. 810072310000040	A-39

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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

HYPOTHECATED VEHICLES

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SCHEDULE – A

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Force Traveller Mini Bus bearing Registration No. PY 05B 5306 having Chassis No. MC1E4DEA1GP024095 and Engine No. D56008895.

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SCHEDULE – B

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Renault Lodgy RXE 85 PS Motor Car bearing Registration No. PY 05B 9239 having Chassis No. MEEJSRGW4G6006970 and Engine No. E036448.

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SCHEDULE – C

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Toyoto Innova Crysta Motor Car bearing Registration No. PY 01CW 0369 having Chassis No. MBJJBBEM601576641-1219 and Engine No. 2GDA383191.

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

Bank of India v. Gopalakrishnan

Case brief

What is this about?

What did the court decide?

Bank of India v. Gopalakrishnan

Case brief

What is this about?

What did the court decide?

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