Allowed

Canara Bank v. Sir Poly Ymers

DRT15 May 2025OA/34/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of dues from a partnership firm and its partners regarding defaulted term and overdraft loans. Being heard ex-parte, the bank's evidence was accepted, and a final order was passed permitting recovery along with interest and costs.

What did the court decide?

Recovery of Rs.51,25,496.69 including principal and further interest up to realization along with costs; liberty to sell respondent assets.

Canara Bank versus Sir Poly Ymers — Banking and Recovery | DRT (2025)

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O.A. No. 34 of 2022

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15.05.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 15^th day of May, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 34 of 2022

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Canara Bank, (Erstwhile Syndicate Bank) Porur Branch, 50, First Floor, Trunk Road, Porur, Chennai – 600 016 Rep. by its Senior Manager, G. Saminathan S/o Govindraj ….Applicant

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-Vs-

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M/s SIR POLYMERS 7, Multi Industrial Nagar, Gerugambakkam, Chennai – 600 122 Rep. by Partners M. Indirani w/o Muthuraman and S.Muthuraman s/o Sambasivan PAN No.ACIFSI296C

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M. Indirani w/o Muthuraman 3B, Samvardhini Apartment, Keshavarthini Nagar, Kolathuvancherry, Iyappanthangal, Paraniputhur, Kancheepura District – 600 122 PAN No.CBOPM9940G

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Mr. S.Muthuraman s/o Sambasivan 3B, Samvardhini Apartment, Keshavarthini Nagar, Kolathuvancherry, Iyappanthangal, Paraniputhur, Kancheepura District – 600 122

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Also at No.40/7, Arcot Road, Porur, Chennai 600 116. …..Defendants

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O.A. No. 34 of 2022

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15.05.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s. S. R. Sumathi

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Defendants were set ex-parte on 05.08.2022

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: - FINAL ORDER - :

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This original application is filed on 13.10.2020 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 Defendants jointly and severally for recovery of a total sum of Rs.51,25,496.69p (Rupees Fifty One Lakhs Twenty Five Thousand Four Hundred and Ninety Six and Sixty Nine paise only),

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a sum of Rs.10,94,397.70p due in respect of Term Loan facility (Account No.61097910000177) together with further interest @11.50% p.a. and a sum of Rs.40,31,098.99/- due in respect of Over draft facility (Account No.61091400000406) together with further interest @10.65% with monthly rests from the date of filing the OA, till date of realization in full 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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O.A. No. 34 of 2022

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15.05.2025

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It is the case of the applicant bank that 1^st defendant is a Partnership firm represented by its Partners, 2^nd and 3^rd defendants. The 1^st Defendant approached the applicant bank for Term Loan under for purchase of machinery. The applicant bank sanctioned the Term Loan of Rs.15,00,000/to the 1^st defendant on 19.03.2015. As per the terms of the loan, borrowed amount has to be repaid in 84 EMIs of Rs.26,078.69 commencing from 30.06.2015 and ending on 28.02.2022. The loan shall bear an interest of 11.50% p.a. on monthly rests.

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The defendants accepted the terms of the loan and signed the Letter of Sanction as token of acceptance. The 1^st defendant represented by 2^nd and 3^rd defendants availed the loan facilities and executed Composite Hypothecation Agreement on 10.03.2015. The 2^nd and 3^rd defendants also executed Guarantee Agreement on 10.03.2015 guaranteeing the loan facilities sanctioned to 1st defendant.

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The Applicant submits that the 1^st Defendant approached the Applicant Bank for Over Draft facility and the Applicant Bank sanctioned the OD credit facility of Rs.13,00,000/- to the 1^st defendant on 19.03.2015. Based on the request of the Defendants, the same was enhanced to Rs.23,00,000/- vide sanction letter dated 15.04.2016. the Defendants accepted the terms of the loan and signed the Letter of Sanction as token of acceptance. The loan shall bear an interest rate of 10.65% p.a. on monthly rests. The 1^st defendant represented by the 2^nd and 3^rd defendants

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availed the loan facilities and executed Composite Hypothecation Agreement on 15.04.2016. the 2^nd and 3^rd defendants also executed Guarantee Agreement on 15.04.2016, guaranteeing the loan facilities sanctioned to the 1^st defendant. The defendants executed the following documents:-

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(i) Composite Hypothecation Letter dated 10.03.2015

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(ii) Acknowledgement of Receipt of Term Loan dated 10.03.2015

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(iii) Guarantee Agreement of the 2^nd defendant dated 10.03.2015

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(iv) Guarantee Agreement of the 3^rd defendant dated 10.03.2015

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(v) Composite Hypothecation Letter dated 15.04.2016

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(vi) Guarantee Agreement of the 2^nd defendant dated 15.04.2016

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(vii) Guarantee Agreement of the 3^rd defendant dated 15.04.2016

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It is submitted by applicant bank that defendant agreed to repay the

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loan regularly. The defendants also agreed to pay interest @11.50% p.a for the Term Loan and @10.65% p.a for the OD facility with monthly rests which is subject to revision from time to time as per norms with monthly rests.

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It is submitted that there were considerable delay in repayment of

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loan. In spite of frequent reminders through letters and telephone by senior officers of the Applicant Bank, there was no improvement and no payment was received from them for the reasons best known to the Defendants. On

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O.A. No. 34 of 2022

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15.05.2025

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account of delay/default committed by the Defendant, the Account of the Defendants was classified as NPA on 02.04.2019 as per the guidelines of RBI. Despite efforts of senior officers of the Applicant bank in persuading the Defendant to pay the installments in time and avoid overdue did not yield any positive result, defendants did not come forward to repay the dues. Hence the present Original application (OA) is filed for recovery of dues from defendants.

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The applicant states that the debit balances of Rs.10,94,397.70/towards Term Loan, A/c No.61097910000177 and Rs.40,31,098.99/towards OD Account No.61091400000406 totaling Rs.51,25,496.69/- with interest and other charges from 01.10.2020. Thus, the defendants jointly and severally owe Rs.51,25,496.69/- together with further interest and other charges from 01.10.2020 to the applicant bank.

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After the filing of the OA, summons were sent to the Defendants through Registered Post with Acknowledgment Due, Summon to 1^st Defendant served and summons to 2^nd and 3^rd Defendant which was returned unserved with postal endorsement as ‘Left’. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 05.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 05.08.2022.

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O.A. No. 34 of 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. J. Radjkumar, Branch 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.

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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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12. 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 sum of Rs.51,25,496.69p (Rupees Fifty One Lakhs Twenty Five Thousand Four Hundred and Ninety Six and Sixty Nine paise only), a sum of Rs.10,94,397.70p due in respect of Term Loan facility (Account No.61097910000177) together with further interest @11.50% p.a. and a sum of Rs.40,31,098.99p due

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in respect of Over draft facility (Account

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O.A. No. 34 of 2022

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No.61091400000406) together with further interest @10.65% with monthly rests from the date of filing the OA, till date of realization in full along with costs.

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(b) 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. (c) 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.

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

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(e) 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 Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 15^th day of May, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. J. Radjkumar, Branch Manager representing the Applicant Bank.

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Docu	ments	Exhibit No.
1.	Application for Term Loan		A-1
2.	Application for OD 10.03.2015		A-2
3.	Composite Hypothecation Letter	10.03.2015	A-3
4.	Acknowledgement of Receipt 15.04.2016	of Term Loan	A-4
5.	Guarantee Agreement of the 10.03.2015	2^ndDefendant	A-5
6.	Guarantee Agreement of the 10.03.2015	3^rdDefendant	A-6
7.	Letter of Sanction 19.03.2015		A-7
8.	Application for OD 15.04.2016		A-8
9.	Sanction Letter 15.04.2016		A-9
10.	Acknowledgement of Receipt of T	erm Loan	A-10
11.	Composite Hypothecation Agreem	ent 15.04.2016	A-11
12.	Guarantee Agreement of the 15.04.2016	3^rdDefendant	A-12
13.	Guarantee Agreement of the 15.04.2016	2^ndDefendant	A-13
14.	Legal notice to Defendants 10.10	.2020	A-14
15.	Statement of Accounts No.61091400000406 01.01.2015	for Account to 30.09.2020	A-15

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16.	Statement of	Accounts	for	Account	A-16
	No.61097910000177

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

Canara Bank v. Sir Poly Ymers

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sir Poly Ymers

Case brief

What is this about?

What did the court decide?

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