Allowed

Yes Bank v. M s Win Star Marketing India Pvt. Ltd.

DRT17 Feb 2025OA/351/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a loan deficiency of approximately Rs. 42.84 lakhs against five jointly and severally liable defendants. The court adopted the bank's claim as unchallenged due to the defendants' default and issued an ex-parte final order permitting asset sale for recovery.

What did the court decide?

Recovery of Rs. 42,84,173.85 with interest; liberty to sell personal assets of defendants 1 to 5.

Yes Bank versus M s Win Star Marketing India Pvt. Ltd. — Company and Corporate | DRT (2025)

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OA No.351/2022(E)

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17.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 17^th of February, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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ORIGINAL APPLICATION No. 351 of 2022

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M/s. Yes Bank Ltd., Parrys Branch, Dass India Towers Second Line Beach, 3, Beach Road, Parry’s Corner, George Town, Chennai – 600 001.

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Rep by its Authorized Signatory

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….Applicant

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-Vs-

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M/s. Win Star Marketing India Pvt. Ltd., Represented by its Director,

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No. 112, Chokkanathar Street, Karthikeyan Nagar, Maduravoyal ,

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Chennai – 600 095.

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Kannammal, D/o. Kathaperumal,

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S-1201, Metro Zone, 4^th Pillaiyar Koil Street,

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Anna Nagar, Chennai – 600 040.

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Jezreel Hussain, S/o. Jaffar Hussain, No. 9/81, Karpagam Avenue, 3^rd Street, Raja Annamalaipuram, Chennai – 600 028.

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S. Saravanan,

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No.28/1, 88/6, West Mada Street, Thiruvotriyur,

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Chennai – 600 019.

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Ramanath, S/o. Mohan,

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No. 31, Swagatham Nagar, Veera Raghav Puram, Old Park, Kanna Palayam, Chennai – 600 077. ….Defendants

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OA No.351/2022(E)

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17.02.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Kvp. Deepak Raj

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Defendants 1 to 5 were set ex-parte on 01.02.2023

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: - FINAL ORDER - :

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This original application is filed on 15.10.2022 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 for recovery of a total sum of Rs.42,84,173.85/- (Rupees Forty Two Lakhs Eighty Four Thousand One Hundred and Seventy Three and Eighty Five Paise Only) due in respect of Business Loan facility (Loan Account No.BLN000500757744 & Restructure Loan Account No. BLN000500924168) together with interest thereon @ 17% p.a. (monthly rests) and penal interest @ 2% p.m. from the date of filing this original application till date of realization in full.

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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 case of the Applicant Bank is that the 1^st Defendant had approached the Applicant Bank for a Business Loan by submitting loan application on 05.01.2021.

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It is submitted by applicant bank that considering the said request, Applicant Bank sanctioned the Loan amount of Rs.40,00,000/- vide Loan Account No.BLN000500757744 on 27.01.2021, which is repayable in 18 EMIs, of

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OA No.351/2022(E)

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17.02.2025

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Rs.2,51,426/- each together with interest @ 16.1% p.a. The 2^nd and 3^rd Defendants stood as Co-borrowers for the said loan and have signed the documents, as coborrowers in their individual capacity in the same loan agreement on 27.01.2021.

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The Applicant Bank submits that the 1^st Defendant has approached the Applicant Bank to restructure the above said Loan by submitting the Loan Application on 30.07.2021.

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Based on the request of 1^st Defendant, the above said loan has been restructured on 31.08.2021 vide new Loan Account No. BLN000500924168 for an amount of Rs.35,93,742/- and agreed to repay the same in 36 EMIs of Rs.1,59,254/each along with interest @ 17% p.a. and the same has been acknowledged by the Defendants 1, 3 to 5.

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It is submitted by Applicant Bank that the Defendants 3, 4 & 5 stood as Co-Borrowers for the due repayment of the above loan and have signed Loan Agreement for Restructure on 31.08.2021 for an amount of Rs.35,93,742/-

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The Applicant Bank submitted that the Defendants had neither repaid the loan amount, except for a few repayments which was not sufficient for maintaining the account and hence the Loan Account became irregular and Loan Account have been declared as NPA (Non-Performing Assets) on 06.06.2022.

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It is submitted that when matters stood thus, the Applicant Bank has issued a Legal Notice dated 29.06.2022 to the Defendants demanding the outstanding amount. The Notice sent to the Defendants 1, 2, 3 returned with the endorsement ‘Left’ and the notice sent to the Defendants 4 and 5 were duly Served. In spite of

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OA No.351/2022(E)

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17.02.2025

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receiving the said notice, Defendants did not make any payment. 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, summons were sent to defendants 1 to 5 through Registered Post with Acknowledgement Due, which was duly served to the 1^st Defendant, while notice to the 2^nd , 4^th , & 5^th Defendants returned with an endorsement ‘Unclaimed’ and the notice sent to the 3^rd Defendant returned with an endorsement ‘Refused’. When OA was taken up on 01.02.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 5 were placed ex-parte on 01.02.2023.

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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, Shri. K. Dinakaran, Authorised Signatory, 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-7 . 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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OA No.351/2022(E)

17.02.2025

: O R D E R:

The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants Nos.1 to 5 jointly, severally a sum of Rs.42,84,173.85/- (Rupees Forty Two Lakhs Eighty Four Thousand One Hundred and Seventy Three and Eighty Five Paise Only) due in respect of Business Loan facility (Loan Account No.BLN000500757744 & Restructure Loan Account No. BLN000500924168) together with interest thereon @ 17% p.a. (monthly rests) and a penal interest @ 2% p.m. from the date of filing this original application till date of realization in full;

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(b) The Applicant Bank is at liberty to sell the personal assets of the 1 to 5^th Defendants (both movable and immovable) to recover the dues as required under law;

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(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 defendants 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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(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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OA No.351/2022(E)

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17.02.2025

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

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Sd/(S.V. GOWRAMMA)

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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 17^th day of February, 2025)

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ANNEXURE

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. K. Dinakaran, Authorised Signatory, 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.	Loan Application dated 05.01.2021	A-1
2.	Loan Agreement executed by the 1^st, 2^ndand 3^rd Defendants dated27.01.2021	A-2
3.	Application for Re Structure dated 30.07.2021	A-3
4.	Loan Agreement executed by the defendants 1,3,4 and 5 dated 31.08.2021	A-4
5.	Legal Notice dated29.06.2022	A-5
6.	Acknowledgement Cards (2 Nos) and Returned Covers (7 Nos)	A-6
7.	Statement of Accounts	A-7

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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

Yes Bank v. M s Win Star Marketing India Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Yes Bank v. M s Win Star Marketing India Pvt. Ltd.

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

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Case details

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