The DRT allowed the Bank of Baroda's original application for recovery of dues of approximately Rs. 24.78 Lakhs from the proprietor of M/s. Nano Tools and herself, joined with their firm, based on unchallenged evidence and liability. Recovery was ordered jointly and severally.
Recovery of Rs. 24,78,262.86 plus future interest @ 10.50%, 8.75%, and 8.90% p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
O.A. No. 359 of 2022
17.07.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 17th day of July, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
ORIGINAL APPLICATION No. 359 of 2022
BANK OF BARODA, Kolathur Branch, Rep. by its Chief Manager, No. 198/2, Baba Nagar, 1st Main Road, Srinivasa Nagar, Villivakkam, Chennai – 600 049.
….Applicant
-Vs-
Rep. by its Proprietor,
Mrs. Sheela Kannan,
Old No. 36, New No. 4/83, 5th Cross Street, Srinivasa Nagar,
Kolathur, Chennai – 600 099.
No. 159/6, Baba Nagar,
7th Street, Villivakkam,
Chennai – 600 049. ….Defendants
Counsels on record / appeared:
Counsel for Applicant : M/s. S. Pandurangan
Defendants 1 & 2 were set ex-parte on 09.03.2023
: - FINAL ORDER - :
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 & 2, jointly and severally for
recovery of a total sum of Rs.24,78,262.86p (Rupees Twenty Four
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Lakhs Seventy Eight Thousand Two Hundred Sixty Two and
Eighty Six Paise only) as follows:
(iii) A sum of Rs.2,55,432.33p due in respect of BGECLS Facility (Account No.19680600008284) repayable together with further interest @ 8.90% p.a., with monthly rests from the date of Application till the date of realization in full;
for sale of schedule mentioned hypothecated property and for costs of this Original Application.
Brief Facts of the case:
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I. CASH CREDIT ACCOUNT:
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credit Facility is secured by the hypothecation of Stocks and Book Debts.
II. DEMAND LOAN UNDER BARODA COVID EMERGENCY CREDIT LINE AVAILED BY THE 1st DEFENDANT
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BRLLR 7.25% pa with Monthly Rests. The above limit is secured by the existing primary securities of the 1st defendant. It is submitted that the above limit was availed by the 1st defendant after executing the following security documents:
d) Letter of Continuing security dated 14.05.2020.
e) Letter of undertaking dated 14.05.2020.
h) Declaration cum Undertaking cum Authority dated 14.05.2020
III. ADDITIONAL WORKING CAPITAL TERM LOAN UNDER BARODA GUARANTEED EMERGENCY CREDIT LINE SCHEME (BGECLS) AVAILED BY THE 1st DEFENDANT
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defendants have executed the Acknowledgment of Liability dated 20.02.2021 duly acknowledging the debt to the applicant bank.
Heard the submissions of Applicant Bank and perused the records.
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a final order on the following terms:
: O R D E R :
Paise only) as follows:
repayable together with further interest @ 8.75% p.a., with monthly rests from the date of Application till the date of realization in full;
repayable together with further interest @ 8.90% p.a., with monthly rests from the date of Application
till the date of realization in full along with costs of
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this application.
(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 movable hypotheca more fully detailed in the OA schedule.
(c) Schedule mentioned hypotheca shall be appended to this final order.
(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 2nd defendant (both movable and immovable) to recover the balance dues as required under law for which the 2nd defendant to disclose to the Tribunal particulars of other properties or assets owned by the 2nd Defendant.
(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.
(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.
(g) Recovery Certificate shall be drawn up and issued to the
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Recovery Officer in terms of the final order.
16. A copy of this order be communicated to the parties concerned.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Ponmalar), transcribed by her, corrected, signed and pronounced by me
on this the 17th day of July, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Sh. Y.S. Raja Ranjith Kumar, Chief Manager of the Applicant Bank
Exhibits on the part of the Applicant:
| Sl. No. |
Date | Description of Documents | Exhibit No. |
|---|---|---|---|
| 1. | 24.02.2020 | Sanction Letter for renewal / enhanced limit of Rs. 20 Lakhs |
A-1 |
| 2. | 24.02.2020 | Letter of Sole Proprietorship | A-2 |
| 3. | 24.02.2020 | Demand Promissory Note for Rs. 20 Lakhs for the Firm |
A-3 |
| 4. | 24.02.2020 | Demand Promissory Note for Rs. 20 Lakhs for the individual |
A-4 |
| 5. | 24.02.2020 | Letter of continuing security | A-5 |
| 6. | 24.02.2020 | Composite Hypothecation Agreement | A-6 |
| 7. | -- | Loan Application for COVID-19 | A-7 |
| 8. | 14.05.2020 | Sanction Note of Rs. 1.95 Lakhs for Covid-19 |
A-8 |
| 9. | 14.05.2020 | Demand Promissory Note for Rs. 1.95 Lakhs for the Firm |
A-9 |
| 10. | 14.05.2020 | Demand Promissory Note for Rs. 1.95 Lakhs for the individual |
A-10 |
| 11. | 14.05.2020 | Letter of Instalment | A-11 |
| 12. | 14.05.2020 | Letter of continuing security | A-12 |
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| 13. | 14.05.2020 | Letter of Undertaking | A-13 |
|---|---|---|---|
| 14. | 24.02.2020 | POA in respect of Book Debts facility | A-14 |
| 15. | 14.05.2020 | Composite Hypothecation Agreement | A-15 |
| 16. | 14.05.2020 | Declaration cum undertaking cum Authority |
A-16 |
| 17. | 21.07.2020 | Sanction Note of Rs. 3 Lakhs for Covid-19 Loan |
A-17 |
| 18. | 21.07.2020 | Demand Promissory Note for Rs. 3 Lakhs for the Firm |
A-18 |
| 19. | 21.07.2020 | Letter of Instalment for the individual | A-19 |
| 20. | 21.07.2020 | Letter of continuing security | A-20 |
| 21. | 21.07.2020 | Letter of Undertaking | A-21 |
| 22. | 21.07.2020 | Letter cum Hypothecation Agreement | A-22 |
| 23. | 21.07.2020 | General Undertaking | A-23 |
| 24. | 21.07.2020 | POA in respect of Book Debts Facility | A-24 |
| 25. | 21.07.2020 | Declaration cum undertaking cum Authority |
A-25 |
| 26. | 21.07.2020 | Letter of Authority for Disclosure | A-26 |
| 27. | 20.02.2021 | Letter of Acknowledgement of Debt | A-27 |
| 28. | -- | Statement of Accounts | A-28 |
Witness Examined for the Defendants
: Nil
List of Documents Exhibited for the Defendants :
Nil
SCHEDULE OF HYPOTHECATED PROPERTY
The Hypothecation of hypothecation of Stocks and Book Debts and other movables kept at Old No. 36, New No. 4/83, 5th Cross Street, Srinivasa Nagar, Kolathur, Chennai – 600 099 wherever they are found.
Sd/-
(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the debtor companies and proprietress are liable to repay the outstanding dues with interest and costs.
1 provisions across 1 enactments
Bank of Baroda, Kolathur Branch
M/s. Nano Tools
Mrs. Sheela Kannan
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
