The Debts Recovery Tribunal allowed the bank's recovery application after finding the loan agreement valid and the claim unchallenged as defendants were absent. The bank is entitled to recover dues with interest.
Recovery of sum Rs.49,47,083.41 with interest @ 10.35% p.a., costs, and authority to recover via sale of hypothecated properties.
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. 66 of 2022
24.06.2025
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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 24th day of June, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
ORIGINAL APPLICATION No. 66 of 2022
Indian Overseas Bank, Valasaravakkam Branch, Represented by its Manager, No.1, East Kamakodi Nagar, Off. Arcot Road, Valasaravakkam, Chennai – 600 087.
….Applicant -Vs-
Rep. by its Proprietor Mr. R. Udhayakumar,
Chennai – 600 042.
And Also at:
No.3, Gandhi Nagar Main Raod, Virugampakkam, Chennai – 600 092.
And also at:-
No. 25, Kalivanar Nagar, Ambattur, Tiruvallur, Chennai – 600 058. …. Defendants
Counsels on record / appeared:
Counsel for Applicant : M/s. Annal P
Defendants 1 & 2 were set ex-parte on 05.08.2022
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: - FINAL ORDER - :
Brief Facts of the case:
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(a) Revised Demand Promissory Note (Linked to MCLR) dated 04.09.2019 for Rs.40,00,000/- (Rupees Forty Lakhs Only) together with floating Interest thereon at the rate of 10.35% per annum from the date with monthly rests or such rates as may be re-set and rests as may be revised by the Bank on its own or as per the instructions of the Reserve Bank of India from time to time;
(c) Letter of Hypothecation (In case of open advances only) dated 04.09.2019 for Rs.40,00,000/-, thereby hypothecated all present and future receivables in the premises of the 1st defendant herein;
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Goods/Book Debts) dated 04.09.2019 for Rs.40,00,000/-, thereby hypothecated all present and future receivables in the premises of the 1st defendant herein and
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as per RBI guidelines. The Applicant issued a Notice dated 18.03.2020 to the defendants herein, calling upon him to regularize his over dues and informing him that the Bank may proceed against him legally, if it did not hear from him on or before 30.04.2020, despite which, the Defendants have not turned up to settle the Loan Dues to the Applicant herein. Hence the present Original Application (OA) has been filed for recovery of amounts due from defendants.
Heard the submissions of Applicant Bank and perused the records.
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Floor, Shastri Bhawan, 26, Haddows Road, Chennai – 600 006, which was allowed vide order dated 02.10.2022 and Smt. Ashwini Prakash, Advocate was appointed as Advocate Commissioner. After execution of the commands of the warrant, Advocate Commissioner filed her report before this Tribunal on 03.01.2023.
: O R D E R :
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Forty Nine Lakhs Forty Seven Thousand Eighty Three & Forty One Paise only) due in respect of Cash Credit Hypothecation Facility (Account No. 173833000000067) together with further interest @ 10.35% p.a., with monthly rests from the date of Application till the date of realization in full along with for costs of this application.
(d) 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.
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Recovery Officer in terms of the final order.
20. 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 24th day of June, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Sh. Alubelli Bhaskara Rao, Manager representing the Applicant
Bank.
Exhibits on the part of the Applicant:
| Sl. No. |
Date | Description of Documents | Exhibits No. |
|---|---|---|---|
| 1. | 04.09.2019 | Credit Sanction Advice for Rs.40,00,000/- |
A-1 |
| 2. | 04.09.2019 | Revised Demand Promissory Note for Rs. 40,00,000/- |
A-2 |
| 3. | 04.09.2019 | Letter of Continuity and Confirmation of DPN for Rs. 40,00,000/- |
A-3 |
| 4. | 04.09.2019 | Letter of Hypothecation (In case of open advance only) for Rs. 40,00,000/- |
A-4 |
| 5. | 04.09.2019 | Letter of Hypothecation (For securing Machineries/Vehicles/Goods/Book- Debts) |
A-5 |
| 6. | 04.09.2019 | Hypothecation of Book Debts for Rs.40,00,000/- |
A-6 |
| 7. | 18.03.2020 | Notice issued by the Applicant Bank to the 1stdefendant |
A-7 |
| 8. | 23.08.2021 | Statement of Accounts for A/c. No. 173833000000067 |
A-8 |
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Report of the Advocate Commissioner dated 03.01.2023 - Ex C-1
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
SCHEDULE
(Properties Hypothecated)
All present and future receivables in the premises of 1st defendant at
No.11/34, Gangaiammal Koil Street, Kamarajapuram, Velachery, Chennai-
600 042 and the Book Debts of the 1st defendant.
Sd/- (S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the applicant bank is entitled to recover the dues of Rs.49,47,083.41p along with interest and costs.
1 provisions across 1 enactments
Indian Overseas Bank, Valasaravakkam Branch
M/s. Vignesh Structurals
Mr. R. Udhayakumar
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
