Allowed

Union Bank of India v. M/S Anikipatti Enterprises

DRT21 Mar 2025TA/1022/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application by Union Bank of India for recovery of Rs. 85,10,947.99 plus interest against a partnership firm and its partners. The claim remained unchallenged as respondents were set ex-parte. Proceeds from a prior SARFAESI sale were directed to be credited.

What did the court decide?

Recovery of Rs. 85,10,947.99 plus interest at 12.5% per annum with monthly rests; direction to credit SARFAESI sale proceeds; liberty to sell hypothecated and personal assets for balance dues.

Union Bank of India versus M/S Anikipatti Enterprises — Banking and Recovery | DRT (2025)

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T.A. No. 1022 of 2023

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21.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 21^st day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1022 of 2023

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(Originally filed before DRT- II, Chennai as OA 725/2018 and thereafter transferred to this Tribunal and renumbered as TA No 1022 of 2023)

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Union Bank of India Rep. by its Constituted Attorney T. Nagar Branch, No.42, Thirumalai Pillai, Thyagaraja Nagar, Chennai – 600 017

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….Applicant

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-Vs-

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1 M/s. Anikipatti Enterprises

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Partnership Firm

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Flat A Nutech Royalite Apartment

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No.186, Rangarajapuram Main Road,

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Kodambakkam, Chennai - 24

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Mr. Anikipatti Srinivas,

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S/o. Anikipatti Anand Kumar,

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Partner in M/s. Anikipatti Enterprises, Villa No.1F, Lane One,

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Bhakti Vedants Swami Road

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Injambakkam, Chennai – 600 115

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Mr. Anikipatti Sriramana, S/o. Anikipatti Anand Kumar, Partner in M/s. Anikipatti Enterprises, Flat-A, Nutech Royalite Apartments No.186

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Rangarajapuram Main Road, Kodambakkam, Chennai – 600 024

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…..Defendants

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T.A. No. 1022 of 2023

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21.03.2025

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Counsels on record / appeared:

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Counsel for Applicant : M/s. J.M. Dharma Sanjeevi

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Defendants 1 to 3 were set ex-parte on 29.08.2022

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: - FINAL ORDER - :

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This Original Application is filed on 06.07.2018 by the Applicant 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 jointly and severally for recovery of a total sum of Rs.85,10,947.99p (Rupees Eighty Five Lakhs Ten Thousand Nine Hundred & Forty Seven and Ninety Nine Paise Only) due in respect of Cash Credit facility (A/c No.352105010890546) together with further interest @ 12.5% p.a. with monthly rests from the date of Application till the date of realization in full, morefully described in OA Schedule and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.725 of 2018, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 725 of 2018 stood transferred to this Tribunal and renumbered as TA No.1022 of 2023.

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Brief Facts of the case:

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The Applicant submits that the application is filed within the period

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of limitation as prescribed under Section 24 of the Recovery of Debts and

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T.A. No. 1022 of 2023

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21.03.2025

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Bankruptcy Act, 1993, and the subject recovery claim falls within the jurisdiction of this Hon’ble Tribunal.

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It is the case of Applicant Bank that the 1^st Defendant, a Partnership firm, represented by its Partners, the 2^nd and 3^rd Defendants herein, had approached the Applicant Bank for Cash Credit facility for a sum of Rs.80,00,000/- for their business purpose.

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Upon scrutinizing the loan application, the Applicant Bank issued a letter of Sanction dated 27.03.2015, which was accepted by the Defendants 1 to 3.

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The Applicant Bank submitted that in consideration of the sanction of the Cash Credit facility, the 1^st Defendant firm represented by the 2^nd and 3^rd Defendants executed the following documents in favour of the Applicant Bank: -

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i. Demand Promissory Note dated 30.03.2015 for Rs.80,00,000/-

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ii. Sanction Letter dated 27.03.2015

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iii. Letter of Undertaking from Partners, dated 30.03.2015 for Rs.80,00,000/-

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iv. Letter of Undertaking not to Alienate Hypothecated Goods, dated 30.03.2015 for Rs.80,00,000/-

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v. Letter of Undertaking from Guarantor dated 30.03.2015 for

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Rs.80,00,000/-

vi. Agreement on Rate of Interest, dated 30.03.2015 for

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Rs.80,00,000/-

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vii. Hypothecation Agreement of Goods & Debts, dated 30.03.2015 for Rs.80,00,000/-

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viii. Letter of Guarantee dated 30.03.2015 for Rs.80,00,000/-

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ix. Letter of Continuity AD-09 dated 30.03.2015 for Rs.80,00,000/-

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x. Letter of Undertaking dated 30.03.2015 for Rs.80,00,000/-

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xi. Declaration of Partnership dated 30.03.2015 for Rs.80,00,000/-

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xii. Simple Debt Balance confirmation dated 31.03.2018

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It is submitted that the 2^nd and 3^rd Defendants deposited their Title Deeds to secure the Cash Credit Limit collaterally and a Memorandum of Deposit of Title Deeds dated 30.03.2015 registered vide Doc. No.4312 of 2015 in the SRO, Thiruporur for a value of Rs.80,00,000/-.

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The documents deposited with the Applicant Bank are as follows:

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i. Certified copy General Power of Attorney executed by (1) Mrs. Indirani W/o. Mr. Varadharajan (2) Mr. Varadharajan and (3) Mr. Ramalingam to and in favour of Mr. L. Durai Babu by a Deed dated 12.05.1988 registered as Document No. 166/1998, SRO, Thirupporur.

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ii. Certified copy General Power of Attorney executed by

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(1) Mrs. Muniammal, (2) Mr. Elumalai, S/o. Mrs. Muniammal (3) Mrs. Boologam and (4) Mrs. Ambujam to and in favour of Mr. L. Durai Babu by a Deed dated 04.06.1998 registered as Doc. No.212/1998, SRO, Thirupporur.

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iii. Sale Deed dated 28.07.2008 executed by (1) Mrs. Indiranai W/o. Mr. Varadharajan (2) Mr. Varadharajan and (3) Mr. Ramalingam (4) Mrs. Muniammal (5) Mr. Elumalai, S/o. Mrs. Muniammal (6) Mrs. Boologam all are rep. by their Power Agent Mr. L. Durai Babu to and in favour of Mr. Ankipatti Sri Ramana, registered as Doc. No.560/2008, SRO, Thirupporur.

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iv. Patta No.1894 dated 09.01.2009 issued by the Head Quarters Deputy Tahsildar, Chengalpet, in favour of Mr. Anikipatti Sri Ramana for S. No.67/1B and 67/2B.

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v. Chitta and Adangal dated 23.05.2014 for Patta No.1894, issued by the Village Administrative Officer, 23, Thiruvidanthai Village, Thirupporur Taluk, in favour of Mr. Anikipatti Sri Ramana for S. Nos. 67/1B and 67/2B.

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vi. Chitta for Patta No.925 is in the name of Mrs. Indirani Ammal, issued by the Village Administrative Officer, 23, Thiruvidanthai Village, Chengalpet Taluk, for S. Nos.67/1, Chitta for Patta No.680 is in the name of Mrs. Muniammal, Officer, Thiruvidanthai Village, Chengalpet Taluk, Thirupporur Taluk, in favour of Mr. Anikipatti Sri

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Ramana for Village Administrative Officer, Thiruvidanthai Village, Chengalpet Taluk, S. No.67/2.

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vii. Rectification Deed dated 17.02.2015 executed by Mr. L. Durai Babu, Power Agent of (1) Mrs. Indirani, W/o. of Mr. Varadharajan (2) Mr. Varadharajan, and (3) Mr. Ramalingam (4) Mrs. Muniammal, (5) Mr. Elumalai, S/o. Mrs. Muniammal, (6) Mrs. Boologam and (7) Mrs. Ambujam to and in favour of Mr. Anikipatti Sri Ramana registered as Doc No.2236/2015, SRO, Thirupporur.

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viii. Adangal Extract dated 03.03.2015, issued by the Head Quarters Deputy Tahsildar, Thirupporur, in favour of Mr. Anikipatti Sri Ramana for S.No.67/1B and 67/2B bearing Patta No.1894, Pasli No.1421. ix. A Register is in the name of Mrs. Indirani Ammal and Mr. Anikipatti Sri Ramana for S.Nos. 67/1B and 67/67/2B, Thiruvidanthai village.

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x. F.M.B. Sketch for S.No.67, Thiruvidanthai Village, Chengalpet Taluk and District.

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xi. Encumbrance Certificate No.1625/2015 dated 03.02.2015 for the period from 01.01.1940 to 31.12.1969.

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xii. Encumbrance Certificate No.15184/2008 dated 28.07.2008 for the period from 01.01.1970 to 31.12.1986.

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xiii. Encumbrance Certificate No.1439/2015 dated 28.01.2015 for the period from 01.01.1987 to 27.01.2015.

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xiv. Encumbrance Certificate No.3444/2015 dated 26.02.2015 for the period from 01.01.2014 to 23.02.2015.

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xv. Plan Approval and proceedings issued by the President, Kovalam First Grade Panchayat, Thirupporur Union, Kancheepuram District, in favour of Mr. Anikipatti Sri Ramana vide A.A. No.43 dated 26.02.2015.

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It is further submitted by Applicant Bank that thereafter the Cash

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Credit Limit was renewed on 17.09.2016 vide a letter of sanction dated 17.09.2016.

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i. Sanction letter dated 17.09.2016

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ii. Demand Promissory Note dated 30.05.2017 for Rs.80,00,000/-

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iii. Letter of continuity AD-09 dated 30.05.2017 for Rs.80,00,000/-

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iv. Letter of Guarantee dated 30.05.2017 for Rs.80,00,000/-

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v. Letter of Undertaking from Guarantor, dated 30.05.2017 for

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Rs.80,00,000/-

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vi. Letter of Undertaking from Borrower, dated 30.05.2017 for

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Rs.80,00,000/-

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vii. Interest Agreement dated 30.05.2017 for Rs.80,00,000/-

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T.A. No. 1022 of 2023

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viii. Letter of Undertaking not to alienate hypothecated goods dated 30.05.2017 for Rs.80,00,000/-

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ix. Declaration of Partnership dated 30.05.2017 for Rs.80,00,000/-

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x. Letter of Undertaking from Partners dated 30.05.2017 for Rs.80,00,000/-

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xi. AD-02A, dated 30.05.2017 for Rs.80,00,000/-

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xii. Letter of Confirmation.

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xiii.Hypothecation Agreement of Goods and Debts dated 30.05.2017

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for Rs.80,00,000/-

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xiv. Agreement on Rate of Interest, dated 30.05.2017 for Rs.80,00,000/-

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It is submitted by Applicant Bank that after availing the said facility, the defendants deliberately failed to repay the loan amount availed in spite of repeated demands and reminders by Applicant Bank. As defendants miserably failed to make repayments in the aforesaid loan account, the applicant bank classified the aforesaid loan account as NPA (Non-Performing Assets) on 31.03.2018, 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, summons were sent to Defendants 1 to 3

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T.A. No. 1022 of 2023

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through Registered Post with Acknowledgment Due. Summons to D1 and D3 are served. Summons to D2 returned with the endorsement “Door Locked”. Applicant bank had caused paper publication of the notice in respect of D2 and filed proof thereof. Although defendants had entered appearance and file vakalat, did not choose to file Written statement despite availing substantial adjournments. When OA was taken up on 29.08.2022 even after giving sufficient time, there was neither appearance nor representation from the defendants nor written statement filed. Hence, Defendants 1 to 3 were placed ex-parte on 29.08.2022.

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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, Mrs. Suseela Venkatakrishnan, duly constituted attorney of the Applicant Bank, has filed her 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-28 . 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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.53,65,000/- by way of sale of Item Nos.I & II of Schedule B mentioned immovable properties under SARFAESI Act and issued Sale Certificate in favour of the successful bidder

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on 29.02.2020. Accordingly, part satisfaction of sum of Rs.53,65,000/Lakhs is duly recorded vide proceedings dated 20.05.2022 were returned to Applicant Bank under proper acknowledgement.

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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 Defendants a sum of total sum of Rs.85,10,947.99p (Rupees Eighty Five Lakhs Ten Thousand Nine Hundred & Forty Seven

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and Ninety Nine Paise Only) due in respect of Cash Credit facility (A/c No.352105010890546) together with further interest @ 12.5% p.a. with monthly rests from the date of Application till the date of realization in full, morefully described in OA Schedule and for costs of this application.

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(b) The sum of Rs.53,65,000/- realized by way of SARFAESI sale in respect of Item Nos.I and II of Schedule B properties is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) In the event of failure of the defendants to pay the aforesaid amount, the Applicant Bank is at liberty to recover the amount by sale of the Schedule A mentioned hypotheca.

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(d) If the sale proceeds of the A schedule mentioned property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets / hypothecated 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 Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants;

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

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(f) Recovery Certificate shall be drawn up and issued to the

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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 (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 21^st 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: Mrs. Suseela Venkatakrishnan, duly constituted attorney 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.	Letter of Authorization	A-1
2.	Sanction letter dated 27.03.2015	A-2
3.	Demand Promissory Note for a sum of Rs.80,00,000/-dated 30.03.2015	A-3
4.	Letter of Undertaking from the Partners for a sum of Rs.80,00,000/-dated 30.03.2015	A-4
5.	Letter of Undertaking not to alienate hypothecated goods, for a sum of Rs.80,00,000/- dated 30.03.2015	A-5
6.	Letter of Undertaking from Guarantor, for a sum of Rs.80,00,000/-dated 30.03.2015	A-6
7.	Interest Agreement for a sum of Rs.80,00,000/- dated 30.03.2015	A-7
8.	Letter of Continuity AD-09 for a sum of Rs.80,00,000/-dated 30.03.2015	A-8
9	Letter of Undertaking for a sum of Rs.80,00,000/- dated 30.03.2015	A-9

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10	Declaration of Partnership for a sum of Rs.80,00,000/-dated 30.03.2015	A-10
11	Hypothecation Agreement of Goods & Debts, for a sum of Rs.80,00,000/-dated 30.03.2015	A-11
12	Letter of Guarantee for a sum of Rs.80,00,000/- dated 30.03.2015	A-12
13	Simple Debt Balance Confirmation dated 06.07.2017	A-13
14	Simple Debt Balance Confirmation dated 31.03.2018	A-14
15	Sanction Letter dated 17.09.2016	A-15
16	Demand Promissory Note for a sum of Rs.80,00,000/-dated 30.05.2017	A-16
17	Letter of Continuity AD-09 for a sum of Rs.80,00,000/-dated 30.05.2017	A-17
18	Letter of Guarantee for a sum of Rs.80,00,000/- dated 30.05.2017	A-18
19	Letter of Undertaking from Guarantor, for a sum of Rs.80,00,000/-dated 30.05.2017	A-19
20	Interest Agreement for a sum of Rs.80,00,000/- dated 30.05.2017	A-20
21	Letter of Undertaking not to Alienate Hypothecated Goods, for a sum of Rs.80,00,000/- dated 30.05.2017	A-21
22	Declaration of Partnership for a sum of Rs.80,00,000/-dated 30.05.2017	A-22
23	Letter of Undertaking from the Partners for a sum of Rs.80,00,000/-dated 30.05.2017	A-23
24	AD-02A, for a sum of Rs.80,00,000/- dated 30.05.2017	A-24
25	Letter of confirmation dated 30.05.2017	A-25
26	Hypothecation Agreement of Goods & Debts, for a sum of Rs.80,00,000/-dated 30.05.2017	A-26
27	Enforcement of Security Interest Action Notice dated 09.05.2018	A-27
28	Statement of Accounts	A-28

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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 –A :-

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Hypothecation stocks and book debts situated at the premises of the 1^st Defendant.

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

Union Bank of India v. M/S Anikipatti Enterprises

Case brief

What is this about?

What did the court decide?

Union Bank of India v. M/S Anikipatti Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

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