Allowed

Indian Bank v. M/S Dhatchayani Foods

DRT15 Sept 2025TA/1099/2023

Case brief

AI extract

What is this about?

In a transferred application, the Debts Recovery Tribunal allowed the bank's claim for recovery of Rs. 21.74 lakhs plus interest against defaulting borrowers and guarantors. The court permitted recovery via sale of hypothecated and personal assets.

What did the court decide?

Recovery of Rs. 21,74,295/- with interest; liberty to sell hypothecated and personal assets of respondents; issue of Recovery Certificate.

Indian Bank versus M/S Dhatchayani Foods — Banking and Recovery | DRT (2025)

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T.A. No. 1099 of 2023

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15.09.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 15^th day of September, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1099 of 2023

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(Originally filed before DRT- II, Chennai as OA 290/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1099 of 2023)

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Indian Bank, Saidapet Branch, No.1, Abdul Razak Street, Saidapet, Chennai -600 015. ….Applicant

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-Vs-

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M/s. Dhatchayni Foods, Represented by its sole proprietrix

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Ms. P. Dhatchayani,

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No.20/22, Karpaga Vinayagar Koil Street, Ekkattuthangal,

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Chennai -600 032.

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Ms. P. Dhatchayani D/o Mr. Ponniruchan,

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No.20/22, Karpaga Vinayagar Koil Street, Ekkattuthangal, Chennai -600 032.

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Mr. N. Ponniruchan,

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No.20/22, Karpaga Vinayagar Koil Street, Ekkattuthangal,

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Chennai -600 032. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. L. Ramkumar

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Defendants 1 to 3 were set ex-parte on 03.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 20.03.2020 by the applicant

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bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act,

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T.A. No. 1099 of 2023

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15.09.2025

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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.21,74,295/- (Rupees Twenty One Lakhs Seventy Four Thousand Two Hundred and Ninety Five Only) due in respect of Home Loan (A/c No.651510935), repayable together with further interest @ 12.75%, p.a. with monthly rests from the date of filing the OA till date of realization in full, for sale of hypothecated assets morefully detailed in Schedule to the OA, and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.290 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.290 of 2020 stood transferred to this Tribunal and renumbered as TA No.1099 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 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 Tribunal.

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It is the case of the Applicant Bank that the defendants approached the Indian Bank, Tamil Nadu Open University branch office Chennai for availing a Term Loan for purchasing Food Manufacturing and Processing Machine. The said Tamil Nadu Open University branch

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T.A. No. 1099 of 2023

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15.09.2025

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office was subsequently merged with Indian Bank Saidapet Branch. All the asset and liability of the Tamil Nadu Open University’s branch was transferred to Applicant Bank. The defendants submitted their application on 20.03.2017.

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It is submitted that applicant bank had considered the proposal of defendants and sanctioned a sum of Rs.20,00,000/- (Rupees Twenty Lakhs Only) vide A/c. No.651510935 on 23.03.2017. The defendants have thus availed the said loan from the applicant bank and have become liable to repay the said loan amount with the agreed rate of interest as per the RBI guidelines which is at the time of availing the loan Facility is 10.70% per annum on daily balance with monthly rest. The defendants agreed to repay the loan in 60 equated monthly installments which would commence from July, 2017. In case of any default in payment of any installment or irregularity in repayment, a penal interest over the agreed interest rate with monthly yearly rests will be charged for the overdue amount.

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It is further submitted that the applicant bank is entitled to charge higher or lesser rate of interest than the above stated the contractual interest rates with monthly rest as per the rules of Reserve Bank of India in force from time to time or Indian bank Primary Lending Rate as notified. The defendants are deemed to have notice of changes in the rate of interest whenever the changes are notified by the applicant bank.

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It is further submitted by the applicant bank that in order to

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T.A. No. 1099 of 2023

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15.09.2025

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secure the loan, the defendants had executed the following documents in favour of the applicant.

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a) Demand Promissory Note for Rs.20,00,000/dated

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23.03.2017.

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b) Disposal of Proceeds Letter dated 23.03.2017.

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c) Agreement of Hypothecation of Movables dated 23.03.2017.

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d) Letter from the borrower for disclosure of information dated 23.03.2017.

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The applicant states that the 3^rd defendant executed a separate Agreement of Guarantee dated 23.03.2017 guaranteeing repayment of the loan availed by the 1^st and 2^nd defendants in favour of the applicant.

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It is submitted by the applicant bank that subsequent to availing of loan, the defendants did not repay the loan as per the terms of contract. The last payment was made on 19.05.2018 for the lesser amount comparing to the pending installments payable. Despite all reminders calling upon defendants to pay the amount dues, they did not pay any amount towards such dues till date. Hence the applicant bank had classified the loan account as Non-Performing Asset on 19.05.2018 in accordance with RBI guidelines. As defendants did not come forward to repay the dues, the present Original Application has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to defendants 1 to

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T.A. No. 1099 of 2023

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3 through Registered Post with Acknowledgment Due, which were duly served. When OA was taken up on 03.06.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 03.06.2022.

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Heard the submissions of Applicant Bank and perused the

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records.

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To prove the case of the Applicant Bank, Sh. P. Subramani, Assistant General Manager 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-6 . 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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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 total sum of Rs.21,74,295/-

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(Rupees Twenty One Lakhs Seventy Four Thousand Two

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T.A. No. 1099 of 2023

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15.09.2025

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Hundred and Ninety Five Only) due in respect of Home Loan (A/c No.651510935), repayable together with further interest @ 12.75%, p.a. with monthly rests from the date of filing the OA till date of realization in full along with costs.

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(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 hypothecated assets morefully detailed in the OA.

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(d) If the sale proceeds of the hypothecated assets is not sufficient to satisfy the dues as ordered above, 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.

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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

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T.A. No. 1099 of 2023

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by defendants to the applicant bank.

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(f) The applicant bank shall file memo of costs within ten days

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from the date of this final order.

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(g) 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 (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 15^th day of September, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P. Subramani, Assistant General Manager representing 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.	Application dated 20.03.2017.	A-1
2.	Demand Promissory Note dated 23.03.2017.	A-2
3.	Disposal of Proceeds Letter dated 23.03.2017.	A-3
4.	Agreement of Hypothecation of Movables dated 23.03.2017.	A-4
5.	Agreement of Guarantee executed by 3^rd defendant dated 23.03.2017.	A-5
6.	Statement of Account and BBE Certificate.	A-6

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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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T.A. No. 1099 of 2023

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:- SCHEDULE -:

Goods, Produce, Merchandise, Stocks stored or to be stored from time to time in premises in M/s. Dhatchayni Foods, Represented by its sole proprietrix Ms. P. Dhatchayani, No.20/22, Karpaga Vinayagar Koil Street, Kkkattuthangal, Chennai -600 032.

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

Indian Bank v. M/S Dhatchayani Foods

Case brief

What is this about?

What did the court decide?

Indian Bank v. M/S Dhatchayani Foods

Case brief

What is this about?

What did the court decide?

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