Allowed

Bank of Baroda v. T N U Properties

DRT5 Aug 2025TA/1102/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of dues amounting to over Rs. 1.99 crores based on an overdraft facility. The defendants appeared ex-parte, and the Tribunal confirmed the bank's claim along with costs and liberty to sell mortgaged assets.

What did the court decide?

Order allowed; bank to recover Rs. 1,99,56,992.44 p with interest and costs; liberty to sell mortgaged properties and defendant assets.

Bank of Baroda versus T N U Properties — Specific Performance | DRT (2025)

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T.A. No. 1102 of 2023

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05.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 05^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1102 of 2023

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(Originally filed before DRT- II, Chennai as OA 19/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1102 of 2023)

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Bank of Baroda

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(Erstwhile Vijaya Bank, Moore Street) E C Street Branch,

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Chennai – 600 001

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Rep. by Asst. General Manager ….Applicant

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-Vs-

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M/s T N U Properties Proprietrix Mrs. Sandhya Srinivasan W/o. N. Srinivasan, 18/24, Shivaji Street, T Nagar,

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Chennai – 600017.

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Mrs. Sandhya Srinivasan

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W/o. N Srinivasan, 18/24, Shivaji Street, T Nagar,

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Chennai – 600 017.

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Mr. N. Srinivasan

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S/o Nagarajan,

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18/24, Shivaji Street, T Nagar,

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Chennai – 600 017. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Sh. S. Vaidyanathan

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Defendants 1 to 3 were set ex-parte on 30.08.2022

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: - FINAL ORDER - :

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This Original Application is filed on 29.09.2020 by the applicant

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

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1993 (formerly Recovery of Debts Due to Banks and Financial

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T.A. No. 1102 of 2023

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05.08.2025

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Institutions Act, 1993) against the defendants for recovery of a total sum of Rs.1,99,56,992.44p (Rupees One Crore Ninety Nine Lakhs Fifty Six Thousand Nine Hundred and Ninety Two and Forty Four Paisa Only) due in respect of Overdraft facility (A/c No.300206041000017) repayable together with further interest @ 12.50% per annum with monthly rests and penal interest @ 2% per annum without capitalising from the date of application till the date of realization in full, for sale of schedule mentioned immovable properties and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.19 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.19 of 2021 stood transferred to this Tribunal and renumbered as TA No.1102 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 during the month of June 2017, the 1^st defendant approached the applicant bank seeking financial assistance in the form of Overdraft facility for Working Capital requirement for its Civil and Interior contracting work business and

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T.A. No. 1102 of 2023

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05.08.2025

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submitted the application dated 22.06.2017.

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It is submitted by applicant bank that after due process, the credit facility was sanctioned by the applicant for Rs. 1,60,00,000/with interest rate being 2.60% over Bank’s MCLR with minimum of 11.25% per annum compounded monthly plus penal interest and other charges subject to change from time to time as per the Reserve Bank of India guidelines and Bank’s rules.

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It is further submitted by the applicant bank that the 1^st defendant agreed to mortgage the properties described in the schedule hereunder as security for the facility. On 07.07.2017, all the defendants came to the applicant’s office at Moore Street, Chennai – 600001 and accepted the said facility and also executed the following documents for Rs.1,60,00,000/- in favour of applicant bank:

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a) Demand promissory note

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b) Letter of repayment.

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c) Loan agreement cum Hypothecation deed

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d) Letter of Guarantee by 3^rd defendant undertaking to repay the debt in case of default by the 1^st and 2^nd defendants.

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The Applicant submits that on 07.07.2017, the 2^nd defendant mortgaged the schedule mentioned property as security towards the credit facility. The mortgage was registered with Sub Registrar Office,

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Madurai South Joint 1 vide Memorandum of deposit of title deeds Document No. 3419/2017 dated 11.07.2017. On 14.03.2019, 1^st and

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T.A. No. 1102 of 2023

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05.08.2025

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2^nd defendants executed Letter of Acknowledgement of Debt acknowledging the debt balance of Rs. 1,78,56,904/- as on 28.02.2019 plus unapplied interest.

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It is submitted by the applicant bank that from the beginning itself operations in the account was not commensurate to the limit sanctioned. Operations in the account were not adequate even to service the interest though the defendants were having good business. The defendants were diverting the funds. So, the account became overdue resulting in the account being classified as Non-Performing Asset (NPA) as on 27.10.2018 in accordance with RBI guidelines. The applicant bank through its Authorised Officer issued notice U/s 13(2) of SARFAESI Act on 05.11.2018 but there was no response from the defendants. On 07.08.2020, the applicant issued Legal Notice, which was received by the defendants but there was no response. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from defendants.

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After the filing of the OA, Summons were sent to defendants 1 to 3 through Registered Post with Acknowledgment Due, which were duly served to D1 to D3. When OA was taken up on 30.08.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 30.08.2022.

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T.A. No. 1102 of 2023

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05.08.2025

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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, Mr. G. Premkumar, Chief Manager representing 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-17 . 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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12. 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.1,99,56,992.44p (Rupees

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One Crore Ninety Nine Lakhs Fifty Six Thousand Nine Hundred and Ninety Two and Forty Four Paisa Only) due in respect of Overdraft facility (A/c No.300206041000017) repayable together with further interest @ 12.50% per annum with monthly rests and penal interest @ 2% per annum without capitalizing from the date of application till the date of realization

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T.A. No. 1102 of 2023

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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 immovable properties morefully detailed in the OA.

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(d) If the sale proceeds of the immovable properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 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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(f) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.

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

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T.A. No. 1102 of 2023

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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/-

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(S.V. GOWRAMMA)

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PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 05^th day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. G. Premkumar, Chief 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 for loan dated 22.06.2017.	A-1
2.	Sanction Letter dated 07.07.2017	A-2
3.	Demand Promissory Note dated 07.07.2017.	A-3
4.	Letter of Repayment dated 07.07.2017.	A-4
5.	Loan cum Hypothecation Agreement dated 07.07.2017.	A-5
6.	Letter of Guarantee dated 07.07.2017.	A-6
7.	Notice U/s 13(2) of SARFAESI Act dated 05.11.2018.	A-7
8.	Acknowledgement of Liability dated 14.03.2019.	A-8
9.	Legal notice dated 07.08.2020.	A-9
10.	Sale certificate for Plot no. 24 dated 01.10.2021.	A-10
11.	Sale certificate for Plot no. 21 dated 25.01.2022.	A-11
12.	Sale certificate for Plot no. 22 dated 25.01.2022.	A-12
13.	Sale certificate for Plot no. 25 dated 07.02.2022.	A-13
14.	Sale certificate for Plot no. 23 dated 09.03.2022.	A-14
15.	Sale certificate for Plot no. 20 dated 02.03.2022.	A-15
16.	Sale certificate for Plot no. 26 dated 02.03.2022.	A-16
17.	Statement of A/c no. 300206341000004 with unapplied interest upto 27.09.2020.	A-17

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T.A. No. 1102 of 2023

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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

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All the piece and parcel of plot having an extent of 1708 sq.ft with building thereon situate at Plot No.20, Old Door No. 14, New No. 14A, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District comprised in Old T S No. 2106, New T S No. 110 and 111, Old T.S.No.2117, New T S No. 116, Block No. 33, Ward 2, Falling within the Registration District of Madurai South and Registration Sub District of Madurai South

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Bounded on the

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North by: Plot No. 21 South by: Door No. 8

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East by: Ponnammal’s plot and house West by: Plot No. 19 and 16 feet road 2) All the piece and parcel of plot having an extend of 656 sq.ft with building thereon situate at Plot No.21, Old Door No.14, New No.14A, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District comprised in Old T S No. 2106, New T S No.110 and 111, Old T S No. 2117, New T S No. 116, Block No. 33, Ward 2, falling within the Registration District of Madurai South and Registration Sub District of Madurai South

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Bounded on the

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North by: Plot No.22

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South by: Plot No.20 and 16 ft road

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East by: Property in T S No. 113 West by: 16 feet road 3) All the piece and parcel of plot having an extent of 693 sq.ft with building thereon situate at Plot No. 22, Old Door No. 14, New No. 14A, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District

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T.A. No. 1102 of 2023

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comprised in Old T S No. 2106, New T S No. 110 and 111, Old T S No.2117, New T S No. 116, Block No. 33, Ward 2, falling within the Registration District of Madurai South and Registration Sub District of Madurai South

Bounded on the

North by: Plot No.23

South by: Plot No.21

East by: Property in T S No. 113

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West by: 16 feet road

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All the piece and parcel of plot having an extent of 7351/4 sp.ft with building thereon situate at Plot No. 23, Old Door No. 14, New No. 14A, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District comprised in Old T S No. 2106, New T S No. 110 and 111, Old T S No. 2117, New T S No. 116, Block No.33, Ward 2, falling within the Registration District of Madurai South and Registration Sub District of Madurai South

Bounded on the

North by: Plot No.24

South by: Plot No.22

East by: Property in T S No. 113

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West by: 16 feet road

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All the piece and parcel of plot having an extend of 7521/4 sq.ft with building thereon situate at Plot No. 24, Old Door No. 14, New No. 14A, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District comprised in Old T S No. 2106, New T S No. 110 and 111, Old T S No. 2117, New T S No. 116, Block No. 33, Ward 2, failing within the Registration District of Madurai South and Registration Sub District of Madurai South

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Bounded on the

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North by: Plot No. 25 South by: Plot No. 23

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East by: Property in T S No. 113

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T.A. No. 1102 of 2023

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05.08.2025

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West by: 16 feet road

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All the piece and parcel of plot having an extend of 7581/2 sq.ft with building thereon situate at Plot No. 25, Old Door No. 14, New No. 14A, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District comprised in Old T S No. 2106, New T S No. 110 and 111, Old T S No. 2117, New T S No. 116, Block No. 33, Ward 2, failing within the Registration District of Madurai South and Registration Sub District of Madras South

Bounded on the

North by: Plot No.26

South by: Plot No.24

East by: Property in T S No. 113

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West by: 16 feet road

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All the piece and parcel of plot having an extent of 659.75 sq.ft with building thereon situate at Plot No. 26, Old Door No. 14, Nallamuthu Pillai New Road, Keeraithurai Village, Madurai District comprised in Old T S No. 2106, New T S No. 110 and 111, Old T S No. 2117, New T S No. 116, Block No. 33, Ward 2, falling within the Registration District of Madurai South and Registration Sub District of Madurai South

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Bounded on the

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North by: Property in T S No. 113

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South by: Plot No.25

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East by: Property in T S No. 113

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West by: 16 feet road

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

Bank of Baroda v. T N U Properties

Case brief

What is this about?

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Bank of Baroda v. T N U Properties

Case brief

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