Allowed

Tamilnad Mercantile Bank Limited v. M/S Bharath Kumar

DRT24 Nov 2025TA/1131/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by Tamilnadu Mercantile Bank Ltd. to recover a sum of Rs. 73.58 Lakhs from the defendants for outstanding term loans, cash credit, and credit card dues along with interest and costs under the RDB Act.

What did the court decide?

Recovery of Rs. 73,58,047.64p including interest and sale of hypothecated and personal assets if not paid.

Tamilnad Mercantile Bank Limited versus M/S Bharath Kumar — Banking and Recovery | DRT (2025)

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T.A. No. 1131 of 2023

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24.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 24^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1131 of 2023

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(Originally filed before DRT- II, Chennai as OA 474/2020 and thereafter transferred to this Tribunal and renumbered as TA No 1131 of 2023)

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M/s. Tamilnadu Mercantile Bank Ltd., Rep by its Manager, Old Washermenpet Branch, No.53, Old No.20, G.A Road, Old Washermenpet, Chennai -600 021. ….Applicant

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-Vs-

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M/s. Bharath Kumar, Rep by Proprietor, Bharath Kumar, No.22/4, G.A Road, Old Washermenpet, Chennai -600 021.

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Mr. M. Bharath Kumar, S/o Manoharan,

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No.22/4, G.A Road,

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Old Washermenpet,

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Chennai -600 021. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Sh. P. Tamilavel

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Defendants 1 and 2 were set ex-parte on 06.04.2022

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: - FINAL ORDER - :

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This Original Application is filed on 17.06.2020 by the applicant

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bank under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of Debts Due to Banks and Financial Institutions

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Act, 1993) against the defendants 1 and 2, jointly and severally for

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T.A. No. 1131 of 2023

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24.11.2025

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recovery of a total sum of Rs.73,58,047.64p (Rupees Seventy Three

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Lakhs Fifty Eight Thousand and Forty Seven and Sixty Four Paise

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Only) as follows:

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(i) A sum of Rs.11,29,309/- (Rupees Eleven Lakhs Twenty Nine Thousand Three Hundred and Nine Only) due in respect of Term Loan (A/c No.008700480100921), repayable by defendants 1 and 2 together with further interest @ 10.45%, p.a. with monthly rests along with penal interest @ 2% p.a. from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.61,09,821.39p (Rupees Sixty One Lakhs Nine Thousand Eight Hundred and Twenty One and Thirty Nine Paise Only) due in respect of Cash Credit Facility (A/c No.008700150950238), repayable by defendants 1 and 2 together with further interest @ 10.45%, p.a. with monthly rests along with penal interest @ 2% p.a., from the date of filing the OA, till date of realization in full;

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(iii) A sum of Rs.1,18,917.25/-(Rupees One Lakh Eighteen Thousand Nine Hundred and Seventeen and Twenty Five Paise Only) due in respect of Credit Card Facility (A/c No.008100050233473), repayable by 2^nd defendant together with further interest @ 24%, p.a. with monthly rests and penal interest @ 2% p.a., from the date of filing the OA till date of realization in full;

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T.A. No. 1131 of 2023

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24.11.2025

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for sale of hypothecated property 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.474 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.474 of 2020 stood transferred to this Tribunal and renumbered as TA No.1131 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 1^st defendant is running a business in the name and style of M/s Bharath Kumar, doing whole sale dhall business namely Toor, Moong and Greengram. The dhalls were procured in various places and the same was processed and sold in whole sale and retail markets.

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It is submitted by the applicant bank that the defendants have approached the applicant bank during the month of July, 2015 and had availed various credit facilities namely Term Loan (TL) and Cash Credit (CC) for a total limit of Rs.85 Lakhs for its business. Term Loan to the tune of 35 Lakhs and cash credit to the tune of Rs.50 Lakhs was availed by the defendants on 18.08.2015 and 07.11.2017 under the CGTMSE

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(Credit Guarantee fund Trust for Micro and small enterprises) scheme respectively. Apart from the said loans, the 2^nd defendant had availed Credit Card facility on 15.10.2018.

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It is further submitted by the applicant bank that the defendants executed the following documents towards Term Loan facility:

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a) Demand Promissory Note executed by the 2^nd defendant dated 18.08.2015

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b) Articles of Agreement dated 18.08.2015.

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c) Deed of Hypothecation date 18.08.2015.

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The applicant submits the defendants have executed the following documents towards Cash Credit facility: a) Promissory note executed by 2^nd defendant dated 07.11.2017. b) Letter of Hypothecation dated 07.11.2017.

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c) Power of attorney executed by 1^st defendant dated 07.11.2017. d) Agreement for Demand Cash Credit on the hypothecation of movable properties dated 07.11.2017.

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It is submitted by the applicant bank that subsequent to availing of loan, the Defendants were irregular in making payment of dues/outstanding, thereby the defendants committed default in repayment. Therefore, the bank did not have any other option except to declare the account as Non-Performing Asset (NPA) with effect from 31.05.2019, as per the directive/guidelines of Reserve Bank of India.

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T.A. No. 1131 of 2023

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24.11.2025

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The Applicant bank had issued Recall Notice on 20.07.2019 demanding a sum of Rs.64,41,649.39p. That apart the 2^nd defendant had availed Credit Card facility from the applicant bank, in which also he had committed default and a sum of Rs.1,18,917.25p was due as on 15.06.2020. As defendants did not repay the above said dues, despite repeated demands made by the applicant bank, the present Original Application (OA) has been filed by the for recovery of its dues from the defendants.

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After the filing of the OA, summons to the D1 & D2 served. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 06.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 06.04.2022.

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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, Sh. N. Ramesh, Chief Manager, Old Washermenpet Branch 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-16 . 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

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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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14. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from the Defendants jointly and severally, Rs.73,58,047.64p (Rupees Seventy Three Lakh Fifty Eight Thousand and Forty Seven and Sixty Four Paise Only) as follows:

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T.A. No. 1131 of 2023

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(iii) A sum of Rs.1,18,917.25/-(Rupees One Lakh Eighteen Thousand Nine Hundred and Seventeen and

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Twenty Five Paise Only) due in respect of Credit Card Facility (A/c No.008100050233473), repayable by 2^nd defendant together with further interest @ 24%, p.a. with monthly rests and penal interest @ 2% p.a., 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 movables morefully detailed in the OA.

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(d) If the sale proceeds of the hypotheca 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 Defendant (both movable and immovable) to recover the balance dues as required under law for which the 2^nd Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd Defendant.

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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

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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

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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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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 24^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. N. Ramesh, Chief Manager, Old Washermenpet Branch 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.	Sanction intimation letter dated 04.08.2015.	A-1
2.	Demand Promissory Note executed by the 2^nd defendant dated 18.08.2015.	A-2
3.	Articles of Agreement dated 18.08.2015.	A-3
4.	Deed of Hypothecation dated 18.08.2015.	A-4
5.	Sanction Letter dated 01.11.2017.	A-5
6.	Sanction intimation letter dated 01.11.2017.	A-6

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7.	Promissory note executed by 2^nddefendant dated 07.11.2017.	A-7
8.	Letter of Hypothecation dated 07.11.2017.	A-8
9.	Power of attorney executed by 1^stdefendant dated 07.11.2017.	A-9
10.	Agreement for demand cash credit on the hypothecation of movable properties dated 07.11.2017.	A-10
11.	Revival letter dated 27.06.2018.	A-11
12.	Recall Notice dated 20.07.2019.	A-12
13.	Statement of account.	A-13
14.	Statement of account.	A-14
15.	Statement of account.	A-15
16.	Credit Card application dated 15.10.2018.	A-16

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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 tangible movable property such as products, machinery, stockin-trade and goods of the Borrower which now or hereafter from time to time during this security shall the brought in, stored or be in or about the Premises warehouses or godowns of the Borrowers in No.22/4. G.A. Road, Old Washermenpet, Chennai-21.

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

Tamilnad Mercantile Bank Limited v. M/S Bharath Kumar

Case brief

What is this about?

What did the court decide?

Tamilnad Mercantile Bank Limited v. M/S Bharath Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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