Allowed

Yes Bank v. Arun Kumar Nath

DRT8 Dec 2025TA/12/2022

Case brief

AI extract

What is this about?

This Debt Recovery Tribunal allowed an application filed by Yes Bank Ltd. to recover a personal loan overdue from Arun Kumar Nath. The Tribunal, hearing nothing from the ex-partre defendant, admitted the bank's claim and directed recovery of the principal along with interest and costs.

What did the court decide?

Allowed recovery of Rs.21,04,734/- plus interest at 10.99% p.a. with monthly rests and penal interest of 2% from filing dates. Directed filing of cost memo and issuance of Recovery Certificate.

Yes Bank versus Arun Kumar Nath — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 12 of 2022

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08.12.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of December, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 12 of 2022

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M/s. Yes Bank Ltd., Parrys Branch, Dass India Towers Second Line Beach, No. 3, Beach Road, Parrys Corner, George Town, Chennai – 600 001. ….Applicant

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-Vs-

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Arun Kumar Nath, S/o. Haralal Nath, No. 36, 2^nd Floor, Giri Nagar, 3^rd Street, Near Park, Ramapuram, Chennai – 600 089. …. Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Kvp. Deepak Raj

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Defendant was set ex-parte on 04.01.2023

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: - FINAL ORDER - :

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This Original Application is filed on 01.08.2022 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 defendant, for recovery of a total sum of Rs.21,04,734/- (Rupees Twenty One Thousand Seven Hundred and Thirty Four only) due in respect of Personal Loan (Account No. PLN000500544623) repayable together with further interest @

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T.A. No. 12 of 2022

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08.12.2025

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10.99% p.a. with monthly rests and penal interest of 2% from the date of Application till the date of realization in full and for costs of this Original Application.

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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 defendant had approached the applicant bank for a personal loan by submitting Loan Application dated 27.06.2019. Based on the documents furnished by the defendant, the applicant bank, had sanctioned the said Loan on 04.07.2019, for an amount of Rs. 20,24,144/- bearing Account No. PLN00500544623, which is repayable in 60 Equated Monthly Instalments of Rs. 44,000/- each.

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It is submitted by the applicant bank that the defendant had executed all the necessary loan documents on 04.07.2019 for an amount of Rs. 20,24,144/- and agreed to pay interest at the rate of 10.99% per annum.

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The Applicant submits that the Defendant had executed the Loan Agreement along with Demand Promissory Note on 04.07.2019 for an amount of Rs. 20,24,144/-.

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T.A. No. 12 of 2022

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08.12.2025

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It is further submitted by the Applicant Bank that due to Covid-19, an additional loan amount was disbursed to the Defendant on 01.09.2020, thus totally an amount of Rs.21,70,048/- was disbursed Vide Loan Account No. PLN000500544623.

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The Applicant bank submits that subsequent to availing of loan, the defendant had neither repaid the loan amount, except for a few repayments which was not sufficient for maintaining the account. Consequently, the Loan account became irregular and Loan Account was declared as Non Performing Asset (NPA) on 31.03.2024 in accordance with RBI guidelines. In spite of several demands and reminders made by the Applicant Bank, the Defendant failed and neglected to pay the amount due under the loan account.

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It is submitted that when matters stood thus, the Applicant issued a Legal Notice dated 15.02.2022 to the defendants demanding the outstanding amount in respect of the said Loan Account. The notice sent to the Defendant's Residential address has been returned unserved with an endorsement ‘LEFT’, the notice sent to the Defendant's Permanent address has been returned with an endorsement ‘Not Known’ and the notice sent to the Defendant's Office address has been duly served. In spite of receiving the said notice the Defendant had deliberately failed to repay the loan amount in respect of the loan account.

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The Applicant bank submits that the loan was availed a Personal Loan and hence the defendant is liable to pay interest at the rates agreed

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during pendency of this Application and subsequently, till date of complete discharge. The rates of interest applied in the above account are rates prescribed by the bank periodically as permitted by Reserve Bank of India. The compound interest has been calculated at such rates and capitalized at such periodical rests as permitted by Reserve Bank of India and do not run counter to any of its directives. The present rate applicable is 10.99% pa and the penal interest is 2% per month for the said loan account. The interest is calculated at Monthly rests. As defendants did not come forward to repay the dues, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendant.

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After the filing of the OA, summons were sent to the Defendant through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left’ in respect of the defendant, Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 04.01.2023 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, Defendant was placed ex-parte on 04.01.2023.

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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. R. Muthusamy, Authorized Signatory 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-5 . As the Defendant

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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 defendant, a total sum of Rs.21,04,734/(Rupees Twenty One Thousand Seven Hundred and Thirty Four only) due in respect of Personal Loan (Account No. PLN000500544623) repayable together with further interest @ 10.99% p.a. with monthly rests and penal interest of 2% from the date of Application till the date of realization in full along with costs of this application.

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(b) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendant 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,

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enabling the Registry to prepare Recovery Certificate for the

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amount to be paid by Defendant to the applicant bank.

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(d) 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 PS, transcribed by her, corrected, signed and pronounced by me on this the 08^th

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day of December, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. R. Muthusamy, Authorized Signatory of the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	27.06.2019	Loan Application	A-1
2.	04.07.2019	^Loan Agreement executed by the defendant	A-2
3.	15.02.2022	Copyof the Legal Notice	A-3
4.	--	Returned Covers & Acknowledgment Cards	A-4
5.	--	Statement of Account	A-5

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Witness Examined for the Defendant

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: -Nil-

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List of Documents Exhibited for the Defendant : -Nil –

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:-SCHEDULE-:

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Nil –

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

Yes Bank v. Arun Kumar Nath

Case brief

What is this about?

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Yes Bank v. Arun Kumar Nath

Case brief

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