Allowed

Canara Bank v. Suresh Kumar

DRT9 Oct 2025TA/1255/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery. The applicant bank proved uncharged the term loan facility, demand notes, and acknowledgments of debt. The defendant remained in absentia. The tribunal awarded recovery of the principal sum with further interest and costs.

What did the court decide?

Recovery of Rs. 37,70,402/- along with further interest @ 11.95% per annum compounded monthly from the date of application, costs, and issuance of Recovery Certificate.

Canara Bank versus Suresh Kumar — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1255 of 2023

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09.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 09^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1255 of 2023

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(Originally filed before DRT- II, Chennai as OA 242/2021 and thereafter transferred to this Tribunal and renumbered as TA No 1255 of 2023)

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Canara Bank, Rep. by its Senior Manager, Park Town Branch, No.22, Shydenhams Road, Chennai – 600 003.

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….Applicant

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-Vs-

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S. Suresh Kumar, S/o N. Shankar, No.32/85, 3^rd Floor, Godown Street, Chennai – 600 001. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant : Sh. Akshai Mani

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Defendant was set ex-parte on 12.09.2022

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: - FINAL ORDER - :

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This Original Application is filed on 07.05.2021 by the applicant bank under Section 19(1) 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.37,70,402/- (Rupees Thirty Seven Lakhs Seventy Thousand Four Hundred and Two only) due in respect of Term Loan Facility (A/c No.0976741000241) repayable together with further interest @ 11.95% per annum compounded with monthly rests

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T.A. No. 1255 of 2023

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09.10.2025

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from the date of application till the date of realization in full, for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.242 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.242 of 2021 stood transferred to this Tribunal and renumbered as TA No.1255 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 defendant had approached the applicant bank seeking financial assistance for construction of a shop at plot allotted by The Chief Executive Officer, Chennai Metropolitan Development Authority (CMDA) vide Allottmenet Letter dated 12.07.2013 under Special Scheme at Koyambedu Wholesale Food Grain market. In connection thereto the defendant had submitted the application form for loans under MSME dated 0608.2013.

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It is submitted by the applicant bank that considering the said request, the applicant bank had sanctioned Term Loan facility of Rs.21,29,000/- under Loan Account No. 0976741000241 vide Sanction Letter dated 20.08.2013, which was duly acknowledged by the

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T.A. No. 1255 of 2023

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09.10.2025

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defendant. The defendant had agreed to repay the loan together with interest at the rate of 11% p.a. (floating) and shall be repaid in 8 years after a moratorium period of 2 years and the defendant had agreed to adhere to the repayment schedule without any delay or default.

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In order to secure the loan, the defendant had executed Demand Promissory Note dated 20.08.2013 and Term Loan Agreement dated 20.08.2013 in favour of applicant bank. The Demand promissory note was revived by the defendant time and again and defendant had executed Acknowledgment of Debt and Security dated 08.05.2016 and 30.04.2019 in favour of applicant bank.

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It is submitted by the applicant bank that subsequent to availing of loan, the defendant was not operating the loan account as per the terms of agreement. Since the defendant had failed to repay the loan account, the applicant bank was constrained to classify the loan account as Non-Performing Asset (NPA) on 01.12.2016 in accordance with RBI guidelines. The applicant bank had issued Recall Notice dated 05.01.2021 demanding the defendant to pay the outstanding dues, despite which the defendant did not come forward to repay the dues. Hence 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 sole defendant through Registered Post with Acknowledgment Due, which returned with postal endorsement ‘No Such Person’. Applicant bank had

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T.A. No. 1255 of 2023

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09.10.2025

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caused paper publication of the notice and filed proof thereof. When OA was taken up on 12.09.2022 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendant was placed ex-parte on 12.09.2022.

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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, Smt. P. Sundaravalli, Senior Manager representing 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-9 . As the defendant 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 of total sum of Rs.37,70,402/- (Rupees Thirty Seven Lakhs Seventy Thousand Four Hundred and Two only) due in respect of Term Loan Facility (A/c

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T.A. No. 1255 of 2023

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09.10.2025

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No.0976741000241) repayable together with further interest @ 11.95% per annum compounded with monthly rests from the date of application till the date of realization in full, along with costs.

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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 defendants duly considering the amounts, if any, paid by the defendants and/or amount realized by sale of assets etc., during

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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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(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 Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 09^th day of October, 2025)

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T.A. No. 1255 of 2023

09.10.2025

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. P. Sundaravalli, Senior 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.	Allotment Letter issued by CMDA in favour of the Defendant herein dated 12.07.2013.	A-1
2.	Application for Credit facility to Micro and Small Enterprises dated 06.08.2013.	A-2
3.	Loan sanction Letter for Term Loan Facility dated 20.08.2013.	A-3
4.	Demand Promissory Note executed by the Defendant dated 20.08.2013.	A-4
5.	Acknowledgement of Debt cum Security executed by the Defendant herein dated 08.05.2016.	A-5
6.	Acknowledgement of Debt cum Security executed by the Defendant herein dated 30.04.2019.	A-6
7.	Term Loan Agreement along with Letter of Undertaking executed by the Defendant herein dated 20.08.2013.	A-7
8.	Loan Recall Notice issued by Applicant Bank dated 05.01.2021.	A-8
9.	Statement of Accounts	A-9

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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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-NIL-

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

Canara Bank v. Suresh Kumar

Case brief

What is this about?

What did the court decide?

Canara Bank v. Suresh Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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