The Tribunal allowed the bank's application for recovery of Rs. 22,55,626.50 plus interest, costs, and lien on hypothecated machinery, as the defendants remained ex-parte.
Recovery of Rs. 22,55,626.50 plus interest, costs, and enforcement of lien on hypothecated machinery.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.A. No. 1311 of 2023
21.03.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 21st day of March, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
TRANSFERRED APPLICATION No. 1311 of 2023
(Originally filed before DRT- II, Chennai as OA 02/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1311 of 2023)
Canara Bank
General Patters Road Branch No.110, General Patters Road, Chennai – 600 002
Rep. by its Chief Manager
….Applicant
-Vs-
S/o. Mr. Dhanasekaran,
At No.12/33, 1st Street, Pillaiyar Koil Street, Ekkattuthangal, Chennai – 600 032 …..Defendants
Counsels on record / appeared:
Counsel for Applicant : M/s. S. Kesavan
Defendants 1 & 2 were set ex-parte on 13.05.2022
: - FINAL ORDER - :
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 defendants jointly and severally for recovery of a total
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sum of Rs.22,55,626.50p (Rupees Twenty Two Lakhs Fifty Five Thousand Six Hundred and Twenty Six and Fifty Paise Only) as follows:
(i) A sum of Rs.8,72,415/- due in respect of OCC limit vide A/c No.0908261000901 together with further interest @ 12.15% , p.a. with compounded monthly rests from the date of Application till the date of realization in full from the Defendants jointly and severally and for costs of this application.
(ii) A sum of Rs.13,83,211.50p due in respect of Term Loan vide A/c No.0908766000005 together with further interest @ 12.15% , p.a. with compounded monthly rests from the date of Application till the date of realization in full from the Defendants jointly and severally and for costs of this application.
Brief Facts of the case:
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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 Hon’ble Tribunal.
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on 23.05.2016. Based on the developments, the 1st Defendant was permitted to avail OCC limit of Rs.8 Lakhs as working capital on execution of the following documents to and in favour of the Applicant Bank on 23.05.2016:
i. Cash credit agreement
ii. Pronote for Rs.8 Lakhs
iii. Letter of undertaking
iv. Further letter of undertaking / consent.
i. Letter of Undertaking
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ii. Pronote and Take delivery letter to DPN for a sum of Rs.14 Lakhs
iii. Deed of Hypothecation in respect of machineries
iv. Agreement cum deed of hypothecation
v. Particulars of the hypothecation of machineries
vi. Letter of undertaking/consent.
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i. Letter of Renewal
ii. Acknowledgement of debt and security
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defendants nor written statement filed. Hence, defendants 1 and 2 were placed ex-parte on 13.05.2022.
Heard the submissions of Applicant Bank and perused the records.
: O R D E R :
(a) The applicant bank is allowed to recover from the Defendants a sum of total sum of Rs.22,55,626.50p (Rupees Twenty Two Lakhs Fifty Five Thousand Six Hundred and Twenty Six and Fifty Paise Only) as follows:
(i) A sum of Rs.8,72,415/- due in respect of OCC limit vide A/c No.0908261000901 together with further interest
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@ 12.15% , p.a. with compounded monthly rests from the date of Application till the date of realization in full from the Defendants jointly and severally and for costs of this application.
(ii) A sum of Rs.13,83,211.50p due in respect of Term Loan vide A/c No.0908766000005 together with further interest @ 12.15% , p.a. with compounded monthly rests from the date of Application till the date of realization in full from the Defendants jointly and severally along with costs of this application.
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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from the date of this final order.
Recovery Officer in terms of the final order.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 21st day of March, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Mr. S. Venkatesan, Chief Manager of the Applicant Bank.
Exhibits on the part of the Applicant:
| Sl. No. | Description of Document |
s |
Exhibit No. |
|---|---|---|---|
| 1. | Account Opening form by the 1st dated 23.05.2016 |
Defendant |
A-1 |
| 2. | Letter of proprietorship by the 1st dated 23.05.2016 |
Defendant |
A-2 |
| 3. | Particulars of the Guarantor by Defendant dated 23.05.2016 |
the 2nd |
A-3 |
| 4. | Sanction Memorandum issued by the dated 23.05.2016 |
Applicant | A-4 |
| 5. | Request for overdraft facilities 1stDefendant dated 23.05.2016 |
by the |
A-5 |
| 6. | Cash Credit Agreement by the 1st dated 23.05.2016 |
Defendant | A-6 |
| 7. | Pronote for Rs.8,00,000/-dated 23.05 |
.2016 |
A-7 |
| 8. | Letter of undertaking by the 1st dated 23.05.2016 |
Defendant |
A-8 |
| 9. | Loan Application by the 1stdefendant. | A-9 |
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| 10. | Sanction Memorandum issued by the Applicant dated 23.05.2016 |
A-10 |
|---|---|---|
| 11. | Letter of proprietorship by the 1stDefendant dated 24.05.2016 |
A-11 |
| 12. | Letter of Undertaking by the 1stDefendant dated 24.05.2016 |
A-12 |
| 13. | Take delivery letter to DPN and Pronote for Rs.14,00,000/- by the 1stDefendant dated 24.05.2016 |
A-13 |
| 14. | Deed of Hypothecation by the 1stDefendant dated 24.05.2016 |
A-14 |
| 15. | Agreement cum Deed of Hypothecation by the 1stDefendant dated 24.05.2016 |
A-15 |
| 16. | Particulars of Machinery by the 1stDefendant dated 24.05.2016 |
A-16 |
| 17. | Letter of Undertaking by the 1stDefendant | A-17 |
| 18. | Sanction Memorandum issued by the Applicant dated 23.08.2017 |
A-18 |
| 19. | Letter of Renewal by the 1stDefendant dated 23.08.2017 |
A-19 |
| 20. | Acknowledgement of Debt and Security by the 1stDefendant dated 23.08.2017 |
A-20 |
| 21. | Request letter by the 1stDefendant to the Applicant |
A-21 |
| 22. | Letter by the Applicant to the 1stDefendant dated 09.05.2018 |
A-22 |
| 23. | Letter by the Applicant to the 1stDefendant dated 02.06.2018 |
A-23 |
| 24. | Acknowledgement card of the 1stDefendant | A-24 |
| 25. | Statement of Account in respect of OCC limit together with enclosures dated 01.12.2018 |
A-25 |
| 26. | Statement of Account in respect of Term Loan together with enclosures dated 01.12.2018 |
A-26 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
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SCHEDULE
Schedule of Hypothecation
Rhodes make Hydraulic press H-Type, Motor-15 HP, lying at No.29/5, 5th Street, Pillaiyar Koil Street, Ekkattuthangal, Chennai – 600 032.
Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 issue framed by the court
Whether the Applicant Bank is entitled to recover the outstanding dues from the defendants under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993.
1 provisions across 1 enactments
Canara Bank
M/s. Mercury Enterprises
Mr. D. Senthilkumar
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
