Allowed

Karnataka Bank Limited v. Dhamotharan

DRT10 Mar 2025TA/1364/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of RDB Act. Directing recovery of approx Rs.32 lakhs plus interest from the borrower and guarantor, who were adjudged ex-parte. The court noted a partial realization via SARFAESI sale already credited.

What did the court decide?

Recovery of Rs.32,30,756.60 plus further interest at 16.75% p.a. from the defendants; issuance of Recovery Certificate.

Karnataka Bank Limited versus Dhamotharan — Banking and Recovery | DRT (2025)

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T.A. No. 1364 of 2023

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10.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 10^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1364 of 2023

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(Originally filed before DRT- II, Chennai as OA 163/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1364 of 2023)

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M/s. The Karnataka Bank Ltd., Regional Office at No. 324, Thambu Chetty Street, Parrys, Chennai – 600 001. Rep by its Chief Manager

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….Applicant

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-Vs-

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1 Mr. S. Dhamotharan

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S/o. Subramani, 5, Murugan Koil Street,

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Mel Sathamagalam, Pondicherry, Pondicherry(India) – 605 110.

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Also at:

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No. 104, East Car Street, Pondicherry – 605 110.

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Mrs. R. Tamilselvi, W/o. S. Dhamotharan No. 104, East Car Street, Pondicherry – 605 110.

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Also at: 5, Murugan Koil Street, Mel Sathamagalam, Pondicherry, Pondicherry(India) – 605 110. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Ramalingam & Associates Defendants 1 & 2 were set ex-parte on 15.04.2019

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: - FINAL ORDER - :

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This original application is filed on 18.01.2019 by the applicant bank under

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T.A. No. 1364 of 2023

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10.03.2025

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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 sum of Rs.32,30,756.60/- (Rupees Thirty

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Two Lakhs Thirty Thousand Seven Hundred & Fifty Six and Paise Sixty Only) due in respect of PSOD facility together with further interest @ 16.75% p.a., (inclusive of penal interest) compounded monthly rests from the date of Application till the date of realization in full, morefully described in OA Schedule and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.163 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.163 of 2019 stood transferred to this Tribunal and renumbered as TA No.1364/2023.

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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 Hon’ble Tribunal.

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The Applicant submits that the 1^st Defendant, the Borrower and the 2^nd Defendant, as the Guarantor, approached the Applicant Bank seeking for PSOD facility to the limit of Rs.16,00,000/- for the purpose of their working capital requirements.

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The Applicant Bank considered the request and sanctioned the said PSOD

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T.A. No. 1364 of 2023

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10.03.2025

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facility to the limit of Rs.16,00,000/- on 22.04.2013.

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It is submitted by Applicant Bank that to secure the aforesaid loan, the Defendants 1 & 2 had jointly executed the following Loan Agreement / documents in favour of Applicant Bank on 22.04.2013 :

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(i) Demand Promissory Note executed by both the defendants in favour of the Applicant Bank, with a take delivery letter of the same.

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(ii) Hypothecation Agreement executed by the 1^st Defendant in favour of the Applicant Bank.

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(iii) General Power of Attorney for Book Debts executed by the 1^st Defendant in favour of the Applicant Bank.

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(iv) General Power of Attorney for contract works executed by the 1^st Defendant in favour of the Applicant Bank.

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(v) Request for overdraft facility executed by both the defendants in favour of the Applicant Bank.

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(vi) Request to retain the account number of OD Account executed by both the defendants in favour of the Applicant Bank.

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(vii) Consent Letter executed by the first defendant in favour of the Applicant Bank.

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(viii) Consent Letter executed by the Second Defendant in favour of the Applicant Bank.

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It is submitted by Applicant Bank that the said facility was availed against the primary security of Hypothecation of stocks and book debts and as collateral security, the second Defendant had deposited the Original Title Deeds and also photocopies

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of parent documents pertaining to the property which is morefully described in the schedule hereunder with the Applicant Bank 22.04.2013, with an intention to create mortgage over the schedule mentioned property.

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It is further submitted that over a period of time after availing the loan, the defendant failed to conduct the account as per the terms of sanction. As the installments in the loan account were not paid on time, the account became irregular and was classified as NPA on 27.01.2015, as per RBI norms. But defendant did not repay the dues, despite several reminders.

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The Applicant Bank submits that both the Defendants 1 & 2 had executed acknowledgement of Debt dated 01.02.2016 thereby admitting and acknowledging their liability as on date. Subsequently, the Applicant Bank issued an Advocate Notice recalling the dues to both the defendants on 04.01.2019. In spite of repeated requests and several reminders made, the 1^st & 2^nd Defendants failed to repay their liability towards to the Applicant Bank under the aforesaid loan account. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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After the filing of the OA, summons was sent to the Sole Defendant through Registered Post with Acknowledgement Due, which was duly served. When OA was taken up on 15.04.2019 even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendants were placed ex-parte on 15.04.2019.

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Heard the submissions of Applicant Bank and perused the records.

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T.A. No. 1364 of 2023

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To prove the case of the Applicant Bank, Shri. R. Kaushik, Authorised 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-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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During the pendency of OA, Applicant Bank had reported part satisfaction of OA claim in a sum of Rs.13,25,000/- by way of sale of Schedule immovable property under SARFAESI Act on 02.09.2020. Accordingly, part satisfaction of sum of Rs.13,25,000/- Lakhs is duly recorded vide order dated 23.11.2020 and documents marked as Ex A-12 and A-15 were returned to applicant bank on 02.12.2020 under proper acknowledgement .

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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 Defendants a sum of total sum of Rs.32,30,756.60p (Rupees Thirty Two Lakhs Thirty Thousand Seven Hundred & Fifty Six and Sixty Paise Only) due in

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respect of PSOD facility together with further interest @ 16.75% p.a., (inclusive of penal interest) compounded monthly rests from the date of Application till the date of realization in full, morefully described in OA

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Schedule and for costs of this application.

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(b) The sum of Rs.13,25,000/- realized by way of SARFAESI sale is directed to be given credit to the borrower’s loan account as on the date of realization.

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(c) The applicant bank is at liberty to sell the personal assets / hypothecated assets of the defendants (both movable and immovable) to recover the balance dues as required under law;

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(d) 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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(e) The applicant bank shall file memo of costs within ten days from the date of this final order.

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(f) 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 (Sudhakar), transcribed by him, corrected, signed and pronounced by me on this the 10^th day of March, 2025)

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T.A. No. 1364 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. R. Kaushik, POA 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.	Powerof Attorney	A-1
2.	Sanction letter issued by the applicant bank to the defendants dated12.04.2013	A-2
3.	Demand Promissory note executed by both the defendants in favour of the Applicant bank dated 22.04.2013	A-3
4.	Take Delivery Letter dated 22.04.2013 executed by the boththe defendantsin favouroftheApplicantBank	A-4
5.	Hypothecation Agreement dated 22.04.2013 executed by thefirst defendantin favouroftheApplicant bank	A-5
6.	General Power of Attorney for Book Debts executed by the first defendant in favour of the Applicant bank dated 22.04.2013	A-6
7.	General Power of Attorney for contract works executed by the first defendant in favour of the Applicant bank dated22.04.2013	A-7
8.	Request for Overdraft facility executed by both the defendants in favour of the Applicant Bank dated 22.04.2013	A-8
9	Request to retain the account number of OD Account executed by both the defendants in favour of the ApplicantBank	A-9
10	Consent letter executed by the first defendant in favour oftheApplicantBankdated22.04.2013	A-10
11	Consent letter executed by the second defendant in favouroftheApplicantBankdated22.04.2013	A-11
12	Memorandum of Deposit of Title Deeds executed by the Second defendant in favour of the Applicant bank dated 22.04.2013	A-12
13	Acknowledgement of Debt executed by the defendants toin favouroftheApplicantBankdated 01.02.2016	A-13
14	Legal Notice sent by the Applicant Bank to the defendants dated 04.01.2019	A-14
15	Sale Deed dated 29.03.2012 registered as document No. 2365/2012 in favour of the second defendant on the file of Sub registrar office Villianur dated29.03.2012	A-15
16	Statement of Account and BBE Certificate	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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Sd/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Karnataka Bank Limited v. Dhamotharan

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Dhamotharan

Case brief

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What did the court decide?

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