Allowed

Bank of India v. Raveendran

DRT22 Jul 2025TA/1373/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 28.41 lakhs plus interest awarded to Bank of India against two defendants who committed fraud by encashing a pay order and defaulted on a personal loan, making an order for joint recovery and future interest calculation.

What did the court decide?

Recovery of Rs. 28,41,321/- plus interest at 9.60% p.a. from the date of filing along with costs, and liberty to sell personal assets.

Bank of India versus Raveendran — Banking and Recovery | DRT (2025)

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T.A. No. 1373 of 2023

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22.07.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 22^nd day of July, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1373 of 2023

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(Originally filed before DRT- II, Chennai as OA 956/2019 and thereafter transferred to this Tribunal and renumbered as TA No. 1373 of 2023)

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BANK OF INDIA, Thousand Lights Branch, 406, Lloyds Road, Gopalapuram, Chennai 600 086, Represented by its Constituted Attorney

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….Applicant

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-Vs-

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Mr. RAVEENDRAN.S

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S/o Mr. Subburaj

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No 7, Kasturi Estate 3^rd Street

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Gopalapuram, Chennai 600 086.

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Also at

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No 8/8, Bangalow Street Pettai, Tirunelveli 627 004.

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Mr.BALAJI ARUNKUMAR

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S/o Mr. Sankaran Arunkumar

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No 10/49, Govindappa Naicker 3^rd Cross Street

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Alapakkam, Chennai 600 116. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Mr. M.P. Venkateswaran

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Defendants 1 and 2 were set ex-parte on 29.11.2021

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: - FINAL ORDER - :

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This original application is filed by the Applicant Bank under Section

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19 of Recovery of Debts and Bankruptcy Act, 1993 (formerly Recovery of

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T.A. No. 1373 of 2023

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22.07.2025

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Debts Due to Banks and Financial Institutions Act, 1993) against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.28,41,321/- (Rupees Twenty eight lakhs forty one thousand

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three hundred and twenty one only) due in respect of Personal Loan (Account Bearing No.800660510000072) with further interest @ 9.60% p.a. compounded with monthly rests from the date of filing the OA till date of realization in full and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.956 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.956 of 2019 stood transferred to this Tribunal and renumbered as TA No.1373 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 approached the Applicant during the month of September 2014 for sanction of a personal loan for purchase of a Mahindra van. The 2^nd defendant offered to execute guarantee for the loan to be sanctioned by the Applicant to the 1^st defendant. The defendants submitted a loan

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T.A. No. 1373 of 2023

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22.07.2025

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application form for personal loan. Along with the loan application the defendants produced a receipt dated 17.09.0214 bearing no REIN00004784 issued by M/s India Garage for Rs.3,75,000/- as advance received from the 1^st defendant.

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It is submitted by applicant bank that after due consideration of the request of the defendants and the representation made by them, the Applicant sanctioned a personal loan of Rs. 21,50,000/- to the 1^st defendant under the BOI Star Suvidha Scheme.

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To secure the due repayment of the afore said personal loan of Rs. 21,50,000/-, the 1^st defendant executed the following loan documents in favour of the Applicant:

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a) Demand promissory dated 26.09.2014 promising to pay the sum

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of Rs 21,50,000/- with interest at the rate of 0.20 % above base rate , then 10.40% per annum compounded with monthly rests for value received.

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b) Instalment letter dated 26.09.2014 under taking to repay the

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loan in 60 Instalments of Rs. 46,106/- commencing from 31.10.2014.

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c) Bearer letter dated 26.09.2014.

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d) Composite loan document dated 26.09.2014.

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e) Hypothecation cum loan agreement dated 26.09.2014.

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T.A. No. 1373 of 2023

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22.07.2025

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It is further submitted that the 2^nd defendant executed a Deed of Guarantee dated 26.09.2014, guaranteeing the due repayment of the personal sanctioned to the 1^st defendant together with interest thereon.

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The Applicant issued a pay order dated 26.09.2014 the Mahindra and Mahindra dealer M/s India Garage for Rs. 21,61,311/- . 9. After receiving the pay order, the defendants produced VAT Invoice dated 29.09.2014 allegedly issued by M/s India Garage showing intended hypothecation clause in favour of Bank of India. The defendants also produced a receipt dated 29.09.2014 bearing no REIN00004736 allegedly issued by M/s India Garage. The defendants without handing over the pay order to the said dealer fraudulently encashed the pay order by opening an account in the name of the dealer with Axis Bank, Sterling Road branch.

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Since the defendants did not produce the registration certificate of the vehicle, the Applicant made enquiries with the dealer who issued the proforma invoice. The dealer informed the Applicant that they had not issued proforma invoice produced by the defendants. It came to light that the defendants had played a fraud on the Applicant. The Applicant on further enquiries came to know that the 1^st defendant had opened a fraudulent account in the name of the dealer and encashed the pay order issued by the Applicant.

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T.A. No. 1373 of 2023

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It is submitted that the defendants did not pay the instalments as undertaken by them and hence the loan account of the defendants was classified as Non-Performing Asset (NPA) by the Applicant with effect from 30.09.2015 as per norms prescribed by Reserve Bank of India in this regard. Since the defendants committed wilful default in repayment of the credit facilities, the present Original Application (OA) has been filed by applicant bank for recovery of its dues from defendants.

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After the filing of the OA, summons were sent to the Defendants 1 and 2 through Registered Post with Acknowledgment Due, Summons to first address of D1 served, while Summons to D2 returned unserved with remarks “No such person”. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 29.11.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 29.11.2021.

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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, Mrs. Gowri Ramachandran, Constituted Attorney 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-12 . As

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T.A. No. 1373 of 2023

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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 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 jointly and severally, a sum of Rs.28,41,321/- (Rupees Twenty

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eight lakhs forty one thousand three hundred and twenty one

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only) due in respect of Personal Loan (Account Bearing No.800660510000072) repayable together with further interest @ 9.60% p.a. with monthly rests from the date of filing the OA, till date of realization in full along with costs.

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(b) The applicant bank is at liberty to sell the personal assets of the Defendants (both movable and immovable) to recover the balance dues as required under law for which the Defendants to disclose to the Tribunal particulars of other properties or assets owned by the Defendants.

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OA amount together with interest, costs etc., to be paid by the Defendants 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, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

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(d) The applicant bank shall file memo of costs within ten days

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from the date of this final order.

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(e) 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 (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 22^nd day of July, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mrs. Gowri Ramachandran, Constituted Attorney representing the Applicant Bank

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T.A. No. 1373 of 2023

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	Loan application form.	A-1
2.	Receipt issued by the dealer M/s India Garage dated 17.09.2014.	A-2
3.	Demand Promissory note dated 26.09.2014.	A-3
4.	Installment Letter dated 26.09.2014.	A-4
5.	Bearer letter dated 26.09.2014.	A-5
6.	Composite loan document dated 26.09.2014.	A-6
7.	Hypothecation cum loan agreement dated 26.09.2014.	A-7
8.	Deed of guarantee executed by the 2^nddefendant dated 26.09.2014.	A-8
9.	Copy of the pay order issued by the Applicant dated 26.09.2014.	A-9
10.	VAT invoice issued by the dealer M/s India Garage dated 29.09.2014.	A-10
11.	Acknowledgment of debt and securities dated 20.09.2017.	A-11
12.	Statement of Account.	A-12

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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

Bank of India v. Raveendran

Case brief

What is this about?

What did the court decide?

Bank of India v. Raveendran

Case brief

What is this about?

What did the court decide?

What the court decided

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