Allowed

Uco Bank v. M/s Gee Dewatering Systems

DRT22 Apr 2025TA/1416/2023

Case brief

AI extract

What is this about?

The tribunal allowed the bank's application under RDB Act for recovery of outstanding dues against non-performing assets. Being an ex-parte order, the court found the bank's evidence unchallenged and granted recovery of the principal, interest, costs, and liberty to sell assets.

What did the court decide?

Recovery of Rs.40,64,963/- along with interest and costs; liberty to sell assets; issuance of recovery certificate.

Uco Bank versus M/s Gee Dewatering Systems — Banking and Recovery | DRT (2025)

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T.A. No. 1416 of 2023

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22.04.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 22^nd day of April, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICAION No. 1416 of 2023

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(Originally filed before DRT- II, Chennai as OA 304/2020 and thereafter transferred to this Tribunal

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and renumbered as TA No.1416 of 2023)

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UCO Bank,

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Triplicane Branch, Old No.42, New No.93 Bharthi Salai, Triplicane

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Chennai – 600 005

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Represented by its Senior Manager

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… Applicant

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-Vs-

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M/s. Gee Dewatering Systems, Represented by its Proprietor, Narayan Taparia, No.80/14, 2nd Floor, Sembudoss Street, Mannady, Chennai – 600 001.

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Narayan Taparia No.75, Iyyappa Chetty Street, Mannady, Chennai – 600 001. … Defendant

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Counsels on record / appeared:

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Counsel for Applicant : M/s Kvp Mary Femimma

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Defendants were set ex-parte on 09.03.2022

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: - FINAL ORDER - :

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This Original Application is filed on 20.03.2020 by the Applicant Bank

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under Section 19 (1) of Recovery of Debts and Bankruptcy Act, 1993

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T.A. No. 1416 of 2023

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22.04.2025

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the Defendants for recovery of a total sum of Rs.40,64,963/- (Rupees Forty Lakhs Sixty Four Thousand Nine Hundred and Sixty Three only) as follows:

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(i) a sum of Rs.19,28,741/- due in respect of Term Loan I

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(Loan Account No. 07830610081594) together with interest at the rate of 9.25% p.a. calculated at monthly rests from the date of application till the date of realisation;

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(ii) a sum of Rs.16,14,520/- due in respect of Term Loan II (Loan Account No. 07830610083765) together with interest at the rate of 10.55% p.a. calculated at monthly rests from the date of application till the date of realisation;

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(iii) a sum of Rs.5,21,702/- due in respect of Cash Credit facility (Loan Account No. 07830510000328) together with interest at the rate of 10.55% p.a. calculated at monthly rests from the date of application till the date of realisation and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned

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OA No.304 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.304 of 2020 stood transferred to this Tribunal and renumbered as TA No.1416/2023.

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Brief Facts of the case:

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T.A. No. 1416 of 2023

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22.04.2025

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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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It is the case of the Applicant Bank that the Defendant had approached the Applicant Bank seeking financial assistance for his business purpose by submitting his Loan application on 07.09.2017.

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It is submitted that considering the documents submitted by the Defendant, the Applicant Bank has sanctioned the Term Loan–I for a sum of Rs.25,00,000/- (Rupees Twenty Five Lakhs Only) on 12.09.2017 Vide Loan Account No.07830610081594. As per the Sanction the Loan is repayable in equated monthly installments.

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The Applicant Bank submitted that the Defendant had executed necessary documents for Term Loan – I on 12.09.2017 and 18.09.2017 for an amount of Rs.25,00,000/- and agreed to pay interest at the rate of 8.45% per annum.

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It is further submitted by the Applicant Bank that the Defendant has executed the following documents for Term Loan – I for an amount of Rs.25,00,000/-:

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i. Composite Deed of Hypothecation dated 12/09/2017

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T.A. No. 1416 of 2023

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22.04.2025

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ii. Promissory note dated 18/09/2017

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iii. Agreement relating to Term Loan dated 18/09/2017

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It is the further case of applicant bank that the Defendant had subsequently approached the Applicant Bank for another Term Loan and Cash Credit Facility for his business purpose by submitting his Loan application on 04.12.2017.

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It is submitted by applicant bank that based on the documents submitted by the Defendant, the Applicant Bank has sanctioned the Term Loan–II for a sum of Rs.19,00,000/- (Rupees Nineteen Lakhs Only) on 04.12.2017 Vide Loan Account No.07830610083765. As per the Sanction the Loan was repayable in 60 equated monthly installments of Rs.42,505/- each and the Applicant Bank has also sanctioned the Cash Credit facility for a sum of Rs.6,00,000/- (Rupees Six Lakhs Only) on 04.12.2017 Vide Loan Account No.07830510000328.

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The Applicant Bank submitted that the Defendant had executed the necessary documents for Term Loan – II & Cash Credit Facility on 04.12.2017 and agreed to pay interest at the rate of 8.45% per annum. The Defendant had executed the following documents for Term Loan – II & Cash Credit Facility on 04.12.2017:-

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i. Promissory note for an amount of Rs.19,00,000/-

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T.A. No. 1416 of 2023

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22.04.2025

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ii. Agreement relating to Term Loan for an amount of Rs.19,00,000/-

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iii. Promissory note for an amount of Rs.6,00,000/-

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iv. Agreement relating to Hypothecation of Good to secure a Demand Cash Credit for an amount of Rs.6,00,000/-

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v. Composite Deed of Hypothecation for an amount of Rs.25,00,000/-

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It is submitted by the Applicant Bank that subsequent to availing of the loan, the defendant had been irregular in repaying the amounts due under the said accounts and hence the account became irregular and the Loan Account has been Declared as Non Performing Asset on 30/06/2019. In spite of several demands and reminders made by the Applicant Bank, the Defendant has failed and neglected to pay the amount due for all the Loan Accounts. When matters stood thus, the Applicant issued a Legal notice dated 22/02/2020 to the Defendant demanding the outstanding amount for the Loan account Viz. Term Loan-I, Term Loan-II and the Cash Credit facility. The notices sent to the Defendant’s Office address has been RETURNED with the endorsement “No such Person” and the Notice Sent to the Residential Address of the Defendant has been "SERVED". In spite of receiving the said notice, the defendant had deliberately failed to repay the loan amount. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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T.A. No. 1416 of 2023

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22.04.2025

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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, which was duly served. When OA was taken up on 09.03.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants were placed ex-parte on 09.03.2022.

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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, Mr. D. Balaji, Senior Manager, Triplicane Branch representing the Applicant Bank, has filed his Affidavit by way of evidence and same was considered as evidence of AW1 and list of documents came to be marked as Ex A-1 to A-20 . 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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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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15. 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 total sum of Rs.40,64,963/- (Rupees Forty

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T.A. No. 1416 of 2023

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22.04.2025

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Lakhs Sixty Four Thousand Nine Hundred and Sixty Three

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only) as follows:

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(i) a sum of Rs.19,28,741/- due in respect of Term Loan

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I (Loan Account No. 07830610081594) together with interest at the rate of 9.25% p.a. calculated at monthly rests from the date of application till the date of realisation;

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(ii) a sum of Rs.16,14,520/- due in respect of Term Loan

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II (Loan Account No. 07830610083765) together with interest at the rate of 10.55% p.a. calculated at monthly rests from the date of application till the date of realisation;

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(iii) a sum of Rs.5,21,702/- due in respect of Cash Credit

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facility (Loan Account No. 07830510000328) together with interest at the rate of 10.55% p.a. calculated at monthly rests from the date of application till the date of realisation in full along with costs.

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

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OA amount together with interest, costs etc., to be paid by the

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T.A. No. 1416 of 2023

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22.04.2025

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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) Applicant bank shall file memo of costs within ten days 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 PS, transcribed by her, corrected, signed and pronounced by me on this the 22^nd day of April, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. D. Balaji, Senior Manager, Triplicane Branch representing the Applicant Bank

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T.A. No. 1416 of 2023

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22.04.2025

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	07/09/2017	Loan Application for Term Loan-I	A-1
2.	12/09/2017	Composite Deed of Hypothecation	A-2
3.	18/09/2017	Promissory Note executed by the Defendant in favour of the Applicant Bank.	A-3
4.	18/09/2017	Agreement relating to Term Loan executed by the Defendant in favour of the Applicant Bank.	A-4
5.	04/12/2017	Loan Application for Term Loan II & Cash Credit	A-5
6.	04/12/2017	Sanction Letter	A-6
7.	04/12/2017	Promissory Note executed by the Defendant in favour of the Applicant Bank.	A-7
8.	04/12/2017	Agreement relating to Term Loan executed by the Defendant in favour of the Applicant Bank.	A-8
9.	04/12/2017	Promissory Note executed by the Defendant in favour of the Applicant Bank.	A-9
10.	04/12/2017	Agreement relating to Hypothecation of Goods to secure a Demand Cash Credit.	A-10
11.	04/12/2017	Composite Deed of Hypothecation	A-11
12.	22/02/2020	Copy of the Legal Notice – Term Loan I	A-12
13.		Acknowledgement Card & Returned Cover.	A-13
14.	22/02/2020	Copy of the Legal Notice – Term Loan II	A-14
15.		Acknowledgement Card & Returned Cover	A-15
16.	22/02/2020	Copy of the Legal Notice–Cash Credit	A-16
17.		Acknowledgement Card & Returned Cover	A-17
18.		Statement of Accounts for Term Loan-I	A-18
19.		Statement of Accounts for Term Loan-I	A-19

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T.A. No. 1416 of 2023

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22.04.2025

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Statement of Accounts for Cash Credit A-20 Facility

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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

Uco Bank v. M/s Gee Dewatering Systems

Case brief

What is this about?

What did the court decide?

Uco Bank v. M/s Gee Dewatering Systems

Case brief

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