Allowed

State Bank of India v. M/S Print Maax

DRT25 Nov 2025TA/1582/2023

Case brief

AI extract

What is this about?

State Bank of India filed an Original Application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 against a sole proprietorship firm and its proprietor for the recovery of outstanding term loans aggregating approximately Rs. 23.46 lakhs along with interest and penal charges. The defendants were tried ex-parte and failed to appear or contest the claims. The Tribunal, upon unchallenged evidence including loan agreements, sanction letters, and account statements, allowed the application and ordered the recovery of the specified amounts with compound interest and penal interest.

What did the court decide?

Recovery of Rs. 23,45,767 comprising principal and interest from two term loan accounts along with 2% penal interest from the date of filing of the application till realization, with costs.

State Bank of India versus M/S Print Maax — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 1582 of 2023

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25.11.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of November, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1582 of 2023

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(Originally filed before DRT- II, Chennai as OA 454/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1582 of 2023)

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State Bank of India, SME, Ekkaduthangal Branch, No. 5, Jawaharlal Nehru Road, Ekkaduthangal, Chennai – 600 032.

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….Applicant

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-Vs-

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M/s. Print Maax,

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Rep. by its Proprietor,

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Mr. A. Edward Phelix,

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No. 24, II Floor, Velachery Main Road,

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Velachery, Chennai – 600 042.

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Mr. A. Edward Phelix, S/o. Sri Arul Doss,

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No. 14/2, Kokilam, 2^nd Street, Velachery, Chennai – 600 042. ….. Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. K.V. Subramanian Associatez Defendants 1 & 2 were set ex-parte on 27.08.2019

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: - FINAL ORDER - :

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This Original Application is filed on 15.04.2019 by the Applicant

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Bank 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 1 & 2, jointly and severally for recovery of a

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total sum of Rs.23,45,767/- (Rupees Twenty Three Lakhs Forty

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Five Thousand Seven Hundred and Sixty Seven only) as follows:

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(i) A sum of Rs.7,47,176/- due in respect of Term Loan (Account No. 67316234424) repayable together with further interest at the rate of 13.30% p.a. compound interest with monthly rests, plus 2% penal interest from the date of filing of OA till the date of realization in full;

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(ii) A sum of Rs.15,98,591/- due in respect of Term Loan (Account No. 67354668762) repayable together with further interest at the rate of 13.05% p.a. compound interest with monthly rests, plus 2% penal interest from the date of filing of OA till the date of realization in full; and for costs of this Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 454 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 454 of 2019 stood transferred to this Tribunal and renumbered as TA No.1582 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 defendant is a Sole

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25.11.2025

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Proprietorship concern with Mr. A. Edward Phelix as Proprietor, the 2^nd defendant herein, the principal borrowers.

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The Applicant submits that the defendants approached the Applicant Bank with an Application seeking loan facilities from the Velacherry Branch of State bank of Travancore. Based on the representation/application made by the Defendant, the said branch, as per the Sanction Letters dated 22.01.2015 & 06.03.2015 sanctioned an aggregate fund based limit of Rs. 21,85,000/-. For availing the said credit facilities, the defendants executed the following loan documents:

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(i) Memorandum of Agreement dated 06.03.2015 duly signed and executed by the 1^st defendant represented by the 2^nd defendant.

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(ii) Hypothecation of Agreement for Term Loan dated 06.03.2015 executed by the 1^st defendant represented by the 2^nd defendant.

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It is further submitted by the Applicant that the defendants had again approached the Velacherry Branch of State bank of Travancore with the letter dated 23.02.2016 requested for the Reschedule the Re-payment duration due to flood. The said Branch on 25.02.2016, after considering the representation made by the Defendants, sanctioned an aggregate fund based limit of Rs. 14,90,000/- to the defendants, which was duly acknowledged by the defendants.

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The Applicant submits that to avail the said facility, i.e., Term Loan limit of Rs. 14.90 lakhs, the defendants executed the following documents

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on 25.02.2016:

(i) Term Loan Agreement dated 25.02.2016 executed by the 1^st defendant represented by the 2^nd Defendant.

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(ii) Hypothecation Agreement for Term Loan dated 25.02.2016 executed by the 1^st Defendant represented by the 2^nd Defendant.

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It is further submitted by the Applicant Bank that over a period of time, the prospects of recovery of outstanding in the credit facilities seemed to be remote and the accounts came to be recognized in the Books of the Bank as Sub-standard, which did not envisage any healthy recovery prospects from these Defendant. It could be seen that these defendants had violated the terms and conditions agreed to as per the sanction terms and did not take any step to regularize the accounts and in fact these defendants are wilful defaulters and intentionally avoiding repaying the dues.

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The Applicant Bank submits that subsequent to availing of loan, the defendants failed and neglected to repay the Applicant's dues and the accounts became a Non Performing Asset (NPA) as on 31.03.2018 with respect to Cash Credit (Term loan) Facility Loan Account No. 67316234424 and Cash Credit (Term Loan) Account No. 67354668762. All the steps taken by the applicant bank including the Legal Notice dated 27.01.2016 sent to the Defendants and other notice dated 12.02.2018 sent by the applicant bank resulted in futility and there is no concrete

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action from these defendants to pay the overdue/dues. Therefore, the Applicant Bank caused the issue of a Legal Notice dated 03.12.2018 through its Counsel to the defendants to repay the loan amount. Unfortunately, there was no positive response from these defendants. Hence, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the Defendants 1 & 2 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘left / door locked’ in respect of D-1 and D-2. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 27.08.2019 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, the defendants 1 & 2 were placed ex-parte on 27.08.2019.

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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, Smt. Vinitha G, Manager of 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-13 . 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

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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 1 & 2, jointly and severally for recovery of a total sum of Rs.23,45,767/- (Rupees Twenty Three Lakhs Forty Five Thousand Seven Hundred and Sixty Seven only) as follows:

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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

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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 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 (Ponmalar), transcribed by her, corrected, signed and pronounced by me on this the 25^th day of November, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. Vinitha G, Manager representing the Applicant Bank

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Exhibits on the part of the Applicant:

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Sl. No.	Date	Description of Documents	Exhibit No.
1.	24.02.2015	Sanction Letter for Rs. 21,85,000.00	A-1
2.	06.03.2015	Sanction Letter for Rs. 21,85,000.00	A-2
3.	06.03.2015	Memorandum of Agreement for Term	A-3
		Loan executed by the 1^stdefendant

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		represented by the 2^nddefendant
4.	06.03.2015	Hypothecation of Agreement for Term Loan executed by the 1^stdefendant represented by the 2^nddefendant	A-4
5.	23.02.2016	Letter requested for the reschedule the repayment duration	A-5
6.	25.02.2016	Sanction Letter	A-6
7.	25.02.2016	Term Loan Agreement executed by the 1^stdefendant represented by the 2^nd defendant	A-7
8.	25.02.2016	Hypothecation of Agreement for Term Loan executed by the 1^stdefendant represented by the 2^nddefendant	A-8
9.	27.01.2016	Legal Notice issued to the defendants	A-9
10.	12.02.2018	Recall Notice issued by the applicant bank	A-10
11.	03.12.2018	Legal Notice issued to the defendants	A-11
12.	--	Statement of A/c. No. 67316234424	A-12
13.	--	Statement of A/c. No. 67354668762	A-13

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Witness Examined for the Defendants

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: -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

State Bank of India v. M/S Print Maax

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Print Maax

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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