Allowed

Bank of India v. M/S Win Tech Cnc

DRT1 Aug 2025TA/1730/2023

Case brief

AI extract

What is this about?

In an ex-parte application, the DRT allowed the bank's claim for recovery of dues aggregating Rs.27.53 lakhs from a company and its proprietor/guarantor under the RDB Act, directing further interest and sale of hypothecated assets if unpaid.

What did the court decide?

Recovery of Rs.27.53 lakhs plus interest from the defendants; liberty to sell hypothecated and personal assets for balance dues; issuance of Recovery Certificate.

Bank of India versus M/S Win Tech Cnc — Banking and Recovery | DRT (2025)

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T.A. No. 1730 of 2023

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01.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 01^st day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 1730 of 2023

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(Originally filed before DRT- II, Chennai as OA 991/2019 and thereafter transferred to this Tribunal and renumbered as TA No 1730 of 2023)

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Bank of India, Guindy Branch, Rep. by its Chief Manager #111, Mount View, Mount Road, Guindy, Chennai – 600 032. ….Applicant

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-Vs-

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M/s. WIN TECH CNC

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Rep. by its Proprietor

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No.80/36, Dhanakotti Raja Street,

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Ekkattuthangal, Chennai – 600032.

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Mr. T. Kamaraj,

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S/o. Mr. Thangavel,

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No.39, Kamatchi Amman Nagar,

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South Colony, Mangadu,

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Chennai – 600 122. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. B. Siva Kollapan

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Defendants 1 and 2 were set ex-parte on 30.07.2021

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: - FINAL ORDER - :

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This Original Application is filed on 10.10.2019 by the applicant

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bank under Section 19 (1) 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

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recovery of a total sum of Rs.27,53,524/- (Rupees Twenty Seven

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T.A. No. 1730 of 2023

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Lakhs Fifty Three Thousand Five Hundred and Twenty Four

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Only) as follows:

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(i) A sum of Rs.4,29,751/- due in respect of Cash Credit Facility (A/c No.801130110000131) repayable together with further interest @ 11%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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(ii) A sum of Rs.23,23,773/- due in respect of Term Loan Facility (A/c No.801177710000006) repayable together with further interest @ 11%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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for sale of movable hypothecated properties more fully detailed in Schedule to the OA and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.991 of 2019, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.991 of 2019 stood transferred to this Tribunal and renumbered as TA No.1730 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 pursuant to the request

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of the Defendants, the Cash Credit facility to the tune of Rs.3,80,000/was sanctioned to the defendants vide Sanction Letter dated 17.02.2017, subject to the terms and conditions as envisaged under the Loan Agreement dated 18.02.2017 executed by the 1^st defendant through its Proprietor 2^nd Defendant. The defendants have guaranteed for the repayment of the aforesaid loan amount.

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It is submitted by the Applicant Bank that the Cash Credit Facility was sanctioned by the bank with rate of interest being 2.80% over base rate presently at 10.80% p.a.

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In evidence of availing the credit facilities and as security thereof, the defendants have executed the following loan documents:

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a) Loan Application dated 14.02.2017;

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b) Sanction Letter dated 17.02.2017;

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c) Hypothecation cum Loan Agreement (Plant and Machinery, Stocks and Books Debts) dated 18.02.2017 executed by the 1^st defendant through its Proprietor 2^nd Defendant;

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d) Demand Promissory Note for Rs.3,80,000/dated

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18.02.2017 executed by the 1^st Defendant through its Proprietor 2^nd Defendant;

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e) Bearer Letter dated 18.02.2017 executed by the 1^st Defendant through its Proprietor 2^nd Defendant;

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f) Draft Declaration dated 18.02.2017 executed by 1^st Defendant through its Proprietor 2^nd Defendant;

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g) Letter of Undertaking dated 18.02.2017 executed by 1^st

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Defendant through its Proprietor 2^nd Defendant;

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h) Letter of Multiple Undertaking dated 18.02.2017 executed by 1^st Defendant through its Proprietor 2^nd Defendant.

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It is further submitted by the Applicant Bank that pursuant to the

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request of the defendants, the Term Loan facility to the tune of Rs.35,30,000/- was also sanctioned to the defendants vide sanction letter dated 17.02.2017, subject to the terms and conditions as envisaged under the Loan Agreement dated 18.02.2017 executed by the 1^st defendant through its Proprietor 2^nd Defendant. The Defendants have guaranteed for the repayment of the due to the aforesaid loan amount.

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The Applicant Bank further states that the Term Loan Facility was sanctioned by the bank with rate of interest being 2.80% over base rate presently at 10.80% p.a.

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In evidence of availing the credit facilities and as security thereof, the defendants have executed the following loan documents on: a) Hypothecation cum Loan Agreement (Plant and Machinery. Stocks and Book Debts) dated 18/02/2017 executed by the 1^st defendant through its Proprietor 2^nd Defendant;

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b) Demand Promissory Note for Rs.35,30,000/dated 18/02/2017 executed by the 1^st Defendant through its Proprietor 2^nd Defendant;

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c) Bearer Letter dated 18/02/2017 executed by the 1^st

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Defendant through its Proprietor 2^nd Defendant;

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d) Instalment Letter dated 18/02/2017 executed by the 1^st Defendant through its Proprietor 2^nd Defendant;

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e) Draft Declaration dated 18/02/2017 executed by 1^st Defendant through its Proprietor 2^nd Defendant;

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f) Letter of Undertaking dated 18/02/2017 executed by 1^st Defendant through its Proprietor 2^nd Defendant;

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g) Letter of Multiple Undertaking dated 18/02/2017 executed by 1^st Defendant through its Proprietor 2^nd Defendant.

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It is submitted by the Applicant Bank that the defendants herein have executed the above loan documents thereby acknowledging the said loan amount availed from the applicant bank. The defendants had undertaken to repay the loan amounts in time without committing any default.

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Applicant Bank submits that subsequent to availing of loan, inspite of repeated demands and several reminders made, the defendants failed to repay the balance of the liability owed by them to the Applicant Bank under the aforesaid credit facility. Consequently, the loan accounts of the defendants have been classified as NonPerforming Assets(NPA) on 31.05.2019 in terms of the directives of Reserve Bank of India. As defendants did not come forward to repay the dues, the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from defendants.

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After the filing of the OA, summons were sent to Defendants 1 and 2 through Registered Post with Acknowledgment Due, which was duly served. When OA was taken up on 30.07.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 30.07.2021.

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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, Sh. Seera Srihari Rao, Chief Manager representing 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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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

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T.A. No. 1730 of 2023

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Defendants jointly and severally a total sum of Rs.27,53,524/-

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(Rupees Twenty Seven Lakhs Fifty Three Thousand Five

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Hundred and Twenty Four Only) as follows:

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(i) A sum of Rs.4,29,751/- due in respect of Cash

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Credit Facility (A/c No.801130110000131) repayable together with further interest @ 11%, p.a., with monthly rests from the date of filing the OA till date of realization in full;

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(b) In the event of failure of the defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule mentioned hypothecated movables more fully detailed in the OA.

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(d) If the sale proceeds of the hypothecated assets are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2^nd Defendant (both movable and immovable) to recover the balance dues as required

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under law for which the 2^nd Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 2^nd Defendant.

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

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(g) 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/-

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(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Deepika), transcribed by her, corrected, signed and pronounced by me on this the 01^st day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Seera Srihari Rao, Chief Manager 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.	Loan Application Form dated 14.02.2017.	A-1
2.	Sanction letter dated 18.02.2017.	A-2
3.	Hypothecation cum Loan Agreement (Plant and Machinery, Stocks and Book Debts)executed by the 1^stdefendant through its Proprietor 2^nd Defendant dated 18.02.2017.	A-3
4.	Demand Promissory Note for Rs.3,80,000/- executed by the 1^stDefendant through its Proprietor 2^ndDefendant dated 18.02.2017.	A-4
5.	Bearer Letter executed by the 1^stDefendant through its Proprietor 2^ndDefendant (L435) dated 18.02.2017.	A-5
6.	Draft Declaration executed by 1^stDefendant through its Proprietor 2^ndDefendant (L515) dated 18.02.2017.	A-6
7.	MCLR Agreement executed by 1^stDefendant through its Proprietor 2^ndDefendant dated 18.02.2017.	A-7
8.	Letter of Multiple Undertaking executed by 1^st Defendant through its Proprietor 2^ndDefendant dated 18.02.2017.	A-8
9.	Hypothecation cum Loan Agreement (Plant and Machinery, Stocks and Book Debts) executed by the 1^stdefendant through its Proprietor 2^nd Defendant dated 18.02.2017.	A-9
10.	Demand Promissory Note for Rs.35,30,000/- executed by the 1^stDefendant through its Proprietor 2^ndDefendant dated 18.02.2017.	A-10
11.	Bearer Letter executed by the 1^stDefendant through its Proprietor 2^ndDefendant (L435) dated 18.02.2017.	A-11
12.	Instalment Letter executed by the 1^stDefendant through its Proprietor 2^ndDefendant (L440) dated 18.02.2017.	A-12
13.	Draft Declaration executed by 1^stDefendant through its Proprietor 2^ndDefendant (L515) dated 18.02.2017.	A-13
14.	MCLR Agreement executed by 1^stDefendant through its Proprietor 2^ndDefendant dated 18.02.2017.	A-14
15.	Letter of Multiple Undertakings executed by 1^st Defendant through its Proprietor 2^ndDefendant	A-15

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T.A. No. 1730 of 2023

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(L516) dated 18.02.2017. 16. Statement of Accounts dated 18.02.2017 to A-16 30.09.2019.

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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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ANNEXURE I

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SCHEDULE OF ASSETS (MOVABLES)

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S.No.	Description of Machinery	No. Of Machineries
1.	CNC Wire cut EDM Machine	2
2.	EDM Drill Machine	1
3.	20KVA 3 Phase Air Cooled Transformer (Copper Winding)	3

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Sd/-

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(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

Bank of India v. M/S Win Tech Cnc

Case brief

What is this about?

What did the court decide?

Bank of India v. M/S Win Tech Cnc

Case brief

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