Allowed

State Bank of Indore v. Ms Kamala Modern Rice Mill

DRT16 Jun 2025TA/202/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of dues totaling Rs. 3.09 crores against the respondents jointly and severally, including interest, postnominating the sale of mortgaged property for recovery.

What did the court decide?

Recovery of Rs. 3,09,20,593/- with interest; liberty to sell schedule property and personal assets of 2nd defendant for balance dues.

State Bank of Indore versus Ms Kamala Modern Rice Mill — Insurance | DRT (2025)

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T.A. No. 202 of 2023

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16.06.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 16^th day of June, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 202 of 2023

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(Originally filed before DRT- II, Chennai as OA 101/2021 and thereafter transferred to this Tribunal and renumbered as TA No 202 of 2023)

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STATE BANK OF INDIA Asset Recovery Management, No.44, Eldams Road, Teynampet, Chennai 600 018 Rep. by its Manager ….Applicant

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-Vs-

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M/s Kamalam Modern Rice Mill, Rep. by its Prop. L.S. Baskar, S/o Late Subba Naidu,

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No.58, Singalimedu Village, Tadaperumbakkam Village, Ponneri Taluk, Thiruvallur District.

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Mr. L.S. Baskar, S/o Late Subba Naidu, Residing at No.58, Singalimedu Village, Tadaperumbakkam Village, Ponneri Taluk, Thiruvallur District. …Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Suresh Law Associates

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Defendants 1 and 2 were set ex-parte on 27.09.2022

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: - FINAL ORDER - :

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This original application is filed on 02.02.2021 by the applicant bank

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

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Recovery of Debts Due to Banks and Financial Institutions Act, 1993)

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T.A. No. 202 of 2023

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16.06.2025

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against the defendants 1 and 2, jointly and severally for recovery of a total sum of Rs.3,09,20,593/- (Rupees Three Crores Nine Lakhs Twenty Thousand Five Hundred and Ninety Three only) as follows:

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(i) A sum of Rs.1,66,26,732/- due in respect of Cash Credit

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Loan (Account No.37097822822) repayable together with further interest @ 17% p.a. with monthly rests from the date of application till the date of realisation in full;

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(ii) A sum of Rs.1,42,93,861/- due in respect of Term Loan (Account No.37117567850) repayable together with further interest @ 15.35% p.a. with monthly rests from the date of Application till the date of realization in full, for sale of scheduled mentioned immovable property and for costs of this OA.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.101 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.101 of 2021 stood transferred to this Tribunal and renumbered as TA No.202 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 Hon’ble Tribunal.

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T.A. No. 202 of 2023

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16.06.2025

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It is the case of applicant bank that the loan accounts of the defendants herein, which was sanctioned and availed from State Bank of India, Ponneri Branch, and Chennai, which was subsequently the loan account was transferred to State Bank of India, ARMB, Teynampet, Chennai 600 018.

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It is submitted by applicant bank that the 1^st defendant, who is engaged in the business as Modern Rice Mill, approached the applicant and submitted a proposal seeking for credit facilities. The applicant considered the same and sanctioned Cash Credit Loan of Rs.1,25,00,000/- and Term Loan of Rs.1,50,00,000/- on 28.08.2017.

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It is further submitted by applicant bank that in evidence of availing and as security, the defendants executed the following documents:

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a) Letter of arrangement dated 28.08.2017 executed by the 1^st defendant.

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b) Agreement of Loan cum Hypothecation dated 28.08.2017 executed by the 1^st defendant.

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c) Guarantee Agreement dated 28.08.2017 executed by the 2^nd defendant

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d) Letter of confirmation dated 17.08.2017 executed by the 2^nd defendant

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e) Memorandum relating to Deposit of Title Deeds dated 17.08.2017

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executed by 2^nd defendant.

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f) Letter of confirmation for creation of Mortgage by Deposit of Title Deeds dated 29.08.2017 executed by the 2^nd defendant.

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It is submitted that the defendants again approached the applicant and submitted a proposal seeking for enhancement of credit facilities. Considering the same, the applicant enhanced the credit facilities as follows by the Letter of Arrangement dated 29.04.2017:

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a) Letter of arrangement dated 29.04.2019 executed by the 1^st defendant

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b) Balance Confirmation Certificate dated 29.04.2019 executed by the 1^st defendant.

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c) Demand Promissory note dated 29.04.2019 executed by the 1^st defendant.

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d) Revival letter dated 29.04.2019 executed by the defendants.

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The Applicant further submits that subsequent to availing of loan, the defendants failed to repay the balance of the liability owed by them to the applicant bank under the aforesaid credit facilities, in spite of repeated demands and several reminders made. Consequently, the loan accounts of the defendants has been classified as NPA on 28.12.2019 in terms of the

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directives of RBI. Hence the present Original Application (OA) is filed for recovery of amounts due from defendants.

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T.A. No. 202 of 2023

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16.06.2025

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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 served. Although defendants entered appearance through their counsel, however did not choose to file any written statement, despite availing substantial adjournments. When OA was taken up on 27.09.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed ex-parte on 27.09.2022.

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Heard the submissions of Applicant Bank and perused the

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records

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To prove the case of the Applicant Bank, Sh. Ranjeeth Kumar, City Case officer 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-15 . 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 :

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.3,09,20,593/- (Rupees

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Three Crores Nine Lakhs Twenty Thousand Five Hundred and

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Ninety Three only) as follows:

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(i) A sum of Rs.1,66,26,732/- due in respect of Cash Credit Loan (Account No.37097822822) repayable together with further interest @ 17% p.a. with monthly rests from the date of application till the date of realisation in full;

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(ii) A sum of Rs.1,42,93,861/- due in respect of Term

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Loan (Account No.37117567850) repayable together with further interest @ 15.35% p.a. with monthly rests from the date of Application till the date of realization in full, along with costs of this application;

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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 immovable property more fully detailed in the OA schedule.

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(d) If the sale proceeds of the immovable property is not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the 2^nd Defendants (both movable and immovable) to recover the balance dues as required 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 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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(f) The applicant bank shall file memo of costs within ten days from the date 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/(S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI

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(Dictated to Steno (Mogesh), transcribed by him, corrected, signed and pronounced by me on this the 16^th day of June, 2025)

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T.A. No. 202 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. Ranjeeth Kumar, City Case officer of 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	A-1
2.	Letter of Agreement 28.08.2017	A-2
3.	Agreement of Loan cum Hypothecation 28.08.2017	A-3
4.	Guarantee Agreement executed by the 2^nd defendant 28.08.2017	A-4
5.	Letter of confirmation 17.08.2017	A-5
6.	Memorandum Relating to Deposit of Title Deeds (Doc.No.3791 of 2017) 17.08.2017	A-6
7.	Letter of confirmation for creation of Mortgage by Deposit of Title Deeds 29.08.2017	A-7
8.	Sale deed executed by R.Shankar infavor of L.S. Baskar (Doc.No.392/1992) 13.02.1992	A-8
9.	Letter of Arrangement 29.04.2019	A-9
10.	Balance confirmation 29.04.2019	A-10
11.	Demand Promissory Note 29.04.2019	A-11
12.	Revival Letter 29.04.2019	A-12
13.	Section 13(2) Notices 18.01.2020	A-13
14.	Statement of Account and Certificate under Banker’s Book Evidence Act, 1891 28.08.2017 to 21.01.2021	A-14
15.	Statement of Account and Certificate under Banker’s Book Evidence Act, 1891 28.08.2017 to 21.01.2021	A-15

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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 OF PROPERTY-:

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All that piece and parcel of site totally measuring an extent of Acre.

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1.91 comprised in Survey No.287/5, an extent measuring 0.32 cents S.No.316/2C, an extent measuring Acre 1.59 comprised in Patta No.615, along with Rice Mill Godown and Labor Room thereon measuring 5832 sq.ft and 943 sq.ft respectively, totally measuring 6775 sq.ft. along with Electricity service Connection bearing No.083:002:848 and 083:002:869 along with all machineries there in, assessed to tax by the Thandaperumbakkam Ooratchi, in all situated at No.58, Thandaperumbakkam Village, Ponneri Taluk, Thiruvallur district, situated within the Registration District of North Chennai and Registration Sub District of Ponneri.

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

State Bank of Indore v. Ms Kamala Modern Rice Mill

Case brief

What is this about?

What did the court decide?

State Bank of Indore v. Ms Kamala Modern Rice Mill

Case brief

What is this about?

What did the court decide?

What the court decided

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