Allowed

Karur Vysya Bank v. M/S Nowsea Traders

DRT11 Aug 2025TA/205/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Applicant Bank's recovery claim against defaulting borrowers and guarantors. The Court sanctioned recovery of the principal sum with interest and costs, permitting subsequent asset sale if dues remain unpaid.

What did the court decide?

Recovery of Rs.62,23,809.95 plus interest at 17.25% p.a. and costs from defendants jointly and severally; liberty to sell mortgaged property upon default.

Karur Vysya Bank versus M/S Nowsea Traders — Banking and Recovery | DRT (2025)

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T.A. No. 205 of 2023

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11.08.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 11^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No. 205 of 2023

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(Originally filed before DRT- II, Chennai as OA 186/2021 and thereafter transferred to this Tribunal and renumbered as TA No 205 of 2023)

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The Karur Vysya Bank Ltd., Asset and Recovery Branch, Represented by its Chief Manager, 2^nd Floor, No. 1, Padmavathiyar Road, Gopalapuram, Chennai – 600 086.

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…. Applicant

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-Vs-

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M/s. Nowsea Traders,

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Rep. by its Proprietor Mr. F. Shamsudeen,

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No. 17, Railway Station Road,

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Korattur, Chennai – 600 080.

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Also at:

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M/s. Nowsea Traders,

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Rep. by its Proprietor Mr. F. Shamsudeen, Door No. 45/90, Pulianthope High Road, Pulianthope, Chennai – 600 012.

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Mr. F. Shamsudeen, S/o. Mr. Fakkir Mohammed,

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Door No. 45/90, Pulianthope High Road,

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Pulianthope, Chennai – 600 012.

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Mr. A. Shaik Mohammed Sahubar Ali, S/o. Mr. N.V. Abdul Kader, Door No. 118/26, Ramasamy Street,

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Mannady, Chennai – 600 001. ….Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Arunbabu Defendants 1 to 3 were set ex-parte on 28.04.2022

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T.A. No. 205 of 2023

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11.08.2025

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: - FINAL ORDER - :

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This Original Application is filed on 28.01.2021 by the Applicant 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 to 3, jointly and severally for recovery of a total sum of Rs.62,23,809.95p (Rupees Sixty Two Lakhs Twenty Three Thousand Eight Hundred and Nine and Ninety Five Paise only) due in respect of Business Loan (Account No. 1257280000000556) together with further interest @ 17.25% 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 Original Application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No. 186 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No. 186 of 2021 stood transferred to this Tribunal and renumbered as TA No.205 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 first defendant M/s.

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T.A. No. 205 of 2023

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11.08.2025

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Nowsea Traders, represented by its Sole-Proprietor Mr. F. Shamudeen approached the applicant bank in the year 2014 and requested for an SODRE (Secured Over Draft Real Estate) facility for a sum of Rs. 25,00,000/- (Rupees Twenty Five Lakhs) for its business purposes.

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It is submitted by the applicant bank that considering the request of defendants, applicant bank had sanctioned the said sum of Rs. 25,00,000/- (Rupees Twenty Five Lakhs) vide a credit sanction intimation dated 21.01.2014. The said loan is repayable in 12 months together with an interest @ 14.25% p.a. with monthly rests or at such rates and rests as may be revised by the bank from time to time. The first defendant executed the following necessary loan documents on 21.01.2024 in favour of applicant bank:

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Demand Promissory Note

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Agreement for secured overdraft – fixed assets

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It is further submitted that the third defendant stood as Guarantor and executed an Agreement of Guarantee dated 21.01.2024 towards the loan availed by the first defendant. Further, to that the third defendant had also mortgaged his property at Numbal Village vide a Form of Memorandum of Registration dated 21.01.2014 registered as Doc. No. 558/2014 as a security towards the loan availed by the first defendant which is morefully described in the schedule hereunder.

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The Applicant submits that even though the defendants had executed necessary documents towards the loan availed, the repayment

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T.A. No. 205 of 2023

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11.08.2025

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towards the said loan was highly irregular. Despite various demands and reminders made by the applicant bank, the defendants had failed and neglected to repay the dues. Hence the account had become NonPerforming Asset (NPA) on 30.09.2015 as per the RBI norms. The Applicant submits that since the account turned NPA, the applicant bank had initiated SARFEASI proceedings by issuing Demand Notice to the defendants on 17.12.2016 demanding their outstanding dues. The applicant bank had also taken symbolical possession of the property by issuing Possession Notice to the defendants on 06.11.2017. Even after repeated reminders made by the applicant bank, the defendants had failed and neglected to repay the amount due. Hence, 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 the Defendants 1 to 3 through Registered Post with Acknowledgment Due, which returned unserved with postal endorsement as ‘unclaimed’ in respect of D-1, ‘No such person’ in respect of D-2 and ‘Door Locked’ in respect of D-3. Applicant Bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 28.04.2022 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 to 3 were placed ex-parte on 28.04.2022.

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T.A. No. 205 of 2023

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11.08.2025

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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. P.S. Sundaravarathan, Chief Manager, Asset and Recovery Branch 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-9 . 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 Defendants jointly and severally for recovery of a total sum of Rs.62,23,809.95p (Rupees Sixty Two Lakhs Twenty Three Thousand Eight Hundred and Nine and Ninety Five Paise only) due in respect of Business Loan (Account No. 1257280000000556) together with further interest @ 17.25% p.a., with monthly rests from the date of Application till the date of realization in full, along with costs of this

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T.A. No. 205 of 2023

11.08.2025

application.

(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 morefully detailed in the OA schedule.

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

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(f) 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 11^th day of August, 2025)

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T.A. No. 205 of 2023

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ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Sh. P.S. Sundaravarathan, Chief Manager of 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.	21.01.2014	Credit Sanction Intimation	A-1
2.	21.01.2014	Demand Promissory Note	A-2
3.	21.01.2014	Agreement of Secured Overdraft – Fixed Assets	A-3
4.	21.01.2014	Agreement of Guarantee	A-4
5.	21.01.2014	Form of Memorandum for Registration registered as Doc. No. 558/2014	A-5
6.	03.10.2013	Sale deed registered as Doc. No. 13571/2023	A-6
7.	17.12.2016	Demand Notice	A-7
8.	06.11.2017	Possession Notice	A-8
9.	--	Statement of Accounts.	A-9

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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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Property of Mr. A. Shaik Mohammed Sahubar Ali:

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All that piece and parcel of land bearing Plot No. 20, admeasuring an extent of 2000 Sq.ft. comprised in S.No. 121/1, situated at Numbal Village, Ambattur Taluk previously Saidapet Taluk, Thiruvallur District within the Thiruverkadu Town Panchayat limit, situated within the SubRegistration District of Kundrathur and Registration District of Chennai – South and bounded on the:

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North by : 20 feet wide layout road South by : Plot No. 3

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T.A. No. 205 of 2023

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11.08.2025

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East by : Plot No. 21 West by : Plot No. 19

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Measuring:

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North to South on the Eastern side

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North to South on the Western side

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East to West on the Northern side

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East to West on the Southern side Totally measuring 200 Sq.ft.

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: 50 Feet

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: 50 Feet

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: 40 Feet : 40 Feet

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Sd/-

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

Karur Vysya Bank v. M/S Nowsea Traders

Case brief

What is this about?

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Karur Vysya Bank v. M/S Nowsea Traders

Case brief

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What did the court decide?

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