Allowed

State Bank of India v. M/S Vision Next Inidia Pvt. Ltd.

DRT26 May 2025TA/353/2023

Case brief

AI extract

What is this about?

This tribunal allowed an original application filed by State Bank of India for recovery of dues amounting to Rs. 44,22,341/- against the borrower and guarantors. The tribunal held that the claim was unchallenged as the defendants were ex-parte and no contra evidence was placed on record.

What did the court decide?

The applicant bank is allowed to recover Rs. 44,22,341/- jointly and severally from the respondents along with interest and costs, with liberty to sell the schedule of property or personal assets in c

State Bank of India versus M/S Vision Next Inidia… — Contract and Commercial Disputes | DRT (2025)

¶1

T.A. No. 353 of 2023

¶2

26.05.2025

¶3

¶4

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

¶5

Dated this the 26^th day of March, 2025

¶6

Present: SMT. S.V. GOWRAMMA Presiding Officer

¶7

TRANSFERRED APPLICATION No. 353 of 2023

¶8

(Originally filed before DRT- II, Chennai as OA 115/2021 and thereafter transferred to this Tribunal and renumbered as TA No 353 of 2023)

¶9

STATE BANK OF INDIA (S.A.R.C) Small and Medium Enterprises Centre, No.157, Anna Salai, 5^th Floor, Chennai 600 002. Rep. by its Manager. ….Applicant

¶10

-Vs-

¶11

M/s Vision Next India Pvt. Ltd,

¶12

Rep. by Managing Director, Mrs. R. Devasena, Office at ‘Thiruvarangam,’

¶13

No.25/11, 1^st Floor, Ramanujam Street,

¶14

Off. Venkatnarayana Road,

¶15

T.Nagar, Chennai 600 017.

¶16

Mrs. R. Devasena, W/O Ravi AR.

¶17

No.123, Mahadevan Street,

¶18

West Mambalam, Chennai 600 033.

¶19

Mr. Ravi AR S/O A.K. Ramamurthy, No.123, Mahadevan Street,

¶20

West Mambalam, Chennai 600 033. …Defendants

¶21

Counsels on record / appeared:

¶22

Counsel for Applicant : M/s. Suresh Law Associates

¶23

Defendants 1 to 3 were set ex-parte on 19.05.2022

¶24

: - FINAL ORDER - :

¶25

This original application is filed on 18.02.2021 by the applicant

¶26

bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993

¶27

T.A. No. 353 of 2023

¶28

¶29

26.05.2025

¶30

(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.44,22,341/- (Rupees Forty Four Lakhs Twenty Two Thousand Three Hundred and Forty One Only) as follows:

¶31

(i) A sum of Rs.42,91,673/- (Rupees Forty Two Lakhs Ninety One Thousand Six Hundred and Seventy Three Only) due in respect of Cash Credit Facility (Account No.31636427699) together with further interest @ 9.85% p.a. compounded with monthly rests from the date of filing the OA till date of realization in full;

¶32

(ii) A sum of Rs.1,30,668/- (Rupees One Lakh Thirty Thousand Six Hundred and Sixty Eight Only) due in respect of Working Capital Loan (Account No.36770852112) together with further interest @ 12.80% p.a. compounded with monthly rests from the date of filing the OA till the date of realization in full,

¶33

and for sale of scheduled mentioned property immovable property and hypothecated assets morefully detailed in Schedule to the OA and for costs of this Application.

¶34

Originally, this Application was filed before DRT-II, Chennai, assigned OA No.115 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.115 of 2021 stood transferred to this Tribunal and renumbered as TA No.353 of 2023.

¶35

Brief Facts of the case:

¶36

T.A. No. 353 of 2023

¶37

¶38

26.05.2025

¶39

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.

¶40

It is the case of the Applicant bank that the 1^st defendant is borrower. The 2^nd defendant is Managing Director of the 1^st defendant. The 3^rd defendant is Director of the 1^st defendant. The 2^nd and 3^rd defendants are guarantors of the 1^st defendant. 1^st defendant is carrying on business and for the purpose of business, the 1^st Defendant approached the applicant and submitted a proposal seeking for various credit facilities.

¶41

It is submitted by applicant bank that considering the said request, the Applicant sanctioned the following credit facilities on 04.02.2011.

¶42

Nature of facility	Limit (in Rs. Crores)
CASH CREDIT (Hypothecation of stocks and receivables)	35.00
Total Fund Based Limits	35.00
Bank Guarantee	5.00
Total Fund Based Limits	5.00
Total Fund and Non Fund Based Limits	40.00

¶43

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

¶44

1. Sanction Letter dated 04.02.2011 Acknowledged by the defendants.

¶45

1. Letter of Arrangement dated 11.02.2011 executed by the

¶46

T.A. No. 353 of 2023

26.05.2025

defendants.

1. Agreement of Loan cum Hypothecation dated 11.02.2011 executed by the defendants.

¶51

1. Guarantee Agreement dated 11.02.2011 executed by the 2^nd and 3^rd defendants.

¶52

1. Agreement to Mortgage dated 11.02.2011 executed by 3^rd defendant.

¶53

Memorandum relating to Deposit of Title Deeds dated 14.03.2011 executed by 3^rd defendant in favour of Applicant Bank.

¶54

It is further submitted that the defendants have acknowledged the sanction letter dated 05.01.2013 for Cash Credit Rs.35.00 lakhs and Bank Guarantee Rs.5.00 lakhs.

¶55

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

¶56

1. Sanction Letter dated 05.01.2013 Acknowledged by the defendants.

¶57

Letter of Arrangement dated 19.04.2013 executed by the defendants.

¶58

It is further submitted by applicant bank that subsequently the defendants have acknowledged the sanction Letter dated 04.03.2014 for Cash Credit Rs.40.00 lakhs and Bank Guarantee of Rs.5 lakhs.

¶59

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

¶60

T.A. No. 353 of 2023

¶61

26.05.2025

¶62

¶63

Sanction Letter dated 04.03.2014 Acknowledged by the defendants.

¶64

Letter of Arrangement dated 12.03.2014 executed by the defendants.

¶65

Supplemental Agreement of Loan-Cum-Hypothecation dated 12.03.2014 executed by the defendants.

¶66

Letter of Confirmation for Extension of Mortgage by deposit of Title Deeds dated 13.03.2014 covering enhanced limits.

¶67

It is submitted by applicant bank that the defendants have acknowledged the sanction letter dated 29.03.2015 for Cash Credit (Hyp) of Rs.40.00 lakhs.

¶68

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

¶69

Sanction Letter dated 29.03.2015 Acknowledged by the defendants.

¶70

Letter of Arrangement dated 30.06.2015 executed by the defendants.

¶71

It is further submitted that the 1^st Defendant approached the applicant and submitted a proposal seeking for Cash Credit and WCDL. Considering the same, the Applicant sanctioned the following credit facilities on 18.04.2017 for Cash Credit Rs.35.00 lakhs and WCDL Rs.5.00 lakhs, Total of Fund Based Limits Rs.40.00 lakhs and (B) Non Fund Based Limits nil.

¶72

T.A. No. 353 of 2023

¶73

26.05.2025

¶74

¶75

At request of the 1^st defendant the Applicant has sanctioned Cash Credit Limit or Rs.35 Lakhs and Bank Guarantee amount of Rs.5 Lakhs. Overall Rs.40 Lakhs, whereas the defendants have acknowledged the sanction letter dated 04.02.2011, whereas the defendants have executed a letter of Arrangement and Agreement of Loan cum Hypothecation and Guarantee Agreement executed by the 2^nd and 3^rd defendants and Agreement to Mortgage dated 11.02.2011 infavour of applicant bank, whereas the 3^rd defendant has executed a Memorandum relating to Deposit of Title deeds dated 14.03.2011 infavour of application bank.

¶76

It is submitted that at request of the 1^st defendant the applicant bank has renewed the Cash Credit amount of Rs.35 Lakhs and Bank Guarantee amount of Rs.5 Lakhs. Overall Rs.40 Lakhs, whereas the defendants have acknowledged the sanction letter dated 05.01.2013, whereas the defendants have executed a Letter of Arrangement dated 19.04.2013.

¶77

It is submitted that at request of the 1^st defendant the applicant bank has renewed the Cash Credit amount of Rs.35 Lakhs and Bank Guarantee amount of Rs.5 Lakhs. Overall Rs.40 Lakhs, whereas the defendants have acknowledged the sanction letter dated 04.03.2014, whereas the defendants have executed a Letter of Arrangement and Supplemental Agreement of Loan cum Hypothecation dated 12.03.2014, Whereas the 3^rd defendant has executed a Letter of Confirmation for extension of Mortgage by Deposit of Title Deeds covering Enhance Limits

¶78

T.A. No. 353 of 2023

26.05.2025

dated 13.03.2014.

It is further submitted that at request of the 1^st defendant the applicant bank has renewed the Cash Credit amount of Rs.40 Lakhs, whereas the defendants have acknowledged the sanction letter dated 29.03.2015, whereas the defendants have executed a Letter of Arrangement and Supplemental Agreement of Loan cum Hypothecation dated 30.06.2015.

¶83

It is submitted that at request of the 1^st defendant the applicant bank has reduced the Cash Credit amount of Rs.40 Lakhs to Rs.35 Lakhs and sanctioned the amount of WCDL amount of Rs.5 Lakhs. Overall amount of Rs.40 Lakhs, whereas the defendants have executed a Letter of Arrangement and Supplemental Agreement of Loan cum Hypothecation executed by the defendants and Guarantee Agreement executed by the 2^nd and 3^rd defendants dated 18.04.2017.

¶84

It is submitted that subsequent to availing of credit facilities by defendant, the operation of the accounts was far from satisfactory. The defendants did not keep up the repayment schedule as per the terms of sanction. 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 account of the defendants has been classified as NonPerforming Assets on 20.04.2019 in terms of the directives of Reserve Bank of India. Hence, this Original Application (OA) has been filed to

¶85

T.A. No. 353 of 2023

¶86

¶87

26.05.2025

¶88

recover the dues from the Defendants.

¶89

After the filing of the OA, summons were sent to the defendants

¶90

1 to 3 through Registered Post with acknowledgement due, which were returned unserved with postal endorsement as ‘Left’. Applicant bank had caused paper publication and filed proof thereof. When OA was taken up on 19.05.2022, even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendants were placed ex-parte on 19.05.2022.

¶91

Heard the submissions of Applicant Bank and perused the records.

¶92

To prove the case of the Applicant Bank, Mr. S. Surendar, Deputy 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-21 . 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.

¶93

During the pendency of OA, applicant bank had reported part satisfaction of OA claim in a sum of Rs.53,50,000/- by way of sale of Schedule immovable property under SARFAESI Act.

¶94

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

¶95

T.A. No. 353 of 2023

¶96

¶97

26.05.2025

¶98

a final order on the following terms:

¶99

: O R D E R :

¶100

The OA is allowed with costs,

¶101

(a) The applicant bank is allowed to recover from the Defendants 1 to 3 jointly and severally, a total sum of Rs.44,22,341/(Rupees Forty Four Lakhs Twenty Two Thousand Three Hundred and Forty One Only) as follows:

¶102

(i) A sum of Rs.42,91,673/- (Rupees Forty Two Lakhs Ninety One Thousand Six Hundred and Seventy Three Only) due in respect of Cash Credit Facility (Account No.31636427699) together with further interest @ 9.85% p.a. compounded with monthly rests from the date of filing the OA till date of realization in full;

¶103

(ii) A sum of Rs.1,30,668/- (Rupees One Lakh Thirty Thousand Six Hundred and Sixty Eight Only) due in respect of Working Capital Loan (Account No.36770852112) together with further interest @ 12.80% p.a. compounded with monthly rests from the date of filing the OA till the date of realization in full along with costs.

¶104

(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 assets.

¶105

¶106

T.A. No. 353 of 2023

¶107

¶108

26.05.2025

¶109

shall be appended to this final order.

¶110

(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 and 3^rd Defendants (both movable and immovable) to recover the balance dues as required under law;

¶111

(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

¶112

to prepare Recovery Certificate for the amount to be paid by Defendant to the applicant bank.

¶113

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

¶114

(g) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.

¶115

T.A. No. 353 of 2023

¶116

26.05.2025

¶117

¶118

A copy of this order be communicated to the parties concerned.

¶119

Sd/PRESIDING OFFICER, DRT-III, CHENNAI

¶120

(Dictated to Steno (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 26^th day of May, 2025)

¶121

ANNEXURES

¶122

WITNESSES EXAMINED FOR THE APPLICANT BANK :

¶123

AW-1: Mr. S. Surendar, Deputy Manager representing the Applicant Bank

¶124

Exhibits on the part of the Applicant:

¶125

Sl. No.	Description of Documents	Exhibit No.
1.	Sanction Letter dated 04.02.2011.	A-1
2.	Letter of Arrangement dated 11.02.2011.	A-2
3.	Agreement of Loan Cum Hypothecation dated 11.02.2011.	A-3
4.	Guarantee Agreement dated 11.02.2011.	A-4
5.	Agreement to Mortgage.	A-5
6.	Memorandum relating to Deposit of Title Deeds (Doc.No.669/2011) dated 14.03.2011.	A-6
7.	Settlement Deed executed by A.K. Ramamurthy infavour of A.R. Ravi (Doc.No.16/2003) dated 06.01.2003.	A-7
8.	Sanction Letter dated 05.01.2013.	A-8
9.	Letter of Arrangement dated 19.04.2013.	A-9
10.	Sanction Letter dated 04.03.2014.	A-10
11.	Letter of Arrangement dated 12.03.2014.	A-11
12.	Supplemental Agreement of Loan-Cum- Hypothecation dated 12.03.2014.	A-12
13.	Letter of Confirmation for Extension of Mortgage by Deposit of Title Deeds covering Enhanced Limits dated 13.03.2014.	A-13
14.	Sanction Letter dated 29.03.2015.	A-14
15.	Letter of Arrangement dated 30.06.2015.	A-15
16.	Letter of Arrangement dated 18.04.2017.	A-16

¶126

T.A. No. 353 of 2023

¶127

¶128

26.05.2025

¶129

17.	Supplemental Agreemen Hypothecation dated 18.04	t of .2017.	Loan Cum	A-17
18.	Guarantee Agreement exec defendant dated 18.04.201	uted by 7.	the 2^ndand 3^rd	A-18
19.	Revival Letter dated 15.03.	2020.		A-19
20.	Statement of Account and Book Evidence Act 189 05.02.2021.	Certific dated	ate of Banker’s 19.02.2011 to	A-20
21.	Statement of Account and Book Evidence Act 189 05.02.2021.	Certific dated	ate of Banker’s 18.04.2017 to	A-21

¶130

Witness Examined for the Defendants: -Nil-

¶131

List of Documents Exhibited for the Defendants: -Nil –

¶132

:- SCHEDULE OF PROPERTY -:

¶133

‘C’ SCHEDULE

¶134

Hypothecation of Stocks and Book Debts situated at No.25/11, 1^st Floor, Ramanjuam Street, Off Venkatanarayana Road, T.Nagar, Chennai 600 017.

¶135

Sd/-

¶136

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

State Bank of India v. M/S Vision Next Inidia Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

State Bank of India v. M/S Vision Next Inidia Pvt. Ltd.

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

Coram

Case details

Similar cases

State Bank of India versus M S Jewel Salon and Spa

Bank of Maharashtra versus Lakashmanan

Punjab National Bank versus Ms Srika Auto Solutions

Bank of India versus Krishna Murthy

Bank of Baroda versus M/S Celebrity Corporate Club

Union Bank of India (Andhra Bank) versus M/S Mount