Allowed

India Bulls Asset Reconstruction Company Ltd. v. Velpandi

DRT6 Mar 2025TA/378/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Indiabulls Asset Reconstruction Company Limited for recovery of dues of over Rs. 2.74 crore from two respondents, jointly and severally, including costs and liberty to sell mortgaged immovable property.

What did the court decide?

Recovery of Rs. 2,74,43,118.26 with interest and costs; liberty to sell schedule mentioned immovable property; issue of recovery certificate.

India Bulls Asset Reconstruction Company Ltd. versus Velpandi — Company and Corporate | DRT (2025)

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T.A. No. 378 of 2023 (E)

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06.03.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 06^th day of March, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 378 of 2023

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(Originally filed before DRT- II, Chennai as OA 409/2020 and thereafter transferred to this Tribunal and renumbered as TA No 378 of 2023)

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M/s. Indiabulls Asset Reconstruction Company Limited, Represented by its Manager Also acting in its capacity as Trustee of the India bulls ARC-IX Trust, Having its registered office at India bulls Finance Centre, 9^th Floor, Tower 1, Elphinstone Road, Mumbai – 400 013 ….Applicant

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-Vs-

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1 Mr. T. Velpandi, Proprietor of M/s. Premier Proteins, No. 36, Old M T H Road, Venkatapuram. Ambattur, Chennai – 600 053.

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Also at:

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Mr. T. Velpandi, S/o. Mr. Thuraipandi, No. 80A, Cross Street, 1^st Main Street, Ambattur, Near Venakatapuram, Chennai – 600 053.

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Also at:

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Mr. T. Velpandi, S/o. Mr. Thuraipandi, No. 94/24, 1^st Main Street, Teachers Colony, Ambattur, Chennai – 600 063.

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Mrs. E. Indra, W/o. Mr. T. Velpandi, No. 80A, Cross Street, 1^st Main Street, Ambattur, Near Venakatapuram, Chennai – 600 053.

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T.A. No. 378 of 2023 (E)

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06.03.2025

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Also at: Mrs. E. Indira, W/o. T. Velapandi No. 94/24, 1^st Main Street, Teachers Colony, Ambattur, Chennai – 600 063. …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. Ramlingam & Associates Defendants were set ex-parte on 01.11.2021

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: - FINAL ORDER - :

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This original application is filed on 28.09.2020 by the applicant institution 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 1 and 2, jointly and severally, for recovery of a total sum of

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Rs.2,74,43,118.26p (Rupees Two Crores Seventy Four Lakhs Forty Three Thousand One Hundred and Eighteen and Twenty Six only) as follows:

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(i) A sum of Rs.2,20,54,260.64p due in respect of Secured Loan facility (Account No.TCA00082N) together with interest at the rate of 11.50% p.a. with monthly rests;

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(ii) A sum of Rs.53,88,857.62p due in respect of Additional Secured Loan facility (Account No.TCF00147N) together with interest at the rate of 10.85% p.a. with monthly rests;

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from the date of application till the date of realization in full, for sale of schedule mentioned immovable property and for costs of this application.

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T.A. No. 378 of 2023 (E)

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06.03.2025

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Originally, this application was filed before DRT-II, Chennai, assigned OA No.409 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.409 of 2020 stood transferred to this Tribunal and renumbered as TA No.378/2023.

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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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It is submitted by applicant that the Applicant Institution herein, got assigned the debt due from the borrower / co-borrower, along with underlying securities from M/s Indusind Bank Limited under a Deed of Assignment dated 30.09.2019, which is registered as Document No.634/2020 on the file of Sub-Registrar, Kodambakkam. As such the Applicant is entitled to seek for the recovery of amounts due from the defendants herein, including the enforcement of secured asset, as a financial institution under Section 2(h)(1a) of RDB Act.

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The case of the Applicant is that the 1^st Defendant is the Proprietor of M/s Premier Proteins, and 2^nd defendant is the wife of 1^st defendant, the co-borrower. The defendants had approached M/s Indusind Bank, Assignor of applicant, seeking for credit facility / secured Loan of Rs.2,04,40,000/- towards their business needs. 1^st defendant, who is the absolute owner of the immovable property morefully detailed in the OA schedule, offered to create mortgage over the same for availing the aforesaid facility.

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T.A. No. 378 of 2023 (E)

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The applicant bank, considering the said request of defendants 1 and 2, sanctioned Secured Loan Rs.2,04,40,000/- vide Sanction Letter dated 31.08.2016, which was duly acknowledged by defendants accepting the terms and conditions stipulated therein.

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In order to secure due repayment of aforesaid loan, defendants executed the following documents in favour of Assignor Bank, M/s Indusind Bank on 31.08.2016:

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(i) Demand Promissory Note for a sum of Rs. 2,04,40,000/-, which is repayable together with interest at the rate of 11.50% p.a. with monthly rests;

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(ii) Agreement for Secured Loan ;

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(iii) Letter of Continuity;

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(iv) Letter of General Lien and Set off;

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(v) Declaration cum Undertaking.

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It is submitted by applicant bank that in order to secure the aforesaid facility, 1^st defendant deposited the original title deeds relating to the schedule mentioned property with the Indusind Bank on 29.11.2016, with an intention to create a mortgage over the same. The first defendant had also executed a Memorandum of Deposit of Title Deeds on 29.11.2016 in favour of M/s Indusind Bank, confirming the creation of mortgage over the schedule mentioned property. The said memorandum was also registered as Doc No.15583 of 2016, on the file of Sub Registrar, Ambattur.

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It is submitted that defendants agreed to repay the above loan with interest at

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the rate of 11.50% p.a. with monthly rests in 180 Equated Monthly Installments of Rs.2,38,778/- per month. The defendants have also agreed to pay penal interest at

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the rate of 2% p.a. in case of default and the non-compliance of any of the sanction stipulations.

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It is submitted by applicant bank that the first defendant, as borrower and second defendant, as guarantor again approached M/s Indusind Bank seeking for a fresh Credit facility / Secured Loan in a sum of Rs.50,99,405/-

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Considering the said request, M/s Indusind Bank had sanctioned the aforesaid facility in and by a Sanction Letter dated 24.11.2017. The said Sanction Letter was duly acknowledged by the defendants accepting to the terms and conditions stipulated therein. The defendants have availed the Secured Loan of Rs.50,99,405/on 27.11.2017.

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In order to secure due repayment of aforesaid loan, defendants executed the following documents in favour of Assignor Bank, M/s Indusind Bank on 27.11.2017:

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(i) Demand Promissory Note for a sum of Rs.50,99,405/-, which is repayable together with compound interest at the rate of 10% p.a. with monthly rest;

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(ii) Agreement for Secured Loan ; (iii) Letter of General Lien and Set off;

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It is submitted by applicant bank that in order to secure the aforesaid facility, 1^st defendant had agreed to extend the mortgage created by deposit of title deeds on 29.11.2016 in favour of M/s Indusind Bank and executed a Memorandum of Deposit of Title Deeds on 28.11.2017 in favour of M/s Indusind Bank, confirming the creation /

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T.A. No. 378 of 2023 (E)

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extension of mortgage over the schedule mentioned property. The said memorandum was also registered as Doc No.15959 of 2017, on the file of Sub Registrar, Ambattur.

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It is submitted that defendants agreed to repay the above loan with interest at

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the rate of 10% p.a. with monthly rests in 120 Equated Monthly Installments of Rs.67,389/- per month. The defendants have also agreed to pay penal interest at the rate of 2% p.a. in case of default and the non-compliance of any of the sanction stipulations.

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It is submitted by applicant bank that the defendants having availed the said loan, failed and neglected to repay the same with interest and other charges despite several reminders by applicant bank. As no payments were forth coming, the loan account was classified as NPA on 07.09.2019 as per RBI guidelines. The defendants are jointly and severally bound and liable to repay the debt to the applicant. Hence, this Original Application (OA) has been filed to recover the dues from the defendants.

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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 are duly served. Advocate Sh. B. Rajesh, appeared and undertook to file vakalat for defendants. When OA was taken up on 01.11.2021 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, Defendants 1 and 2 were placed exparte on 01.11.2021.

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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, Shri. Rupesh Bhaskar Jadhav, Authorised Signatory of Applicant institution, 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-19 . 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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21. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendants, jointly and severally a sum of Rs.2,74,43,118.26p (Rupees Two Crores Seventy Four Lakhs Forty Three Thousand One Hundred and Eighteen and Twenty Six only) as follows:

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(i) A sum of Rs.2,20,54,260.64p due in respect of Secured Loan facility (Account No.TCA00082N) together with interest at the rate of 11.50% p.a. with monthly rests;

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(ii) A sum of Rs.53,88,857.62p due in respect of Additional Secured Loan facility (Account No.TCF00147N) together with interest at the rate of 10.85% p.a. with monthly rests;

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T.A. No. 378 of 2023 (E)

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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 morefully detailed in the OA;

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(d) If the sale proceeds of the schedule mentioned mortgaged properties are not sufficient to satisfy the dues as ordered above, the applicant bank is at liberty to sell the personal assets of the defendants 1 and 2 (both movable and immovable) to recover the balance dues as required under law;

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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 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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T.A. No. 378 of 2023 (E)

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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 PS, transcribed by her, corrected, signed and pronounced by me on this the 06^th day of March, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. Rupesh Bhaskar Jadhav, Authorised Signatory of Applicant institution

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Exhibits on the part of the Applicant:

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Sl. No.	Description of Documents	Exhibit No.
1.	BoardResolution	A-1
2.	Copy of the Loan application submitted by the defendants	A-2
3.	Sanction letter issued by the assignor of the Applicant Bankdated 31.08.2016	A-3
4.	Demand Promissory Note executed by the defendants in favour of the Assignor of the Applicant Bank dated 31.08.2016	A-4
5.	Agreement for secured loan executed by the defendants in favour of the Assignor of the Applicant dated 31.08.2016	A-5
6.	Letter of continuity executed by the defendants in favour of the Assignor of the Applicant dated 31.08.2016	A-6
7.	Letter of general lien and set off executed by the defendants in favour of the assignor of the Applicant dated 31.08.2016	A-7
8.	Undertaking executed by the defendants in favour of theAssignoroftheApplicant dated29.11.2016	A-8
9	Memorandum of Deposit of title deeds executed by the first defendant in favour of the assignor of the applicant registered as Doc No. 15583 of 2016, on the file of Sub Registrarof Ambatturdated29.11.2016	A-9

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10	Sanction letter issued by the Assignor of the Applicant dated24.11.2017	A-10
11	Demand Promissory Note for the total sum of Rs. 50,99,405/- executed by the defendants in favour of theAssignoroftheApplicant dated27.11.2017	A-11
12	Agreement for secured loan executed by both the defendants in favour of the Assignor of the Applicant dated27.11.2017	A-12
13	Letter of general lien and set off executed by both the defendants in favour of the assignor of the Applicant dated27.11.2017	A-13
14	Memorandum of Deposit of title deeds executed by the first defendant in favour of the assignor of the applicant registered as Doc No. 15959 of 2017, on the file of Sub Registrarof Ambatturdated28.11.2016	A-14
15	Assignment of Debt Agreement between Indusind Bank Limited and Applicant registered as document 634 of 2020 on the file of SRO Kodambakkam dated 30.09.2019	A-15
16	Demand Notice under sec 13 (2) of the SARFAESI Act issued by the Applicant to defendants dated 14.01.2020	A-16
17	Sale deed dated 29.11.2016 registered as document No. 15582of 2016 on file ofSROAmbattur	A-17
18	Statement of Accounts	A-18

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:- SCHEDULE -:

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Item No. 1:

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All that piece and parcel of the land and building viz, bearing Plot No. 65B (Southern Side) Door No.194, Bazar Road, Secretariat Colony, Ambattur, Chennai – 600 053, measuring 3664 Sq. ft., comprised in Survey No. 594/3 part, situated at Ambattur Village, Ambattur Taluk, Thiruvallur District, bounded on the

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North by : Road side shops and Bazar Road South by : Property belongs to TUCS, East by : 40 feet Road leading to Gupta Girls High School, West by : Plot No. 65A,

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Measuring East to West on the Northern side 70 feet, Southern side 70 feet and North to South on the Eastern side 44.3^1/2 feet, western side 60.3^1/2 feet

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T.A. No. 378 of 2023 (E)

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Situate within the Sub – Registration District of Ambattur and the Registration District of North Chennai

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Item No.2

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All that piece and parcel of the land Viz bearing Plot No. 65 B (Northern side), (With permission to construct first floor and second floor excluding ground floor) at door No. 194 part, Bazar Road, Secretariat Colony, Ambattur, Chennai – 600 053, measuring undivided share of 918 Sq ft., out of land measuring 1376 Sq. ft., comprised in Survey No. 594/3 part, situated at Ambattur village, Ambattur Taluk, Thiruvallur District, Bounded on the

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North by : Bazar Road South by : Remaining portion of Plot No. 65B with building East by : 40 feet Road leading to Gupta Girls High School West by : Plot No. 65A

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Measuring East to West on the northern side 70 feet, southern Side 70 feet and north to south on the Eastern side 19.6^1/2 feet, Western side 19.6^1/2 feet and situate within the Sub – Registration District of Ambattur and the Registration District of North Chennai.

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

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T.A. No. 378 of 2023 (E) 12 06.03.2025

India Bulls Asset Reconstruction Company Ltd. v. Velpandi

Case brief

What is this about?

What did the court decide?

India Bulls Asset Reconstruction Company Ltd. v. Velpandi

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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Case details

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