Allowed

Indian Overseas Bank v. Indukanan

DRT7 Oct 2025TA/397/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by Indian Overseas Bank. The bank successfully recovered a total sum of Rs. 21,52,597/- along with future interest from the defendants for two term loans, granting liberty to sell the second defendant's assets for further recovery.

What did the court decide?

Recovery of Rs. 21,52,597/- with future interest; liberty to sell attached assets for balance dues.

Indian Overseas Bank versus Indukanan — Contract and Commercial Disputes | DRT (2025)

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T.A. No. 397 of 2023

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07.10.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 07^th day of October, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 397 of 2023

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(Originally filed before DRT- II, Chennai as OA 149/2022 and thereafter transferred to this Tribunal and renumbered as TA No 397 of 2023)

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Indian Overseas Bank, Thiruvanmiyur Branch, 124, L.B. Road, Thiruvanmiyur, Chennai – 600041. Rep. by its Chief Manager ….Applicant

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-Vs-

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M/s. Elegance,

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Rep. by its Proprietrix Mrs. Indhu Kannan,

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No.1 First Avenue,

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Thiruvalluvar Nagar,

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Chennai – 600041

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Mrs. Indhu Kannan, W/o R. Veeramani, No.1, First Avenue,

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Thiruvalluvar Nagar,

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Chennai – 600041 …..Defendants

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Counsels on record / appeared:

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Counsel for Applicant : Sh. K. Radhakrishnamurthy

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Defendants 1 and 2 were set ex-parte on 15.09.2023

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: - FINAL ORDER - :

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This Original Application is filed on 18.01.2022 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.21,52,597/- (Rupees Twenty One

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T.A. No. 397 of 2023

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07.10.2025

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Lakhs Fifty Two Thousand Five Hundred and Ninety Seven Only)

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as follows:

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(i) A sum of Rs.2,63,767/- due in respect of Term Loan-1 facility (A/c No.041803261300003), repayable together with further interest @ 11.35%, 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.18,88,830/- due in respect of Term Loan-2

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Facility (A/c No.041803628000002), repayable together with further interest @ 8.90%, p.a. with monthly rests from the date of filing the OA till date of realization in full; and for costs of this application.

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Originally, this Application was filed before DRT-II, Chennai, assigned OA No.149 of 2022, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.149 of 2022 stood transferred to this Tribunal and renumbered as TA No.397 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 at the request of the First

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defendant by their application dated 04.03.2013, the Applicant Bank

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T.A. No. 397 of 2023

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07.10.2025

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sanctioned a Term loan Limit against hypothecation of Beauty Saloon equipment's, furniture and allied items of Rs.47,50,000/- under Needs Scheme to the First Defendant on 26.03.2013. The First Defendant had availed the Term loan Limit of Rs.47,50,000/- on 26.03.2013 and executed the following documents on 26.03.2013:

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a) Demand Promissory Note dated 26.03.2013 for Rs.47.50 Lakhs promising to repay the amount together with interest thereon at 18.50% per annum compounded monthly rest subject to Reserve Bank of India/Bank rates may be revised from time to time.

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b) Letter of Repayment

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c) IOB Term Loan agreement

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The Applicant submits that at the request of the First defendant

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by their application dated 24.01.2017, the Applicant Bank sanctioned a Term loan Limit against hypothecation of Beauty Parlour equipments,

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furniture, and allied items of Rs.15,00,000/- Under Standup India Scheme to the First Defendant on 24.01.2017. The First Defendant has availed the above loan of Rs.15,00,000/- on 24.01.2017 and executed the following documents on 24.01.2017:

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a) Demand Promissory Note dated 04.02.2017 for Rs.15,00,000/promising to repay the amount together with interest thereon at 10.25% per annum compounded monthly rest subject to Reserve Bank of India/Bank rates may be revised from time to time.

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b) Letter of repayment

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c) Undertaking Letter

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T.A. No. 397 of 2023

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07.10.2025

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d) IOB Term Loan agreement

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e) Hypothecation of Book debts

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It is submitted by the applicant bank that subsequent to availing of loan, the operation of the accounts by the defendants was not satisfactory. In spite of several demands made to the defendants, but they did not regularize the account. Consequently, the loan account was classified as Non-Performing Asset (NPA) on 31.12.2017 in accordance with RBI guidelines. The Applicant Bank made several demands to the Defendants to repay the loan outstanding but there was no response and no repayment. However, Defendants have executed revival letters dated 12.02.2016 and 30.01.2019 wherein they admitted their liabilities, but no payment has been made. The applicant also sent a legal notice dated 17.12.2021 to the Defendants, but defendants did not come forward to repay the dues. Hence the present Original Application (OA) has been filed by the applicant bank for recovery of its dues from the defendants.

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After the filing of the OA, summons were sent to the defendants through Registered Post with Acknowledgment Due, which returned as unclaimed. Applicant bank had caused paper publication of the notice and filed proof thereof. When OA was taken up on 15.09.2023 even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 and 2 were placed ex-parte on 15.09.2023.

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T.A. No. 397 of 2023

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07.10.2025

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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, Smt. K. Jyothi, Chief Manager and Constituted Attorney representing the Applicant Bank, has filed her 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 Defendants a sum of total sum of Rs.21,52,597/- (Rupees Twenty One Lakhs Fifty Two Thousand Five Hundred and Ninety Seven Only) as follows:

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(i) A sum of Rs.2,63,767/- due in respect of Term Loan1 facility (A/c No.041803261300003), repayable together with further interest @ 11.35%, p.a. with monthly rests from the date of filing the OA, till date of

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T.A. No. 397 of 2023

07.10.2025

realization in full;

(ii) A sum of Rs.18,88,830/- due in respect of Term Loan-2 Facility (A/c No.041803628000002), repayable together with further interest @ 8.90%, p.a. with monthly rests from the date of filing the OA till date of realization in full along with costs.

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

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(e) 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. 397 of 2023

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07.10.2025

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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)

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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 07^th day of October, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Smt. K. Jyothi, Chief Manager and Constituted Attorney 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.	Application by Defendants dated 04.03.2013.	A-1
2.	Sanction letter by Applicant dated 15.03.2013.	A-2
3.	Demand Promissory Notice for Rs.47.50 Lakh by Defendants dated 26.03.2013.	A-3
4.	Letter of repayment by Defendants dated 26.03.2013.	A-4
5.	IOB TL agreement by Defendants dated 26.03.2013.	A-5
6.	Application by Defendants dated 24.01.2017.	A-6
7.	Sanction letter by Applicant dated 24.01.2017.	A-7
8.	Demand Promissory Notice for Rs. 15 Lakh by Defendants dated 04.02.2017.	A-8
9.	Letter of repayment by Defendants dated 04.02.2017.	A-9
10.	Undertaking Letter dated 04.02.2017.	A-10
11.	IOB TL agreement by Defendants dated 04.02.2017.	A-11
12.	Hypothecation of Book Debts dated 04.02.2017.	A-12
13.	Revival letter by Defendant dated 12.02.2016.	A-13
14.	Revival letter by Defendant dated 30.01.2019.	A-14
15.	Legal notice by applicant with acknowledgement	A-15

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T.A. No. 397 of 2023

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07.10.2025

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due dated 17.12.2021. 16. Certified Statement of Account A-16

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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

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-NIL-

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

Indian Overseas Bank v. Indukanan

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. Indukanan

Case brief

What is this about?

What did the court decide?

What the court decided

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Parties & counsel

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