Allowed

Karur Vysya Bank v. M/S C B K Traders

DRT25 Feb 2025TA/567/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of dues of Rs.63.89 lakhs along with interest. Having heard the applicant and found defendants absent and unchallenging, the court decreed recovery from the defendants jointly and severally, permitting asset sale for realization.

What did the court decide?

Recovery of Rs.63,89,790.20 plus interest at 15.85% p.a. from defendants jointly and severally; liberty to recover by sale of mortgaged property.

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

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TA No.567 of 2023 (E)

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25.02.2025

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IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 25^th day of February, 2025

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Present: SMT. S.V. GOWRAMMA

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Presiding Officer

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TRANSFERRED APPLICATION No. 567 of 2023

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(Originally filed before DRT- II, Chennai as OA 415/2021 and thereafter transferred to this Tribunal and renumbered as TA No 567 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. C B K Traders

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Rep by its Proprietor Mr. C. Kamalraj A K V N M Modern Rice Mill, Dharmaraja Koil Street, Arnipalayam, Arni, Thiruvanamalai District – 632 301.

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Mr. C. Kamalraj, S/o. Mr. K. N. Chandran, No. 1/1A1, Dharmaraja Koil Street, Arnipalayam, Arni, Thiruvanamalai District – 632 301.

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Mrs. C. Bhuvaneshwari, W/o. Mr. K.N. Chandran, No. 1/1A1, Dharmaraja Koil Street, Arnipalayam, Arni, Thiruvanamalai District – 632 301.

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…. Defendants

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Counsels on record / appeared:

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Counsel for Applicant : M/s. A. Arunbabu Defendants set ex-parte on 27.05.2022

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: - FINAL ORDER - :

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This original application is filed on 28.09.2021 by the applicant 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

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TA No.567 of 2023 (E)

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25.02.2025

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jointly and severally, for recovery of a total sum of Rs.63,89,790.20p (Rupees Sixty Three Lakhs Eighty Nine Thousand Seven Hundred and Ninety and Twenty Paise only) due in respect of Secured Overdraft Facility (A/c No.1108213000000111) together with further interest @ 15.85% p.a. with monthly rests 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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Brief Facts of the case:

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Originally this application was filed before DRT-II, Chennai, assigned OA No.415 of 2021, and thereafter in pursuance to the notification from Ministry of Finance, DFS dated 04.10.2022, OA No.415 of 2021 stood transferred to this Tribunal and renumbered as TA No.567/2023.

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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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The case of the Applicant Bank is that the 1^st Defendant M/s CBK Traders, represented by its Proprietor 2^nd defendant herein, had approached the Applicant Bank during the year 2017 seeking financial assistance for Working Capital purpose of their business.

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The applicant bank, considering the said request of defendants, had sanctioned Secured Overdraft facility of Rs.40,00,000/- towards working capital requirements vide Sanction Intimation 11.12.2017, The said loan is repayable in one

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TA No.567 of 2023 (E)

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25.02.2025

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year together with interest @ 11.25% p.a. compounded with monthly rests or at such other rates and rests as may be revised by the bank from time to time.

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It is submitted by Applicant Bank the 1^st defendant represented by 2^nd defendant availed the said loan after accepting the terms of sanction and executed the following loan documents in favour of the Applicant Bank on 11.12.2017:

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(i) Take Delivery Letter cum Continuity Letter

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(ii) Agreement for Secured Overdraft – fixed assets

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(ii) Hypothecation Agreement for Cash credit / Overdraft

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(iii) Documents execution certificate

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(iv) Vernacular Language / LTI Certificate

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Third defendant stood as guarantor and executed an Agreement of Guarantee dated 11.12.2017 towards the loan availed by the first defendant. Further to that, third defendant had mortgaged her immovable property morefully detailed in schedule to OA, and executed Memorandum of deposit of title deeds registered as Document No.7501/2017 dated 11.12.2017 before SRO, Arni, as security towards the loan availed by first defendant.

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It is further submitted that even though the defendants had executed necessary documents towards the loan availed, the repayment towards the said loan was highly irregular and despite various demands and reminders, the defendants failed and neglected to repay the amount due. Consequently, the account was classified as NPA on 29.09.2018 as per RBI guidelines. The applicant bank through its Authoised Officer had initiated SARFAESI measures and issued Demand Notice

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TA No.567 of 2023 (E)

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25.02.2025

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under Section 13(2) of the Act on 07.02.2019 demanding the outstanding dues, followed by the Possession Notice dated 30.11.2019. But defendants did not repay the dues, despite several reminders. 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 to 3 through Registered Post with Acknowledgment Due, which was returned with endorsement ‘no such person’. When OA was taken up on 27.05.2022, even after giving sufficient time, there was no appearance or representation from the defendants. Hence, defendants 1 to 3 were placed ex-parte on 27.05.2022.

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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. P.S. Sundaravarathan, Chief Manager, Asset Recovery Branch of 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 A1 to A13. 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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TA No.567 of 2023 (E)

25.02.2025

:O R D E R:

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.63,89,790.20p (Rupees Sixty Three Lakhs Eighty Nine Thousand Seven Hundred and Ninety and Twenty Paise only) due in respect of Secured Overdraft Facility (A/c No.1108213000000111) together with further interest @ 15.85% p.a. with monthly rests from the date of application till the date of realization in full with costs.

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(b) In the event of failure of the defendant 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) 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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(e) The applicant bank shall file memo of costs within ten days from the date of this final order.

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TA No.567 of 2023 (E)

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25.02.2025

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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/-

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(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 25^th day of February, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Shri. P.S. Sundaravarathan, Chief Manager, Asset Recovery Branch of 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.	Credit sanction intimationdated11.12.2017	A-1
2.	Demand Promissory note dated 11.12.2017	A-2
3.	Take delivery letter cum continuity letter dated 11.12.2017	A-3
4.	Agreement for secured overdraft - fixed assets dated 11.12.2017	A-4
5.	Hypothecation agreement for cash credit/overdraft dated 11.12.2017	A-5
6.	Documents execution certificate dated 11.12.2017	A-6
7.	Vernacular language/LTIcertificate dated11.12.2017	A-7
8.	Agreement ofguarantee dated11.12.2017	A-8
9.	Memorandum of deposit of title deeds for registration registered asDocNo. 7501/2017dated11.12.2017	A-9
10.	Settlement deed registered as Doc No. 2316/2007 dated 28.03.2007	A-10

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TA No.567 of 2023 (E)

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25.02.2025

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11	DemandNotice dated 07.02.2019	A-11
12	Possession Notice dated 30.11.2019	A-12
13	Statementofaccounts	A-13

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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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Property of Mrs. C. Bhuvaneshwari:-

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All that piece and parcel of land with RCC terraced house with electric service connection admeasuring an extent of 2281sq.ft., comprised in Old T.S. No. 39/1, New T.S. No. 1/1A1, in Old Block No. D/1, New Block No. D/10, Dharmaraja Koil Street, Arnipalayam, Arni Municipal limit, Arni Town

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1^st Measurement::

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East to West 17^1/2 feet

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North to South 70 feet

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Totaling 1225 sq.ft.,

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2^nd Measurement:

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East to West 17^1/2 feet

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North to South 17^3/4 feet

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Totaling 311 sq.ft.,

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3^nd Measurement:

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East to West 39^3/4 feet on the Southern side,

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43 feet on the Northern side

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North to South 18 feet

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Totaling 745 sq.ft.,

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Total extent of 1^st , 2^nd & 3^rd Measurements is 2281 sq.ft.,

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TA No.567 of 2023 (E)

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Boundaries:

North of : Front way and office room building Belonging to Mrs. C. Bhuvaneswari South of : S. No. D/1, T.S. No. 38 and Eri channel and well East of : Pudhukamur road West of : Vacant site owned by Mrs. C. Bhuvaneswari

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Within the Sub – Registration District of Arni and Registration District of Cheyyar, Thiruvannamalai District

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

Karur Vysya Bank v. M/S C B K Traders

Case brief

What is this about?

What did the court decide?

Karur Vysya Bank v. M/S C B K Traders

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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