Allowed

State Bank of India v. Barathibasha

DRT8 Aug 2025TA/570/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of a commercial vehicle loan. The respondent was ex-parte, leaving the bank’s unchallenged affidavit evidence sufficient for the court to pass a final order directing the repayment of the dues.

What did the court decide?

The applicant bank is directed to recover Rs.32,51,193/- along with further interest at 13.20% p.a., costs, and is at liberty to sell the respondent's assets.

State Bank of India versus Barathibasha — Contract and Commercial Disputes | DRT (2025)

TA.No.570/2023

08.08.2025

IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI

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Dated this the 08^th day of August, 2025

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Present: SMT. S.V. GOWRAMMA Presiding Officer

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TRANSFERRED APPLICATION No. 570 of 2023

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(Originally filed before DRT- II, Chennai as OA 396/2020 and thereafter transferred to this Tribunal and renumbered as TA No 570 of 2023)

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State Bank of India, ARM Branch Chennai, 44, 1^st Floor, Eldams Road, Teynampet, Chennai -600 018 Rep. by its Chief Manager ….Applicant

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-Vs-

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Mr. K. Barithbasha S/o. Mr. Kadher L No.30, Kaliamman Koil Street, Virugambakkam, Chennai -600 092.

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Also available at

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Mr. K. Barithbasha S/o. Mr. Kadher L No.22, Gandhi Street, Padappai, 601 301. …..Defendant

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Counsels on record / appeared:

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Counsel for Applicant Bank : Sh. E. Kumar Defendant was set ex-parte on 28.06.2022

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: - FINAL ORDER - :

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This Original Application is filed on 07.09.2020 by the applicant

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bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993

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(formerly Recovery of Debts Due to Banks and Financial Institutions Act, 1993) against the defendant for recovery of a total sum of Rs.32,51,193/- (Rupees Thirty Two Lakhs Fifty One Thousand One Hundred and Ninety Three only) due in respect of Commercial Vehicle Loan (A/c No.33160001161) repayable together with further interest @ 13.20% p.a., compounded with monthly rests from the date of application till the date of realization in full and for costs of this application.

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Originally the application was filed before DRT-II, Chennai, assigned OA No.396 of 2020, and thereafter in pursuance to the notification from Ministry of Finance, DFS, dated 04.10.2022, OA No. 396 of 2020 stood transferred to this Tribunal and renumbered as TA No.570 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 Defendant had approached the Applicant bank for Purchasing Cars for running his Car Hiring Business and submitted an application for the same and defendant

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was also willing to execute necessary loan documents and offered the proposed vehicles to be purchased as security for the loan.

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The applicant submits that the applicant bank after applying their mind and analyzing various aspects as per the banking norms had decided to sanction the loan to the Defendant. Accordingly, had sanctioned a Term loan amount of Rs.19,60,000/- (Rupees Nineteen Lakhs Sixty Thousands Only) under the Commercial Vehicle Loan to Purchase the Vehicles schedule mentioned herein and the same was repayable in 60 as monthly installments.

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The Applicant submits that the Defendant executed the Memorandum of Loan Agreement for Commercial Vehicle Loan dated 12.07.2016 in favour of the Applicant Bank.

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It is further submitted by applicant bank that the defendant had also executed the following documents for the said facility in favour of applicant bank:

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a. Irrevocable Power of Attorney dated 12.07.2016.

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b. Demand Promissory Note for amount of Rs.19,60,000/- dated

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12.07.2016.

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c. Letter waiving presentment of pronote dated 12.07.2016.

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d. Relinquishment of All Claims dated 12.07.2016.

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e. Money Receipt for amount of Rs.19,60,000/- dated 12.07.2016.

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The applicant bank submits that the defendant after taking delivery and completion of registration formalities with the concerned RTO for the said vehicles, the defendant had submitted the details of the vehicles as below:

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a. Vehicle namely Tata Indica V2 LS BS III bearing Regn No.TN 11 S 9075

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b. Vehicle namely Tata Indica V2 LS BS III bearing Regn No.TN 11 S 9146

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c. Vehicle namely Tata Indica V2 LS BS III bearing Regn No.TN 11 S 9174

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d. Vehicle namely Tata Indica V2 LS BS III bearing Regn No.TN 11 S 9239

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The applicant bank submits that the said vehicles are also hypothecated with the applicant bank which is endorsed by the concerne RTO in the said Vehicle RC Books.

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It is submitted by the applicant bank that the defendants though availed the loan, did not kept up their promise regarding repayment of loan and not at all properly maintained the loan account. Since the defendants failed and neglected to clear the loan, the loan account was classified as Non-Performing Asset (NPA) on 13.06.2018 in accordance with RBI guidelines. Thereafter, the account was transferred to the ARM

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Branch and the legal proceedings were initiated thereon. The applicant submits that the defendant remitted a sum of Rs.52,000/- on 18.03.2017 being the last remittance made by him, which is not sufficient to regularize the loan amount. As defendants did not come forward to repay the dues, 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 defendant through Registered Post with Acknowledgment Due, which returned with the remarks “Left” in respect of first address and summons to the second address returned with the remarks “Insufficient address”. Applicant bank had caused paper publication and filed proof thereof. When OA was taken up on 28.06.2022, even after giving sufficient time, there was no appearance or representation from the defendant. Hence, defendants were placed ex-parte on 28.06.2022.

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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. Govind L Ballal, Chief 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-16 . As the defendant

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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 due to the applicant bank, 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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14. The OA is allowed with costs,

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(a) The applicant bank is allowed to recover from Defendant, a total sum of Rs.32,51,193/- (Rupees Thirty Two Lakhs Fifty One Thousand One Hundred and Ninety Three only) due in respect of Commercial Vehicle Loan (A/c No.33160001161) repayable together with further interest @ 13.20% p.a., compounded with monthly rests from the date of application till the 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 defendant (both movable and immovable) to recover the balance dues as required under law, for which the Defendant to disclose to the Tribunal particulars of other properties or assets owned by the 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

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defendant 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 defendant 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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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 (Suriya), transcribed by him, corrected, signed and pronounced by me on this the 08^th day of August, 2025)

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK :

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AW-1: Mr. Govind L Ballal, Chief Manager representing the applicant bank

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Exhibits on the part of the Applicant:

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Sl.	Description of Documents	Exhibit
No.		No.
1.	Application from along with sanction terms and conditions accepted by and duly signed by the defendant.	A-1
2.	Memorandum of Loan Agreement for	A-2
	Commercial Vehicle Loan executed by the

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	defendant dated 12.07.2016.
3.	Irrevocable Power of Attorney executed by the defendant dated 12.07.2016.	A-3
4.	Demand Promissory Note for amount of Rs.19,60,000/- executed by the defendant dated 12.07.2016.	A-4
5.	Letter waiving Presentment of Pronote executed by the defendant dated 12.07.2016.	A-5
6.	Relinquishment of All Claims executed by the defendant dated 12.07.2016.	A-6
7.	Money Receipt for amount of Rs.19,60,000/- executed by the defendant dated 12.07.2016.	A-7
8.	Certificate of Registration Form-23 for vehicle No.TN 11 S 9075 dated 14.07.2016.	A-8
9.	Permit in respect of Particular contract carriage for vehicle No.TN 11 S 9075 dated 19.07.2016.	A-9
10.	Certificate of Registration-Form-23 for vehicle No.TN 11 S 9146 dated 14.07.2016.	A-10
11.	Permit in respect of Particular Contract Carriage for vehicle No. TN 11 S 9146 dated 19.07.2016.	A-11
12.	Certificate of Registration-Form-23 for vehicle No.TN 11 S 9174 dated 14.07.2016.	A-12
13.	Permit in respect of particular contract carriage for vehicle No. TN 11 S 9174 dated 19.07.2016.	A-13
14.	Certificate of Registration-Form-23 for vehicle No.TN 11 S 9239 dated 15.07.2016.	A-14
15.	Permit in respect of particular Contract Carriage for vehicle No.TN 11 S 9239 dated 19.07.2016.	A-15
16.	Statement of Accounts for A/c. No.33160001161 from 12.07.2016 to 06.09.2020 dated 07.09.2020.	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

State Bank of India v. Barathibasha

Case brief

What is this about?

What did the court decide?

State Bank of India v. Barathibasha

Case brief

What is this about?

What did the court decide?

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